Item 4D Memo Item 4D
M E M O R A N D U M
(May 1, 2018)
To: Shana Yelverton, City Manager
From: Rob Cohen, Director of Public Works
Subject: Approve a no cost change order with Haydon Building
Corporation (HBC) for the Bicentennial Park Phase 3, Southlake
Tennis Center
Action
Requested: Approve a no cost change order with Haydon Building
Corporation (HBC) for the Bicentennial Park Phase 3, Southlake
Tennis Center
Background
Information: The approval of this change order is administrative in nature and will
not impact the project’s Guaranteed Maximum Price.
The requested action is necessary to ratify changes to the contractual
scope of work. The project team processed twenty three prospective
change orders (PCO) that were necessary to deliver a complete and
usable facility. The PCOs were unilaterally issued to HBC via 3
separate Construction Change Directives (CCD). The team confirmed
the scopes of work and costs were reasonable, within industry
standards and were in accordance with the contractual terms and
conditions
Financial
Considerations: The financial transactions impacting the project contingency and
overall construction costs are summarized in Table 1.
As seen from the table, the sum of the project contingency and costs
for construction equals the guaranteed maximum price (GMP).
The original GMP was $4,230,520. The project contingency of
$214,743 plus the funds for construction costs of $4,015,777 equaled
the Guaranteed Maximum Price (GMP) of $4,230,520.
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Table 1
Change Order #1 credited the project contingency due to deductive
modifications to the scope of work. The removal of the work increased
the contingency while decreasing construction costs. The contingency
increased to the project contingency to $239,183 while the construction
costs were reduced to $3,991,337. The project GMP, however,
remained unchanged.
Change Order #2 included several modifications as well as an
agreement that resolved the contractor’s request for extended general
conditions. After these expenses were paid, the contingency balance
was $42,385. However, construction costs rose to $4,188,135. The
project GMP, however, remained unchanged.
Strategic Link: The requested action supports the focus areas of Infrastructure and
Quality Development. The Corporate objectives supported by this
action are:
- Provide Attractive and Unique Spaces for Enjoyment of
Personal Interests (C3)
- Invest to Provide & Maintain High Quality Public Assets (F2)
The action also addresses the City’s Critical Business Outcome to
Improve the quality of life through progressive implementation of
Southlake’s Comprehensive Plan recommendations (CB05)
Citizen Input/
Board Review: N/A
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Legal Review: N/A
Alternatives: The City Council may approve or deny this requested action.
Supporting
Documents: Exhibit A: Change Order #1
Exhibit B: Change Order #2
Staff
Recommendation: Approve the change order authorizing the use of pre-approved funding
to replenish the project contingency.
Staff Contact: Rob Cohen, Director of Public Works
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Exhibit A – Change Order #1
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Exhibit B – Change Order #2
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