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CHANGE ORDER NO. THREE TO CONTRACT NO. K-1011-2: BY AND BETWEEN THE NORMAN UTILITIES AUTHORITY AND URBAN CONTRACTORS, L.L.C., INCREASING THE CONTRACT AMOUNT BY $44,784.50 FOR THE FYE 2010 SEWER MAINTENANCE PROJECT AND FINAL ACCEPTANCE OF THE PROJECT.
ACTION NEEDED: Acting as the Norman Utilities Authority, motion to approve or reject Change Order No. Three with Urban Contractors, L.L.C., increasing the contract by $44,784.50; and, if approved, authorize the execution thereof, accept the project, and direct final payment in the amount of $52,707.96 to Urban Contractors, L.L.C.
ACTION TAKEN: _________________________________
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BACKGROUND: In 2001, the citizens of Norman approved a five dollar per month sewer maintenance fee to provide for the systematic replacement of aged and deteriorated sewer lines throughout our wastewater collection system. The annual project is rehabilitative in nature. This project was bid in two phases on May 27, 2010 and June 3, 2010. On July 13, 2010, the Norman Utilities Authority (NUA) approved Contract K-1011-2 with Urban Contractors, LLC (Urban) in the amount of $1,570,100 and funding from Sewer Maintenance Project FYE 2010 (SMP10) (WW0055).
On June 14, 2011, the NUA approved Change Order No. 1 in the amount of $69,250 to fund approximately 1,100 LF of improvements along Red Oak Drive. On October 11, 2011, the NUA approved Change Order No. 2 in the amount of $63,150 to fund approximately 700 LF of sewer replacement along Berry Road.
DESCRIPTION: As with any project of this scope, field adjustments and modifications were necessary. However, the bid prices in this project created an excellent value for supplementary work as the need arose during the project. The overall cost of sewer line replacement under this bid was about $58/foot. Typical costs in the past have approached $100/foot. So, it is in the best interest of NUA to maximize quantity of newly installed lines at these bid prices within the approved budget for the work.
Construction began September 23, 2010 and was complete June 8, 2012. During construction, the Sewer Line Maintenance Division requested assistance for sewer system defects not in the project area, consisting of approximately: (1) 5,400 feet in multiple locations in Hall Park; (2) more than 250 feet north of Melrose Drive between Garrison and Mercedes; (3) about 400 feet along both 12th Avenue NE and Sequoyah Drive; (4) almost 700 feet along Tecumseh Road west of Flood Avenue; and (5) about 740 feet along Parkland Way south of Westwood Park. Utilities staff requested and Urban agreed to replace those lines and manholes at the contract unit prices.
Reconciliation of as bid to as built quantities and the additional work are included in attached Final Change Order No. 3 which will increase the contract price by $44,784.50. Therefore, as shown in Attachment 1 to the change order, the largest adjustment is in replacement of 8-inch pipe as previously described. The decrease for pipe-bursting 10-inch HDPE pipe is due to an oversight when splitting the project into two phases, essentially a typographical error, where the bid quantity should have been 370 rather than 3,700 feet. The Red Oaks change order was partially unused, since when exposed, below ground conditions were not as anticipated.
The cumulative increase in change orders for the project is $177,184.50 or about 11% over the original contract amount of $1,570,100. The higher than normal overall increase, is justified by the above discussed value in the bid prices on this project. Approximately $621,409 is available in FYE10 Sewer Maintenance Plan construction account 321-9338-432.61-01 (WW0055) to fund the increase of $44,784.50.
All project improvements are satisfactory and as built plans are in hand. Project No. WW0055 replaced approximately 30,325 feet of sewer line, twenty (20) manholes and over 510 service connections.
RECOMMENDATIONS: Staff recommends NUA approval of Final Change Order No 3 to Contract K-1011-2 in the amount of $44,784.50, acceptance of the FYE 2010 Sewer Maintenance Project, and authorization to make final payment of $52,707.96 to Urban Contractors, LLC.