1988-02-22 Public Hearing and Regular Meeting

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~T FOR CITY COUNCIL AGENDA~ Agenda Date Requested: Februarv 22,1g88 Requested By: Ross Cox Department: CIP X Report Resolution Ordinance Exhibits: Letter to SWA Group Dated February 17, 1988 Exhibit A - Construction Administration Manhour Matrix SUMMARY & RECOMMENDATION The Little Cedar Bayou Park project was originally considered to be constructed by a single general contractor who would coordinate and manage the work of all subcontractors and form a single point of contact for the construction administration to be performed by the Architect. The construction was bid in accordance with this original plan and proved to be significantly over budget. When the project construction was divided into six separate packages, the amount of interface work required for construction administration increased. Requirements include increased contractor invoice checking, added work scheduling and interfacing of work to produce a cohesive construction plan resulting in minimum time and cost to the City. To accomplish these results, the construction administration portion of the project requires added work scope resulting in added fees for that work. Staff recognizes the budget limitations on the project and has taken steps to minimize further increases in cost. Toward this end, SWA Group has agreed to convert their present hourly rate contract to a fixed price contract incorporating the added fees for the extra work. The nature of this fixed price contract with SWA Group will then mean that SWA Group will perform the construction administration tasks cited in Exhibit A, as a minimum, and no further increases in fees will be programmed unless the actual scope of the project is either increased or decreased for reasons not currently anticipated. In addition, all of SWA Groups' consultants will be billed only as needed and then only through reimbursable expenses. The reimbursable expenses for the current contract allow a 10% markup to be added. However, by this revision to the contract, the 10% markup will be waived by SWA Group and all reimbursable expenses will be billed at actual cost. The fixed fee portion of the contract will be increased from the current $ 143,930. to $ 161,430., an increase of $ 17,500. which will be budgeted out of the contingency of $ 50,000 established at the time construction bids were awarded leaving a contingency of $32,500. Action Required by Council: Staff recommends Council approve an increase of $ 17,500. to SWA Group contract, conversion of that contract to a fixed fee with reimbursable expenses billed at actual cost. Availability of Funds: General Fund X Capital Improvement Other Account Number: 011-800-801-S08 Funds Available: -X- YES NO Water/Wastewater General Revenue Sharing Approved for City Council Agenda ~'~~ Robert T. Herrera City Manager ? _-- \ 8-'6 C() DATE