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North End Resurfacing/Change Order No. 2August 16, 2005 Kyle Schellinger Schellinger Construction Company, Inc. P.O. Box 39 Columbia Falls, MT 59912 Re: Kalispell City Airport — North End Surfacing Improvements Dear Kyle: CIVIL As we discussed yesterday on -site at the Kalispell City Airport, Robert Peccia TRANSPORTATION and Associates (RPA) understands your concerns about Contract Time and Liquidated Damages regarding the unscheduled employment of the Engineer and more specifically ENVIRONMENTAL the Resident Project Representative (RPR). ENGINEERS In the past four weeks RPA has observed the work that Schellinger has performed. Throughout the period of finding unforeseen difficulties with the subgrade we have managed to develop workable solutions. We have met on -site three times (August 1, 8, & 15'h) and walked the site on each occasion to observe areas of concern and have generally finished each meeting with some direction on how to proceed. We understand that some issues remain and are working on the following items: • Liquidated Damages for Unscheduled Employment of the Engineer. • Working with Todd Berg and the New Hangar Construction. + Drainage between hangar pads and between Taxiway D & F. + Utility Crossings • Revised Change Order #2 quantities for Geogrid and P-208. • Blue Topping (high lathe) the portions of the TW not being modified. • Remaining Topsoil not being used on project. Liquidated Damages for Unscheduled EmDlovment of the Engineer The construction completion date, pending the approval of CO#2 will be revised to September 9, 2005. Included in your original construction schedule are 7.5 days to pave the TW, Apron and Access Road. Following asphalt pavement placement there is approximately five (5) calendar days for pavement marking, topsoiling, and final cleanup. As we discussed yesterday, if Schellinger Construction continues to work diligently and completes the closeout construction items with five days after pavement completion, RPA will not seek any liquidated damages for the unscheduled employment of the Engineer. Working with Todd Berg and the New Hangar Construction In a letter dated August 13, 2005, you again wrote about the concern over the new hangar construction affecting Schellinger's construction schedule. Currently most of Todd's equipment and materials are either mobile or stored on his or adjacent building pads. We hope that you can continue to coordinate your activities on whatever remains in your way with Todd. If this can not be worked out, the City will need to get involved as P.O. Box 5653 they are the "landlords" and have a contract with Todd Berg. 825 Custer Avenue Helena, Montana 59601 Drainage between hangar pads and between Taxiway D & F (406)447-5000 FAX (406)447-5036 RPA will work up a profile of the drainage with actual elevations of the adjacent www.rpa-hln.com hangars and the Electrical Transformer Pad and RCP. Field survey information is being plotted and this information will be forthcoming in a separate mailing. Kyle Schellinger Schellinger Construction Page 2 of 3 Utility Crossings. During yesterdays on -site meeting with both Wayne Ristine (Flathead Electric) and John Swanson (NWE) areas of taxiway and utility crossings were discussed. The following is a summary of my observations: Taxiway C: 1. FEC to deaden secondary electrical line to north 2. Schellinger to redig and replace —155 ft of secondary conduit (3" PVC) 3. Schellinger to check on the status of natural gas line in the presence of NWE 4. FEC to reinstall secondary line in new conduit 5. NWE to repair damaged gas line Taxiway I!: 1. Schellinger to lower natural gas line in the presence of NWE. Taxiway E: 1. Schellinger to lower natural gas line in the presence of NWE 2. Schellinger to lower other conduits and restore depth of cover as much as possible. Taxiway F s& G: 1. Schellinger to continue with the Modified Pavement Section included in Change Order #2. I have asked the utility companies to send RPA any of their charges for observation and /or new electrical lines. We have requested that Schellinger keep tract of time and materials. Our RPR will do likewise. If the findings indicate the utilities pumped up from their originally installed depths we will submit these costs as claims to the City. If the findings are that the original utilities were placed at the wrong elevation, RPA will pay the claims. We will determine if pumping has occurred by seeing if the utilities have remained at a relatively flat invert (staying at the bottom of the trench) or if they have moved to different elevations due to heaving of subgrade materials. Revised Change Order #2 quantities for Geogrid and P-208 RPA is currently working on the revised quantities for Geogrid and substitution P-208. This information will be forthcoming in a separate mailing to include the revised Change Order #2 quantities. Blue Topping (high lathe) the portions of the TWs not being modified. The western end of Taxiway B, C, D, F & G that are not to have the modified pavement section, can have the subgrade blue topped using high lathe, to provide demarcation so that 4" of P208 can be installed over P154. Remaining Topsoil not being used on project. We will seek an answer from the City on whether any remaining topsoil stockpiles need to be bladed smooth, and seeded, or left in some acceptable shape for the City's impending use elsewhere. Kyle Schellinger Schellinger Construction Page 3 of 3 In any questions or concerns arise to topics discussed in this letter please contact me at you earliest convenience. Sincerely, ROBERT PECCIA & ASSOCIATES Philip Porrini, P.E. Project Manager CC. Fred Leistiko, Airport Manager Brandon Theis, RPR FAA1RP0RTSUCALISPELL CrrY-2003\NORTH END SURFACINGkontadmin\corresp\050816ks_engr-tnne.ltr.doc Robert Peccia & Associates TRANSMITTAL LETTER Date: August 16, 2005 Project #: Attention: Kyle Regarding: Kalispell ity Airport Message To: Name: Kyle Schellenger Firm/Agency: Schellinger Construction Company, Inc. Address: P.O. Box 39 City, State, Zip: Columbia Falls, MT 59912 Phone Number: 892-2187 Message From: Name: Phil Porrini Trimcmitted are the fallnwinv, items - Item No. Copies Desert tion 1 3 CO #2 (one by fax) F:UIRPORTSV ISPFI.I. CfTY-20 WORTH END SU AON6—.dminc WM I6ks rt CO.i�nd« RPmnrkc! Please review the enclosed revised Change Order. cc. Fred Leistiko, Airport Manager, Fax: 758-7758 *825 Custer Avenue* *Helena, MT 59601* * Phone 406-447-5000* * Fax 406-447-5036* PROJECT TITLE: Kalispell City Airport — North End Surfacing PROJECT NO.: CONTRACT DATE: July 6, 2005 OWNER: City of Kalispell CONTRACTOR: Schellinger Construction Change Orders must be accompanied by an itemized cost breakdown. You are hereby requested to comply with the following changes from the Contract Documents. (Show separate costs for materials, labor, equipment, and miscellaneous. Show percent where applicable.) COST OF CHANGES ITEM DESCRIPTION OF CHANGES - ESTIMATED TOTAL NO. QUANTITIES & UNITS TOTAL COST MAT'LS. L E M UNIT A Q I COST s u S o i R P C 1. Furnish and Install Geogrid (BX1200) 8,660 SY $4.94/sy $42,780.40 2. Eliminate P-154 over the Geogrid -2,219 CY $26.00/cy ($57,694.00) 3, Substitute P-208 over the Geogrid 2,219 CY $32.00/cy $71,008.00 4, Eliminate P-602 Prime Coat -45.2 tons $300.00/ton ($13,560.00) This is an estimate of geogrid, final quantity will be determined at the completion of base course placement. TOTAL COST - MATERIALS, LABOR, EQUIPMENT & MISC. OVERHEAD & PROFIT @ % GRAND TOTAL - THIS CHANGE ORDER $42,534.40 Original Contract Price Current Contract Price Adjusted by Previous Change Order Cost this Change Order (+ or -) $ 1,199,612.85 $30,777.85 $42,534.40 New Contract Price including this Change Order $1,272,925.10 The completion date as set forth in the Contract Documents shall be (unehanged, increased, deerease ) by 7 calendar days. The date for completion of all work will be September 9, 2005 CO - 1 Rev. 9/00 Description and Justification for Change: 1. See attached letter from Schellinger Construction (8/11/05). 2. See attached sketch for Modified Pavement Section which includes Geogrid placement 3. See attached Sheet 1 with areas to apply the Geogrid BX 1200. 4. See attached Sheet 2 with areas to apply the P208 Modified Pavement Section 5. See attached letter from NTL Engineering & Geoscience When poor subgrade soils were discovered shortly after excavation began, Change Order #1 (July 28, 2005) was implemented to include excavation and subgrade replacement for wet, soft and yielding materials with on - site dry materials. This repair process has been completed, however, in areas of construction traffic there is still some yielding (depressions and rutting) on the subgrade materials. On August 8, 2005, the Contractor (Al and Kyle Schellinger and Marc Blanden — Schellinger Construction) met with the Engineer (Phil Porrini, Ryan Mitchell and Brandon Theis — Robert Peccia & Associates), the Geotechnical Engineer (Ken Munski and Ryan Wade — NTL Engineering) and the Owner (Fred Leistiko — Airport Manager). Observations were made and recommendations for a test section were carried out by the Contractor. The test included placement of geotextile separation fabric, Tensar BX1100 Geogrid, 24 inches of P-154 and full vibratory compaction. The results met or exceeded specifications. The gravel thickness, however, was beyond what was requested and for the next test the Contractor cut the thickness to 18 inches of P-154 on August 11, 2005. The compaction results again met specifications. In an effort to firm up the proposed pavement section in areas that are still yielding or which are anticipated to have high construction traffic, a Geogrid needs to be added. For these areas we have selected a Tensar BX 1200 Geogrid, (heavier — and stronger than BX1100 used in the test section) which needs to be placed over the geotextile separation fabric along Taxiway A and portions of the connecting hangar access taxiways. We have also determined the need to use the geogrid at culvert and utility line crossings. The next step after placement of geotextile separation fabric and Geogrid, will be the substitution of P-208 for P-154 material. Placement of 16 inches of just one material (original design included 4" P-208 and 12" P-154), will reduce construction traffic and eliminate the need for blue topping, grading and compacting the subbase surface. The P-208 has a higher structural value than P-154 and will lock in with the Geogrid material (BX 1200) better to produce a surface capable of supporting the aircraft it is designed for and accommodating limited construction traffic. Repetitive construction traffic over approved subgrade, base course and pavement will not be allowed. Prime coating on the top of the crushed aggregate base course has been waived. The completed base course on the apron looks tight and therefore we have decided that the prime coat (P-602) can be "waived." Surety consent is required if the net increase exceeds 20% of the Original Contract Amount. SURETY CONSENT The Surety hereby consents to the aforementioned Contract Change Order and agrees that its bond or bonds shall apply and extend to the Contract as thereby modified or amended per this Change Order. The Principal and the Surety further agree that on or after execution of this consent, the penalty of the applicable Performance Bonds or Bonds is hereby increased by $ (100% of the Change Order amount) and the penalty of the applicable Labor and Material Bond or Bonds is hereby increased by $ (100% of the Change Order amount). COUNTERSIGNED BY MONTANA RESIDENT SURETY AGENT IN CO - 2 Rev. 9/00 Seal Recommended by: /s/ Philip Porrini, P.E. Accepted by: August 16, 2005 Engineer Date Contractor Date Owner Date FAAIRPORTSWALISPELL CITY-2003\NORTH END SURFACING\contadmin\CO#2,DOC CO - 3 Rev. 9/00 AUG-11-2005 THU 10:28 AM SCHELLINGER CONSTRUCTION FAX NO. 4068922187 P. 02 Schellinger Construction Co., Inc. P.O. BOX 39 COLUMBIA FALLS, MT 59912-0039 PI IUNE, (406) 892-2188 FAX: (406) 692-2187 Ryan Mitchell, P.E., L.S.I. Robert Peccia & Associates P.O. Box 5100 Kalispell, MT 59903 Date: August 11, 2005 RE: Kalispell City Airport 2005 North End — Surfacing Tmprovements Subject: BX1200 Geogrid Installation Price Decrease Mr, Mitchell, AL SCHELLIN01fR CUrFSCHELLIWGE H GORGE SCHMIDT On August 10, 2005 Schellinger Construction provided RPA with justification of our price for the BX 1200 Geogrid. In conversation with you, you had told me that you thought our price of $5.20 seemed high and that you thought that 15% for overhead and profit should not apply to the materials. Section 90-05 of the general provisions states that extra work is paid for on either a force account basis or a negotiated price where there is an agreed allowance for overhead and profit. Montana Public Works states (see attached document) that the contractors fee for overhead and profit are 15% of all labor, equipment, and materials. Schellinger Construction feels that this fee is reasonable and fair and therefore does not agree that we should not add 15% to our material price. In looking at our price though we have decided that our installation price can be decreased. Instead of $0.90 per square yard we are willing to decrease this price by $0.23 and install the geogrid for $0.67 per square yard. This will then make our final price for the geogrid be $4.94 per square yard as shown by the following: $3.10 per square yard to purchase the material + 17% waste ($3.10 * 1.17% = $3.627), plus $0.67 for installation ($3.627 „I. $0.67 = S4.297), plus 15% for overhead and profit ($4.297 * 1.15% = $4.9416) or $4.94 per square yard. Schellinger Constniction would also like to inform you that we have extra BX 1100 geogrid from a MDOT project that is currently being constructed. Schellinger Construction purchased this fabric before all of the material price increases. We have approximately 4200 square yards of BX 1100 on this project and would be able to provide this material for $0.50 less than the above quoted price for the BX 1200. Ilowever, if we use this material and there is not enough to cover the extent of which it is needed on this contract we will have to finish the contract utilizing the BX 1200 for the is price of $4.94 per square yard. The crew on this project will be coming home tonight HUU-11-000b 1HU IU:Cd AM SUELLINGER CONSTRUCTION FAX NO, 4068922187 E E around 2:30 p.m. so if RPA chooses to use theBX 1100 we will need to knowbefore then so that we can get it delivered here. If you have any questions, problems, or concerns please feel free to contact Me. Sincerely, Kyle Schellinger Project Matiager ce: Phil Porrini E C t Q V) 0 =1= ' I � \✓\ \� 1 Mir . \ \ + \ \ \ I® UG— \ UG \ Ir \ \ l \ lot \ \ x\ 4 S \ I SS Ilot it t \ \� I It SS \ \\ GEOGRID NOTES: �[ 1. TW A do PORTIONS OF CONNECTING HANGAR ACCESS TW. 2. LIMITED COVERAGE ON TW F do TW G. 3.AREAS BASED ON 1 FT. OFFSET FROM PAVEMENT EDGE. i I 100 0 100 200 i (SCALE IN FEET) AUG. 12, 2005 SHEET TITLE PROJECT TITLE ,�/ SHEET CHANGE ORDER #2 KALISPELL CITY AIRPORTO�pT pEc�s PROECT N0. GEO GRID IMPROVEMENTS c = 1 TW—AREA.DWG 1 7 FlLE NO. Sop act��``� 2 OF 2 j �XI /. -I- I \ I= 1 1 \ \ i } �T } , Ell UG— UG ss i \ i I N \ I\ is SS } \� SS\ I P-208 NOTES: I �[ 1. TW A do PORTIONS OF CONNECTING HANGAR ACCESS TW. 2. REDUCED COVERAGE ON TW A BECAUSE P-154 ALREADY INSTALLED I do STABLE. I 3. AREAS BASED ON 1 FT. OFFSET FROM PAVEMENT EDGE. I 100 0 11D0 200 i (SCALE IN FEET) AUG. 12, 2005 SHEET TITLE PROJECT TITLE SHEET DATE CHANGE ORDER #2 KALISPELL CITY AIRPORT��R7 PROJECT NO. P208 CRUSHED IMPROVEMENTS b 2 TW—AREA-DWG BASE COURSE I 1 FILE NO. ��'S$OC1w��y 2 OF 2 1392 13" Avenue SW P.O. Box 3269 Great Falls, MT 59403-3269 August 15, 2005 Robert Peccia & Associates PO Box 5653 Helena, MT 59601 Attention: Mr. Phil Porrini, P.E. Subject: Subgrade Observation Kalispell City Airport Kalispell, Montana Dear Mr. Porrini: Tel. (406) 453-5400 Fax. (406) 761-6655 ntlengineering.com At your request on August 8, 2005, we accompanied you on a site visit during construction of the Kalispell City Airport in Kalispell, Montana. The purpose of the site visit was to assess exposed subgrade conditions and make recommendations for subgrade improvements, as appropriate. We previously performed a Geotechnical Investigation for the pavement improvements which was dated April 5, 2005. As anticipated by the Geotechnical Investigation, some areas of the lean clay subgrade to support the new taxiway and apron pavements were on the order of 10% above optimum compaction moisture as determined by ASTM D698. The very wet subgrade, the proximity of groundwater, and the use of very heavy construction equipment (including a. scraper) contributed to unstable subgrade conditions encountered over portions (primarily the central and northern portions) ofthe project. Prior to our site visit, areas of low subgrade stability had been improved by removal of the wet lean clay to depths of about 2 feet and replaced with drier Iean clay from the southern portion of the project. The drier lean clay was reported compacted in a single lift, at moisture contents several percent below optimum compaction, resulting dry densities generally above 95% the ASTM D698 maximum for the top one foot of subgrade. The drier lean clay replacement was reported to be reasonably successful in many areas, but some areas still remained unstable or only marginally stable under heavy construction traffic. Our visit of August 8, 2005 was to focus on improvements to subgrade stability for construction in the central and northern portions of the project, where subgrade replacement with the drier clay had already taken place or was about to take place. After our initial site observations on August 8, 2005, we recommended that areas of unstable subgrade be subexcavated and an initial single lift of gravel (pit run, uncrushed or crushed) on the order of 18-inches thick be incorporated at the bottom of the pavement section. The use of a geogrid at the bottom of the initial lift was also recommended to improve the effectiveness of the thickened section in improving stability for construction. The thickening of the pavement section and incorporation of the geogrid was also to improve long. term performance of the pavement section on Subgrade Observation Page 2 Kalispell City Airport, Kalispell, Montana NTL Engineering & Geoscience, Inc. the lean clay subgrade. We further recommended that field trials be conducted with various thicknesses of the initial gravel lift to best balance effectiveness in stability improvement against the added cost of additional gravel and geogrid. During our site visit, a trial section of about 20-24 inches of mostly uncrushed P-154 subbase on the separation fabric and geogrid was constructed in the least stable subgrade area near the north end of the project along Access Taxiway B. The trial section appeared very stable under construction traffic, so additional trials using lesser thicknesses ofthe initial gravel lift were recommended. Subsequent to our site visit, additional trial sections were reportedly constructed, and the most economical subgrade section providing effective stabilization for construction and anticipated improvement to long term pavement was selected as follows: P-401 Asphalt Concrete 3.0 inch P-208 Crushed Base Course 16.0 inch *Completed as a single lift. Geogrid BX 1200 Separation Fabric Total Section Thickness 19.0 inch In our opinion, the section described above will provide improvement to the long term pavement performance where marginal subgrade stability existed making construction difficult with heavy equipment. Since the economics favor this thickened section, and since field trials have reportedly established its effectiveness in stability improvement under heavy construction traffic, use of the section is recommended in those areas observed as being of low or marginal subgrade stability. Please be cautioned that the thickened pavement section presented above (like the originally planned pavement section) will effectively carry the light aircraft loads to be applied, but the pavement section may not effectively carry the much heavier loads which can be applied by construction equipment. While the construction methods and equipment to be employed are soley determined by construction contractor, the limited construction load carrying capacity of the light aircraft pavement section should be considered when selecting construction methods and equipment. The construction contractor may find it advantageous to use relatively light equipment or to further thicken selected pavement areas to be as haul routes as construction expedients. Such construction expedients would not typically require change orders or extra compensation. Please call if you have any questions regarding this project of if we can be of further assistance. Sincerely, Kenneth D. Munski, P.E. Senior Materials Engineer In duplicate Enclosure