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Consideration of approval of a Change Order for Contract 24-61, DPW Incinerator Building Demolition
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Submitted by:
David Simpson, Director of Public Works
Department
Public Works
A. Issue
Approval of a change order for Contract 24-61, DPW Incinerator Building Demolition
B. Background/Options
The City issued a contract to Guelig Waste Removal & Demolition LLC in the amount of $422,400.00 to complete the demolition of the incinerator building located at the City Garage site. Subsequent to the award of the contract the City and Contractor met with the WDNR for a pre-demolition asbestos abatement discussion, which is standard for projects of this size and scope. At that meeting the asbestos contractor, acting as a sub-contractor to Guelig Waste Removal & Demolition, expressed concern that they had not captured all of the asbestos removal scope within their bid to complete the work, however, they had provided it as an alternate bid to the general contractor during bidding. This led to many discussions about how to best handle the missed quantity of work. Ultimately, the general contractor has asked for a change order to the contract in the amount of $70,000, which will put the total contract value at $492,400, which is still nearly $20,000 less than the second lowest original bidder on the project. Given that the scope of asbestos removal was not included in their original bid, although shown as an alternate bid, we are comfortable moving that the pricing is fair this we are recommending we move forward with recommending approval of the requested change order at this time to ensure all work necessary is completed.
C. Strategic Plan (Area of Focus)
Priority 3: Infrastructure
D. Fiscal Impact
This $70,000 change order will be funded utilizing existing CIP funds from the planned generator replacement project at the City Garage. We are also expecting an insurance settlement from a previous City Garage project that will likely cover much of these costs, however, timing of that payment is unknown so the generator project will not commence until such time that we insurance funds are received or it will be budgeted in a future year.
E. Recommendation
Approval of a change order in the amount of $70,000 for Contract 24-61, DPW Incinerator Building Demolition, for additional asbestos abatement work.
recommendation
Recommendation: Common Council