Background:
When the building contractor began excavation at the new District Office Construction Project, they discovered a large quantity of recycled base rock in the area below the new building pad. This was an unforeseen condition as the base rock did not show up on the soils report or any previous site investigations. After review with the Project soils engineer it was determined that a small portion could be reused onsite while the majority of material had to be off-hauled and disposed of. Furthermore, due to the small size of the site and the significant amount of space required for stockpiling this material, where the lime treatment at the building pad was originally to be performed in one step, it was agreed that it now had to be performed in 2 phases resulting in additional scope of work.
The change order request submitted by Premier Builders totals $235,674 which is in excess of 10% of the original contract price. In order to move forward with the project and avoid additional costly delays associated with bidding the change order work under a separate contract the Board is asked to approve a resolution of futility of public bidding for the additional work as bidding the work would not produce an advantage to the District and would produce a net burden and distinct disadvantage to the District.
Fiscal Implication:
The total construction contingency of $182,002 was budgeted for this project.
Change Order #1 for $235,674 exceeds the budgeted contingency leaving the remaining contingency amount to $(53,672) with 5% of the project complete.
Recommended Action:
That the Board of Trustees approve the Resolution No. 03-012419 Declaring the Futility of Bidding for Additional Excavation Work at the Construction of New District Office and Approve of Change Order #1 to Premier Builders, Inc.