Title
Phoenix Sky Harbor International Airport Terminal 4 Central Utility Plant Modernization - 2-Step Construction Manager at Risk Construction Services Amendment - AV21000111 FAA (Ordinance S-51228)
Description
Request to authorize the City Manager, or his designee, to execute an amendment to Agreement 160208 with Holder Construction Group, LLC, for exceptions to Phoenix City Code Section 42-18 to limit the City's damages under the Agreement.
Report
Summary
The purpose of this project is to replace the current Terminal 4 Central Utility Plant and all associated equipment, evaluation and possible inclusion of the controls systems that provides cooling for Terminal 4. When this project is completed the new Terminal 4 Central Utility Plant will provide increased building campus cooling capacity and energy efficiency while simultaneously reducing operation and maintenance costs.
Contract Provisions - Limitation of Recovery of Damages
The parties agree to an exception to limit recovery by the City to 10 percent of Holder Construction Group, LLC's fees for any claim for consequential damage caused by Holder Construction Group, LLC. Consequential damages include damages that result from incidental or indirect consequences from breach of contract. Examples of consequential damages may include loss of income or business reputation.
The Parties agree that liquidated damages will be the only payment to the City for any delay on the Project.
Contract Term
The term of the agreement remains unchanged from the original term. Work scope identified and incorporated into the agreement prior to the end of the term may be agreed to by the parties, and work may extend past the termination of the agreement. No additional changes may be executed after the end of the term.
Financial Impact
The initial agreements for Construction Manager at Risk Preconstruction and Construction Services were approved for an amount not to exceed $105 million, including all subcontractor and reimbursable costs. No additional funding is required.
Concurrence/Previous Council Action
The City Council approved:
• Construction Manager at Risk Preconstruction Services Agreement 160207 (Ordinance S-50690) on March 20, 2024; and
• Construction Manager at Risk Construction Services Agreement 160208 (Ordinance S-50690) on March 20, 2024.
Location
2485 E. Buckeye Road, Phoenix, AZ 85034
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Managers Mario Paniagua and Inger Erickson, the Aviation Department and the City Engineer.