MEETING DATE:
November 12, 2024
SUBJECT:
Title
RESOLUTION NO. 2024-9378 - APPROVE AN AMENDMENT TO CONTRACT 6176 WITH SEMA CONSTRUCTION AND AUTHORIZING THE CITY MANAGER TO FINALIZE AND EXECUTE THE SAME, AND APPROVING AN AMENDMENT OF THE FY 2024/2025 CAPITAL IMPROVEMENT PROGRAM (CIP) BUDGET FOR THE CREEK INFRASTRUCTURE PROJECT (CIP NOS. 88264, 88265)
Body
Recommendation
Recommendation
ADOPT a resolution amending the contract 6176 with SEMA Construction and amending the CIP Program Budget for the Creek Infrastructure Project.
Body
Not Applicable
Relevant Council Strategic Theme
Quality of Life
Good Governance
Executive Summary
Give some background on the topic
Discussion
Large construction projects typically have proportionally larger overhead cost for office staff, management, construction trailers, and general activities relating to activities that support the project. For this reason, the City bid the Creek Infrastructure Project (Project) requiring the contractor to identify the cost of Time Related Overhead (TRO) as a separate bid item. The use of TRO is a common industry standard practice and was chosen as a method of bidding for these elements on the Project. As a result, the City has a fixed cost it will pay for additional time on the project should additional working days be granted to the contractor. Similarly, several other bid items on the project are time dependent due to the scale of the project, such as stormwater maintenance.
The Creek Infrastructure Project began construction in spring of 2020. Over the course of construction, the City encountered delays due to environmental constraints, unforeseen conditions, weather, and predominantly third-party utilities. The City issued a change order to SEMA in the amount of $1,478,956 for initial delays due to utility relocations through the start of the Bent Avenue bridge. Subsequent to the construction of Bent Avenue, the Project was subject to additional delays. When delays occur, the...
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