HomeMy WebLinkAboutExplanationEXPLANATION
On March 20, 2012 per Resolution No. 2012-63, the City Council awarded a contract to
Palm Engineering Construction Company, Inc. in the amount of $187,212.90 for the
National City Drainage Improvements Project, Specification No. 11-07.
During the course of construction, five City -initiated change orders were approved and
added to the project as follows:
1) The installation of 60 lineal feet of concrete cover over a high $1,800.00
pressure gas main on D Avenue,
2) The installation of an additional 40 lineal feet of concrete $1,200.00
cover as mentinned in Change Order One
3) The removal and disposition of ACP, $1,081.31
4) Potholing at 41h Street and D Avenue, $2,948.53
5) Reconciliation all line item work actually performed and $-14,307.53
delivered to project
Numerous line item changes for the base bid at 5th Street and D Avenue and for
Additive Bid "A" at 5th Street and C Avenue resulted in additional line item changes
amounting to $32,231.47; however, removal of Additive Bid "B" for 4th Street and D
Avenue resulted in a line item reduction of $46,539.00. These line item changes total a
reduction of $14,307.53, and are reflected in Change Order No. 5.
The construction bid price of $187,212.90 was decreased by $7,277.69, due to Change
Orders Nos. 1-5, for a final construction cost of $179,935.21.
A final inspection was completed and after obtaining required final documents from the
contractor, the project was eligible for a Notice of Completion. The attached "Final
Contract Balance" document shows a breakdown of line items, change orders, and
contract work days.
Normally, 5% retention Is withheld from each invoice, and the final payment of the 5%
retention is made upon Council's approval to accept the work and ratify the filing of the
Notice of Completion. On this project, there were two bid alternatives, one to perform
the work with no street closures, and one to perform the work with street closures. The
project was awarded using the bid alternative with no street closures, in order to reduce
the costs. During construction, it was determined that it was necessary to close 5th
Street and C Avenue, 5th Street and D Avenue and 4th Street and D Avenue for safe
operations during construction for the public and for the contractor. Council approved
these closures on May 1, 2012 by Resolution No. 2012-92. While the street closure
was approved, no change to the contract amount was authorized. Palm Engineering
Construction Company, Inc. incorrectly invoiced the City, using the higher price from the
bid alternative with street closures. The error was corrected while preparing the Final
Contract Balance Sheet. Therefore, the remaining balance on the Purchase Order is
$1,244.20. As Palm Engineering Construction Company, Inc. has received some of the
retention amount, the final retention of $1,244.20 shall be released upon Council's
approval to accept the work and ratify the filing of the Notice of Completion,