AGENDA #4i
| TO | Roger L. Stancil, Town Manager |
| FROM | Bill Letteri, Public Works Director |
| SUBJECT | Change Order Authority for the Community Center System Replacement and Repairs Project |
| DATE | May 21, 2007 |
The attached resolution would authorize the Manager to approve change orders for this project as necessary up to a cumulative total of $140,000, but not to exceed the combined total project cost of $2,260,000 (construction cost plus contingency) without additional Council action.
On September 27, 2006, the Council adopted a resolution awarding the bid in the amount of $1,960,500 to Lomax Construction, Inc. for the Community Center System Replacement and Repairs Project. The Council also adopted an Ordinance transferring $350,000 from the appropriated fund balance for additional funding for the project, thereby increasing the total project budget to $2,260,000. The total project budget includes $140,000 for construction contingencies.
Construction began on schedule on January 2, 2007 with project completion expected during August 2007. At this time the project is about 35 percent completed. The roof replacement is 100 percent completed and the new windows at the front of the building and in the pool are installed. Work has begun on the installation of the new mechanical systems. We will not install the new gym floor until the air conditioning is up and running in the gym in about two weeks.
To date, we have approved five change orders at a total cost of $33,996 or about 24 percent of the available contingency funds. These changes include several plumbing improvements, modifications to the three administrative offices in the front of the Community Center, pipe insulation work to replace aging or damaged insulation, installation of the solar hot water system, replacement of damaged exterior sheet metal panels and replacement of the ceramic floor tile in shower rooms and locker rooms.
We are currently negotiating additional change orders including the addition of a new handicapped accessible water fountain in the pool area ($3,200) and the replacement of the vinyl floor tile in the lobby and meeting room ($17,700). There may be other unanticipated changes before the end of the project. We expect that the total cost of change orders will exceed the $50,000 approval authority of the Town Manager in the near future and that other unanticipated change orders may arise during the Council’s summer break.
The Council’s policy requires that Council approval is necessary for change orders for construction contracts, which cumulatively total more than 10 percent of the contract, or $50,000, whichever is less. Because this is a large and complex project, we anticipate that change orders will likely total more than $50,000. Often, the delay needed to request Council approval of a change order can be problematic if the timing of the approval as required by the contract does not coincide with the Council’s calendar (especially during breaks in the Council’s meeting schedule). We are recommending authorization for the Manager to approve change orders up to a total of $140,000 (project contingency), but not to exceed the combined total project cost of $2,260,000 (construction cost plus contingency) without additional Council action.
We recommend that the Town Council adopt the attached resolution authorizing the Manager to approve change orders up to a total of $140,000 (project contingency), but not to exceed the combined total project cost of $2,260,000 (construction cost plus contingency) without additional Council action for the Community Center System Replacement and Repairs Project.