Change Order No. 2 - Demo of SB Medical Found Proj No 123-076 - MRD Group

Home Browse Search

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, PE, Sr. Project Engineer SUBJECT: Change Order No. 2 - Project No. 123-076 Demolition of South Bend Medical Foundation DATE: 11/01/2024 Change Order no. 2 for the subject project for $36,000 is payment of a delay claim from the contractor. For all building demolitions inside the city limits, the city’s Water Works crews must physically demolish all taps to any city-owned water mains before the Building Department will issue a demolition permit. It is a city-controlled process. Notice to Proceed for the project was issued on June 21 of this year, with utility shutoff coordination beginning immediately after that. Water shutoffs were originally requested to be complete by September 11. Due to staffing issues, other emergency repairs around the city, and unforeseen conditions with the Lafayette Boulevard water main, shutoff did not occur until October 11. During the delay, Water Works was unable to provide a firm schedule for shutoff. The contractor already had a full crew and equipment mobilized to the site, which then had to sit idle for one month while the water shutoffs were completed. The contractor has asked to be reimbursed for their labor cost during this period, which they estimated at $72,000, calculated as follows: 9-man crew x 8 hours per day x $50 per hour rate x 20 business days = $72,000 They have requested a payment of $36,000 to offset their losses, half of the calculated amount. They are not seeking any payment for equipment rental. Given that a city-controlled process caused the delay, staff find this delay claim to be valid.