HomeMy WebLinkAboutChange Order No. 2 - Demo of SB Medical Found Proj No 123-076 - MRD Group
ELIZABETH A. MARADIK JOSEPH R. MOLNAR GARY A. GILOT MURRAY L. MILLER BREANA N. MICOU
1316 COUNTY-CITY BUILDING
227 W. JEFFERSON BOULEVARD
SOUTH BEND, INDIANA 46601-1830
PHONE 574/ 235-9251
FAX 574/ 235-9171
CITY OF SOUTH BEND JAMES MUELLER, MAYOR
BOARD OF PUBLIC WORKS
November 12, 2024
Mr. Joseph Gozelski
The MRD Group, Inc.
4777 W. Lincoln Ave.
West Milwaukee, WI 53219
gozelski@themrdgroup.net
RE: Change Order No. 2 – Demolition of South Bend Medical Foundation – Project No.
123-076
Dear Mr. Gozelski:
At its November 12, 2024 meeting, the Board of Public Works approved the above
referenced Change Order be increased by $36,000 with an additional thirty (30) days, bringing
the revised contract amount to $1,838,562.50 with a new completion date of February 18, 2025.
Enclosed is a copy of the Change Order for your records.
If you have any further questions, please call this office at (574) 235-9251.
Sincerely,
/s/ Theresa Heffner
Theresa Heffner, Clerk
Enclosures
TH/hh
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.
November 12, 2024
BOARD OF PUBLIC WORKS
AGENDA ITEM REVIEW REQUEST FORM
Date 11/01/2024
Name Zach Hurst Department DPW
BPW Date 11/12/2024 Phone Extension 3057
Review and Approval Required Prior to Submittal to Board
Diversity Compliance
and Inclusion Officer Officer Name
BPW Attorney Attorney Name
Dept. Attorney Attorney Name
Purchasing
Check the Appropriate Item Type – Required for All Submissions
Professional Services Agreement Contract Proposal
Open Market Contract Amendment/Addendum Special Purchase, QPA
Bid Opening Bid Award Req. to Advertise Title Sheet
Quote Opening Quote Award Reject Bids/Quotes
Proposal Opening C/O & PCA No. PCA
Chg. Order, No. 2 Traffic Control Resolution
Other: Ease./Encroach
Required Information
Company or Vendor Name The MRD Group
New Vendor Yes If Yes, Approved by Purchasing
No
MBE/WBE Contractor MBE
WBE Completed E-Verify Form Attached Yes
No
Project Name Demolition of South Bend Medical Foundation (531 N. Main St.)
Project Number 123-076
Funding Source River West DA TIF
Account No. PO-00031911
Amount This change: $36,000; Revised Amt.: $1,838,562.50
Terms of Contract Lump Sum
Purpose/Description Change Order No. 2 addresses a delay claim from the Contractor due to utility
shutoff delays.
For Change Orders Only
Amount of Increase
Decrease
$ 36,000
($ )
Previous Amount $ 1,802,562.50
Current Percent of Change:
Increase
Decrease
2.00%
( %)
New Amount $ 1,838,562.50
Total Percent of Change:
Increase
Decrease
4.29%
( %)
Time Extension Amount: 30 days
New Completion Date: 02/18/2025