AgdaPkt 2010-03-08 - Laserfiche WebLink

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REPORT 6.2A Page 1 To the Honorable Mayor and City Council From the CI Mana er March 8, 2010 SUBJECT Final Acceptance - Redwood City Recycled Water Project - Phase I - Bid Package 5A - Herkner Extension (Herkner Road and Central Concrete Driveway) RECOMMENDATION Accept, by motion, the Redwood City Recycled Water Project - Phase 1- Bid Package 5A - Herkner Extension (Herkner Road and Central Concrete Driveway) and authorize the release of bonds and retention according to city procedures. BACKGROUND On August 3, 2009, Council awarded the construction contract for the Redwood City Recycled Water Project - Phase I - Bid Package 5A - Herkner Extension (Herkner Road and Central Concrete Driveway) to J&M Inc. of Livermore. Bid Package 5A is the tenth and final distribution pipeline construction project planned as part of Phase 1. The pipeline was extended along Herkner Road and service lines were provided for industrial customers in the Redwood City Port area. The project was awarded for a base bid of $236,478.25 and construction began in October 9, 2009. The project has been successfully completed on schedule in accordance with the plans and specifications. Twelve (12) change orders grouped into three categories shown below and totaling $43,923.71 were issued. The final contract amount is $280,401.96 and 18.57% more than the contract amount initially awarded, exceeding the 10% previously authorized by the Council. Unforeseen subsurface conditions required changes to the method of pipe installation and alignment. Project team management was informed at the time and the decision was made to direct the contractor to proceed with the work to avoid potential delays and extended overhead costs. Description Change Order Activity Amount Jack and Bore Obstructions Unforeseen subsurface conditions caused the jacking 10.53% $24,901.16 shaft to be relocated. Unforeseen Utility Alignments Existing utilities were inaccurately documented which 6.41% 15,158.26 reauired additional work bv the Contractor Additional Concrete Work 1.63% 3,864.29 Total 18.57% $43,923.71 Change orders due to subsurface conditions are often not discovered until work is initiated and is part of the risk inherent to underground construction. Staff regrets exceeding the terms of Council's earlier approval by authorizing work in excess of 100/0 of the original contract amount. However, given the circumstances, stopping the work to seek formal Council approval of change orders in excess of 10% would have exposed the city to greater costs due to delay damages that could be claimed by the contractor. Proceeding with the work avoided additional disruption to area businesses.