1990-11-12 Regular Meeting - Laserfiche WebLink

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~~, ~'~ ~ R T E CITY OF LAO ~~. / ~ ~ ~ Pro n~E (773)471-5020 • P. O. BOx 1115 • La PORT e. TEZ.a577572-1115 ~: November 8, 1990 Black and Veatch Attn: Roy Peyton PO Box 802004 Dallas, TX 75380-2004 RE: Fire Training Facility Dear Mr. Peyton, Our contract for professional services includes a fixed price of $18,100 for basic services performed during the Bidding/Negotiation Phase and the Construction Administration Phase. I understand the concerns expressed in your letter of October, 17, 1990, regarding the age of the contract and increased cost of doing business. However, I cannot accept that the costs for these services would more than double to an estimated upper limit of $49,440. It is evident that the distance between the contract price and the current estimate is too great to resolve through mutual negotiation of a reduced effort by Black and Veatch. Additionally, the City does not agree with Black and Veatch's approach to billing these services in accordance with the contract subparagraph 11.3.2 (Additional Services of the Architect). Therefore, the City has decided that it is in our best interest to relieve Black and Veatch from the obligations of performing basic services for the Bidding/Negotiation and Construction Administration Phases as described in our contract. I do recognize that it is necessary to complete several minor changes requested by staff before proceeding with construction of this facility as designed by Black and Veatch. Also, it may be advantageous to have the services of Black and Veatch available, on an "as needed" basis, in case questions regarding design arise which cannot be adequately addressed by staff. In these instances the City would retain Black and Veatch's services by separate authorization. These services would be considered additional services and payment to the Architect would be per subparagraph 11.3.2. Please coordinate the design changes requested by staff and any future additional services with City Engineer, Bill Manning.