TRANSMITTAL LETTER FOR BOARD MEETING OF OCTOBER 21, 2010
COMMITTEE ON PROCUREMENT
Mr. Richard Lanyon, Executive Director
Title
Authority to increase Contract 01-198-AD Demolition of Sludge Disposal Building and Rehabilitation of Pump and Blower House and Coarse Screen Building at the Stickney Water Reclamation Plant, to IHC Construction Companies, LLC, in an amount of $139,006.92, from an amount of $30,576,466.73, to an amount not to exceed $30,715,473.65, Accounts 101-50000-612680, 401-50000-645680, and 645780, Purchase Order 5000961
Body
Dear Sir:
On December 18, 2008, the Board of Commissioners authorized the Director of Procurement and Materials Management to award Contract 01-198-AD Demolition of Sludge Disposal Building and Rehabilitation of Pump and Blower House and Coarse Screen Building at the Stickney Water Reclamation Plant (WRP), to IHC Construction Companies, LLC, in an amount not to exceed $28,490,000.00. The scheduled contract completion date is February 1, 2011.
As of October 8, 2010, the attached list of change orders has been approved. The effect of these change orders resulted in an increase in the amount of $2,086,466.73 from the original amount awarded of $28,490,000.00. The current contract value is $30,576,466.73. The prior approved change orders reflect a 7.32% increase to the original contract value.
Item 1: A net extra in the amount of $ 21,551.08 to add steel columns and reinforce existing steel beams to the southeast corner of the Pump and Blower Building. The contract involves the demolition of the Sludge Disposal Building. The southeast corner of the adjoining Pump & Blower Building is supported by a portion of the structural steel framing of the Sludge Disposal Building. In order to demolish the structural framing of the Sludge Disposal Building, the southeast corner of the Pump & Blower Building must be re-supported by adding steel columns and reinforcing the existing steel beams. The details required to re-support the southeast corner were not shown on the contract drawings. Shelf angles to support new face brick are deleted from the contract work as the existing beams can be used to support the face brick. The contractor submitted a cost proposal (CCO-32) for an extra in the amount of $27,148.02 and a credit in the amount of $5,596.94 for a net extra in the amount of $21,551.08. The engineer reviewed the proposal, found it reasonable, and stated via correspondence 590, that the Engineering Department would recommend its approval.
Item 2: A net extra in the amount of $8,325.90 to alter the route of ductwork through the switchgear room to provide more space for the Maintenance & Operations Department to remove switchgear components for maintenance. The contractor submitted a cost proposal (CCO-36) for an extra in the amount of $11,672.10 and a credit in the amount of $3,346.20 for a net extra in the amount of $8,325.90. The engineer reviewed the proposal, found it reasonable, and stated via correspondence 586, that the Engineering Department would recommend its approval.
The above two change orders are in compliance with the Illinois Criminal Code since the changes are germane to the contract.
Item 3: An extra in the amount of $101,575.91 to perform asbestos abatement at various locations above elevation +46.5 of the Pump and Blower House Building. During the demolition of the Sludge Disposal Building, the contractor discovered asbestos between the steel plates of bins below sludge separators, inside the ducts, inside a smoke stack, inside an elevator shaft, outside of miscellaneous piping and outside of a duct on the roof. The asbestos abatement of these items was not included in the contract because at the end of a previous contract for asbestos removal, these areas were certified as asbestos free by an independent consultant based on their visual inspection and limited testing. The contractor submitted a cost proposal (CCO-37) in the amount of $101,575.91. The contractor completed the work at his own risk as determined in his best interest in executing the overall contract. The engineer reviewed the proposal, found it reasonable, and stated via correspondence 589, that the Engineering Department would recommend its approval.
Item 4: An extra in the amount of $7,554.03 to perform additional asbestos abatement at the Sludge Disposal Building. During the demolition, the contractor uncovered pipes containing asbestos inside an abandoned air intake shaft next to the elevator shaft. The presence of this asbestos was not able to be detected during design. The contractor submitted a cost proposal (CCO-43) in the amount of $7,424.34. This extra work amount has been revised by the engineer because of a calculation error in the contractor’s proposal. The contractor completed the work at his own risk as determined in his best interest in executing the overall contract. The engineer reviewed the proposal, found it reasonable, and stated via correspondence 615, that the Engineering Department would recommend its approval.
The above two change orders are in compliance with the Illinois Criminal Code since the change is due to circumstances not reasonably foreseeable at the time the contract was signed, and is in the best interest of the District.
It is hereby recommended that the Board of Commissioners authorize the Director of Procurement and Materials Management to execute four change orders to increase Contract 01-198-AD in an amount of $139,006.92 (0.45% of the current contract value) from an amount of $30,576,466.73 to an amount not to exceed $30,715,473.65.
Funds are available in Accounts 101-50000-612680, 401-50000-645680, and 645780.
Requested, Kenneth A. Kits, Director of Engineering, TEK:JKK
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Barbara J. McGowan, Chairman Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for October 21, 2010
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