Lower Pier Avenue Streetscape Project - Construction Update

Recommendation:

It is recommended that City Council:

1. Allow use of incentive and contingency funding previously allocated to the Lower Pier Avenue Streetscape Project (CIP 94-160) to cover additional architectural, construction management and construction related costs on that project.

Background:

The City Council, at a special meeting held December 10, 1996, awarded the construction contract for the Lower Pier Avenue Streetscape Project to Unispec Construction. As you may recall this award was contested at that meeting by the second low bidder but based upon assurances and references given by Unispec Construction at that time staff recommended award.

On April 14, 1997, the City Council approved Change Order No. 19 which extended the original contract time by approximately one month and allowed the contractor to work on various construction phases concurrently in an effort to speed completion of the project.

Unfortunately Unispec Construction has not taken full advantage of the opportunities that Change Order No. 19 had granted. Though noticeable progress has occurred over the past month the contractor still has failed to put forth the effort necessary to complete the project by the new completion dates. Lack of proper coordination, scheduling and manpower seems to indicate that Unispec Construction was again not prepared to finish what they had agreed to in it's amended contract with the City.

Change Order No. 19 specified that work on the intersection was to be complete by May 23, 1997 (in preparation for the Fiesta De Las Artes). The change order provides that liquidated damages in the amount of $10,000/day be assessed after that date. If Unispec still has not completed the intersection by May 31st the damages increase to $50,000/day. These damages represent losses that the City is incurring do to Unispec's non-performance of their agreed upon contract. Unispec had been made quite aware from before the bid opening of the necessity of completing this project before Memorial Day. They have been repeatedly requested to supply the City with schedules and manpower and equipment plans which show how they intend to pickup the pace of construction to meet the dates specified. Unispec has ignored these requests and continue to work slowly towards completion. Unispec has been informed that liquidated damages will be assessed for late work per our agreement. These damages will be deducted from payments due for work already completed.

Analysis:

Because the project was extended by approval of Change Order No. 19, and looks as though will not be completed until sometime after the dates specified therein, the costs the City had provided for administration of the project will increase considerably. The City's contract with our construction management consultant, ASL, and architect, IBI Group, will have to be increased to account for the extension of contract time. Additionally the 7% contingency allotted for changes in work may be exceeded do to unexpected additional work required to insure construction quality. For instance many abandoned storm drain lines were encountered during the performance of the contract work. These lines are old corrugated metal pipe up to 36 " in diameter that are beginning to rust through. These pipe were left in place years ago and not removed or backfilled as is normal engineering practice. In time, if left unattended, these old pipe would fail creating large voids under the new pavement which would lead to settlement and cracking of the pavement in the future. All these pipe were backfilled with a concrete/sand slurry at an additional cost to the contract to insure that the street will last indefinitely.

Fiscal Impact:

Of the $1,949,895 in funding originally appropriated for the project $120,000 was allocated to cover early completion incentives. As the contractor has not met any of the early completion deadlines these allocated funds remain in the Lower Pier Avenue Streetscape Project(CIP 94-160). The Department of Public Works suggests that these funds be used to cover increased costs for architectural review, inspection, construction management and additions to the contract as necessary.