To approve an increase to the current awarded contract amount of $4,781,689 by $243,437, for a total amount of $5,025,126, for Water Rehabilitation - Post Oak & Whiffletree II, III and IV, Project No. 7239, from DDM Construction Corporation for the Engineering Department; and authorizing the City Manager to execute all necessary documents. (Contract No. 2022-0238-B; Change Order No. 3) Approved

The Engineering Department recommends approval of Change Order No. 3 for the increase in the construction contract with DDM Construction Corporation, in the amount of $243,437, for the Water Rehabilitation – Post Oak & Whiffletree II, III, and IV.

Change Order No. 3 includes minor increases and decreases of project quantities, additional restoration items, including sidewalk, barrier free ramps, sod placement and items added during construction to address additional pavement deterioration.  The change order also increases some unit prices in response to regional industry cost escalation.  The construction contract allows the contractor to submit requests for unit price increases based on industry-wide or regional escalation.  The contractor submitted requests to increase the unit prices for nine line items based on direct concrete source vendors increase in price due to inflation, supply and demand issues, and material shortages. These requests were analyzed and approved by the City’s contract management team. 

Two change orders have been previously executed.  Change Order No. 1, in the amount of $11,455, addressed conflicts with existing storm sewer lines that required the new water main to be constructed at a deeper elevation.  Change Order No. 2, in the amount of  $51,723, addressed water services that had to be installed by open cut which required pavement removal and replacement; additional quantities of water line replacement; and substituted flexible base in lieu of lime-treated subgrade in small areas.

If Change Order No. 3 is not approved, it would leave deteriorated water mains in the Post Oak and Whiffletree neighborhood, resulting in increased maintenance costs and a negative impact on the quality of life.

Funding for this item is available in the 2023-24 Street Improvements CIP.  The third change order for the Water Rehabilitation - Post Oak & Whiffletree II, III, and IV project, in the total estimated amount of $243,437, will leave a balance of $21,286 for future expenditures.

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