DATE: May 24, 2018
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Paul Holzen, City Engineer/Director of Engineering
Jonathan Marston, Assistant Director of Engineering
William Banks, Staff Engineer
SUBJECT:
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Consideration of Change Order No. 2 to the Construction Contract (COF Contract No. 2015-0002) with Eutaw Construction Company, Inc. for the Hillsboro Road Improvements Project Phase 2, Independence Square to Mack Hatcher Parkway (TDOT PIN 108409.00)
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Purpose
The purpose of this memo is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) concerning Change Order No. 2 to the construction contract (COF Contract No. 2015-0002, TDOT PIN 108409.00) with Eutaw Construction Company, Inc. for the Hillsboro Road Improvements Project Phase 2, Independence Square to Mack Hatcher Parkway.
Background
The Hillsboro Road Improvements Project Phase 2 construction contract was awarded by the BOMA to Eutaw Construction Company, Inc. on March 8, 2016, in the amount of $11,995,005.13. The construction contract time started on April 18, 2016, with a contract completion date of June 21, 2017 (430 Calendar Days).
Change Order No. 1 was approved by the BOMA in May 2017. This change order included contract line item additions, line item deletions, and a time extension of 154 calendar days (584 total calendar days). The new completion date was set at November 22, 2017.
The proposed Change Order No. 2 details include the following:
1. Add item number 795-50.10, Additional Work (install DDCV (double detector check valve) with FDC assembly (fire department connection) and vault), Lump Sum to the contract documents. The new plans specified fire service line to Franklin High School did not include this check valve, which is required by the City of Franklin Fire Department.
2. Add item no. 730-12.20, Decorative Traffic Signal Bases, EA., to the contract documents. This item is required for the traffic signal poles and school flasher poles to meet the City of Franklin Street Department standards for new construction in the historic downtown district.
3. Alternate price to provide ADS HP Drainage Pipe and Nyloplast Structures in lieu of RCP and Type 42 Structures.
4. Add pay item 104-04.30 Additional Work (Residence Electrical Service Connection Assessments), Lump Sum, to the contract documents. This item will provide payment for material, equipment and labor needed to prepare inspections/assessments at 39 existing residences to determine what modifications are required at each home to switch the service connections from existing aerial to the new underground power distribution. This assessment will determine a lump sum cost for each individual home to convert the connection, including removal of existing aerial weatherheads and associated soffit and roof repairs and other electrical equipment needed.
5. Add Additional Work (Electric Home Repairs), EA., to the contract documents. The price change includes both electrical work inside and outside the home. Additional general contracting work for cosmetic repairs to the homeowner's house will be accessed and priced separately as the electrical work progresses.
6. Replace Billing Item 730-23.30 Pedestal Pole (Standard) with Billing Item 730-23.30 Pedestal Pole (Decorative); these decorative PED poles are custom made just as the decorative signal poles.
7. Add Additional Work items to the contract documents to provide payment for additional work requested by the City of Franklin and to provide payment for home repairs required due to the changed electrical service connection from aerial overhead to underground.
8. Add additional pavement quantities for milling and scratch mix to prepare roadway surface for final paving.
9. Balance all contract line item quantities based off current pay application #23.
Change Order No. 2 does not include any contract time adjustment. Eutaw Construction is reserving their right to ask for additional contract time in a future change order. Since November 23, 2017, the City has been charging Eutaw Construction liquidated damages in the amount of $1,600 per day.
See attached Exhibit A for the full Change Order No. 2 documentation. This includes TDOT Local Programs Change Orders 12 through 18.
Financial Impact
Resolution 2016-68 included a $500,000.00 contingency allowance for this construction project.
Change Order No. 1 to the construction contract (COF Contract No. 2015-0002) with Eutaw Construction Company, Inc. was a contract increase of $54,579.35. This created a new Contract Price of $12,049,584.48. The project contingency allowance, as authorized by Resolution 2016-68, was used to fund Change Order No. 1. This reduced the project contingency to $445,420.65.
Change Order No. 2 to the construction contract (COF Contract No. 2015-0002) with Eutaw Construction Company, Inc. includes the following cost breakdown:
The approval of Change Order No. 2 will create a total contract price of $12,710,829.45. After the application of the remaining contingency allowance ($445,420.65), an additional $215,824.32 is needed to fund Change Order No. 2
Since November 23, 2017, the City has been assessing liquidated damages at a rate of $1,600 per day. The liquidated damages could be used to cover some portion of the cost overruns for this project.
Recommendation
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Staff recommends approval of Change Order No. 2 to the construction contract (COF Contract No. 2015-0002) with Eutaw Construction Company, Inc.