HomeMy WebLinkAboutPW18-095 - Change Order - #8 - HCI Industrial & Marine Coatings, Inc. - Cambridge Reservoir Recoating - 06/07/2019 Records Management
KENO Document
WASHINGTON
CONTRACT COVER SHEET
This is to be completed by the Contract Manager prior to submission
to City Clerks Office. All portions are to be completed.
If you have questions, please contact City Clerk's Office.
Vendor Name q �OAYV
Vendor Number: / 7 e,,
JD Edwards Number
Contract Number: PW18-095
This is assigned by City Clerk's Office
Project Name: Cambridge Reservoir Recoating and Fall Protection Improvements
Description: ❑ Interlocal Agreement ® Change Order ❑ Amendment ❑ Contract
❑ Other:
Contract Effective Date: 3/6/2018 Termination Date-_125`Working Days
Contract Renewal Notice (Days):
Number of days required notice for termination or renewal or amendment
Contract Manager: Joe Araucto Department: PW Engineering
Contract Amount: $1,334,850.00
Approval Authority: (CIRCLE ONE) Department Director Mayor City Council
Detail: (i.e. address, location, parcel number, tax id, etc.):
Change Order #8
As of: 08/27/14
•
KENT
WnSHiNGTON
CHANGE ORDER NO. # 8
NAME OF CONTRACTOR: HCI Industrial & Marine Coatings, Inc. ("Contractor")
CONTRACT NAME & PROJECT NUMBER: Cambridge Reservoir Recoating and Fall Protection Imp.
ORIGINAL CONTRACT DATE: March 6, 2018
This Change Order amends the above-referenced contract; all other provisions of the
contract that are not inconsistent with this Change Order shall remain in effect. For valuable
consideration and by mutual consent of the parties, the project contract is modified as follows:
1. Section I of the Agreement, entitled "Description of Work," is hereby modified to add
additional work or revise existing work as follows:
In addition to work required under the original Agreement and any prior
Amendments, Contractor shall provide all labor, materials, and
equipment necessary to:
Equitable adjustment fully compensates all delay impacts and year over
year price escalation incurred by the contractor. Impacts and added
work related to bid item 1055, Reservoir Containment including all
activities performed by the scaffolding subcontractor are further
compensated by change order 6.
2. The contract amount and time for performance provisions of Section II 'Time of
Completion," and Section III, 'Compensation," are hereby modified as follows:
Original Contract Sum, $1,334,850.00
(including applicable alternates and
WSST)
Net Change by Previous Change Orders $93,257.86
(incl. applicable WSST)
Current Contract Amount $1,428,107.86
(incl. Previous Change Orders)
Current Change Order $43,926.31
Applicable WSST Tax on this Change $4,392.63
Order
Revised Contract Sum $1,476,426.80
CHANGE ORDER - 1 OF 3
Original Time for Completion 125 working days
(insert date)
Revised Time for Completion under 143 working days
prior Change Orders
(insert date)
Days Required (f) for this Change Order o calendar days
Revised Time for Completion 143 working days
(insert date)
In accordance with Sections 1-04.4 and 1-04.5 of the Kent and WSDOT Standard
Specifications, and Section VII of the Agreement, the Contractor accepts all requirements of this
Change Order by signing below. Also, pursuant to the above-referenced contract, Contractor
agrees to waive any protest it may have regarding this Change Order and acknowledges and
accepts that this Change Order constitutes final settlement of all claims of any kind or nature
arising from or connected with any work either covered or affected by this Change Order, including,
without limitation, claims related to contract time, contract acceleration, onsite or home office
overhead, or lost profits. This Change Order, unless otherwise provided, does not relieve the
Contractor from strict compliance with the guarantee and warranty provisions of the original
contract, particularly those pertaining to substantial completion date.
All acts consistent with the authority of the Agreement, previous Change Orders (if any),
and this Change Order, prior to the effective date of this Change Order, are hereby ratified and
affirmed, and the terms of the Agreement, previous Change Orders (if any), and this Change Order
shall be deemed to have applied.
The parties whose names appear below swear under penalty of perjury that they are
authorized to enter into this contract modification, which is binding on the parties of this contract.
3. The Contractor will adjust the amount of its performance bond (if any) for this project
to be consistent with the revised contract sum shown in section 2, above.
IN WITNESS, the parties below have executed this Agreement, which will
become effective on the last date written below.
CONTRACTOR: CITY OF KENT:
By: By: 0
(signature) (signa ure)
Print me: ��t.�a�cj S Print Name: Dana Ralph
Its �" Its Ma or
(title) �DATE: �� DATE —1 (title)
CHANGE ORDER - 2 OF 3
APPROVED AS TO FORM:
(applicable if Mayor's signature required)
Kent Law Department
[In this field,you may enter the electronic filepath where the contract has been saved]
CHANGE ORDER - 3 OF 3
• FILE NO: 200.2
KENT
CHANGE ORDER WORKSHEET NO. 8
Construction Engineering Division — Public Works
Project: Cambridge Reservoir Project No.: 17-7999.2
Project Engineer: Joe Araucto Fed-Aid No.:
Capital Projects Paul Kuehne Contractor: HCI
Manager:
Date: March 6, 2019
I. PROPOSED CHANGE
This negotiated equitable adjustment fully compensates all delay impacts and year over year
price escalation incurred by the Contractor. Impacts and added work related to Reservoir
Containment bid item 1055 including all activities performed by the scaffolding subcontractor are
further compensated by Change Order 6.
II. REASON AND BACKGROUND FOR CHANGE
Several issues combined to push the project from the 2018 construction season into 2019.
Issues included: numerous design changes during construction, the discovery of hazardous lead
contaminated paint, losing the scaffolding subcontractor scheduling window, and costs
associated with pulling Cambridge Reservoir offline before Kent Springs came back online. This
negotiated equitable adjustment fully compensates the Contractor for all impacts related to
pushing the project from 2018 to 2019.
III. METHOD OF PAYMENT
Sch. No. Item Description Total Unit Unit Price Total Estimated Cost of
Est.Qty Item
i
..........__........ ....._.. ..........
Delay/Suspension/Escalation 1 Equitable 43,926.31 $ 43,926.31
.............._._.........._.......----..........................-......_.................................-----........_...._....._..................._...._.............._._. J
Adjustment
............. ....................._............._...................
_......_.... _..........._._....._........_._..._.._........_.............
I
1
�$ 43�f926�31
TOTAL ESTIMATED COST OF CHANGE ORDER * j
*Total of the Cost of Item Columns
1
• FILE NO: 200.2
KENT
W.s H H o 1 o H
IV. WORKING DAYS
Original Contract 125 Due This Change Order* 0 Previous Total 1 a.`.
............ .. _..... ............................ ..................... ..... ..
TOTAL WORKING DAYS* izlol _
*This Change Order + Previous Total
All work, materials and measurements to be in accordance with the Standard Specifications
and Contract Special Provisions for the type of work described.
Capital Projects Manager: Date:
Construction Engineering +
9 9 jf �
-� ,
Supervisor: ate:
Paul Kuehne
Construction Manager: r Date:
ric Connor
2
PO Box 1573, Brush Prairie, WA 98606
CONTRACT CHANGE ORDER NO.
PROJECT: W20058 CAMBRIDGE RESERVOIR RECOATING
CO NO: COP-8
CONTRACTOR: HCI INC.
DESCRIPTION OF CHANGE ORDER WORK: SUSPENSION OF CONTRACT FROM 2018 TO 2019
The Contractor agrees that this change order represents full and final compensation to add the work described herein.
Original Contract Amount: Amount of Previous Change Orders:
$ 1,213,500.00 $ 84,779.87 COP-1-7 PREVIOUS
suomiitea
CHANGE ORDER PRICE: increase/decrease 4% CO's 1-5 approved
CONTRACT W20058 CAMBRIDGE RESERVOIR RECOATING AND FALL PROTECTION $ -
IMPROVEMENTS-REBID-#2 WAS DELAYED FROM SPRING OF 2018 TO SPRING $OF 2019. $
CONTRACT SUSPENSION SIGNIFICANTLY IMPACTED HCI IN THAT THE LOSS OF THE $ -
CONTRACT FOR 2018 RESULTED IN LOSS OF SIGNIFICANT REVENUE FOR FY-2018- $AND COMPOUNDED THE IMPACT BY THE LOSS OF CAPABILITY TO RECOVER TIME $IN OTHER WORDS, HCI BID AND WAS AWARDED A CONTRACT,SPENT SIGNIFICANT $ -
RESOURCES AND EFFORTS TO MAKE SIGNIFICANT CHANGES TO DESIGN ELEMENTS I $
ULTIMATELY RESULTING IN DELAYS&SUSPENSION OF THE CONTRACT WITH AN INABILITY
OR OPPORTUNITY TO RECAPTURE OTHER WORK IN ITS PLACE. $WE BELIEVE THAT 4% INCREASE FOR 2019 CONSTRUCTION IS MORE THAN $ -
REASONABLE,TAKING THE PREVIOUS STATEMENTS ABOVE INTO CONSIDERATION $ -
4% (FOUR PERCENT) $ 48,540.00
BONDS AND INSURANCE @ 2% $ 970.80
Subtotal $ 49,510.80
a {.>',_.j,n
10%Sales Tax 0
TOTAL CHANGE ORDER PRICE $ 49,510.80
'W4 REVISED CONTRACT AMOUNTI 1,347,790.67
This Change Order adds 0 day, modifying the contract time to 126 W days.
The payments and/or additional time specified and agreed to in this Change Order shall include any claim by the Contractor
for any extra compensation or extension of time with respect to the work described herein, including any time which may
have resulted prior to executing this Change Order.
Except as herein modified, the terms of the basic contract shall remain in full force and effect.
�OJS[a��_µn��NF.conrrc iy
s
PO Box 1573, Brush Prairie,WA 98606
CONTRACT CHANGE ORDER NO. 2019
PROJECT: W20058 CAMBRIDGE RESERVOIR RECOATING
CO NO: COP-2019 A C)/
CONTRACTOR: HCI Industrial & Marine Coatings Inc.
DESCRIPTION OF CHANGE ORDER WORK: STOP WORK IN 2018-PERFORM "ALL"WORK IN 2019
The Contractor agrees that this change order represents full and final compensation to add the work described herein.
Original Contract Amount: Amount of Previous Change Orders: NIC
$ 1,213,500.00 $
CHANGE ORDER PRICE: INCREASE
HCl CONTRACT REVISION FOR DELAY IN 2018 CONSTRUCTION TO 2019 5% $ 60,675.00
T BAILEY CONTRACT INCREASE FOR 2019 PERFORMANCE $ 8,647.00
AMERICAN SCAFFOLD CONTRACT INCREASE FOR 2019 PERFORMANCE $ 22,687.00
SOURCE ELECTRIC CONTRACT INCREASE FOR 2019 PERFORMANCE $ 5,000.00
5%OVERHEAD ON SUBCONTRACTORS $ 1,816.70
10%PROFIT ON SUBCONTRACTORS $ 3,815.07
This Change Order Amount Represents Full Compensation for Delay of 2018 Contract $ -
Work between HCI Industrial& Marine Coatings Inc. and the City of Kent to 2019
NO FAULT $
This Change Order will cover the associated excalation in Contract Cost Increases $
for Union Labor Wage Increases, Benefit Packages, Perdium and Subsistence $
Tarriffs,Subcontractor Contract Revisions for delay to 2019 construction $
as well as Supplier revised 2019 Pricing Escalations for Coating Products, Fuel, $ -
Equipment Rental Rates, Consumables,Abrasives, Freight and Transportation Fees $
as well as a reasonable amount for overhead and profit for this change orders
implementation as detailed above
BONDS AND INSURANCE INCREASE @ 2% $ 2,052.81
Subtotal $ 104,693.58
Subtotal $ 104,693.58
Sales Tax @ 10% 10,469.36
OTAL CHANGE ORDER PRICE $ 115,162.94
i REVISED BASE CONTRACT AMOUNTI $ 1,328,662.94
This Change Order adds working days as necessary for 2019 completion.
The payments and/or additional time specified and agreed to in this Change Order shall include any claim by the Contractor
for any extra compensation or extension of time with respect to the work described herein,including any time which may
have resulted prior to executing this Change Order.
Except as herein modified,the terms of the basic contract shall remain in full force and effect.
Kuehne, Paul
From: Kuehne, Paul
Sent: Thursday, September 27, 2018 2:09 PM
To: Connor, Eric
Subject: FW: W20058 Noitce of Contract Suspension
Attachments: Notice of Protest.pdf; 1817904f.pdf; 1817901f.pdf
Fyi
Change of Condition: Paint samples indicate lead concentrations much higher than identified in
our contract documents.
Notice of Protest: As per the WSDOT the Contractor is protesting our unilateral Suspension.
Paul Kuehne, Construction Engineering Supervisor
Construction Management I Public Works Department
220 Fourth Avenue South, Kent, WA 98032
Phone 253-856-5543 1 Cell 253-740-5015
PKuehne@KentWA.gov
CITY OF KENT, WASHINGTON
From: Russ Porter [mailto:rporter@g-o.com]
Sent: Wednesday, September 26, 2018 6:33 PM
To: Kuehne, Paul <PKuehne@kentwa.gov>; Araucto, Joseph <JAraucto@kentwa.gov>
Cc: Ryan Hale<rhale@g-o.com>; Bauer, Sean <SBauer@kentwa.gov>
Subject: FW: W20058 Noitce of Contract Suspension
EXTERNAL EMAIL
Paul and Joe,
We received this letter from the Contractor. The first part of the letter is a standard response to the suspension of the
contract. I know he is working on a revised schedule but I suspect that it is not a high priority since the work got pushed
back.
The part of the contract is a notice of change of condition on the paint. We had taken a paint sample that showed the
presence of lead that we included in the spec. His samples show a level that is much higher and may require the use of
Blastox, a special media that binds with lead. I have asked for a cost impact and he is working on that.
In the interim, I would like to get some more paint samples for laboratory analysis just to confirm his results. I will be
out all of next week and when I get back in the office, I will contact you about scheduling some more paint sampling.
Russ Porter, P.E. / Project Manager / 206.284.0860 p / 206.283.3206 f
Gray& Osborne, Inc. / 1130 Rainier Ave. S., Suite 300,Seattle, WA, 98144
Please consider the environment before printing this email.
1
From: Randy Cornelius [mailto:randy@hci-coatings.comj
Sent: Tuesday, September 18, 2018 12:08 PM
To: 'Russ Porter' <rporter@g-o.com>
Cc: 'Ryan Hale' <rhale@g-o.com>: kim@hci-coatings.com; tom@hci-coatings.com
Subject: W20058 Noitce of Contract Suspension
r
Russ,
We have received your Notice of Suspension of the contract and have responded accordingl s well notification of a
discovery of differing site conditions.
I am waiting on a new schedule from t-baily and I will submit the information requested.
The letter is self-explanatory and if you would like to discuss, please call.
Thank you
Randy
MARINE C4oA 7,,,,,,
ULM
ON QP2
Randy Cornelius -Vice President/PM
PH-360-260-9250
FX-360-260-0096
P.O. Box 1573
Brush Prairie, WA
98606
www.hci-coatings.com
randy(a hci-coatings.com
z
� L MAWNE CO
W Kc
September 181h 2018
Gray & Osborne, Inc.
1 130 Rainier Avenue S.,
Seattle, WA 98144
Attn.: Russell Porter, P.E.
Re: W20058 Cambridge Reservoir Recoating and Fall Protection Improvements—Rebid #2
G & O # 17530.00—Notice of Receipt of Suspension of Contract.
Dear Mr. Porter;
We are in receipt of your Notice of Suspension Dated September 111h 2018 of the above
referenced project until January 31S`and will provide the necessary revisions to the construction
schedule and other supporting documentation for cost revisions to support the 2019 Contract.
As required by the Contract and the Standard Specifications for Road and Bridge
Construction, Section 1-04.5,please accept this letter as a "Notice of Protest"for the Delay
and Suspension of Contract W20058 Cambridge Reservoir Recoating and Fall Protection
Improvements—Rebid No. 2 by The City of Kent- Contracting Agency.
As you are aware and as written in the Standard Specifications, if HCI does not file the written
protest as specified we waive all rights, entitlements, cost adjustments and accepts from the
engineer any written or oral orders and final determinations. The requested associated backup for
costs for the previously submitted change order and revised schedule is forthcoming.
Furthermore;
As indicated in the Suspension of Contract Letter; "The Contractor may continue to perform
minor preparatory work on the project as long as its efforts to not interfere with the
operations and will not be duplicated when the project resumes in 2019".
HCI has been performing minor preparatory work removing the existing paint from locations
where the New Structural/Fall Protection Improvement's will be attached thereby eliminating a
process from 2019 performance schedule and thereby expediting the work when the "New
Notice to Proceed is received."
We have completed the majority of that preliminary paint removal process and do not foresee
returning to the project in 2018 other that to perhaps take measurements or other physical and or
visual examinations.
COATINGSHCI INDUSTRIAL& MARINE • BOX
*QUALITYPH-360-260-9250 *SAFETY ' • • FX-360-260-0096
MAMNE
As part of this process and as required by Contract/Local, State and Federal Regulations, HCI
has performed RCRA/EPA testing of the Paint Chips that were removed from the Cambridge
Reservoir and the Personal Protective Equipment used by personnel for classification and
disposal purposes.
Our samples were tested by NVL Laboratories, Inc. of Seattle Washington, an AIHA Accredited
Laboratory— Batch No. 1817904.00, Method: EPA 3051/6010C/7471 B - and the results as
indicated in the Final Report are 19 (nineteen) times higher in the concentration of lead that
indicated in the Contract Documents or 140,000 PPM vs 7330 PPM or ug/g. and more than 4
times the level of chromium.
As required in the Standard Specifications, Section 1-04.7 we are informing you immediately
and promptly of the (Differing Site Conditions) which differ materially from those indicated in
the contract documents.
We would like to point out that all of the necessary precautions for the lead and other hazardous
metals as indicated in the Appendix B (EXISTING EXTERIOR COATING RCRA 8 METAL
TEST REPORT) and Contract Specifications were accounted for and taken into consideration
when preparing the proposal for the work with the exception of the addition of the Abrasive
Treatment using Blastox Additive. The additive is not required up to 10,000 PPM when
evaluating these projects for bidding purposes. As you can see by the comparative test results
attached, we have by far exceeded this threshold.
The waste drums for the PPE/Paint Chips are being stored onsite in individual DOT Drums until
these results were returned and I have taken the liberty of contacting and consulting with Kleen
Blast Abrasives for the appropriate treatment of the hazardous paint/metals at the levels indicated
on the test reports for Change Order Purposes.
Additional testing can be performed at the City's or Engineers Request.
Respectfully
HCI Industrial & Marine Coatings Inc.
Joseph R Cornelius VP/PM
Cc: Kim Hasselbalch, President
P.O.HCI INDUSTRIAL& MARINE COATINGS INC. BOX 1573 BRUSH PRAIRIE, WA 98606
*QUALITYPH-360-260-9250 *SAFETY ' • •
Kuehne, Paul
From: Russ Porter <rporter@g-o.com>
Sent: Thursday, August 30, 2018 9:12 AM
To: Araucto, Joseph; Bauer, Sean; Kuehne, Paul
Subject: FW: COP FOR 2019 CONTRACT REVISION FROM 2018 TO 2019.xlsx
Attachments: COP FOR 2019 CONTRACT REVISION FROM 2018 TO 2019.xlsx
EXTERNAL EMAIL
Paul, Joe, and Sean,
Here is the contractor's cost proposal for deferring until 2019. Please take a look and we can discuss.
Russ Porter, P.E. / Project Manager / 206.284.0860 p / 206.283.3206 f
Gray& Osborne, Inc. / 1130 Rainier Ave. S., Suite 300, Seattle, WA, 98144
Please consider the environment before printing this email.
From: Randy Cornelius [mailto:randy@hci-coatings.com]
Sent: Wednesday, August 29, 2018 11:56 AM
To: 'Russ Porter' <rporter@g-o.com>
Subject: COP FOR 2019 CONTRACT REVISION FROM 2018 TO 2019.xlsx
Russ,
Take a look and let me know if this is enough of a breakdown.
The 5% increase is more than reasonable for the delay
Please review the terms as well and let me know if you have issues with this.
Thanks
Randy
a_
REQUEST FOR MAYOR'S SIGNATURE
KENT Print on Cherry-Colored Parser
Routing Information:
(ALL REQUESTS MUST FIRST BE ROUTED THROUGH THE LAW D A MENT
Pro
ved by Director
Originator: Stephanie Anderson, PW Eng Phone (Originator): 5651
Date Sent: April 8, 2019 Date Required: April 11, 2019
Return Signed Document to: Stephanie Anderson Contract Termination Date: 125 working days
VENDOR NAME: Date Finance Notified:
HCI Industrial & Marine Coatings, Inc. (Only required on contracts February 20, 2018
20 000 and over or on any Grant
DATE OF COUNCIL APPROVAL: February 20, 2018 Date Risk Manager Notified:
(Required on Non-City Standard Contracts/Agreements)
Has this Document been Specificall Account Number: W2OO58.64110. 330
Authorized in the Bud et? 0 YES NO
Brief Explanation of Document:
Change Order #8- This equitable adjustment fully compensates the Prime Contractor for City imposed
delays. Several issues combined to push the project from the 2018 construction season into 2019.
Issues included: numerous design changes during construction, the discovery of hazardous lead paint,
difficulties associated with losing the scaffolding subcontractor scheduling window, and costs associated
with pulling Cambridge Reservoir offline before Kent Springs Pump Station 4, came back online.
If Cambridge Reservoir work were to occur while Kent Springs Pump Station 4 was still offline for
repairs, it could create a situation where the City might be forced to purchase water from Highline
Water District. Estimates to purchase Highline water ran as high as $400,000.
All Contrac The Law Department
Received:
(This area to be completed by the Law Department)Approval
of Law Dept.:
Law Dept. Comments: ENT
Date Forwarded to Mayor:
Shaded Areas To Be Completed By Administration Staff
Received:
RECEIVED
Recommendations and Comments:
Disposition: 58Y" !-7ll
Ciky of Kent
Date Returned: Office at the Mayor
:tCivill ones\ ocument recessing\ equest or Mayor's Signature.docx