HomeMy WebLinkAboutCAG2022-029 - Change Order - #3 - Long Painting Company - 6MG1 Reservoir Recoating & Vent Replacement - 10/11/2022Agreement Flouting Form
• For Approvals, Signatures and Records Management
T This form combines & replaces the Request for Mayor's Signature and Contract Cover Sheet forms.
KEN
WASHINGTON (Print on pink or cherry colored paper)
Originator: Department:
C. Frame PW Engineering
Date Sent: Date Required
> 1 /3/2023 N/A
0
L
fl. Authorized to Sign: Date of Council Approval:
O' 0 Director or Designee ❑ Mayor 1/24/2022
Q
Budget Account Number: Grant? ❑ Yes 0 No
W20091.64110.330
Budget? 0 Yes ❑ No Type: N/A
Vendor Name: Category:
Long Painting, Co. Contract
Vendor Number: Sub -Category:
C 1589103 Change Order #3
0
Project Name: 6MG1 Reservoir Recoating and Vent Replacement
E
L
� Project Details:Create a one time payment item to compensate Long Painting for paint material
cost escalation due to significant supply chain impacts beyond their control.
40
E Agreement Amount: $27,033.19 Basis for Selection of Contractor: Bid
N
Start Date: N/A Termination Date: 195 Working Days
Q Local Business? ❑ Yes ❑ No*
*Ifineets requirements per KCC 3.70. 700, please complete "Vendor Purchase -Local Exceptions" form on Cityspoce
Notice required prior to disclosure?
❑ Yes 0 No
Contract Number:
CAG2022-029
Date Received by City Attorney: Comments:
Im
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3
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in
Date Routed to the City Clerk's Office:
aaccW22373_1_20 Visit Documents.KentWA.gov to obtain copies of all agreements
KENT
CHANGE ORDER NO. 3
NAME OF CONTRACTOR:
CONTRACT NAME & PROJECT NUMBER:
ORIGINAL CONTRACT DATE:
Lona Paintina Companv ("Contractor")
6MG1 Reservoir Recoatina and Vent Renlacement
January 24, 2022
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:
Create a one time payment item to compensate Long Painting for paint
material cost escalation, due to significant supply chain impacts beyond
their control.
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, $3,022,229.32
(including applicable alternates and
WSST)
Net Change by Previous Change Orders $59,608.52
(incl. applicable WSST)
Current Contract Amount $3,081,837.84
(incl. Previous Change Orders)
Current Change Order $24,553.31
Applicable WSST Tax on this Change $2,479.88
Order
Revised Contract Sum
$3,108,871.034
CHANGE ORDER - 1 OF 3
Original Time for Completion 180 working days
(insert date)
Revised Time for Completion under 19s working days
prior Change Orders
(insert date)
Days Required (f) for this Change Order 00 calendar days
Revised Time for Completion 195 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:
(sign
%ature) 1 1
Print Name: UX2 Jv<vtew�_
Its �'�Siarss�
(title)
DATE: ef.Xpa'X
CHANGE ORDER - 2 OF 3
CITY OF KENT:
i_
Digitally signed by Chad Ble—
ChadBieren.1KM 0UEP.M. W.,kar CN=ChadBe
Date: 2022 10.11 1 a:4107-W'00'
Print Name:
Its
DATE:
,-tt= EC
(signature)
Chad Bieren. P.E.
Public Works Director
(title)
ATTEST:
r
J
Kent City Clerk
C[In this held, you may enter the electronic 8lepath where the contract has been saved]
CHANGE ORDER - 3 OF 3
APPROVED AS TO FORM:
(applicable if Mayor's signature required)
Kent Law Department
File No. 200.2
KENT
CHANGE ORDER WORKSHEET NO. 3
Construction Engineering Division - Public Works
Project: 6MG1 Reservoir Recoating and Vent Project No: 20-3006
Replacement
Project Engineer: Gray & Osborne Fed -Aid No:
Capital Projects Brian Shields Contractor: Long Painting Company
Man�yjer:
Date: 9/9/2022
I. Proposed Change
This change makes the following revision to the Contract Documents and provides compensation for the
following:
Create a one time payment item to compensate Long Painting for paint material cost escalations due to
significant supply chain impacts beyond their control.
II. Reason and Background for Change
On May 9 2022, Long Painting Company notified the City of Kent that Sherwin-Williams (coatings supplier) had
increased the price to purchase specified coating materials 10% on May 1, 2022, in addition to a 15% increase
implemented on February 1, 2022. Lengthy discussions between Long Painting and the City of Kent were had
following receipt of this notice. It was ultimately determined these costs were due to global conditions well
beyond the Contractor's control and could not be reasonably defined at time of bid. This change provides a one
time payment for paint material cost escalations and settles any further claims to additional material price
adjustments.
III. Method of Payment
NEW PAY ITEMS ❑ Not applicable
Sch. Item Description Total Est. Unit Unit Price
No Otv
I Coating Cost Escalation 1 LS $24,553.31
New Pay Items Total: $
DELETE EXISTING PAY ITEM(S) per 1-09.5 ❑' Notapplicable
Sch No. Bid Item No. Item Description Qty Unit Unit Price
Total Estimated Cost of Item
$24,553.31
24,553.31
Cost of Item
Page 1
$ -
Delete Existing Pay Items Total: $ -
INCREASE/DECREASE TO EXISTING PAY ITEMS) ❑' Notapplicable
. NoBid Item No. Item Description Qty Unit Unit Price Cost of Item
No.
I$ -
Increase / Decrease to Existing Pay Items Total: $ -
*TOTAL ESTIMATED COST OF CHANGE ORDER: $24,553.31
* Total of the Cost of Item Columns
IV. WORKING DAYS
Original Contract: Due This Change Order: Previous Total:
Explanation/Justification for Additional Working Days:
Five (5) days for bull wheel repair; five (5) days for additional metal plate repairs.
*TOTAL WORKING DAYS:
Capital Projects Manager:
Brian Shields
Construction Engineering
Supervisor:
Ja n Barry
Construction Manager:
Eric Connor
0
* This Change Order + Previous Total
Date: a� - 2-1-202Z
Date: —2/L ' ZZL
Date: %/ el -
Page 2
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Shields, Brian
From: Shields, Brian
Sent: Monday, August 29, 2022 1:28 PM
To: Charles Pham
Cc: Zach Andruss; Brandon Chao; Barry, Jason; Connor, Eric
Subject: RE: Kent Tank Paint Material Escalation Claim
Attachments: Paint Escalation calculations.pdf
Charles,
The City of Kent has reviewed the backup information Long Painting Company provided on Friday, August 19, 2022
regarding the paint cost escalation claim submitted on May 9, 2022 for the 6MG1 Recoating project. Attached is the
City's calculation of the escalation based on the bid time quotes and subsequent price increases LPC received from
Sherwin-Williams. Review this and respond with any comments.
If concurrence on the escalation cost is achieved and the City of Kent agrees to move forward with a change order for
paint cost escalation, markup will not apply and there will be no compensation for labor, equipment, tools, or any other
incidentals. Payment for the paint cost escalation does not set a precedent for future claims, nor does it guarantee
coverage for other escalation charges that may be discovered on this project or on any other.
Let me know if you have any questions. Thank you.
Brian Shields, Capita/ Projects Manager
Construction Management I Public Works Department
220 4th Avenue South, Kent, WA 98032
Main/Cell 253-293-4973 1 Desk 253-856-6510
bshieldsCa)KentWA.aov
CITY OF KENT, WASHINGTON
KentWA.aov Facebook YouTube
From: Charles Pham <Charlespl@longpainting.com>
Sent: Friday, August 19, 2022 2:21 PM
To: Shields, Brian <BShields@kentwa.gov>; Barry, Jason <JBarry@kentwa.gov>; Connor, Eric <EConnor@kentwa.gov>
Cc: Zach Andruss <zacha@longpainting.com>; Brandon Chao <Brandonc@longpainting.com>
Subject: Kent Tank Paint Material Escalation Claim
EXTERNAL EMAIL
Brian,
As requested by the City I have complied and attached the following information:
Sherwin William's Invoices
This includes ALL invoices including Credit Memos to correct invoices job to date.
i. Please note that there will probably be a few more invoices.
2. LPC PO's
3. LPC paint order notice dated February 18th, 2022 which included quantities and material pricing
confirmation. Please note that this was sent to Sherwin Williams prior to receiving NTP for the project.
4. Sherwin Williams Price increase dated April 20th, 2022
5. Sherwin Williams Original Quote provided during the bidding phase of the project.
6. LPC Claim #2 dated May 9th submitted to the City of Kent
Let me know if there are any questions or additional requests.
Respectfully,
Charles Pham
Industrial Group Manager
OLONG
PAUMNC OOMPANY
Charlesvl (a,lonenaintin3z.cone
21414 68th Ave S
Kent, WA 98032-2416
(800)678-5664
206-718-8745 Direct
www.longpain ting. com
Shields, Brian
From: Charles Pham <Charlesp1 @longpainting.com>
Sent: Friday, August 19, 2022 2:21 PM
To: Shields, Brian; Barry, Jason; Connor, Eric
Cc: Zach Andruss; Brandon Chao
Subject: Kent Tank Paint Material Escalation Claim
Attachments: Combined Invoices.pdf; Combined PO's.pdf; LPC Paint Order Notice to SW
2-18-2022.pdf; SW Price Increase Notice to LPC 4-20-22.pdf; City of Kent original
quote.pdf; LPC-COP-004-02 Paint Escalation Claim.pdf
EXTERNAL EMAIL
Brian,
As requested by the City I have complied and attached the following information:
1. Sherwin William's Invoices
a. This includes ALL invoices including Credit Memos to correct invoices job to date.
i. Please note that there will probably be a few more invoices.
2. LPC PO's
3. LPC paint order notice dated February 181h, 2022 which included quantities and material pricing
confirmation. Please note that this was sent to Sherwin Williams prior to receiving NTP for the project.
4. Sherwin Williams Price increase dated April 201h, 2022
5. Sherwin Williams Original Quote provided during the bidding phase of the project.
6. LPC Claim #2 dated May 9th submitted to the City of Kent
Let me know if there are any questions or additional requests.
Respectfully,
Charles Pham
Industrial Group Manager
OLIONG
PAIrMNG C) MPANY
Charlesvl Uonzvaintinz.com
21414 68th Ave S
Kent, WA 98032-2416
(800)678-5664
206-718-8745 Direct
www.longpainting. cons
1
Charles Pham
From: Brett E Weiderstrom <Brett.E.Weiderstrom@sherwin.com>
Sent: Wednesday, April 20, 2022 4:42 PM
To: Charles Pham
Subject: FW: price increase
Attachments: Sherwin -Williams -Customer Pricing Communication -May 2022.pdf, Supply Chain
Update.pdf
Charles,
As discussed, due to the continued rise in raw material costs Sherwin-Williams will be implementing a 10% price
increase May 1, 2022. This is in addition to our 15% price increase that went into effect February 1, 2022. Due to these
extreme cost increases we will be forced to increase your original quoted prices for the City of Kent project. As of May 1
your new material costs will be as follows;
Corothane I Galva-Pac = $228.00 per kit. New price $298.00
Macropoxy 646 = $38.00 per gallon. New price $49.67 (Both PW and FC)
Sherloxane 800 = $92.00 per gallon. New price $120.25
Please feel free to call with any questions.
Brett Weiderstrom
Sherwin-Williams
NACE CIP III #8811
206.643.3236
1
5/9/2022
6MG 1 reservoir Recoating and vent Replacement LPG Job # L220004
City of Kent Project Number: 20-3006 Date: 5/9/2022
L1&ON(; COP # LPC-02
Change order proposal to perform the following activtles:
Paint escalation cost claim from Sherwin Williams. Since the project bid the construction market and enconomy as a whole
has gone through unprecedented escalation and commodity price increases, See attached letter from Sherwin Williams and
Supply Chain update. Based on global events, supply chain Issues and demand of comodities, LPC was required to accept the
one time price increase to ensure supply of specifled materials for this project.
Cost -Labor
IDescrlption
Hours
Rate
Total
Journeyman - Straight Time
0.0
$60.47
$0,00
Foreman - Straight Time
0.0
$62.67
$0.00
Journeyman - Over Time
0.0
$85.47
$0.00
Foreman - Over Time
0.0
$87.67
$0.00
Administrative Supervision - Straight Time
0.0
$98.00
$0.00
ITotal Cost - Labor
$0.00 1
IMark up on Labor
31%
$0.00
Total for Labor
$0.00
Cost - Materials
IDescrlption
Quantity
Unit
Unit Price
Total I
Corothane I Galvapak
369
Gal
$ 23.33
$8,610.00
Macropoxy 646
1325
Gal
$ 11.67
$15,462.75
Sherloxane 800
155
Gal
$ 28.25
$4,378.76
ITotal Cost - Materials
$28,451.50 1
IMark up on material
21%
$5,974.82 1
Total for Materials
$34,426.32
Cost - Equipment
IDescrlption
I Quantity
Unit
Rate I
Total
$0.001
$0.00
$0.00
$0.00
$0.00
$0.00
ITotal Cost - Equipment
$0.00
IMark up on equipment
21%
$0.00
Total for Equipment
$0.00
Cost - Subcontractors
[Description
Quantity
Unit
Rate
Total
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
ITotal Cost - Subcontractors
$0.00 i
Mark up on Subcontractors
12%
$0.00 1
otal for Equipment
$0.00
ISub Total Labor, Materials, Equipment, Subcontractors $34,426.32,
IGL Insurance & Bonding covered In markup per contract $0.00
ITotal Cost $34,426.32 I
5/0/2022
LPC COP 2 - Paint Escalation Clalm
Charles Pham
From: Brett E Weiderstrom <Brett.E.Weiderstrom@sherwin.com>
Sent: Wednesday, April 20, 2022 4:42 PM
To: Charles Pham
Subject: FW: price increase
Attachments: Sherwin -Williams -Customer Pricing Communication -May 2022.pdf; Supply Chain
Update.pdf
Caution! This message was sent from outside your organization. Allow sender I Block sender
Charles,
As discussed, due to the continued rise in raw material costs Sherwin-Williams will be implementing a 10% price
increase May 1, 2022. This is in addition to our 15% price increase that went into effect February 1, 2022. Due to these
extreme cost increases we will be forced to increase your original quoted prices for the City of Kent project. As of May 1
your new material costs will be as follows;
Corothane I Galva-Pac = $228.00 per kit. New price $298.00
Macropoxy 646 = $38.00 per gallon. New price $49.67 (Both PW and FC)
Sherloxane 800 = $92.00 per gallon. New price $120.25
Please feel free to call with any questions.
Brett Weiderstrom
Sherwin-Williams
NACE CIP III #8811
206.643.3236
1
SHERWIN- WILLIAMS.
Protective & Marine Division
The Sherwin Williams Company
To Our Valued Customers,
Over the last two years, the adverse effects of the Covid-19 pandemic and the unprecedented supply
chain constraints have impacted virtually all industries and sectors across the globe. As you have no
doubt experienced within your organization, the coatings industry has seen significant and sustained
cost increases across the entire value chain.
The accumulation of all these critical constraints — weather, port and rail delays, driver and trailer
shortages, general labor shortages, packaging availability, and raw material availability — has
prolonged the surge in demand and escalation of prices.
In response to these continuing challenges, all of which are out of our control, The Sherwin-Williams
Company is increasing prices on finished goods effective May 1, 2022. This increase is a necessary
response our company is forced to deploy under these extraordinary circumstances.
Our teams have been working tirelessly at all supply chain levels to mitigate the impacts of the ongoing
constraints while absorbing a significant portion of these increasing costs. Effectively managing supply
to your business remains our utmost priority, and our company is pulling all levers at our disposal to
help minimize disruptions to your business. At the same time, our teams are absolutely committed to
providing you the unmatched industry and technical experience, knowledge and support you deserve.
Thank you for your business and patience during these challenging circumstances. For any additional
questions and concerns, please contact your local Sherwin-Williams sales representative.
Sincerely,
RIV
Joe Laehu
Senior Vice President, Sales — North America
Protective & Marine Division
The Sherwin-Williams Company
The Sherwin-Williams Company 101 W. Prospect Avenue, Cleveland, Ohio 44115 USA
Skyrocketing Prices and Supply Constraints
Supply chain and production constraints, and associated cost increases have been affecting virtually every sector of the
economy. All along, Sherwin-Williams has been absorbing price increases from suppliers, and the rate of our price increases
has not kept up with the pace of cost increases across the supply chain.
100%
r` yo`
ryo,�
V oao �o
O� JCO.
SUPPLY CHAIN COST INFLATION
% Change Jan `21 — Feb `22
54% Average
36%
20%
N.
A `o+�
o
24%
13%
Ile
\y00 �y00
A "Perfect Storm" Combination of Impacts
Several factors have contributed to the reduction of raw material availability and the accumulation of supply chain constraints.
Sherwin-Williams Mitigation Efforts
Unprecedented times call for unprecedented measures. See how we're helping ensure supply for our customers.
FULL AD
PRODUCTION
CAPACITY
Maximize capacity at
our manufacturing sites
through asset
investment and
additional headcount.
ALTERNATIVE
RAW MATERIAL
SOURCING
Identify alternative
manufacturing sources
and sites to expand our
overall capacity.
ciVHAi*I EO
Q'; ! `3 r I ' S sa,
Air freight, expedite
freight, engage our
logistics fleet and hire
more drivers to help
with supplier / customer
deliveries.
SUPPLIER
SUPPORT
Use constant
communication and our
buying power to provide
suppliers access to raw
material sources.
ENSURE SUPPLY
TO CUSTOMERS SON
Absorb multiple cost
and pricing increases in
our supply chain to
ensure access to all the
available supply no
matter the price.
Shields, Brian
From:
Sent:
To:
Cc:
Subject:
Attachments:
EXTERNAL EMAIL
Brian,
Charles Pham <Charlespl @longpainting.com>
Monday, May 9, 2022 12:50 PM
Shields, Brian; Barry, Jason
Zach Andruss; Shaun Mcdeavitt
LPC-COP-02 - Paint Escalation Claim
LPC-COP-004-02 Paint Escalation Claim.pdf
See attached paint escalation claim as discussed previously. This is truly an unprecedented cost increase as material
prices have remained mostly stable throughout my career. We originally ordered paint in late February and in follow up
of material delivery we received a price increase along with a guarantee to supply material for this project as
scheduled. Sherwin Williams is available for discussion if needed to add further transparency.
Thank you,
Charles Pham
Industrial Group Manager
ClLON G
PAINTING WMPANY
Charlesp 1(a,lon2vaintiniz. com
21414 68th Ave S
Kent, WA 98032-2416
(800)678-5664
206-718-8745 Direct
www.longpainting. coon
1