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Item # 9.
         
Council Meeting
Meeting Date: 08/11/2020  
Department: City Manager  

AGENDA CAPTION:
Present, Discuss and Consider Action on Change Order #2 to the Contract with JC Commercial, Inc. for Costs Related to Unforeseen Site Conditions for the United States Customs and Border Protection Facility at Addison Airport and Authorize the City Manager to Execute the Change Order in an Amount Not to Exceed $141,881.10. 
BACKGROUND:
On August 27, 2019, the Addison City Council approved a contract with JC Commercial, Inc. for the construction of the U.S Customs and Border Protection and Airport Administration facility at Addison Airport in the amount of $6,223,949. 

Change Order #1, dated February 28, 2019 approved a cost increase of $22,215.16, thereby increasing the contract amount to $6,246,209.16. Change order #1 included North Texas Tollway Authority irrigation modifications, an Oncor utility relocation, the installation of bollards around the  Customs and Border Protection generators, and the removal of an abandoned water line. Change order #1  was not taken to Council because the amount was less than $50,000 and less than 25% of the contract price.  Change order #1 did not add additional days to the contract.  

Change Order #2 includes the following additional items that were not anticipated or known at the time of the original contract. Staff determined that it was prudent, efficient and effective to address the following issues as part of the on-going work:
  • Additional concrete pier depths for the building foundation due to a variable depth rock layer that was deeper than anticipated. Additional pier depths ranged from 1.5 to 3.5 feet in depth and occurred outside the known rock layer depth provided in the geotechnical report. The pricing provided by JC Commercial Inc. is consistent with industry standards for costs per linear foot of pier depth for the additional labor and materials.
  • Changes in the erection of steel for the elevator. Page, the project architect, and AG&E , the structural engineer, have both reviewed the proposal submitted by JC Commercial, Inc. and agree the additional steel and erection costs is justified and necessary. The steel modification required a high degree of detail and precision and the contractor is required to complete the modifications associated with the elevator installation.
  • The site design earthwork quantity in the bid documents was calculated before the site demolition of the old hangar and removal of old pavements. JC Commercial performed a topographic survey of the site to verify existing conditions before construction began and notified the project team that elevations for the site were lower than the existing survey provided in the design documents.
  • As requested by U.S Customs and Border Protection, hold room toilets and lavatory were revised from separate toilets and lavatory to combination toilet/lavatory fixtures in order to comply with U.S. Customs and Border Protection requirements.
The following table summarizes the effect of change order #2 on the contract price:
Description Original Price Amount
     
Additional Foundation Pier Depths   $11,466.65
Change to Elevator Steel Structure   $20,067.30
Additional Fill   $107,056.95
CBP Hold Room Combination Toilet/Lavatory Revision   $3,290.20
Subtotal   $141,881.10
     
Amount of this Change Order   $141,881.10
Original Contract Amount   $6,223,949.00
Overall Contract (Including Previous Change Order)   $6,246,209.16
Revised Contract Amount   $6,388,090.26
Total % Increase (including change orders #1 and #2)   2.57%

This change order requires council approval because the total amount is greater than $50,000.

The following table summarizes the effect of change order #2 on the contract time:
Description Calendar Days
Additional Foundation Pier Depths 5
Change to Elevator Steel Structure 10
Additional Fill 10
Subtotal 25
   
Original Contract Start Date September 30, 2019
Original Contract Time 450
Previously Approved Contract Time Extension 0
Approved Contract Time Extensions this Change Order 25
New Contract Time 475
New Contract Completion Date January 17, 2021

Funding for these improvements is from the 7.3% contingency allowance included in the original contract with JC Commercial, Inc. The total contingency allowance for the project is $559,978.
RECOMMENDATION:
Administration recommends approval.
Attachments
U.S Customs and Border Protection Facility - Change Order #2
U.S Customs and Border Protection Facility - Change Order #1

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