E. Approval of N Meridian Road Design Contract Supplement #5MEMORANDUM
March 19, 1998
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To: Clarence Krepps, City Manager
From: Jim Hansz, Director of Public orks
Subject: North Meridian Road design contract Supplement #5
Robert Peccia & Associates (RPA) have requested our consideration of a supplement to their
design contract to increase the maximum amount of the contract.
Background:
Contract Supplement #4, dated October 7, 1977, provided for a reduction in contract amount of
$60,041.03 which lowered the contract ceiling from $408,219.00 to $348,178.00. This
reduction in scope was in response to an MDOT request to reassign certain work elements related
to right-of-way from RPA to MDOT. Contract amendments are a normal component of
complex design and construction projects and are essential in order to avoid disputes over the
final cost and configuration of the finished project. Whenever possible they should be timely
with the need to ensure they are accurate and complete and allow for thorough consideration of
all the relevant facts supporting the requested change.
Requested Change:
RPA have requested additional budget of $43,750.00 to reimburse incurred and estimated costs
for additional work resulting from actions and directions by MDOT. The additional costs
involve seven specific areas:
1. Preliminary Hydraulics Report: MDOT indicated it had completed the hydraulics
report, therefore engineering time for this item was not budgeted by RPA. Subsequent
analysis of MDOT data showed the actual MDOT work only to be a feasibility report.
Additional unplanned and unbudgeted work was required to prepare the required
report.
2. Under drain: MDOT requested design of a roadway under drain system. This was not
in the original contract scope.
3. Utility stub -outs: Required to account for City utilities. Not in original scope.
4. Revise road section designs: Designed by RPA and approved by MDOT but
subsequently revised due to changes directed by MDOT. Original work in scope, but
additional work is out of scope.
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5. Hazardous waste analysis: Not in original scope of work.
6. Miscellaneous design revisions: Some revision is to be expected, but these examples
are agreed to be excessive and beyond scope.
7. Retaining wall design: This is an extra work item covered under Article I, section
11.D.13 for additional work.
RPA met with the City, you and me, on January 30, 1998 to review these items in detail, reach
agreement on the validity of each item and negotiate the appropriate cost. Their summary report
and request which contains additional information on each item and cost is attached for your
information. Also included are copies of relevant pages from the RFP and proposal supporting
the position that the hydraulics report was to be supplied by MDOT and therefore not a budgeted
item in the RPA proposal.
The requested change will raise the project ceiling from $348,178.00 to $391,928.00. It should
be noted that this change results in a contract cost that is $16,291.00 less than previously
authorized before the transfer of work to MDOT accomplished with supplement #4. These costs
are the direct result of specific direction by MDOT or specific action by MDOT which increased
cost to the consultant.
Recommendation:
The information provided in this request is in conformance with what I expected based upon our
meeting in January. The items are in my opinion valid extras. As mentioned in the RPA request,
RPA have attempted, where possible, to perform extra work within the original contract. Based
upon our meeting and negotiations, I believe this request is an accurate reflection of the net level
of effort for the items listed. I recommend approval of contract supplement #5 in the amount of
$43,750.00. This approval will raise the project ceiling to $391,928.00. This action will not result
in any direct cost to the City. These costs are a project expense and are directly paid by MDOT
from Federal Urban Highway Program project funds.