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CHANGE ORDER NO. TWO TO CONTRACT K-1718-87: BY AND BETWEEN THE CITY OF NORMAN, OKLAHOMA, AND RDNJ, L.L.C. DBA A-TECH PAVING, DECREASING THE CONTRACT AMOUNT BY $43,896.82 FOR A REVISED CONTRACT AMOUNT OF $574,904.07 FOR THE LAHOMA AVENUE FROM GRAY STREET TO NEBRASKA STREET RECONSTRUCTION CONTRACT, AND FINAL ACCEPTANCE OF THE PROJECT.
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BACKGROUND: In the Norman General Obligation Bond (GOB) Election of 2016, voters approved the Street Maintenance Bond Program, a 5-year, 4-phase program to address maintenance needs on neighborhood streets. The four categories include (1) Urban Asphalt Streets Rehabilitation, (2) Urban Concrete Streets Rehabilitation, (3) Urban Streets Reconstruction and (4) Rural Road Rehabilitation. Prior to the election, the City provided a list of all streets included in the program based upon the pavement condition data from the City’s current Pavement Management System. The following is the list of Urban Street Reconstruction projects included in the 2016 GOB Election:
2017 - Lahoma Avenue - Gray Street to Nebraska Street;
2018 - Lahoma Avenue - Nebraska Street to Hughbert Street;
2019 - Walnut Road - South 2700 Block to Imhoff Road;
2020 - McCall Drive - Chautauqua Avenue to Pickard Avenue;
2021 - Pickard Street - Kansas Street to Acres Street
Lahoma Avenue from Gray Street to Nebraska Street is located in the central part of Norman. The area around the project is established residential housing. The roadway was constructed of asphalt pavement with no curb and gutter. The roadway was originally constructed in the early 1940’s, when housing for the U.S. Navy airbase was established. Stormwater drained through ditches on either side of the roadway. The City’s goal was to provide residents with a new driving surface, curb and guttering, and an improved drainage system. Specific improvements for this project include:
• 1,330 feet of new two-lane asphalt roadway
• 2,660 feet of curb and gutter
• Stormwater improvements including installation of curb inlets
On March 14, 2017, City Council approved Contract K-1617-99 with Garver Engineering providing for preparation of final plans and specifications for the roadway improvements of Lahoma Avenue from Gray Street to Nebraska Street in the amount of $107,300.
On February 27, 2018, City Council awarded the Lahoma Avenue from Gray Street to Nebraska Street Reconstruction Contract (K-1718-87) to the lowest bidder, RDNJ, LLC doing business as A-Tech Paving of Edmond, Oklahoma in the amount of $561,799.25.
On January 22, 2019, City Council approved Change Order #1 to the Lahoma Avenue from Gray Street to Nebraska Street Reconstruction Project, increasing Contract K-1718-87 by $57,001.64 for a revised contract amount of $618,800.89.
DISCUSSION: Construction projects are awarded to the lowest responsible bidder. Contractor bids are determined using plan quantities multiplied by the contractor’s unit prices for all bid items of the contract. The total of all of these costs represents the contractor’s bid. During construction, each quantity is verified in the field and the contractor is to be reimbursed, based on the actual quantity used. On this project, a few bid items were not needed or the cost was significantly lower, including temporary silt fence; temporary sediment filter; fire hydrant resetting; removal of deteriorated asphalt pavement; subgrade stabilization; Superpave Type S3 Asphalt; and Superpave Type S4 Asphalt. Due to the project underruns, Change Order No. 2 will result in a project refund.
In addition to the project underruns, the contractor is providing the City a credit in lieu of liquidated damages for slow progress on the project and a credit for failure to meet city material specifications, which also contributed to the refund.
This Final Change Order No. 2 addresses quantity changes, liquidated damages, and failure to meet City material specifications. Change Order No. 2 results in a decrease of $43,896.82, decreasing the total contract amount from $618,800.89 to $574,904.07 or 7.1%.
This project was accounted for in Road Reconstruction Bond Projects, Construction (account 050-9385-431.61-01; project BP0247).
RECOMMENDATION No. 1: Staff recommends that Change Order No. 2 decreasing Contract K-1718-87 by $43,896.82 be approved.
RECOMMENDATION No. 2: Staff further recommends final acceptance of the Lahoma Avenue from Gray Street to Nebraska Street Reconstruction Project Contract K-1718-87