Title
Consider a memorandum/resolution approving Change Order No. 1 to the Watercrest Road Reconstruction Project, in the amount of $290,000.00.
Body
DATE: August 6, 2024
TO: Kent Cagle, City Manager
FROM: Edwin Revell, Executive Director Development Services
SUBJECT: Change Order No. 1 to the Watercrest Road Reconstruction Project in the amount of $290,000.00
BACKGROUND AND FINDINGS:
On August 6, 2024, the City Council will, under a separate item, consider awarding the bid for the Watercrest Road Reconstruction Project to Cash Construction Inc., the sole bidder, in the amount of $10,952,337.65.
During the bidding process, the amount for "Miscellaneous Construction Items" was unintentionally left blank by the bidder. This line item is customary and intended to cover small unforeseen items that might arise during construction that can be easily remedied in the field. This allows a project to continue and not result is any possible delays. To use this line item for any payment, a contractor must submit proper paperwork to show the amount being billed to the line item. Any additional items that must be approved by City Council, will not be charged to this line item.
To add this amount to the contract, a change order is needed. In the event the council does not choose to increase the amount of this line item, it does put the project at risk of work stoppages in the event unforeseen issues arise during construction. The stoppages also could risk increasing the contract amount.
If approved, Change Order No. 1 will be included with the final contract for signature by the City Manager, or designee, and would increase the overall contract amount by $290,000.00, which is a 2.6% contract amount increase.
THE ALTERNATIVES CONSIDERED:
N/A
Which alternative is recommended? Why?
N/A
CONFORMITY TO CITY POLICY:
This item conforms with local and state policies.
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For...
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