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PW18-357 - Change Order - #5 - Road Construction Northwest, Inc. - S 228th St UPRR Underground Utilities - 06/21/2019
RecordsManagement', . KENT 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 : Road Construction Northwest, Inc. Vendor Number: 178105 JD Edwards Number Contract Number: PW18-357 Project Name: S 2281h St. Union Pacific Railroad Underground Utilities Description: ❑ Interlocal Agreement ® Change Order ❑ Amendment ❑ Contract ❑ Other: Contract Effective Date: 9/13/2018 Termination Date: 60 Working Days Contract Renewal Notice (Days): Number of days required notice for termination or renewal or amendment Contract Manager: Susanne Smith Department: PW Engineering Contract Amount: $1,923,246.25 Approval Authority: (CIRCLE ONE) Department Director Mayor City Council Detail: (i.e. address, location, parcel number, tax id, etc.): Change Order #5 As of: 08/27/14 • KENT 0,, 1,.. .. CHANGE ORDER NO. #5 NAME OF CONTRACTOR: Road Construction Northwest Inc. ("Contractor") CONTRACT NAME & PROJECT NUMBER: S. 2281h St. Union Pacific Railroad Underground Utilities ORIGINAL CONTRACT DATE: September 13, 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: This change order provides an equitable adjustment for cost impactd suffered by the contractor due to delays resulting from differing site condtions and other City directives. 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, $1,923,246.25 (including applicable alternates and WSST) Net Change by Previous Change Orders $41,223.69 (incl. applicable WSST) Current Contract Amount $1,964,469.94 (incl. Previous Change Orders) Current Change Order $63,599.24 Applicable WSST Tax on this Change $0.00 Order Revised Contract Sum $2,028,069.18 CHANGE ORDER - 1 OF 3 y Original Time for Completion 60 working days (insert date) Revised Time for Completion under 0 working days prior Change Orders (insert date) Days Required (f) for this Change Order 0 calendar days Revised Time for Completion 60 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: XBy: ure) gnarure) Print Name: eVe_yM.Kanyer Print Name: Timothy J. LaPorte, P.E. Its fundent Its Public Works Director (title) Z !e) DATE: 1 14 DATE: CQL:9 l401 I? T CHANGE ORDER - 2 OF 3 AT',�EST: APPROVED AS TO FORM: (applicable if Mayors signature required) f Kent City Clerk 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. 5 Construction Management Division — Public Works Project: S. 2281" St UPRR Underground Project No.: 07-3022C Utilities Project Engineer: Mark Madfai Fed-Aid No.: N/A Owners Rep: Jason Barry Contractor: Road Construction NW Date: 1/10/2019 I. PROPOSED CHANGE This change order provides an equitable adjustment for cost impacts suffered by the contractor due to dalays resulting from differing site conditions and other City directives in 2018 and early 2019. In accepting this equitable adjustment, the contractor waives the right to further compensation associated with the following: 1) All extended site supervision, extended management, extended traffic control, extended home office overhead, financial charges, and cost of onsite equipment from the issuance of the Limited Notice to Proceed, dated October 1, 2018 through January 2, 2019. II. REASON AND BACKGROUND FOR CHANGE Contract Critical Path work was dependent upon sole source 60" diameter storm pipe delivery along with those appurtences specific to it. While investigating existing carrier pipe conditions for compatibility with design, RCNW encountered a change of condition, see RFI 006 - Contaminated Materials. This required specialty pipe inspection to complete pipe verification. Upon completion of verification, it was identified within Union Pacific Railroad property that a restriction existed that would prevent acceptable placement of the new 60" pipe. It was determined 54" would work, but the City was unable to approve the downsize. Subsequent investigation and resolution of changes, alternative construction method research and development of acceptable construction sequence required additional site and office management costs that could not have been identified during bid or captured in traditional field Force Account methods. Original bid and baseline schedule reflected an approximate 49 working day suspension while critical materials were procured. This was not possible, work in office and field has been continuous. This negotiated change captures extra administration and project oversite costs incurred while establishing and defining acceptable means for construction execution to ensure timely completion. III. METHOD OF PAYMENT NEW PAY ITEM(S) ❑ Not Applicable Change Order No. - FOR ACCOUNTING USE ONLY Sch. No. Item Description Total i Qty this i Unit I Unit Price Total Estimated Cost of Est. Qty PE Item i ............................_......................................_._.........................................................................................._....................._..........._................................... ....... .... ...... ........_ ............ ...................... 1 Equitable Ad ustement for ......................1..._............................I..1..00........................... S............................................................................................................ I.................._ .............................. _. .. ...__ . q _..._ ) ...... .r .. 63 599 24 $63 599 24 1 REV. DATE: 1/10/18 KENT FILE NO: 200.2 wAs� Delays in 2018 and early ' 2019 --.._....... _.__....._._..................._.................... .................--..--._ _......----..._...._......................-. ..................._........................_, .............__.._._...__......_...................._..__.._._....................._........................... ..._;........._...................................._.._._.._....... 1..... _. ® Independent Estimate Attached i CREATE PAY ITEM — Reimbursement to be made ® PAY THIS PAY ESTIMATE - REQUIRED based on actual work performed. _. ......... ............._............._.._ ......... ........ .... ; Material Submittals Required — CC: Construction Coordinator New Sub Reqrd? No DELETE EXISTING PAY ITEM(S) per 1-09.5 ® Not Applicable Change Order No. - FOR ACCOUNTING USE ONLY Sch. No. B.I. No. Item Description..................................._ Qty.............__i..........-Unit Unit Price.................... Cost of Item............................. .................................................................................--._........................................................................................................... } i ................_._....._......_..._...................._.._._ .............................................................................................................. o- ..........................................................................................................................._.................................._..........................................._........................._............_.._.._............._..................._..__._...................................-................................................. ; Independent Estimate Attached -REQUIRED INCREASE/DECREASE TO EXISTING PAY ITEM(S) ® Not Applicable Change Order No. - FOR ACCOUNTING USE ONLY Sch. No. B.I. No. Item Desch tion Qty..........................Unit............!......................_Unit Price Cost of Item............................ ................ ...... ..... ........ P. ..............._........................................................_......... ........._........................................................................................ ........................................._......y_............._............................................................-___._.._ .......... .... Independent Estimate Attached - REQUIRED TOTAL ESTIMATED COST OF CHANGE ORDER * $63,599.24 *Total of the Cost of Item Columns THIS PAY ESTIMATE $63,599.24 IV. WORKING DAYS Original Contract 60 Due This Change Order* 0 Previous Total 60 _..............................._............—....... .... .... DATE: DATE ....... .._____ ., ......... ..................... * Ex p lanation Justification Re 'r d: TOTAL WORKING DAYS* 60 *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. Prepared By: Date: 3 tulaK rry 1 ` Construction Supervisor: Date: ! hne Construction Manager: _-�;�� �! '1'�� Date: Eric Connor 2 REV. DATE: 1/10/18 FA Sheet No.: Independent Cost Estimate Project Name: S 228th St UPRR Underground Utilities Project No: 07-3022C Item No.: Date: 1/9/2018 Description of Work: Work by Subcontractor?: X (mark"x"if yes) Prime Contractor: Sub-Contractor: Overhead Due to Delay MATERIALS/SERVICE DESCRIPTION QUANTITY UNIT PRICE AMOUNT Extended Site Management 24 Days 919.18 22,060.32 Extended Office Management 24 Days $ 400.00 $ 9,600.00 Extended LS Traffic Control 24 Days $ 82.72 $ 1,985.28 Home Office Overhead 24 Days $ 818.38 $ 19,641.12 Financial Carry Cost 24 Days $ 51.62 $ 1,238.98 Equitment on site, Standby 24 Days $ 1,100.00 $ 26,400.00 LS $ - SUBTOTAL-MATERIALS $ 80,925.70 MATERIALS OVERHEAD& PROFIT @ 21% $ 1.00 SUBCONTRACTOR TOTAL $ 80,925.70 Verification of Hours Worked: TOTAL: $ 80,925.70 12%MARKUP(for prime when subcontract work) ------------------------------------------------------- Contractor's Representative(printed name) SHEET TOTAL: $ 80,925.70 ------------------------------------------------------- Contractor's Representative Signature Date ------------------------------------------------------- Owner's Representative(printed name) Prime Markup on Subcontractor; ------ ----- ---- ----- -- 12%; <$25,000 Owner's Re resentative Si nature Date Pa Estimate Entered: 10%: $25,000 to$100,000 Y 7%; >$100,000 Date: ❑ 0y. 1 of 2 P-13 (Rev. 7/12) Re: RCNW Letters 10 and 11 - Equitable Adjustment due to Differing Site Conditions and Owner Directed Changes to Storm System Cannot include HOOH or bonding on days were crew was paid Force Account, Ref 1- 09.E 1 para. 4 markups include" "project overhead, gerenal company overhead, profit, bonding, insurance". Cannot add days to contract when work was performed under a LNTP and no working days were being charged. Accounting of Days - 13 days from completion of Joint Trench to NTP, 8 days given during christmas break shutdown, joint trench duration was extended 3 days during the impacted time. This totals 24 days of impact. Equipment in use was used in contract billable work or FA. But will agree there is a cost for equipment being onsite for a longer duration. calculate based on standby rates (estimated using equipment watch) for 4 hours each day. Does Home Office Overhead include the cost of Matt and George, leading to a double dip between Office Management and Home Office Overhead? Note, when removing the $400 per day of Extended Office Management, the total is over$70,000. FA markups include home office overhead, related to the activities being perfomred on the FA work. There could be direct overhead (George and Matt's time) for other items during HAZWOPER training that could be considered outside of the overhead the 2 of 2 P-13 (Rev. 7/12) Road Construction Northwest, Inc. PO Box 2228 Renton, Washington 98056 (425) 254-9999 (425) 254-1334 fax March 14, 2019 To: City of Kent Public Works Department 220 4`'Avenue South Kent, WA 98032 ATTN: Mr. Paul Kuhne Mr. Jason Barry RE: RCNWLefferi IA-City of Kent—S. 228"Street Union Pacific Railroad Underground UJies RCNW Job#18 SUBJ: Back up and Cost Breakdown for Request for Equitable Adjustment Dear Jason and Paul, We want to start this letter by stating that we're appreciative of the opportunity we have had to work on this this project. We are pleased with the many successes realized throughout and have enjoyed working with you and the others on the project team. Despite the well-documented challenges, obstacles and impacts experienced by both parties,we believe that the completed project will be successful,and that the you,the Owner,will have a completed storm drain system to be proud of for many years to come. We're fortunate to be part of that. As we have long been discussing,and as outlined in our multiple previous Notices,Road Construction Northwest, Inc. ("RCNW")is and continues to be adversely impacted on the project due to reasons outside of our control, and not anticipated at the time of bid, nor contract signing. We recognize that you've put forth efforts to mitigate some of these adverse effects to the best of your ability within your control, and we appreciate this. We have considered this in our overall analysis as noted in our previous correspondence.As we've gone through the files and records, we're reminded of the amiable and professional dealings between the parties. RCNW is seeking an equitable adjustment for the cost impacts incurred during the project which directly stemmed from several factors, including, but not limited to: host pipe changed conditions(changes to the pipe order,deleted portions,re-designs of connections,etc.) and the contaminated soils. The cumulative effect of all this substantially impaired our construction efficiency, productivity and schedule. The compiled impacts shown within this Request have all been well documented and were provided in a timely manner per the project specifications in our prior Notices. Our allocation of resources including labor,gear,field management,project management and administration in order to offset the loss of production which is impacted the overall project schedule, is much higher than expected because of these factors. (425)254-9999 phone P.O.Box 2228 Renton,WA 98056 (425)228-2957 fax REA Amount: Please refer to the summary of our Request for Equitable Adjustment to the Contract Price.The total amount we are requesting is$63,599.24 and this is supported by the daily rate calculated in the following narrative and related exhibits. Total delay duration is twenty-eight(28)working days. This is very close to the estimated amount stated in our previous letter prior to running the complete calculations. We are also requesting these twenty-eight(28)compensable working days added to the project duration due to these delays by others. Historical Context: RCNW began this project in October of 2018 believing the project schedule,documents and information used to bid and sign the contract were both accurate and complete. Very early in the project we encountered schedule slippage,not caused by RCNW,but due to unforeseen site conditions,but we pressed forth as directed and worked with the Owner to remedy them as quickly as possible,even though we incurred additional costs to stay on schedule. The construction sequencing impacts began to grow early on, in both multitude and complexity, beginning even with early scope items on the critical path. Our previous notices and schedule updates have documented the facts and events to date. Exhibit"A" Extended Site Supervision Included in Exhibit"A"are the direct costs associated with the extended site management incurred because of the previously mentioned delays. These are incremental costs that would not have been incurred by us if we would have been able to complete the job according to the agreed-upon revised schedule. This Delay Impact totals$25,737.04. Exhibit"B"Extended Management Included in Exhibit"B"are the direct costs associated with the extended project management and project administration, incurred previously because of the mentioned delays.These are incremental costs that would not have been incurred by us if we would have been able to complete the job according to the agreed-upon revised schedule.This Delay Impact totals$13,275.92. Exhibit"C" Extended Traffic Control Included in Exhibit"C" are the direct costs associated with the extended traffic control persons and devices incurred because of the previously mentioned delays. These are incremental costs that would not have been incurred by us if we would have been able to complete the job according to the agreed- upon revised schedule.This Delay Impact totals$272.15. Exhibit"D" Extended Home Office Overhead We've included Exhibit"D"to reflect how we've calculated Home Office Overhead for the Delay Period,which totals 28 working days.This Delay Impact totals $22,914.64. Exhibit"E"Finance Charges We incurred a significant level of financial carrying costs above and beyond what was anticipated at the time of bid and contract signing. Because of the extra costs, and due to the extensive Delay Impacts, we incurred$1,445.48,as shown in Exhibit'F." (425)254-9999 phone P.O.Box 2228 Renton,WA 98056 (425)228-2957 fax SUMMARY In summary, the project is much more costly than anticipated at the time of bid,due to delays not caused by RCNW. We were/are required to allocate many more resources than originally intended, including labor,equipment,field management,project management,office management and accounting, etc. We are required to actively work on the project one(1)month longer than anticipated, so we do we have more costs.Also,as noted in our previous letter on this topic, we were also experienced the opportunity loss to go elsewhere with our crew during what was to be a suspension of the job. Please refer to the attached exhibits REA Summary Exhibit"A" Extended Site Supervision Exhibit"B" Extended Management Exhibit"C"Extended Traffic Control Devices Exhibit"D"Home Office Overhead Exhibit"E"Finance Charges We ask that you consider these additional costs incurred by RCNW and remember that we did not cause the delays and were required to be on the job actively working for one(1)month longer than anticipated. We have demonstrated our willingness to flex and pitch in where necessary on this project, and gladly participate in the many efforts to help the project succeed in a timely fashion. We believe that we've followed the specs relative to Notice requirements and we believe we are within our rights to legitimately file this Request. We look forward to meeting to resolve these matters. If you have any questions or comments,please feel free to contact me. Sincerely, George Tucker Project Manager (425)254-9999 phone P.O.Box 2228 Renton,WA 98056 (425)228-2957 fax 7 % \ Q 7 t \ t % r- % § - $ 4 » � N & \ Cl) n 2 N C C 2 2 / k _ _ _ _ _ _ m U LU L o 6 / o x / j M / k 0) 0 2 f LO ° \ > § \ \ o « n U.= g § 2 u f Z ~ \ \ \ u o _ a °u $ Cc * 9 _ u ._ o / \ 2 ° ° 0 ° � 2 o a a ¥ ■ o f �,§ \ E 0 % U) � v / f � % $ 0 -0o @ 0 0 Of U � k a 2 2 0 / & \ f g c 7� $ m § 0 2 § g � v > \ J 0 2 c / 2 0, 0 k k D o § k k x 0 . m a. 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PO Box 2228 Renton, Washington 98056 (425) 254-9999 (425) 254-1334 fax December 17, 2018 JED To: City of Kent 220 Fourth Ave. South Kent, WA 98032 CI-Cy ��� ENGINEERING ATTN: Mr. Paul Kuehne Mr.Jason Barry RE: City of Kent—S. 228'Street Union Pacific Railroad Underground Utilities SUBJ: RCNW Letter 008—December Schedule Update; Notice of Impacts Gentlemen: Please see the attached December Schedule update. This Type A project schedule update supersedes all previous schedule versions and reflects the realities on the ground as of 12-14-18. We also acknowledge the City's provision of 10 additional contract days for cleaning and bypass changes as stated in your email dated 12-7-18. This slightly early submission of the December Scheduled update was prompted by the City of Kent's decision on 12/12/18 to delete the HDPE MH at STA 6+93.2 in favor of a pre-cast concrete MH. The city provided the design for this MH to RCNW on 12-13-18. This deletion, and the discussions surrounding it,were in direct response to RCNW's report to the city during the weekly meeting on 12-11- 18 that the sole source manufacturer of the specified product was not able to meet the delivery schedule for the project, specifically as it related to this critical path item.The attached schedule reflects adjustments to the work sequence related to the replacement of this HDPE MH with a pre-cast concrete structure, and the progress of the work to date. We are also taking this opportunity to fulfil our obligations under the contract and WSDOT Standard Specifications 1-04.7 to provide notice to the City that we have been impacted by both the differing site conditions(condition of 72"CMP host pipe and contaminated water and soils)and changes to the work under the contract(deletion of slip lining under UPRR, deletion of HDPE MH at STA 6+93.2, and City of Kent's redesign of Drainage Bypass). This notice does not replace, negate, or waive the substance of any previous formal or informal notice from RCNW to the City of Kent. We reserve our rights under the contract to seek an Equitable Adjustment for these impacts, once the full scope has been made known. At a minimum, we note for the record that our updated schedule now shows an estimated completion date of 4/5/2019,with no suspension for procurements as reflected in our At-Bid Schedule. This is at least sixty-eight(68)working days longer than the original duration of the job. This notice should also be taken to capture the fact that we have incurred additional costs associated specifically with this excess duration. We acknowledge that change orders and time and materials payments for some of the changes are forthcoming, but we also look forward to discussing the full extent of the impacts with you in the coming weeks. Page 1 of 2 In the interim, we are pressing forward with contract work, and collaborating well with the city to save time and costs at every opportunity. Please review and approve this schedule as soon as possible. Should you have any questions or concerns, please contact me at(425)777-7327. Sincerely, .� George Tucker Project Manager Page 2 of 2 ( t fill, {{f{ {$ ${$ { if $ ${ 9 $ $ $ Y {$$ $ ! ${$ t $! if i i taaF di Ftd � �3i 3 i : i � � 3 : � 3 � $ � t€ 7€ x I§ afe g € 7 €3d tf fi A 1� -2 ft If r � ii I! -h' li a ; D E t � E � f � • �� fref � I € 1 g � � .I G ial { P �( MZ o m � (' t 7� 7 gg II . • C� S YI S '" 5 Y�.. & _ d' S i Y g § & % Y .� 2 - _ •� a3�Q � � e � � sga � � °m � a � � � gapg � p � � s � �y � � � � � a � � � �� gm � 3 � � ���� pp��� $ a ? s 8 a a 9 o u u Q 'm • u . 'v • . n u v v m i u u 'n v u v " u u m ^ 'o 8d � &4 ss�e aassasxaas� saa3sa3x � saaaaaag aa3sasaagaas� :i x3eaas�€ FT-V � aa : mmeaaama � ama aaaaaaaaammm � omm „ r s � smmagm � m � � � m . � m � ; mg � gnu Ye � Ns 's > a � � m a WYam m m � v Ca aa - v s - � a � es � gees eesea3 ' . � 3 � - ^ saes - '3S 3'g N < S v W ssgg� �8 w € 4 3 a 3 o pi my.9 $i� K0 mW m gg 9 m _ C � _ C a y r w 9 9.2 S Q � m O ° 3 Road Construction Northwest, Inc. PO Box 2228 Renton, Washington 98056 (425) 254-9999 (425)254-1334 fax 28 December 2018 City of Kent Public Works Department 220 41h Avenue South DEC 2 8 2013 Kent, WA 98032 ni t�i i L�Z Ki i JLr 6' ATTN: Mr. Paul Kuehne Mr. Jason Barry Re: City of Kent—S. 228th Street Union Pacific Railroad Underground Utilities SUBJ: --- Letter 010- Impacts/Request for Equitable Adjustment Dear Jason and Paul, Thank you for your work to date managing through the not insignificant changed conditions we have encountered together. We have been pleased by our ability to communicate with you and your team about the various issues as they have arisen while maintaining progress in the field. As noted in RCNW Letter 008, we are now making formal what we have known and discussed informally during the past few months. We also appreciate fact that the City recognized and communicated verbally to us from the beginning that Road Construction Northwest, Inc. (RCNW)was being impacted. RCNW reviewed what we believe to be our impacts on this project to date. In summary, we are expecting to have as much as 30% of contract value deleted or underrun and 28 days of additional effort. Some of our direct costs will be mitigated by Force Account payments for extra work,but as we all know,this in no way makes the contractor whole as it relates to actual cost(including project and home office overhead, profit, opportunity cost,etc.). Additionally, we note that a major source of the impacts and additional effort has been the changed conditions associated with the state of the host pipe(changes to the pipe order, deleted portions,re-designs of connections, etc.) and the contaminated soils. You will recall that our originally submitted schedule had a suspension of 50 Working Days and a completion of 4/18/19 with 101 total days of labor charged to the work. Our most recent CPM update for December documents that there was no suspension(where we could have generated billings with our crew on another project)and we are planning to be substantially complete by 4/5/18 with 129 days of labor charged to the work. This is 28 additional days of effort on the job for significantly less contract value and an earlier completion for the City. We value those 28 days at roughly$2,300.00 per day in impact costs for a total of$64,400.00. A more detailed cost breakdown of this daily rate can be provided after the New Year. Understanding that some (but not all) of the direct costs will be mitigated by the additional Force Account, please note that this indirect cost breakdown is the lowest of any daily rate that we have calculated(and collected on) in many years. We propose a lump sum Equitable Adjustment of$64,400.00 for the 28 days at$2,300.00 and a commitment from the City that we will revisit the final pay quantities and billings per 2018 WSDOT I- 04.6, 1-09.5, and 1-09 at the fixed overhead rate of 12%(on quantities deleted or underrun by 25%or 2 more)at the conclusion of the work. Please note that this 12%is only to recover our fixed overhead and home office costs and EXCLUDES any profit we would have expected to make on these items. We have enjoyed working with you on this project and look forward to continuing our partnership with the City of Kent. We look forward to your response. Please contact me with any questions or concerns at 425-777-7327. Sincerely, _ George Tucker Project Manager Barry, Jason From: George Tucker <george@rcnw.com> Sent: Friday, December 28, 2018 2:25 PM To: Barry, Jason Cc: Matt Wagester;Jeff Kanyer; Ty Ribera; Kuehne, Paul Subject: 1815 Kent S 228th UPR - RCNW Letter 010 - Impacts and Request for Equitable Adjustment Attachments: RCNW Letter 010 - Impacts and Request for Equitable Adjustment.pdf EXTERNAL EMAIL Jason, Please see the attached Letter 010 from RCNW that quantifies the impacts referenced in RCNW Letter 008. We can touch base after the New Year with a more detailed cost breakdown of the Daily rate price as noted in the letter, but we wanted to go ahead and get this in to you. Let me know if you have any additional questions or need clarification on something in particular. I hope you and your family have a wonderful and safe New Years Best, George Tucker Project Manager Road Construction Northwest, Inc. 8620 Holly Drive,Suite 210,Everett,WA 98208.PO Box 2228,Renton,WA 98056 Tel 425-777-7327 Fax 425-228-2957 George@RCNW.com Notice:This message,including attachments,contains confidential and privileged information for the exclusive use of the intended recipient(s).Any unauthorized use is prohibited.If this email is not for you,please notify the sender and then destroy the messages.Thank you. 1 Road Construction Northwest, Inc. PO Box 2228 Renton, Washington 98056 (425) 254-9999 (425) 254-1334 fax January 7, 2019 To: City of Kent Public Works Department 220 4'Avenue South JAN 0 7 �Q1 Kent, WA 98032 ATTN: Mr. Paul Kuhne Mr. Jason Barry RE: RCNW LetterolI-City of Kent—S. 228"'Street Union Pacific Railroad Underground Utilities RCNW Job #1807 SUBJ: Back up and Cost Breakdown for Request for Equitable Adjustment: Dear Jason and Paul, We want to start this letter by stating that we're appreciative of the opportunity we have had to work on this this project. We are pleased with the many successes realized throughout and have enjoyed working with you and the others on the project team. Despite the well-documented challenges, obstacles and impacts experienced by both parties, we believe that the completed project will be successful, and that the you,the Owner, will have a completed storm drain system to be proud of for many years to come. We're fortunate to be part of that. As we have long been discussing,and as outlined in our multiple previous Notices,Road Construction Northwest, Inc. ("RCNW") is and continues to be adversely impacted on the project due to reasons outside of our control, and not anticipated at the time of bid, nor contract signing. We recognize that you've put forth efforts to mitigate some of these adverse effects to the best of your ability within your control,and we appreciate this. We have considered this in our overall analysis as noted in our previous correspondence. As we've gone through the files and records, we're reminded of the amiable and professional dealings between the parties. RCNW is seeking an equitable adjustment for the cost impacts incurred during the project which directly stemmed from several factors, including, but not limited to: host pipe changed conditions(changes to the pipe order, deleted portions,re-designs of connections,etc.)and the contaminated soils. The cumulative effect of all this substantially impaired our construction efficiency, productivity and schedule. The compiled impacts shown within this Request have all been well documented and were provided in a timely manner per the project specifications in our prior Notices. Our allocation of resources including labor,gear,field management, project management and administration in order to offset the loss of production which is impacted the overall project schedule, is much higher than expected because of these factors. (425)254-9999 phone P.O.Box 2228 Renton,WA 98056 (425)228-2957 fax REA Amount: Please refer to the summary of our Request for Equitable Adjustment to the Contract Price.The total amount we are requesting is$65,689.24 and this is supported by the daily rate calculated in the following narrative and related exhibits. Total delay duration is twenty-eight(28)working days. This is very close to the estimated amount stated in our previous letter prior to running the complete calculations. We are also requesting these twenty-eight(28) compensable working days added to the project duration due to these delays by others. Historical Context: RCNW began this project in October of 2018 believing the project schedule, documents and information used to bid and sign the contract were both accurate and complete. Very early in the project we encountered schedule slippage,not caused by RCNW, but due to unforeseen site conditions,but we pressed forth as directed and worked with the Owner to remedy them as quickly as possible,even though we incurred additional costs to stay on schedule. The construction sequencing impacts began to grow early on, in both multitude and complexity, beginning even with early scope items on the critical path. Our previous notices and schedule updates have documented the facts and events to date. Exhibit"A" Extended Site Supervision Included in Exhibit"A"are the direct costs associated with the extended site management incurred because of the previously mentioned delays. These are incremental costs that would not have been incurred by us if we would have been able to complete the job according to the agreed-upon revised schedule.This Delay Impact totals $25,737.04. Exhibit"B" Extended Management Included in Exhibit"B"are the direct costs associated with the extended project management and project administration, incurred previously because of the mentioned delays. These are incremental costs that would not have been incurred by us if we would have been able to complete the job according to the agreed-upon revised schedule. This Delay Impact totals$13,275.92. Exhibit"C"Extended Traffic Control Included in Exhibit"C" are the direct costs associated with the extended traffic control persons and devices incurred because of the previously mentioned delays. These are incremental costs that would not have been incurred by us if we would have been able to complete the job according to the agreed- upon revised schedule. This Delay Impact totals$2,316.16. Exhibit"D"Extended Home Office Overhead We've included Exhibit"D"to reflect how we've calculated Home Office Overhead for the Delay Period, which totals 28 working days. This Delay Impact totals$22,914.64. Exhibit"E"Finance Charges We incurred a significant level of financial carrying costs above and beyond what was anticipated at the time of bid and contract signing. Because of the extra costs,and due to the extensive Delay Impacts, we incurred$1,445.48, as shown in Exhibit"F." (425)254-9999 phone P.O.Box 2228 Renton, WA 98056 (425)228-2957 fax SUMMARY In summary,the project is much more costly than anticipated at the time of bid, due to delays not caused by RCNW. We were/are required to allocate many more resources than originally intended, including labor, equipment,field management,project management, office management and accounting, etc. We are required to actively work on the project one(1)month longer than anticipated, so we do we have more costs. Also,as noted in our previous letter on this topic, we were also experienced the opportunity loss to go elsewhere with our crew during what was to be a suspension of the job. Please refer to the attached exhibits REA Summary Exhibit"A" Extended Site Supervision Exhibit"B" Extended Management Exhibit"C" Extended Traffic Control Devices Exhibit"D"Home Office Overhead Exhibit"E"Finance Charges We ask that you consider these additional costs incurred by RCNW and remember that we did not cause the delays and were required to be on the job actively working for one(1) month longer than anticipated. We have demonstrated our willingness to flex and pitch in where necessary on this project, and gladly participate in the many efforts to help the project succeed in a timely fashion. We believe that we've followed the specs relative to Notice requirements and we believe we are within our rights to legitimately file this Request. We look forward to meeting to resolve these matters. If you have any questions or comments, please feel free to contact me. 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R � k2 � / m � � E CN £ 7 ± _ m u g ~ 2 / d $ \ I # 2 c0 rk / $ / \ � M2 \ eo ■ o ` w 'm2 o e � � wa0 02 OOw2 � \ \ \ �f � . k N � 7 CY) _ to CL o � � � � d � 2 2 CL / j 2 0 c CL � / _ \ \ / zL § E _ 0CNm / \ = 72 0 a 0 / / / \ — � § 3 @0 ) LO N e02a ¥ 2 o e > E c c x 7u � % % E § ƒ / LL § S U = @ § § 2 0 c o / § § 7 . $ Q m 2 % k 0 0 £ c k 2 G § co 2 0) S ± ■ Yi § n00 k Q @ S / 8 E � \ Sao 2 c m .§ ■ k o $ " � 0 ƒ D2CU k E 7 7 2 2 2 - m . U \ \ < / ± d Barry, Jason From: George Tucker <george@rcnw.com> Sent: Monday, January 07, 2019 1:46 PM To: Barry, Jason; Kuehne, Paul Cc: Matt Wagester;Jeff Kanyer; Ty Ribera Subject: 1815 Kent S 228th UPR - RCNW Letter 011 - Back up and Cost Breakdown for Request for Equitable Adjustment Attachments: RCNW Letter 011 - Back up and Cost Breakdown for Request for Equitable Adjustment.pdf EXTERNAL EMAIL Jason, Please find attached our cost breakdown for the REA to be discussed at tomorrow's meeting. Wanted you to have in advance. The PW for the document will be sent in a subsequent email. Like our Labor Rates document, please treat with discretion as confidential. Let me know if you have any questions prior to the meeting. Will look forward to talking tomorrow. George Tucker Project.Manage: Road Construction Northwest, Inc. 10 5851 NE 4`h St,Renton,WA 98059 8620 Holly Drive,Suite 210,Everett,WA 98208. PO Box 2228,Renton,WA 98056 Tel 425-777-7327 Fax 425-228-2957 George@RCNW.com Notice:This message,including attachments,contains confidential and privileged information for the exclusive use of the intended recipient(s).Any unauthorized use is prohibited.If this email is not for you,please notify the sender and then destroy the messages.Thank you. 1