AGENDA 4g

 

MEMORANDUM

 

TO:                  Mayor and Town Council

 

FROM:            W. Calvin Horton, Town Manager

 

SUBJECT:      Change Order to the Town Operations Center Site Work Contract

 

DATE:                        April 11, 2005

 

 

Adoption of the attached resolution would authorize a change order in the amount of $147,590 to construct retaining walls as a part of the existing Town Operations Center site work contract. 

 

The purpose of this change order is to facilitate a faster start to the next phase of the Town Operations Center project by permitting construction of two retaining walls as part of the existing site work contract.  The cost of this retaining wall construction was originally estimated as a part of the building construction phase of the project.  Approval of this change order will not increase the total estimated cost of the project.

 

BACKGROUND

 

The Town accepted a bid of $1,029,083 from Sanford Contractors, Inc. to clear, grade and install erosion control and stormwater infrastructure improvements for the Town Operations Center project.  We have issued two previous change orders to this firm totaling $56,821.  These change orders permitted installation of supplemental silt and tree protection fencing, construction of a french drain system to improve subsurface drainage at the Transportation building site, and additional site clearing and material handling associated with the management of excess unsuitable soils.  The current contract is in the amount of $1,085,904.

 

DISCUSSION

 

Under adopted Council policy, the Town Manager may authorize change orders for construction contracts in amounts up to 10 per cent of the total bid.  In the case of the Town Operations Center site work contract, the $147,590 cost of the proposed retaining walls exceeds this 10 per cent amount.

 

When the site work project was originally bid, the proposed retaining walls were not included in the contract specifications because it was believed that elements of vertical construction would be part of the building phase of construction.  This work is related to the existing contract as it is part of the overall grading plan for the building sites on both the Public Works and Transportation portions of the Operations Center.  The current site work contractor, Sanford Contractors, Inc., has a demonstrated ability to construct these walls and has provided the Town with a proposed price for the work that is consistent with the original cost estimate.  Approval of the proposed change order would transfer the cost of retaining wall construction from the building phase of the contract to the current site work phase of the contract and would facilitate a faster start to the remaining work.  The proposed site work contract amount would be increased to a total of $1,233,494.

 

RECOMMENDATION

 

We recommend that the Council adopt the attached resolution authorizing a change order in the amount of $147,590.00 to construct retaining walls as a part of the existing Town Operations Center site work contract.

A RESOLUTION AUTHORIZING A CHANGE ORDER IN THE AMOUNT OF $147,590 TO CONSTRUCT RETAINING WALLS AS A PART OF THE EXISTING TOWN OPERATIONS CENTER SITE WORK CONTRACT (2005-04-11/R-4.2)

 

WHEREAS, retaining walls are necessary components of the Town Operations Center project; and

 

WHEREAS, the current site work contractor, Sanford Contractors Inc., has provided a price to construct these walls that is consistent with their previously estimated cost; and

 

WHEREAS, including retaining wall construction as a part of the site work contract will facilitate a faster start to future phases of construction;

 

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council authorizes a $147,590 change order to Sanford Contractors, Inc. to construct retaining walls as a part of their existing Town Operations Center site work contract.

 

This the 11th day of April, 2005.