Public Works recommends the approval of Change Order No. 1, decreasing the current awarded amount of $6,040,246.25 by $1,457,801.19 for a total contract amount of $4,582,445.06 for East Arterial Overlay – 2024, Project PW-S-00021.

This change order is for a reduction in quantities of contract items that were not necessary to complete the East Overlay – 2024 Project. The main items that were significantly different from the original estimates and account for 84% of the change order amount are 1) Concrete Repairs – 50%, 2) Type-D level-up – 66%, and 3) Type-B thin overlay – 16%.

Public Works staff utilize street scores to estimate the amount of pavement removal needed for arterial street repair projects and the estimates typically range within 10-15% above or below actual street repair needs within project limits. The quantity of concrete repairs completed in this project were lower than expected because the contractors on Parker Rd and Los Rios Blvd were able to complete needed concrete repairs at a lower cost ahead of the overlay contractor. The quantity of Type-D level-up used was less than originally estimated due to the road being more level than anticipated. Beginning this year, Public Works no longer bids Type-D level up in overlay projects as the Engineer has evaluated and determined it is not needed. Estimates for the quantity of Type-B thin overlay are determined through measurements using aerial map imagery and are usually within 10 – 15% of the quantity needed. On this project 16% less Type-B thin overlay was used to complete the project. The remaining funds will be used on future street projects.

If this change order is not approved at Council, the City will not be able to reallocate these funds to a future project.

This item approves a change in the contract with Texas Materials Group, Inc. for construction services on the East Arterial Overlay - 2024 project.  The first change order, reducing the current contract by $1,457,801, will leave a balance of $1,532,490 for use in other street improvement projects.

Approval of this item will support the City's Strategic Plan Critical Success Factors of being an Excellent, Innovative, and Accountable City Government.