HomeMy WebLinkAboutItem 06 Approval of Change Order No. 3 to Close the Lakefront Center Expansion Project and Reduce the Final Price by $28,952.22, RFQ #1801 OC OO('
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AGENDA ITEM COVER SHEET
Meeting Date: January 7, 2020
Item # (o
Reviewed By:
Contact Name: Jack A. Butler, Director Department Director:
Contact Number: 407-554-7063 City Manager:
Subject: Approval to execute Change Order No. 3 that reduces the f al price by $28,952.22
and extends the Final Completion date to December 10, 2019 in order to close the Lakeshore
Center Expansion project.
Background Summary:
The Lakeshore Center Expansion project was substantially completed in May 2019 by The Collage
Companies serving as construction manager at risk, but a few minor problems and one major issue
remained to delay final completion by the contract deadline. The major issue was a failure of the installed
lighting control system to meet project specifications. Late in the course of construction, the manufacturer
of the facility's new lighting control system pulled the partially installed product from the market. At issue
was the centralized software control and its ability to support the use of mobile devices for lighting control
via a wireless connection. This part of the product, which was a vital component in the specifications and
planned method of operation, could no longer be provided. The original design concept called for staff to
use a mobile device to provide lighting control in each defined space.
Over a period of months, the city, the contractor, the supplier of the lighting control system, the electrical
subcontractor, and the product's manufacturer worked to develop an acceptable alternative solution. The
facility was in use during this period for city and private events, subject to the constraints imposed by the
adjacent Lakefront Park Improvement project work, which restricted access to the Lakeshore Center.
The final solution was to install manual control panels in each of five lighting spaces while retaining the
central control touchscreen installed in the main staff office space. Staff training on using and
programming this control system was provided on December 10, 2019, thereby concluding the
Contractor's obligations for initial construction.
The reduction in cost represents savings incurred during the project. The original cost of the work,
$3,872,245.00, was established as a Guaranteed Maximum Price (GMP) based on the 95% plans and
specifications. Given the expectation that design would continue during initial construction, and that
remodeling any structure reveals unexpected requirements, a design revision allowance was established
within the GMP for such changes. Other allowances and contingency amounts were provided within the
GMP for unforeseen requirements and components that were not yet included in the plans, such as the
audiovisual system. The end result was a savings of $28,952.22 across all allowances and
contingencies.
Issue:
Should the City Commission authorize the Mayor to execute Change Order No. 3 for the Lakeshore
Center Expansion project?
Recommendation:
Staff recommends that the City Commission approve Change Order No. 3 and authorize the Mayor to
execute any related documents.
Attachment:
Proposed Change Order No. 3.
Financial Impact:
The change order reduces the total cost of the project by $28,952.22 below the GMP. Liquidated
damages, which could be imposed on the contractor under the terms of the agreement, were not justified
for two reasons. First, the project delays were due to a manufacturer's issue, not to the fault or
negligence of the contractor. Second, the delay in delivering this final component of the total project did
not materially affect the city's ability to use the facility. The adjacent work on Lakefront Park was the
primary reason the Lakeshore Center was not able to go into full productive use upon substantial
completion by the contractor.
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 Stan and CO form used N/A
Reviewed by Finance Dept. N/A
Reviewed by ( ) N/A
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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. 3
DATE: December 11, 2019 PURCHASE ORDER:1425843 (FY 2019 &FY 2020)
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 ($28,952.22)
The current CONTRACT PRICE including this CHANGE ORDER $3,949,472.96
Original CONTRACT COMPLETION DATE: March 7, 2019
Current CONTRACT COMPLETION DATE adjusted by previous
CHANGE ORDERS May 3, 2019
Net Increase Resulting from this CHANGE ORDER 222 days
Current CONTRACT COMPLETION DATE including this
CHANGE ORDER December 10, 2019
CHANGES ORDERED:
I. REQUIRED CHANGES
The CONTRACTOR requested a time extension due to events and conditions beyond its control.
The cost reduction is based on the terms of the Construction Manager at Risk agreement between
the CONTRACTOR and the CITY.
II. JUSTIFICATION
Late in the course of construction, the manufacturer of the facility's new lighting control system
pulled the partially installed product from the market. At issue was the centralized software
control and its ability to support the use of mobile devices for lighting control via a wireless
connection. This part of the product, which was a vital component in the specifications and
planned method of operation, could no longer be provided. The original design concept called for
staff to use a mobile device to provide lighting control in each defined space.
Over a period of months, the CITY, the CONTRACTOR, the supplier of the lighting control
system, the electrical subcontractor, and the product's manufacturer worked to develop an
acceptable alternative solution. The facility was in use during this period for CITY and private
events, subject to the constraints imposed by the adjacent Lakefront Park Improvement project
work, which restricted access to the Lakeshore Center. The final solution was to install manual
control panels in each of five lighting spaces while retaining the central control touchscreen
installed in the main staff office space. Staff training on using and programming this control
system was provided on December 10, 2019, thereby concluding the Contractor's obligations for
initial construction.
The reduction in cost represents savings incurred during the project. The original cost of the
work, $3,872,245.00, was established as a Guaranteed Maximum Price (GMP)based on the 95%
plans and specifications. Given the expectation that design would continue during initial
construction, and that remodeling any structure reveals unexpected requirements, a design
revision allowance was established within the GMP for such changes. Other allowances and
contingency amounts were provided within the GMP for unforeseen requirements and
components that were not yet included in the plans, such as the audiovisual system. The end
result was a savings of$28,952.22 across all allowances and contingencies.
III. NARRATIVE OF NEGOTIATIONS
The CITY applied continuing oversight of the work and monitored cost impacts of the many
decisions that must be made daily on a project of this magnitude and type. A running account of
each such decision was maintained so that the CITY and the CONTRACTOR were continuously
aware of its cost impact. The final decision regarding the lighting control system was based, in
part, on cost considerations related to the alternative of removing the partially installed
components and securing/installing a different system. After reviewing a number of alternatives,
the decision to go with a modified version of the original system provided both the best operating
environment and the lowest cost.
Liquidated damages, which could be imposed on the CONTRACTOR under the terms of the
agreement, were not justified for two reasons. First, the project delays were due to a
manufacturer's issue, not to the fault or negligence of the CONTRACTOR. Second, the delay in
delivering this final component of the total project did not materially affect the CITY's ability to
use the facility. The adjacent work on Lakefront Park was the primary reason the Lakeshore
Center was not able to go into full productive use upon substantial completion by the
CONTRACTOR.
IV. PAYMENT
This change order reduces the final cost of the work below the GMP. 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
"Y""By: � By: ------r
f7 1Signature S' ature
Date: a ct/4er- /, 2120 Date: Ti aMPI . . !'? Z019
Title: 17irctb7r v F t()2J7o . .,GYVE ceS Title: f
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