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Home My WebLink AboutItem 09 Approval of Change Order No. 2 to Extend the Period of Construction for the Lakeshore Center Expansion Project OCC) ? florida AGENDA ITEM COVER SHEET Meeting Date: February 5, 2019 Item # Reviewed By: Contact Name: Jack A. Butler, Director Department Director: Contact Number: 407-554-7063 City Manager: Subject: Approval to execute Change Order No. 2 for Lakefront Center Expansion project in order to extend the contract time for construction by 58 days. Background Summary: The contractor working on the Lakeshore Center Expansion project, The Collage Cos., has requested a two-month time extension to complete the project without liquidated damages. There have been numerous sources of project delay, ranging from issues with the construction plans to subcontractors not honoring their agreements. The latest serious issue was a delay in receiving the raw materials needed to fabricate the roof panels, for which there is a single source. Since the Guaranteed Maximum Price (GMP) was set based on the February 14, 2018, 95% construction documents, the Central Florida area has experienced a 25% increase in construction costs. Some high-demand subcontractors simply left the project rather than honor their original price commitments. A prime example of the current construction market was the initial absence of responsive bids for the adjacent Lakefront Park Improvements — Phase 1 work, which required a second bidding process in order to get multiple offers. The delay in completing the Lakeshore Center Expansion project actually works to the advantage of the City in that it keeps the contractor onsite in order to better coordinate the work of these two projects within the City Hall Campus. The time extension also recognizes that the project was originally conceived as requiring 11 months for construction, with a starting date in mid-March 2018 and substantial completion in mid-February 2019. However, the Notice to Proceed was not issued until May 17, 2018, almost two months later due to a conflict with underground power lines. This reduced the contract time to nine months. The revised completion dates restores the original 11-month time period. In other words, the construction team was unable to meet the accelerated construction schedule of nine months, but has been able to hold to the original time period of 11 months with no increase in costs in adverse market conditions. No facility rentals are impacted by the time extension. The adjacent Lakefront Park Improvements project will actually have a more significant impact on event scheduling. Issue: Should the City Commission authorize the Mayor to execute Change Order No. 2 for the Lakeshore Center Expansion project? Recommendation: Staff recommends that the City Commission approve the two-month construction time extension and authorize the Mayor to execute any related documents. Attachment: Proposed Change Order No. 2. Financial Impact: There is no cost to the City for this extension in contract time. Change Order No. 1 added Lakefront Park Improvements funding to the Lakeshore Center Expansion project in order to allow The Collage Cos. to undertake part of the electrical improvements included in the scope of the Lakefront Park Improvements — Phase 1 project. This work needed to be completed to support Founders' Day. No rental revenues will be lost as a result of granting the contract time extension. The first scheduled event at the expanded facility is set for May 22. Type of Item: (please mark with an "x") Public Hearing For Clerk's Dept Use: Ordinance First Reading x Consent Agenda Ordinance Second Reading Public Hearing Resolution Regular Agenda x Commission Approval Discussion&Direction X Original Document/Contract Attached for Execution by City Clerk Original Document/Contract Held by Department for Execution Reviewed by City Attorney Standard CO form used N/A Reviewed by Finance Dept. (La-,O\' N/A Reviewed by ( ) N/A ocoee florida CITY OF OCOEE 150 North Lakeshore Drive Ocoee, Florida 34761 *This Change Order Requires Action by the CITY Commission* LAKESHORE CENTER EXPANSION CHANGE ORDER NO. 2 DATE: February 5, 2019 PURCHASE ORDER:1425843 (FY 2019) The following changes are hereby made to the CONTRACT DOCUMENTS. Original CONTRACT PRICE $3,872,245.00 Current CONTRACT PRICE ADJUSTED by previous CHANGE ORDERS $3,978,425.18 Net Increase (Decrease) Resulting from this CHANGE ORDER $0.00 The current CONTRACT PRICE including this CHANGE ORDER $3,978,425.18 Original CONTRACT COMPLETION DATE: March 7, 2019 Current CONTRACT COMPLETION DATE adjusted by previous CHANGE ORDERS March 7, 2019 Net Increase Resulting from this CHANGE ORDER 58 days Current CONTRACT COMPLETION DATE including this CHANGE ORDER May 3, 2019 CHANGES ORDERED: I. REQUIRED CHANGES The CONTRACTOR requested a time extension due to events and conditions beyond its control. II. JUSTIFICATION The CONTRACTOR documented numerous project delays related to a number of external causes. Most of the delays were the result of design issues related to trying to match site and building conditions and to completing the plans as construction was underway. In addition, the time extension benefits the CITY by providing continued onsite presence by the CONTRACTOR to coordinate related activities in the adjacent Lakefront Park Improvements — Phase 1 construction effort by another company. III. NARRATIVE OF NEGOTIATIONS Following multiple negotiation sessions, the parties agreed to a time extension for Substantial Completion from February 7, 2019 to April 5, 2019 (58 days), and a similar time extension on the Final Completion from March 7, 2019 to May 3, 2019 (58 days). IV. PAYMENT The requested time extension does not impose additional project costs. V. APPROVAL AND CHANGE AUTHORIZATION The original project and funding allocation was established by issuance of a CITY purchase order, subject to the terms and conditions contained in the CITY's solicitation, Project Manual, Drawings, Specifications, and/or the CONTRACTOR's service and price proposal, which collectively form the terms of an agreement between the CITY and the CONTRACTOR for the performance of the Work. This proposed change to the agreement requires approval by the CITY Commission under the CITY's Purchasing Rules and Regulations and is consistent with any prior action by the CITY Commission to award the Work to the CONTRACTOR. It is expressly understood and agreed that the approval of the Change Order shall have no effect on the original agreement other than matters expressly provided herein. CONTRACTOR acknowledges, by its execution and acceptance of this Change Order, that the adjustments in contract price and time shown hereon constitute full and complete compensation and satisfaction for all costs and modifications of performance time incurred by the CONTRACTOR as a result of this Change Order. No other claim for increased costs of performance or modifications of time will be granted by the CITY for the Work covered by this Change Order. The CONTRACTOR hereby waives and releases any further claims for cost or time against the CITY arising from or relating to the matters or Work set forth or contemplated by this Change Order. RECOMMENDED BY: ACCEPTED BY: CITY OF OCOEE, FLORIDA THE COLLAGE COMPANIES B By: Signature Signature Date: Danu.a►^i,{ 28, 2019 Date: Title: V''rechW' cf Su 7yvr f je rif).ce$ Title: APPROVED BY: CITY OF OCOEE, FLORIDA By: Date: Rusty Johnson, Mayor Attest: Melanie Sibbitt, CITY Clerk FOR USE AND RELIANCE ONLY BY THE APPROVED BY THE CITY OF OCOEE CITY OF OCOEE,APPROVED AS TO FORM COMMISSION IN A MEETING HELD ON AND LEGALITY THIS DAY OF , 20 UNDER ,20 AGENDA ITEM NO. By: CITY Attorney