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. Three previous change orders have been approved; most recently Change Order #3 was approved by City Council on October 13, 2020. This item is to consider approval of a fourth and final reconciliation change order for the project. The table below summarizes the initial contract, the approved change orders, and the proposed final reconciliation change order.
| Date |
Item |
Calendar Days |
Amount |
| 8/27/2019 |
Original Contract |
450 |
$6,223,949.00 |
| 4/23/2020 |
Change Order #1 |
0 |
$22,260.16 |
| 8/11/2020 |
Change Order #2 |
25 |
$141,881.10 |
| 10/13/2020 |
Change Order #3 |
27 |
$17,257.41 |
| 12/14/2021 |
Change Order #4 |
244 |
$222,681.13 |
| - |
TOTAL |
746 |
$6,628,028.80 |
Project Budget
The proposed change order #4 would bring the total contract price for building construction to $6,628,028.80, representing an increase of 6.1% over the original contract price of $6,223,949. The total project budget - including building construction, airside construction, construction management, construction testing, and furniture - set in August 2019 was $9,009,967, which included total project contingency of $559,978 or 7.2%. The current estimated final total project cost is $8,871,170.03, leaving a remaining project contingency of $138,796.97. In short, the project remains within budget.
Change Order #4
Change order #4 includes items that fall into four broad categories:
- Project Credits - Scope items removed from the project that did not affect building functionality.
- Customs and Border Protection (CBP) Initiated Items - Scope items included based on CBP requirements that changed from design to construction completion.
- Town of Addison Initiated Items - Scope items included in Town of Addison areas to improve functionality and maintainability.
- Building Functionality, Material Ordering Issues, and Installation Conflict Items - Scope items included because of items removed due to selected value engineering proposals, material ordering issues caused by supply chain disruption, material ordering issues from discontinued products, and on-site conflicts due to routing of mechanical, electrical, plumbing, networking, and security installation requirements.
The table below summarizes the total cost of changes in each of the four categories listed above, along with the total proposed cost of this final reconciliation change order.
| Change Order #4 Cost Category |
Amount |
| Project Credits |
$(16,275.75) |
| CBP Initiated Change Items |
$111,065.53 |
| Town of Addison Initiated Change Items |
$22,691.22 |
| Building Functionality, Material Ordering Issues, and Installation Conflict Items |
$105,200.13 |
| Final Reconciliation Change Order #4 Total Cost |
$222,681.13 |
In addition to the cost, Change Order #4 items are proposed to add 244 days to the total contract time, with a resulting substantial completion date of October 15, 2021. Substantial completion is when the project is available for the owner or tenant to occupy the space to either operate or in this case complete tenant finish-out. The October 15 date is when CBP was able to enter the space and begin finish-out for installation of their items. Security and access controls are the responsibility of JC Commercial to install; however this work is at the direction of CBP. Additional contract days to reach substantial completion were necessitated mainly by delays in obtaining specified items or in identifying and obtaining acceptable substitutes for specified items. Additional time beyond the substantial completion date was required to procure and install CBP-specified IT, security, and access control items; the project has not incurred construction administration charges beyond the substantial completion date. While the project will finish well behind the original schedule, approved and proposed changes remain within the available contingency amount. |