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

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Primary Clarifiers were completed within the specified shutdown period required by the Contract. In addition to potential liquidated damages for Primary Clarifier Tank 5, the City incurred additional consulting expenses of $39,510.00 for inspection and construction services. Per Section 00 52 13 Item 4.05 A, the contractor shall pay Owner for costs reasonably incurred by Owner for engineering and inspection forces employed by Owner relative to the Work. Summary of Liquidated Damages History for Primary Clarifier Tank 5 • The Primary Clarifier Tank 5 Shutdown lasted 270 calendar days (October 21, 2013 through July 18, 2014). • Potential liquidated damages are assessable up to 196 calendar days (270 days total — 74 days allowed = 196 days). • The Board of Public Works approved Change Order No. 3 which addressed 98 days of inclement weather from December 2013 through April 2014. Since Primary Clarifier work occurred during the inclement weather period, Utilities understands this adjustment to impact the potential liquidated damages calendar days. The number of days assessable for liquidated damages should be adjusted to a maximum of 98 calendar days. • Potential liquidated damages: 98 days x $1,500.00 per day = $147,000.00. • Potential special damages for additional consultant fees, $39,510.00. • Total potential liquidated damage + potential special damages = $186,510.00 At the time liquidated damages discussions were entertained by the Board of Public Works in 2014, the Board of Public Works held a position to hold the assessment of any liquidated damages until later in the project. L.D. Docsa Associates was allowed an opportunity to implement a recovery schedule and increased labor on the project in order to gain back valuable time they lost due to equipment delivery. The Division of Utilities observed a change in the Contractor's approach to complete the work. Additional man hours and longer work weeks resulted in the Contractor meeting its schedules for Primary Clarifier Tanks 1, 2, 3, 4, 6, 7, and 8. Primary Clarifier Tank 5 was the only Primary Clarifier Tank that did not meet the Shutdown Schedule. It is noted that the Board of Public Works assessed a liquidated damage of $8,750.00 for L.D. Docsa Associates not meeting the shutdown schedule associated with the Hydrogritter Installation. This liquidated damage assessment was agreed upon with Change Order No. 4 (Approved by BOPW on July 14, 2015). Summary of Current Contract Costs and Payments Original Contract: $5,043,270.00 Net Changes by Change Orders: $ 107,270.51 Net Percentage Increase by Change Orders: +2.12% Current Contract Total: $5,150,540.51 Recommendations The Division of Utilities observed the contractor's good faith efforts to accelerate the remaining construction schedule and complete all remaining Primary Clarifier Tank construction efforts within the required Shutdown Period. The Contractor met the required shutdown period for all remaining tanks even with addition of structural concrete repairs identified during construction. An increase in labor coupled with the Contractor's improved communication through the