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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. Item 4D Page 2 of 8 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 Item 4D Page 3 of 8 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 Item 4D Page 4 of 8 Exhibit A – Change Order #1 Item 4D Page 5 of 8 Item 4D Page 6 of 8 Item 4D Page 7 of 8 Exhibit B – Change Order #2 Item 4D Page 8 of 8