Title
Resolution to Approve a Change Order to the Construction Contract with CI Contracting, Inc. for the Swift Run Parallel Relief Sewer Project ($144,179.00)
Memorandum
Attached for your review and approval is a resolution to approve a change order to the construction contract to CI Contracting, Inc. in the amount of $144,179.00 for the Swift Run Parallel Relief Sewer Project.
Project Background
The project consisted of constructing a 27" diameter parallel relief sewer to the Swift Run Sanitary Trunk Sewer to provide capacity for peak and predicted future flows. During wet weather, overflows had occurred in the trunkline. The project was located outside of the City limits within Pittsfield and Ann Arbor Townships. Beginning in November 2000 and with the addition of two amendments, CDM Michigan was hired to provide the design, construction engineering, inspection, and staking.
Construction Change Order
In August 2008, the contract for construction was awarded to CI Contracting (08-0694). Construction began May 19, 2009 and was completed September 29, 2009. A number of design and construction related changes were realized after the construction contract had been awarded. Below is a summary of the additions to CI's construction contract.
§ Tree Removals. As plans were prepared, the number of trees indicated for removal was underestimated, and did not accurately reflect the actual site conditions. The contractor had to remove 56 trees in addition to what was identified on the plans to provide room for equipment and construction activities. As a result of the additional tree removals, the number of mitigation trees required increased and so did the variety of species for the mitigated trees. An additional 39 trees were required for mitigation.
§ Outside Agency Permits. Because the project took place within Pittsfield and Ann Arbor Townships, those agencies oversaw much of the construction. Prior to construction, communication with each agency indicated that the permit requirements would be met with the design as shown. However, each of the permitting agencies requested additional work to be completed as a condition of the construction permit, including insulating shallow pipe, extending the depth of toewalls for a concrete encasement of the proposed sewer crossing of Swift Run, and installing a stone entrance to the work site to minimize mud tracking. These requirements resulted in extra work for the Contractor. In addition, there were inspection fees associated with some of these permits. These costs and additional work were unforeseen for the bidders.
§ Pipe Undercut. Due to the excessive groundwater encountered along Shetland Drive, alternate methods of construction were required to install the pipe. It was estimated that the work could be completed in the areas of groundwater using the bid item of Pipe Undercut and Backfill, but that this cost would greatly exceed dewatering charges. It was agreed that dewatering would be reimbursed for this segment of sewer construction to avoid the excessive construction costs.
§ Dewatering. As CI excavated their bore pit on the north side of Clark Road for the proposed jack and bore crossing of Clark Road, they encountered groundwater and installed dewatering pumps on both sides of Clark in late June. After a month of dewatering, a second set of pumps were installed in an attempt to lower the level faster. CI contends that groundwater levels encountered were not anticipated, as one soil boring on the north side of Clark indicated groundwater, but the other boring on the south side indicated no water. It has been agreed to reimburse CI for the dewatering pumps used on the south side of Clark Road.
§ Citizen Requests. At the completion of construction and restoration, a number of residents requested additional work with regards to landscaping. The character of the area had changed significantly due to the additional tree removals required for construction. Although restoration was completed in accordance with the plans, it was determined reasonable to provide these additional items requested by the residents.
CI Contracting initially requested $195,159.00 for the change order related items. Based on our design consultant (CDM Michigan) and staff's review, a total change order not to exceed $144,179.00 is requested. The initial project budget included a contingency amount of $75,000.00. That amount needs to be increased by $69,179.00 to cover the total $144,179.00 change order amount.
Staff
Prepared by: Homayoon Pirooz, P.E., Project Management Manager
Reviewed by: Sue F. McCormick, Public Services Administrator
Approved by: Roger W. Fraser, City Administrator
Body
Whereas, The Swift Run Parallel Relief Sewer was constructed to address sanitary sewer overflows within the City's sanitary sewer system;
Whereas, In August 2008 a contract in the amount of $574,383.00 was awarded to CI Contracting, Inc. for the construction of the Swift Run Parallel Relief Sewer Project;
Whereas, A contingency amount of $75,000.00 was established within the project budget;
Whereas, Additional work due to design and construction related items resulted in additional costs of $144,179.00 to the Contractor and the established contingency amount of $75,000.00 is not sufficient to cover all those costs; and
Whereas, Funding for the amendment is available in the previously approved capital budget and established project budget;
RESOLVED, That the contingency amount within the project budget be increased from $75,000.00 to $144,179.00 and that the City Administrator be authorized to approve additional change orders to the construction contract with CI Contracting, Inc., not to exceed $144,179.00 in order to meet the agreements of the existing contract for the project;
RESOLVED, That the City Administrator be authorized to take the necessary administrative actions to implement this resolution.