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Home My WebLink AboutChange Order No. 1 - Majority Builders - Marriott Hotel Site Development at Hall of Fame, Phase 11316 COUNTY -CITY BUILDING 227 W. JEFFERSON BOULEVARD SOUTH BEND. INDIANA 46601-1830 Mr. Rick Slagle Majority Builders, Inc. 62900 US 31 South South Bend, IN 46614 SOU T[J E. W PEAS Ce� 7e.f''c, 1865 CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR BOARD OF PUBLIC WORKS September 27, 2016 PHONE 574/235-9251 FAX 574/235-9171 RE: Change Order No. I — Marriott Hotel Site Development at the Hall of Fame, Phase 1 Project No. 116-021 Dear Mr. Slagle: The Board of Public Works, at its meeting held on September 27, 2016, approved the above referenced Change Order for an increase of $87,580.45, bringing the current contract amount to $818,829.38 and extending the length of the contract by thirteen (13) days for a new completion date of October 14, 2016. Enclosed is a copy of the Change Order for your records. If you have any further questions regarding this matter, please call this office at (574) 235- 9251. Sincerely, J Linda M. Martin, Clerk Enclosure c: Richard Estes, Engineering Toy Villa, Engineering GARY A. GILOT DAVID P. RELOS ELIZABETH A. MARADIK JAMES A. MUELLER THERESE J. DORAU CITY OF SOUTH BEND DEPARTMENT OF PUBLIC WORKS PROJECT CHANGE ORDER DATE: PROJECT NO: PROJECT NAME: CONTRACT DATE: CHANGE ORDER NO. SUBJECT OF CHANGE ORDER: All items completed substantially as 9-27-2016 116-021 See attached Comparison of Estimate for overruns The original contract sum Net change by previously authorized change orders The contract sum prior to this change order By this Change Order, the project amount is The new contract sum including this change order This Change Order represents a total change of Total change for entire project Original contracted completion date/time Extension of date/time by previous change orders Date/time extension by this change order New completion date/time CONTRACTOR Contractor Signature' l4tG44— stet d�L, Printed Name and TitlEr Majority Builders Inc. Company name 62900 US 31 South 46614 Address South Bend Indiana City, State, Zip nsion and additional work. See attached explanation and underruns. $ 731,348.93 $ 0.00 $ 731,348.93 ® Increased ❑ Decreased $ 87,580.45 $ 818,929.38 11.98 % 11.98 % 10-1-2016 0 days 13 days 10-14-2016 RECOMMENDED FOR APPROVAL —U M //Y/ <�A— Project Manager CITY OF SOUTH BEND BOARD OF PUBLIC WORKS Approved Date: 4127/2-0 A- i David P. Relos, em er Therese J. Dorrau,u, Menl er Jarp�s A. Mueller, Member INTER -OFFICE MEMORANDUM DEPARTMENT OF PUBLIC WORKS DIVISION OF ENGINEERING TO: Linda M. Martin, Clerk Board of Public Works FROM: Richard Estes, Engineer I SUBJECT: Marriott Hotel Site Development at Hall of Fame, Phase 1 Time extension and costs related to excavation of unsuitable materials Project No. 116-021 DATE: September 20, 2016 Here is an explanation for the Change Order being submitted. The reason(s) for the Change Order request is as follows: 1. The clearing of the site subgrade contained more unsuitable debris, foundations and uncompacted soils than originally anticipated. New unit prices were negotiated with the contractor and the method of measuring quantities was agreed upon between the City and the contractor. 2. The building foundations and slab, item 54, unit price also included the construction of the pool. It was decided by the developer and designer to delay the finishes of the pool to a later phase for protection purposes during construction. The cost adjustment to item 54 is also included in change order number 1. The cost for the work will be $87,580.45. This represents an increase of 11.98% for the overall project cost. Please call me with your questions (5896). Change Order No.1 Marriott Hotel Site Development Phase 1 Project No. 116-021 OWNER: City of South Bend ENGINEER: JPR CONTRACTOR: Majority Builders Inc. PROJECT: Marriott Hotel Site Development Phase 1 SUBJECT: Change Order Number 1, Explanation of Costs ISSUE DATE: September 27, 2016 This Change Order to the Contract document shall supplement, amend, and shall become a part of, and be incorporated as an Addendum to the Contract. The following is a summary and description of the revisions to the Contract by this Change Order: A review by the Soils Engineer, Weaver Consultants Group, indicated the site contained unsuitable fill and had been backfilled in an uncontrolled manner. The building foundations need to be over excavated and replaced with screened material or suitable compacted fill. Project delays were experienced by the scoping of the work, pricing, the decision making process, and the mobilizing of special screening equipment. New unit prices were negotiated with the contractor and the method of measuring quantities was agreed upon between the City and the Contractor. Majority Builders Group is also requesting a 13 calendar day time extension, for which they have agreed not to pursue charges related to general project cost resulting from the delay. See the attached email for the correspondence with Majority Builder's Project Manager. The building foundations and slab, item 54 in the original bid documents, unit price also included the construction of the pool. It was decided by the developer and designer to delay the finishes of the pool to a later phase for protection purposes during construction. The work description for the changes applied to this change order is describe below: Work Description- Adjustments to item 54 (Building Foundation and Slab) $355,698.00: 1. Delete pool tile, plaster finish, ladders, lift, coping stone from phase 1 Deduct $14,000.00 2. Delete decorative pool concrete slab approx. 800 SF. Deduct $7,920.00 3. Delete poly slot trench drain at pool deck Deduct $1,584.00 4. Modify foundation wall for future electrical conduit Add $411.00 5. Furnish 4-inch conduit for Metro -net fiber optic service Add $606 00 Subtotal ($22,487.00) A copy of the contractor's justification of additional days is attached to this document. SHEET 1 OF 2 Change Order No.1 Marriott Hotel Site Development Phase 1 Project No. 116-021 The following sections of the Contract Documents are revised as a result of the above changes: XIII. PROSECUTION AND PROGRESS Revise the following: 1. The project will have a completion date of QotebeFT, 2016 October 14, 2016. The contract time will start when the Notice to Proceed is delivered and signed. BID/PROPOSAL: Add Line Item No. 56: Est. Qty. 3,955 CYS, "Excavate, Screen Place in Lifts and Compact", Unit Price of $18.27 per CYS, Total Cost: $72,257.85 Add Line Item No. 57: Est. Qty, 1 LS, "Mobilization/Demobilization of Equipment (Screening Plant)", Unit Price of $8,883.00 LS, Total Cost: $8,883.00 Add Line Item No. 58: Est, Qty. 884 CYS, 'Borrow", Unit Price of $21.35 per CYS, Total Cost: $24,177.40 Add Line Item No. 59: Est. Qty. 1,100 CYS, "Export and dispose of unsuitable/recyclable materials", Unit Price of $18.27 per CYS, Total Cost: $20,097.00 Add Line Item No. 60: Est. Qty. 13.5 HR, "Removal of footers and disposal off site on T & M basis", Unit Price of $224.00 per FIR, Total Cost: $2,968.00 Add Line Item No. 61: Est. Qty. 1 ALLOWANCE, "Concrete Foundation, Remove, Allowance Paid", Unit Price of ($20,000), Total Cost: ($20,000.00) Revise Line Item No. 18: Est. Additional Qty. 105 CYS, "Common Excavation", Unit Price of $16.04 per CYS, Total Cost: $1,684.20 Deduct from Line Item No. 54: Est. Qty. 1 LS, 'Building Foundation and Slab", Unit Price of ($22,487.00) LS, Total Cost: ($22,487.00) Total Change Order Request: $87,580.45 END CHANGE ORDER 1 SHEET 2 OF 2 August 12, 2016 (REVISED SEP. 2) Marriott Hotel Site Development Phase 1 121 S. St. Joseph St South Bend, IN Meeting to review foundation removal/delays PROJECT# 2016-190 In Attendance: Toy V., Rich E. — City of SB Steve F. — DLZ Matt F. — Majority John B. — Boettcher Excv Summary of delay: Add (13) additional calendar days duration Friday, July 29: Steve Fletcher, Paul Lloyd, Toy Villa met on site to review discovered foundations and discuss how to proceed Sunday, July 31: Steve Fletcher emailed directive to Majority (and all) for unit price request Monday, August 1: Dave Paston emailed all parties notifying that construction has stopped Tuesday, August 2: Dave Paston emailed costs associated with unit line items from DLZ Thursday, August 4 (morning): Progress meeting held on site including Matt Flick, Dave Paston, Toy Villa, Chris Chockley, Steve Menis, Rich Estes, Brad Dailey, Paul Lloyd, Michael Maust, and Brian Hartline. During which the unit pricing of the additional excavation work was discussed. Thursday, August 4, 4:16 p.m.: Rich Estes emails Matt Flick informing him that the gas meter/service line to the HOF has been retired and that work may proceed in the area of sanitary utility on the northern edge of the property. Friday, August 5, 2016, 11:24 a.m.: Matt Flick emails Rich Estes "I did just want to clarify that we are not back today working and why - Chris C. noted one item we could do is start the excavation for the concrete pad (which is to protect the sewer line) when the gas line retired, which was the end of the day yesterday. However, I don't think that it would be practical to start dissecting the already small site with open excavations when we will have to plan for location and access of a portable soil screening plant on site, including areas designated for spoil piles, etc." Working at the location of the former gas main and service line was not possible due to the critical path of the project. Friday, August 5, 2:35 p.m.: Matt Flick emails revised unit pricing to CSB Monday, August 8, 9:26 a.m.: Rich Estes emailed us notifying to proceed Rich Estes From: mtflick33@gmail.com on behalf of Matt Flick <matt@ majoritybuilders.com > Sent: Monday, September 12, 2016 1:14 PM To: Rich Estes Cc: Toy Villa; Steve Fletcher (sfletcher@dlz.com); Patrick C. Kerr; Paul Lloyd Subject: Re: Marriott Site Development Delay Claim Hi Rich, Thanks for getting back with me. I have discussed this with my office and reviewed the options. We do feel that the claim for additional general conditions costs is justified and that claim is not excluded or clarified to the contrary within the contract documents. However, I discussed with our office that the City has been very good to work with regarding getting information to us quickly, being flexible and working with us on finding solutions all through this project. I proposed to our office that we not pursue the request for additional costs incurred by project delays. It's my opinion that we (City of SB and Majority) have been a good team and this is one of those items that we can offer flexibility with to help the project given some of the unforeseen costs with the buried debris. I would respectfully ask only that we would be given that same consideration if other issues arise which may extend the duration a little over the contract completion date, offering flexibility in assignment of liquidated damages. If that seems fair to you, we will then only ask for the prior stated addition of time duration without claim for additional costs. Please let me know if this works... Matt On Mon, Sep 12, 2016 at 9:11 AM, Rich Estes <restesksouthbendin.gov> wrote: Matt, After discussing the delay claim with the Board of Public Works Legal Counsel, I have been advised that it is the city's position that compensation pursuant to the delay is not warranted. The decision on granting the time extension has been tabled until such an agreement is made, or if other action is taken. If Majority would like to present further on the proposed justifications for the additional compensation requested, please let me know and I will request this discussion to be placed on the next Board of Public Works Meeting Agenda. Please feel free to contact me should you have any questions. BOARD OF PUBLIC WORKS AGENDA ITEM REVIEW REQUEST FORM Date 9/20/2016 Department Name Richard Estes Division/Bureau Engineering BPW Date 9/27/2016 Phone Extension 5896 Required Prior to Submittal to Board Legal ® Attorney Name: Michael Schmidt Controller ❑ Controller review is required for all Contracts $5,000.00 or more and greater than one year in length per the City Purchasing Policy Purchasing ® George King Check the ❑ Professional Services ❑ Bid Opening ❑ Quote Opening ® Change Order No. 1 ❑ Ease/Encroach. F1 Other: Company or Vendor Name ❑ Resolution ❑ Bid Award ❑ Quote Award ❑ C/O & PCA No. ❑ Traffic Control: New Vendor MBE/WBE Contractor MBE/WBE Contractor Requested Project Name Project Number Funding Source Account No. Amount Terms of Contract Purpose/Description Amount of Majority Builders ❑ Yes ® No Purchasing ❑ MBE ❑ WBE No Yes Name of Marriott Hotel Site Devel 116-021 RWDA TIF 324-1050-460-3102 Public Works ❑ Req. to Advertise ❑ PCA It Yes, App Eii Addendum ❑ Title Sheet Phase I Change order to reflect delay claims of added cost and 13 calendar days (9 working days) due to the unforeseen encountered rubble during excavations for the foundations. ❑ Required Contractor's Certification Forms Attached (Non - Collusion, Non -Discrimination, Non -Debarment, E-Verify, Iran, etc.) Increase $ 87,580.45 and add 13 calendar Decrease $ Previous Amount $ 731,348.93 Current Percent of Change: 11.98% New Amount $ 818,929.38 Total Percent of Change: 11.98% Dispersal After Approval Copy Original ® ❑ Patrick C. Kerr, Jitin Kain ® ❑ Christopher Chockley (JPR) ® ❑ Matt Flick, Majority Builders