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Title
Change Order No. 2 with Lee Lewis Construction, Inc. in the amount of $6,794,652.49 for pre-GMP subcontractor efforts that will jump start initial construction activities at the EPIC site
Presenter
Tom Cox, Deputy City Manager
Recommended Action
Approve
Analysis
At the December 9, 2014 City Council meeting, Council awarded the initial component of the Construction Manager at Risk (CMAR) contract to Lee Lewis Construction, Inc. for pre-construction services in the amount of $20,000. This award provided the CMAR services including development of project estimates, preliminary construction schedules, value engineering and constructability review during the Design Phase. The CMAR has been working with HKS and the City since that award to assist in final development of the project planning.
In the interim, and at their November 3, 2015 City Council meeting, Council approved a pre-purchase of aluminum materials that would be utilized in the construction of the OpenAire retractable roof system for the EPIC Waters portion of the project in the amount of $1,100,000 (15-5108). This action was taken to allow the City to lock in a cost savings estimated at $392,198 to the benefit of the project prior to anticipated material cost hikes at the end of the year. A Change Order No. 1 amendment to the original contract was subsequently executed by all parties.
On December 23, 2015, the Contract Documents (plans and specifications) were delivered to the City for Building Permit application and approval purposes by the CMAR. These plans are currently in review by City staff. However, it is noted that the massive scope and size of this project means that a comprehensive and systematic review of these plans will not take place overnight. Once the permit approval process has been finalized and any necessary modifications have been made in conjunction with the approval, the CMAR will advertise the project and receive subcontractor bids for the various disciplines of work included within the scope of the project. This action will ultimately result in a proposed Guaranteed Maximum Price (GMP) from Lee Lewis Construction which will be assimilated from the best subcontractor bids that are received and vetted in terms of overall quality and value to the City.
In advance of the Building Permit approval and subsequent confirmation of a GMP, the Architect, the CMAR and City staff have considered options that can be utilized to get known early phase construction activities underway. Those discussions have resulted in the proposed Change Order No. 2 that is being brought to Council for their consideration at this time. The elements included in Change Order No. 2 cover the direct subcontract costs for dirt and site work ($2,217,205.10), underground site utilities installation work ($2,253,997.20), design and fabrication of confirmed water park feature rides to allow for there timely installation ($1,412,117.40), and associated CMAR costs for General Conditions ($650,000) and Insurance and Fees ($261,332.79) for a total requested amount of $6,794,652.49.
If approved, this early funding request will ultimately be rolled into the final GMP amount that will be brought to Council for their consideration and approval. The advantage gained through this action will come from the fact that the project will be started possibly months ahead of when it would otherwise get underway. For that reason, approval of Change Order No. 2 is recommended by City Staff.
This item was taken to the Finance and Government Committee on February 2, 2016 for their review and approval.
Financial Consideration
Funding for change order no. 2 in the total amount of $6,794,652.49 is available in The EPIC Capital Projects Fund (320893) WO #01512003 (The EPIC Center) 68540 (Construction).