Review of Liquidated Damages - L.D.Docsa - WWTP Primary Clarifier Upgrades & Equipment Rehab 111-071

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INTER -OFFICE MEMORANDUM DEPARTMENT OF PUBLIC WORKS DIVISION OF ENVIRONMENTAL SERVICES TO: Members of the Board of Public Works Eric Horvath, Director of Public Works Michael Schmidt, Board of Public Works Attorney FROM: Al Greek, Director of Utilities Jacob M. Klosinski, Assistant City Engineer SUBJECT: Agenda Request Form — Review of Liquidated Da Project No. 111-071 Wastewater Treatment Plant Rehabilitation and Equipment Upgrades DATE: July 19, 2016 Board of Public Works Members: APPROVED Baerd of Public Works 2 The City of South Bend Division of Utilities has reached substantial and final completion for Project No. 111-071 WWTP Primary Clarifier Rehabilitation and Equipment Upgrades. The General Contractor, L.D. Docsa & Associates, completed their project work as required by the Contract Documents to the satisfaction of the Division of Utilities and the Engineer of Record. Before the project can move to final closeout, the Board of Public Works must review its previous discussions on the subject of liquidated damages for the delays associated with the construction work at Primary Clarifier Tank 5. The work at Primary Clarifier Tank 5 experienced delays as a result of delayed equipment delivery from Evoqua Water Technologies, LLC (formerly Siemens). Evoqua originally quoted a 15-week delivery schedule. The first set of parts arrived 31 weeks after the approval of shop drawings. Background On November 6, 2012, AEA Investors LP acquired Siemens Water Technologies, LLC. Bids for the subject project were opened on December 11, 2012 and the project was awarded on December 20, 2012. It was uncertain at that time how the acquisition would affect the project, but the City was assured through shop drawing submittals and discussion with L.D. Docsa, that Evoqua committed to a 15-week delivery schedule. Evoqua did not deliver the equipment as scheduled. Performance of the subcontractors and suppliers are the responsibility of the General Contractor, per the Contract Documents (Section 00 72 13, 12.03 B). Equipment delivery delayed the start of construction at Primary Clarifier Tank 5 until late October 2013. Delays associated with equipment delivery and inclement weather pushed the completion of the first tank into Spring/Summer 2014. The Shutdown period for each Primary Clarifier was set at 74 days per Tank. This included a 14 day dual shutdown period for adjacent clarifiers for walkway work and demolition activities. The only tank that experienced significant delays was Primary Clarifier Tank 5. All other