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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
Mary DeLoretto, Chief Service Development Officer |
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PRESENTER(S): |
Grey Turner, Manager of Engineering & Design |
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TITLE:
title
Change Order: TIGER Program Change Order No. 74 - Provo Overhead Pedestrian Bridge Project Cost Increase (Granite Construction)
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AGENDA ITEM TYPE:
Procurement Contract/Change Order
RECOMMENDATION:
Approve agreement and authorize the Executive Director to execute Change Order No. 74 (Amendment 24) and associated disbursements with Granite Construction for the Provo City TIGER Overhead Pedestrian Bridge in the amount of $4,571,872.
BACKGROUND:
UTA is engaged in the TIGER Program of projects to construct first and last mile improvements across the UTA service area. In April of 2018 an RFP was issued for construction manager/general contractor services, following which a contract was executed with Granite Construction Company for phase 1 pre-construction services. Subprojects under the TIGER Program have been executed through phase 2 contract amendments and change orders with Granite. For the past four years the Board of Trustees has delegated authority to execute TIGER project amendments to the Executive Director through annual resolutions which outlined the parameters for delegating authority.
The board previously approved in a 2021 resolution (R2021-01-04) for Provo Overhead Pedestrian Bridge Schedule A, a $4,074,356 contract amount. UTA entered a Phase 2 contract (change order 51/amendment 20) with Granite Construction for Schedule A work in the amount of $4,074,356 on December 20, 2021. This $4,074,356 contract was to begin some construction activities and order several long-lead items. This amount was not the full anticipated construction budget amount. Due to design and approval delays with the Union Pacific Railroad, this project did not start construction as originally anticipated in December 2021.
Due to these delays and added scope when the final design was complete, the project was rebid in November 2022. The total new cost to build the Provo Overhead Pedestrian Bridge is $8,646,228.
The added Phase 2 Schedule B contract amount, as outlined in change order 74/amendment 24,will be for $4,571,872. This Schedule B amount added to the Schedule A amount of $4,074,356 equals the total rebid price of $8,646,228.
To Summarize:
The Board approved schedule A contract amount of $4,074,356 for early construction activities and long-lead items in December 2021 (change order 51/amendment 20).
Staff now requests board approval for schedule B amount as a change order to Granite Construction in the amount of $4,571,872 (change order 74/amendment 24).
Total project contract amount, schedule A plus schedule B = $8,646,228
DISCUSSION:
UTA and Granite Construction have recently gone through a repricing exercise for the Provo Ped Bridge due to unforeseen delays and the inability to hold material and subcontractor prices. Through the rebidding exercise, the total cost of the construction has increased. UTA needs to give Granite approval to move ahead in order to hold or “lock in” the negotiated prices.
This project is a sub-project of the systemwide TIGER program of projects - MSP205. There is sufficient existing budget authority in the master project to accomplish this work. The increase in budget and contract change order will be covered by programmed budget authority in the master project. During the year-end capital budget close and reconciliation process, staff will evaluate the remaining sub projects, master and sub project budget authority, and anticipated cash flow for 2023. This will be documented during the carryforward process and brought to the Board for discussion and approval. UTA may also approach its partners about potential reimbursement going forward but the current change order is not dependent on partner funding.
CONTRACT SUMMARY:
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Contractor Name: |
Granite Construction |
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Contract Number: |
18-2398TP-074 |
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Base Contract Effective Dates: |
April 11, 2018-Jan 24, 2023 |
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Extended Contract Dates: |
Nov 30, 2023 (extended through previous change order) |
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Existing Contract Value: |
$35,742,439 |
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Amendment Amount: |
$4,571,872 |
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New/Total Contract Value: |
$40,314,311 (total for all TIGER projects to date) |
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Procurement Method: |
CM/GC |
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Budget Authority: |
UTA 5-year capital plan |
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ALTERNATIVES:
Without approval of the higher Phase 2 construction costs the project cannot proceed.
FISCAL IMPACT:
There is sufficient budget authority to accomplish this change order. Pending final review of total sub project costs, schedules, and cash flow, Service Development will return to the Board, as needed, with a reconciliation to ensure funding for pending subprojects scheduled for completion in 2023 or early 2024.
ATTACHMENTS:
Granite Change Order 74 - TIGER Provo Ped Bridge Increase
18-2398TP Phase 2 Amend 24 Provo Ped Bridge