HomeMy WebLinkAboutCAG2023-483 - Change Order - #1 - Corona Steel, Inc. - Kent East Hill Operations Center Pre-engineered Metal Building - 02/14/2024 FOR CITY OF KENT OFFICIAL USE ONLY Sup/Mgr:
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Agreement Routing Form
• For Approvals,Signatures and Records Management
KE N T This form combines&replaces the Request for Mayor's Signature and Contract Cover
WASHINGTON Sheet forms.
Originator: Department:
Leah Bryant for Nate Harper Parks, Recreation & Community Services
Date Sent: Date Required:
> 02/13/2024 2/15/2024
0
CL Authorized to Sign: Date of Council Approval:
QDirector or Designee 9/5/2023
Budget Account Number: G ra n t?1:1 Ye s F71No
F20098.64110.9476
Budget?W]YesEl No Type: N/A
Vendor Name: Category:
Corona Steel Inc. Contract
Vendor Number: Sub-Category:
= 2530410 Change Order
0 FAC23-09b Pre-Engineered Metal Building for the Kent East Hill Operations Center
Project Name: g g p
3- Project Details:Compensation for the addition of work to bump out the lobby and the increase in
steel prices; clarification of the scope of contract assignment clarification of
contract provisions and documents; and capping the price of steel going forward.
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Agreement Amount: $289,540.98 Basis for Selection of Contractor: Bid
`Memo to Mayor must be attached
Start Date: September 2023 Termination Date: 12/31/2025
Im
Q Local Business?F--]YeslzNo* If meets requirements per KCC3.70.100,please complete"Vendor Purchase-Local Exceptions'form on Cityspace.
Business License Verification:YesEl In-ProcessEl Exempt(KCC 5.01.045)
Notice required prior to disclosure? Contract Number:
FTesONo CAG2023-483
Comments:
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Date Routed to the City Clerk's Office: 2/14/24
,c«W»373__,0 Visit Documents.KentWA.gov to obtain copies of all agreements
rev.20210513
•
KEN T
WASHINGTON
CHANGE ORDER NO. 1
NAME OF CONTRACTOR: Corona Steel, Inc. ("Contractor")
CONTRACT NAME & PROJECT NUMBER: CAG2023-483
ORIGINAL CONTRACT DATE: September 19, 2023
THIS CHANGE ORDER NO. 1 ("Change Order 1") is made between the CITY OF KENT, a
Washington municipal corporation ("City"), and CORONA STEEL, INC., a Washington corporation
("Contractor").
I. RECITALS
1.1 City entered into a Public Works Agreement ("Agreement") with Contractor on
September 19, 2023, wherein the City agreed to purchase from Contractor a pre-engineered metal
building (PEMB) in an amount not to exceed $5,420,279.15, including any applicable Washington
State Sales Tax.
1.2 The contract was written as a fixed price bid and was written to be assigned to a
General Contractor once a General Contractor was selected to complete all other work on the
project. The City has added additional scope of work to the design by bumping out the lobby.
Because the price of steel increased while the parties were addressing the design, this Change
Order also reflects the parties' agreement on how to address this price increase.
1.3 This Change Order also lays out the point at which the Agreement will be assigned to
the General Contractor.
1.4 Additionally, this Change Order revises the Agreement to align with the Instruction
to Bidders within the Project Manual and to better align with the Contract that the City will execute
with the General Contractor.
1.5 In addition, the parties wish to ratify and affirm any and all acts consistent with the
authority of the Agreement and prior to the effective date of this Change Order.
II. CHANGE ORDER
NOW THEREFORE, in consideration of the mutual intent, desire, and promises of the parties
and other good and valuable consideration, City and Contractor agree as follows:
2.1 Agreement - Repealed and Replaced. The original Agreement signed by the parties
on September 19, 2023, is repealed and replaced by this Change Order to make it consistent with
the contract to be executed with the General Contractor. All acts consistent with the authority of
the Agreement and prior to the effective date of this Change Order are hereby ratified and
affirmed, and the terms of this Change Order shall be deemed to have applied. The following
CHANGE ORDER - Page 1 of 5
(City of Kent and Corona Steel, Inc. - KEHOC)
provisions apply to the contractual relationship between the City and Contractor and collectively,
together with this Change Order, constitute the Agreement of the parties:
2.1.1 Agreement. The "Contract Documents" form the "Contract" as
defined in Paragraph 1.01F of Section 00 72 00 of the General Conditions. The
Contract Documents consist of this Change Order, any attached Exhibits, the
General Conditions; Supplementary Conditions, Special Provisions, Standard
Specifications, Contract Plans, Amendments to the Standard Specifications and all
other sections included within the Project Manual; and written modifications,
amendments and Change Orders to the Contract issued after execution of this
Agreement, the City's Contract Bid Documents for the Project, including but not
limited to the Bid package and Project Manual, Bid Advertisement, Instructions to
Bidder, Time of Completion and Liquidated Damages, Addenda, Bid Proposal Form,
Contractor's Proposal and all documents submitted therewith in response to the
City's Bid Advertisement, and any additional documents referenced as comprising
the Contract and Contract Documents, which are hereby fully incorporated as part
of the Contract as if set forth herein.
2.1.2 Project. Contractor shall fully complete all Work and furnish all
labor, tools, materials, and equipment for the project entitled KENT EAST HILL
OPERATIONS CENTER: KEHOC, PRE-ENGINEERED METAL BUILDING, Project No.
FAC-23-09, including all changes to the Work, timely and in strict accordance with
the Contract Documents.
2.1.3 Payments. City shall pay Contractor as specified in the Contractor's
Proposal according to the Contract Documents as to time, manner, and condition
of payment in a contract amount not to exceed that amount set forth in Section
2.3 of Change Order No. 1 unless modified by a subsequently approved Change
Order or addendum as permitted by the Contract Documents. The payments to
Contractor include the costs for all labor, tools, materials, equipment, and
subcontracts for the Work.
2.1.4 Revised Schedule and Scope of Work. Delivery of structural steel,
and all other building components, shall commence to the project site no later than
the week of June 24, 2024. Contractor shall coordinate delivery and staging of these
materials with the General Contractor. Contractor shall erect the building within 120
calendar days of delivery, unless otherwise agreed to with the General Contractor.
The Contractor shall provide City, on or before April 12, 2024, final building forces,
reactions, and locations thereof, for City's finalization of its foundation design. This
information shall be stamped by a Washington State licensed Structural Engineer.
The Contractor shall coordinate the construction of building footings with the
General Contractor within 5 business of issuance of the Notice to Proceed to the
General Contractor. Contractor shall provide PEMB anchor bolt templates to the
General Contractor and coordinate these anchor bolt locations. Contractor shall
provide City with written confirmation affirming General Contractors anchor bolt
placement prior to each concrete pour wherein PEMB anchor bolts are inset.
2.1.5 Liquidated Damages. The City will assess, and Contractor will be
responsible for, liquidated damages in the amounts specified in Section 00 10 40
for each Day beyond the Contract Time allotted for each milestone if Substantial
CHANGE ORDER - Page 2 of 5
(City of Kent and Corona Steel, Inc. - KEHOC)
Completion of a milestone is not timely achieved. Contractor and the City agree
that any liquidated damages established by this Agreement are not penalties and
are a reasonable estimation of actual damages to the City, as of this date of
Agreement, based on the inherent uncertainty and difficulty in calculating and
quantifying damages caused by delays in the construction of the Project. This
provision is intended to be in lieu of Contractor's liability for delay damages
sustained by Owner by reason of Contractor's delay in reaching Substantial
Completion by the date set for Substantial Completion. This provision shall not
relieve or release Contractor from liability occasioned by other breaches or defaults
under this Contract, nor shall it limit Owner's rights to terminate the Contract for
cause pursuant to the General Conditions or to pursue any other remedy under the
Contract or otherwise. In addition, Owner may recover its actual damages (including
direct architectural, administrative, and other related costs attributable to the
Project) as a result of any delay by Contractor in reaching Final Completion within
the time required in Section 2.1.4.
2.1.6 Independent Contractor. Contractor's employees, while engaged in
the performance of any of Contractor's services under this Agreement, shall be
considered employees of the Contractor and not employees, agents, representatives
of the City and as a result, shall not be entitled to any coverage or benefits from
the City. Contractor's relation to the City shall be at all times as an independent
contractor. Any and all Workman's Compensation Act claims on behalf of Contractor
employees, and any and all claims by third-party as a consequence of any negligent
act or omission on the part of Contractor's employees, while engaged in services
provided to be rendered under this Agreement, shall be solely Contractor's
obligation and responsibility.
2.1.7 Jurisdiction and Venue. Any lawsuit or legal action brought by any
party to enforce or interpret this Agreement or any of its terms or covenants shall
be brought in King County Superior Court for the State of Washington.
2.1.8 Contract is complete and integrated agreement. The Contract
represents the entire, complete, and integrated agreement between the parties and
supersedes prior negotiations, representations or agreements, either written or oral.
No oral representations or other agreements have been made by the parties except
as specifically established in the Contract.
2.1.9 Severability. A court of competent jurisdiction's determination that
any provision or part of this Agreement is illegal or unenforceable shall not cancel
or invalidate the remainder of this Agreement, which shall remain in full force and
effect.
2.1.10 Disclaimer. No liability of Contractor shall attach to the City by
reason of entering into this Agreement, except as expressly provided in this
Agreement.
2.2 Contract Work. In addition to the Work originally required under the Contract
Documents, the Contractor shall perform the following additional Work:
Contractor shall provide all PEMB design, labor, tools, materials,
equipment, shipping, and subcontracts to construct an expanded
CHANGE ORDER - Page 3 of 5
(City of Kent and Corona Steel, Inc. - KEHOC)
building lobby and provide a covered canopy that extends from the
expanded lobby north of the building.
The lobby shall be expanded between building gride lines two and
three, eastward from its previous location approximately eight feet.
The new lobby expansion will extend north of building gridline three
approximately sixteen feet nine inches.
The canopy shall extend from the expanded lobby to a distance that is
approximately seventeen feet north of the north wall of the building.
The canopy shall be nine feet in width from the north end of the lobby
to the north wall of the building. At the north wall of the building, the
canopy width shall be sixteen feet six inches in width.
The additional Work must be in conformance with the plans attached
in Exhibit A.
2.3 Compensation. In exchange for Contractor's performance of the Work under the
parties' Agreement, the City agreed to pay Contractor an amount not to exceed $5,420,279.15,
including any applicable Washington State Sales Tax. In exchange for the additional Work provided
for under Section 2.2 of this Change Order, and to compensate Contractor for increases in the
market value of steel, the parties agree to increase compensation due Contractor as follows:
Original Compensation Amount $5,420,279.15
(including applicable alternates and WSST)
Net Change by Previous Change Orders $0
(incl. applicable WSST)
Adjustments to Compensation through
Change Order No. 1:
➢ Material Escalation $167,000.00
➢ Lobby Canopy Materials $47,000.00
➢ Lobby Canopy Installation $48,980.00
Applicable WSST Tax on this Change $26,560.98
Order
Revised Compensation Amount $5,709,820.13
The parties agree to negotiate in good faith the credit due to the City's direct purchase of
insulation and memorialize it in a subsequent change order.
2.4 Time for Completion. The time for completion of the Work is amended as follows:
Original Time for Delivery of materials to Delivery date was to be
site dependent on City review,
(insert date) approximately June 1.
Revised Time for Deliveries June 28, July 5, July 12, July 19
Revised Time for Completion 120 days from June 28, 2024
(insert date)
CHANGE ORDER - Page 4 of 5
(City of Kent and Corona Steel, Inc. - KEHOC)
2.5 Clarification of Assignment Provisions. As specified in Paragraph 5.20.A. of Section
00 80 00 of the Supplementary Conditions of the Contract Documents, the City will select a General
Contractor to whom a specified portion of the Contractor's Work will be assigned, and through
which Contractor shall become a subcontractor of that General Contractor to complete the
remaining Work. Contractor shall coordinate directly with the City concerning all design and
fabrication work related to the pre-engineered metal building, and all invoices for such work, in
accordance with the Contract Documents shall be sent to the City for payment. All on-site work,
post-design, and post-fabrication work, i.e., work related to the pre-engineered metal building's
delivery, installation, and final acceptance, will be assigned to the General Contractor once such
contractor is awarded the work. For all assigned work, Contractor shall invoice and obtain payment
from and through the General Contractor, not the City. All Work that takes place prior to the work
related to the delivery, installation, and final acceptance, stays with the City.
The value of work assigned to the General Contractor shall be based on the Contractor's
Schedule of Values for work to be performed on site.
2.6 Escalation in the Cost of Steel. This contract amendment freezes the cost of steel to
be provided in the contract. There will be no future adjustments for the cost of steel unless they
are associated with changes in the work.
2.7 Authorized Representatives. The parties whose names appear below swear under
penalty of perjury that they are authorized to enter into this Change Order, which is binding on
the parties to the Agreement.
2.8 Adjustment in Value of Payment and Performance Bond. The Contractor will adjust
the amount of its payment and performance bond for this project to be consistent with the revised
contract sum shown in Section 2.3.
IN WITNESS, the parties below have executed this Change Order No. 1, which
will become effective on the last date written below.
CONTRACTOR: CITY
Corona Steel, Inc. City of Kent:
lS Arc,Pmzc , z
By:Marc Paulsen(Feb 13,202417:05 PST) By:Juli arascondola(Feb 14,2024 08:54 PST)
Print Name: Marc Paulsen 7
Julie Parascondola, Parks Director
Its President DATE: Feb 14,2024
DATE: Feb 13,2024
ATTEST:
A I
Kent City Clerk
CHANGE ORDER - Page 5 of 5
(City of Kent and Corona Steel, Inc. - KEHOC)
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Signature: MU MOOI-e Signature: Kin KO{' O1 O
Will Moore(Feb 13,202416:49 PST) Kim Komoto(Feb 14,202410:01 PST)
Email: wmoore@kentwa.gov Email: cityclerk@kentwa.gov
FAC23-09B KEHOC Metal Building Change
Order 1
Final Audit Report 2024-02-14
Created: 2024-02-14
By: Leah Bryant(Ibryant@kentwa.gov)
Status: Signed
Transaction ID: CBJCHBCAABAAwOTua7rTwFe0ejrmPxjdHAK14PfnSmyQ
"FAC23-09B KEHOC Metal Building Change Order 1 " History
Document created by Leah Bryant(Ibryant@kentwa.gov)
2024-02-14-0:45:20 AM GMT
Document emailed to wmoore@kentwa.gov for signature
2024-02-14-0:47:48 AM GMT
Email viewed by wmoore@kentwa.gov
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Signer wmoore@kentwa.gov entered name at signing as Will Moore
2024-02-14-0:49:04 AM GMT
Document e-signed by Will Moore (wmoore@kentwa.gov)
Signature Date:2024-02-14-0:49:06 AM GMT-Time Source:server
Document emailed to contracts@coronasteel.com for signature
2024-02-14-0:49:08 AM GMT
Email viewed by contracts@coronasteel.com
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d4 Signer contracts@coronasteel.com entered name at signing as Marc Paulsen
2024-02-14-1:05:28 AM GMT
Document e-signed by Marc Paulsen (contracts@coronasteel.com)
Signature Date:2024-02-14-1:05:30 AM GMT-Time Source:server
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