Title
Water Main Replacement for Area Bounded by: Harrison Street to Van Buren Street and 27th Avenue to 23rd Avenue - Construction Manager at Risk Construction Services Amendment 1 - WS85509032 (Ordinance S-46924)
Description
Request to authorize the City Manager, or his designee, to execute an amendment to Agreement 149802 with Haydon Building Corp. (Haydon) to provide additional Construction Manager at Risk (CMAR) construction services for the Water Main Replacement Area Bounded by: Harrison Street to Van Buren Street and 27th Avenue to 23rd Avenue project. Further request to authorize execution of amendments to the agreement as necessary within the Council-approved expenditure authority as provided below, and for the City Controller to disburse all funds related to this item. The additional fee for services included in this amendment will not exceed $990,000.
Report
Summary
The purpose of this project is to evaluate and replace aging water mains within the City of Phoenix. The current primary focus of the program is on water mains in alleys and easements, which historically have had high breakage rates and are difficult to repair. Work for the projects typically includes: replacing 6-inch, 8-inch and 12-inch water mains; plugging abandoned mains; and installing or relocating fire hydrants.
The amendment is necessary due to unexpected increases in cost of work from the time the project was estimated to the time its design was completed, that reflect a change in market conditions during that time period. This amendment will provide additional funds to the agreement, which will increase the Guaranteed Maximum Price (GMP) cost for construction services, which has not yet been executed.
This agreement is essential to the health, safety, and welfare of the public and critical operations for the City.
Contract Term
The term of the agreement remains unchanged with this amendment.
Financial Impact
- The CMAR construction services agreement was approved for an amount not-to-exceed $5,010,000, which included the GMP Preparation Construction Services agreement, including all subcontractor and reimbursable costs.
- Amendment 1 for GMP construction services will increase the agreement value by an additional $990,000, for a new total not-to-exceed agreement value of $6 million, including all subcontractor and reimbursable costs. An increase in cost to the GMP prior to execution led to the request for an additional $990,000.
Funding for this amendment is available in the Water Services Department's Capital Improvement Program budget. The Budget and Research Department will separately review and approve funding availability prior to the execution of any amendments. Payments may be made up to agreement limits for all rendered agreement services, which may extend past the agreement termination.
Concurrence/Previous Council Action
The City Council approved:
- CMAR Preconstruction Services Agreement 147303 (Ordinance S-44460) on April 18, 2018; and
- CMAR Construction Services Agreement 149802 (Ordinance S-45653) on May 15, 2019.
Location
The project is located in an Area Bounded by: Harrison to Van Buren streets and 27th to 23rd avenues.
Council District: 7
Department
Responsible Department
This item is submitted by Deputy City Managers Karen Peters and Mario Paniagua, the Water Services Department, and the City Engineer.