Title
An Ordinance approving Change Order No. 2 to the agreement for the construction of Project No. 722 for the Water Main Replacement FY24 Project to Leath & Sons Inc. for an increase in the contract price of $730,569.17 for a revised agreement amount of $5,222,412.17, and an increase of 56 calendar days in association with said work to the agreement and authorizing the City Manager to execute an agreement for the same. (PWC 1/12/26)
Body
An Ordinance approving Change Order No. 2 to the agreement for the construction of Project No. 722 for the Water Main Replacement FY24 Project to Leath & Sons Inc. for an increase in the contract price of $730,569.17 for a revised agreement amount of $5,222,412.17, and an increase of 56 calendar days in association with said work to the agreement and authorizing the City Manager to execute an agreement for the same.
Key Issues:
• Pursuant to Ordinance 10112, the City and Leath & Sons, Inc. (hereinafter "Contractor") entered into an Agreement for the construction of the Water Main Replacement: FY24 Project, Project No. 722, (hereinafter "Base Agreement").
• Pursuant change order approval process prescribed in the City’s Procurement Policy, the City and Contractor entered into Change Order No. 1 for additional time to show for substantial completion.
• Pursuant to Ordinance No. 10112, the City and Contractor executed Change Order No. 2 for work requiring additional funds to cover water main relocation, missing 20” tees and lack of current locates data.
• The City desires to further modify the Base Agreement, as amended, due to additional costs associated with added work and to adjust construction contract time.
Proposed City Council Motion:
FIRST MOTION: I move to recommend to City Council approval of an Ordinance approving Change Order No. 2 to the agreement for the construction of Project No. 722 for the Water Main Replacement FY24 Project to Leath & Sons Inc. for an increase in the contract price of $730,569.17 for a revised agreement amount of $5,222,412.17, and an increase of 56 calendar days in association with said work to the agreement and authorizing the City Manager to execute an agreement for the same.
SECOND MOTION: I move for the adoption of an Ordinance approving Change Order No. 2 to the agreement for the construction of Project No. 722 for the Water Main Replacement FY24 Project to Leath & Sons Inc. for an increase in the contract price of $730,569.17 for a revised agreement amount of $5,222,412.17, and an increase of 56 calendar days in association with said work to the agreement and authorizing the City Manager to execute an agreement for the same.
Background:
This Change Order 2 will adjust the contract price for additional costs associated with added work and to add contract time to perform the work. The overall project time will be extended by 56 calendar days and the overall cost will increase by $ 730,569.17 for a revised Agreement amount of $ 5,222,412.17.
It was determined that due to change in work for the Colbern Road Improvements section of water main - it was decided to abandon the 8" main and run new lines to connect into the 12" main. Another item which was very substantial was the missing 20" tees on Scherer Road. These were required in order to complete the construction of the new water line. Also, the lack of reliable locates near the Cedar Creek mall area caused days of exploratory digging by the contractor.
Timeline:
Start date: June 2025
Estimated completion date: October 2026
Presenter
Perry Allen, Construction Manager
Recommendation
Staff recommends approval.
Committee Recommendation