HomeMy WebLinkAbout6/29/2005 - STAFF REPORTS (23) WCity Council Staff Report
DATE: June 29, 2005 Unfinished Business
SUBJECT: CONVENTION CENTER PROJECT — APPROVAL OF STEEL TRADE
CHANGE ORDER NO. 3 AND RELEASE FROM FUTHER DELAY
CLAIMS.
FROM: David H. Ready, City Manager
BY: City Manager— Convention Center
SUMMARY
Staff requests that City Council approve Change Order No. 3 with the Convention
Center Project Steel Trade Contractor which settles all claims of the Trade Contractor
and releases the Trade Contractor from further claims of delay by the City.
RECOMMENDATION:
Adopt Minute Order No. "APPROVING CHANGE ORDER NO. 3 TO
AGREEMENT NO. A4857, WITH W & W STEEL COMPANY INC. FOR A
TOTAL ADD OF $129,665 AND RELEASING W & W STEEL COMPANY INC.
FROM FURTHER CLAIMS OF DELAY BY THE CITY OF PALMS SPRINGS.
STAFF ANALYSIS:
The Convention Center Project steel design, due to the curving roof line, is one of the
most complicated steel projects that has been erected in the Coachella Valley. The
project design resulted in over three thousand sheets of shop drawings being developed
to properly fabricate and assemble the steel members. During the preparation of steel
shop drawings, steel fabrication and the erection phase a series of delays occurred in
the project. The Trade Contractor has taken one position on the reasons for delay and
the City has held an opposite opinion. The main focus of the Construction Management
Team over the past ten months has been to find a way to overcome the delays,
complete the project by the September 5, 2005 completion date and avoid delay claims
from other Trade Contractors.
Item No. 4 A
City Council Staff Report
June 29, 2005 -- Page 2
Approval of Steel Trade Change Order No 3
The steel work has been completed on the project and the project staff has received
extra work change order requests of $540,000 and a series of claims from the Trade
Contractor as follows:
Anchor Bolt Fixes 93,000
Field Change Orders 460,000
Additional Shop Drawing Time 458,800
Additional Steel Shipping 85,000
Fabrication Overtime 550,000
Total Claims $1,646,800
The project staff has disputed many of the above claims and has asserted counter
claims for delay. A battle over the claims and counter claims related to the steel on this
project would be long, complicated and very costly and would tie up most of the
remaining contingency for an extended period of time. For several months staff has
been discussing a settlement of all issues with the Contractor that would reduce change
order requests enough to cover the City's schedule recovery costs.
The delays related to steel, regardless of where blame would eventually fall, exceeded
12 weeks. The Construction Management team has worked hard to reschedule the
project and at this time feels confident that the finished product will be turned over to the
City on schedule. To accomplish this, the Construction Manager brought on additional
staff, the design team has made extra trips to coordinate with the steel contractor and
overtime is being expended to close the schedule gap. Total out of pocket cost for the
project delay recovery are estimated as follows:
Additional Superintendent 96,000
Additional Design Team Coord. 80,500
Project Overtime by Trades 300,000
Total Actual Recovery Cost $476,500
The attached Change Order No. 3 compensates the Contractor for anchor bolt fixes
that they carried out to correct errors by the Concrete Trade Contractor (Note: A
companion Change Order has been processed to the Concrete Trade Contractor
deducting the $93,500 for the fixes.), it allocates $36,165 for recent field changes that
were not the Contractors fault, it zeros out all remaining Change Order requests and
Claims by the contractor and it releases the Contractor from claims of delay by the City.
A summary of the Steel Trade Contract final costs is as follows:
Original Bid $8,765,000
City Council Staff Report
June 29, 2005 -- Page 3
Approval of Steel Trade Change Order No 3
Change Order No. 1 (225,000)
Change Order No. 2 30,335
Change Order No. 3 129,665
Final Contract Amount $8,700,000
With the Approval of Change Order No. 3 the total changes to the steel contract
resulted in an overall reduction, below the original bid, of ($65,000). .
FISCAL IMPACT:
This Change Order results in an overall deduct to the original Steel Trade bid and
ret�u(ps� Idollars to the project Contingency.
Allen F. S oot'Pl t Administrator David H. Ready, City Mai gp e 0
Attachments:
1. Minute Order
2. Change Order
MINUTE ORDERS
MINUTE ORDER NO.
APPROVING CHANGE ORDER NO. 3 TO
AGREEMENT NO. 4857, WITH W & W STEEL
COMPANY, INC. FOR A TOTAL ADD OF $129,665
AND RELEASING W & W STEEL COMPANY, INC.
FROM FURTHER CLAIMS OF DELAY BY THE CITY
OF PALM SPRINGS.
I, James Thompson, City Clerk of the City of Palm Springs, hereby certify that
this Minute Order approving Change Order No. 3 to Agreement No. 4857 with W
& W Steel Company, Inc. for a total add of $129,665 and releasing W & W Steel
Company, Inc. from further claims of delay by the City of Palm Springs, was
adopted by the City Council of the City of Palm Springs, California, in a meeting
thereof held on the day of 12005.
James Thompson, City Clerk
CITY OF PALM SPRINGS
PALM SPRINGS CONVENTION CENTER EXPANSION PHASE II
CONSTRUCTION CHANGE ORDER
To: W &W Steel Date: June 15, 2005
23152 Verdugo Drive, #150 Project No. 02-27
Laguna Hills, CA 92653 Change Order No. 3
Purchase Order No. 416610A
Agreement No. A4857
Attn: Chuck Gossage Account No. 4283-50003
Description of Change to be Made:
Description Add/Deduct Amount
"The total Contract amount for any and all work, including but not limited Add: $129,665.00
to Change Order requests, performed by Contractor, Contractor's
Subcontractors, Contractor's Consultants or Contractor's Suppliers
through June 6, 2005, under Agreement No. A4857, City Project 02-27, is
$ 8,700,000.00.
Any and all claims, asserted or not, for additional compensation,
liquidated damages or delay charges related to time delay under this
Contract, by either party, are hereby settled and released.
All other Terms and Conditions of this Contract shall remain in effect.
Further, this settlement does not relieve Contractor from completing
omitted work, punch list items or fixing improperly installed work or from
submitting as-builts, warranty and all other Contract close-out
requirements.
Any new non-contract work performed after June 6, 2005 shall be
considered additional work and shall be compensated under the terms
and conditions of this Contract."
TOTAL ADD: $ 129,665.00
AUTHORIZATION FOR CHANGE:
Summary of Cost/Time
Original Contract Price $ 8,765,000,00
Total of all Previous Change Orders $ (194,665.00)
Total of this Change Order $ 129,665.00
Total Contract Price $ 8,700,000.00
This Change Order(increases) (decreases) (unchanged)the contract time by 0 working days.
I have received a copy of this Change Order Constr. Manager:
and the above AGREED PRICES are acceptable Approval: Date:
to the contractor. Turner Construction Company
City Approval:
By: Submitted By: Date:
Owner's Representative
Title:
Approved by: Date:
Date: Project Administrator
Distribution:
Oriqinal Conformed Copies Conformed - File Copy
City Clerk (1) Project Administrator (1)
Contractor (1) Procurement& Contracting (1)
Finance (1)
Owner's Representative (1)
Turner Construction (1)