TRANSMITTAL LETTER FOR BOARD MEETING OF MAY 21, 2020
COMMITTEE ON PROCURMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authorization to execute settlement agreement for Contract 10-237-3F, Streambank Stabilization on Oak Lawn Creek, to Judlau Contracting Inc. in an amount of $773,500.00, from an amount of $3,079,848.82, to an amount not to exceed $3,853,348.82, Account 501-50000-645720, Purchase Order 4000039
Body
Dear Sir:
On September 1, 2016, the Board of Commissioners authorized the Director of Procurement and Materials Management to award Contract 10-237-3F, Streambank Stabilization on Oak Lawn Creek, to Judlau Contracting Inc., in an amount not to exceed $3,035,000.00. The contract completion date was December 27, 2018.
As of May 8, 2020, the attached list of change orders has been approved. The effect of these change orders resulted in an increase in the amount of $44,848.82 from the original amount of $3,035,000.00. The current contract value is $3,079,848.82. The prior approved change orders reflect a 1.48% net increase to the original contract value.
The scope of Contract 10-237-3F included drilling a total of 152 24-inch diameter pile shafts to construct a soldier pile retaining wall system. Shortly after beginning drilling on July 31, 2017, the contractor notified the District that obstructions were encountered in the first two drilled shafts and claimed that the work should be considered an extra to the contract. The District informed the contractor of the geotechnical information available in the contract documents, which indicated that boulders were present at various depths and should be expected to be encountered during construction. On August 15, 2017, the contractor was directed to resume drilling operations for the remaining soldier piles in accordance with the contract documents.
In September 2018, after drilling was completed, the contractor submitted a change order request for labor, material, and equipment costs based on their claim of differing site conditions in an amount of $2,414,366.30. The contractor’s claim included drilling reports documenting the obstructions encountered during drilling and sought reimbursement for costs associated with increased construction time, additional construction materials, excess spoils, and damaged equipment. The District evaluated this claim and obtained an independent cost estimate based on the encountered site conditions. This analysis concluded that the obstructions could account for an increased construction cost of $773,500.00. As a result, the District has offered the contractor $773,500.00 to settle their claim for additional costs, which would be paid to the contractor contingent upon executing a Settlement Agreement and Release as a condition of payment and approval by the Board of Commissioners. All work has been completed on the subject project, therefore, the Engineering Department recommends approval of this change order in the amount of $773,500.00.
This change order is 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 a change order to increase Contract 10-237-3F in an amount of $773,500.00 (25.11% of the current contract value), from an amount of $3,079,848.82, to an amount not to exceed $3,853,348.82.
It is further requested that the General Counsel be authorized to execute said settlement agreement and release on behalf of the District as well as any documents necessary to effectuate this settlement, upon approval by the Director of Engineering as to technical matters and by the General Counsel as to form and legality.
Funds are available in Account 501-50000-645720.
Requested, Catherine A. O’Connor, Director of Engineering, WSS:JK
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 May 21, 2020
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