Contract Cancellation - Cancel Gemini at Colfax – Exterior Renovations - Windows Contra – Vic Butcher Construction

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Page 1 of 1 INTER-OFFICE MEMORANDUM DEPARTMENT OF PUBLIC WORKS DIVISION OF ENGINEERING TO: Theresa Heffner, Clerk Board of Public Works FROM: Zach Hurst, Project Engineer SUBJECT: Contract Cancellation – Contractor Default 119-103 Gemini at Colfax – Exterior Renovations – Division E DATE: March 17, 2022 Notice to Proceed for Division E of project 119-103 Gemini at Colfax – Exterior Renovations – Window Replacement was issued in August of 2020, and Vic Butcher Construction (VBC) began work. Work continued for several months until April 2021, when a site visit from Indiana Department of Environmental Management (IDEM) noted that lead paint may be present at the building. At the time of construction, VBC did not have the proper Environmental Protection Agency (EPA) certification to perform renovations which may disturb lead paint. VBC then began the process to gain EPA certification to be able to resume work at the building, replacing the remaining windows – covering a total of 6 apartment units. In March of 2022, the City was notified by South Bend Heritage, owner of the Gemini-Colfax Apartments, that VBC no longer existed as a Contractor. VBC had lost all their skilled-trades employees during the labor market disruptions seen during the Covid-19 pandemic. To that end, in accordance with the City’s Standards and Specifications included in Public Works contracts, VBC was notified of their Event of Default – namely an unauthorized discontinuation of work. VBC was given a 10-day period to cure the Event of Default, beginning on April 7, 2022. A copy of that notification is attached. The 10-day period to cure has passed, and the City now intends to cancel the remainder of the contract, totaling $58,001.28. The funds will be used to find a contractor to install the remaining windows in accordance with EPA requirements. April 26, 2022