DEPARTMENT: Facilities Management
FILE TYPE: Consent Action
TITLE
title
Authorization To Execute Second Contract Amendment With Schreiber Mullaney Construction Company, Inc., For Crisis And Recovery Center
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PURPOSE/ACTION REQUESTED
Authorize execution of the second contract amendment with Schreiber Mullaney Construction Company, Inc., for construction of the Crisis and Recovery Center.
SUMMARY
The Crisis and Recovery Center project began construction in September 2023. The construction contract was awarded to Schreiber Mullaney Construction Company, Inc., in the sum of $11,516,890 by Resolution No. 23-380 (August 29, 2023). Execution of the original contract also authorized staff to execute up to $250,000 worth of post-award changes.
In June 2024, when construction work was about 50 percent complete, staff executed the first contract amendment to SMC’s construction contract. This amendment increased the contract value by $199,728.82 and extended the substantial completion date by 15 working days. Of this amount, $163,047.84 is attributed to the discovery of contaminated soils and debris found during excavation efforts at the project site. These materials required investigation and testing to confirm an acceptable method for handling and then disposal off-site. This discovery added substantial work scope to the project and delayed site development work.
Construction work is now about 85 percent complete. Through this level of completion, staff has discovered additional work scope changes. These changes vary in scope and size and cover all design disciplines ranging from site work to mechanical and interior finishes. These changes also include credits offered by the contractor to realize cost, material or time savings through other proposed means and methods. A full list of all changes can be found in the Summary of Work Scope Changes Attachment.
Execution of a second contract amendment will require formal Board action because it will exceed the limit of the original contract authority. Specifically, staff is requesting a second contract amendment to the construction contract totaling $363,943.55 and adding ten working days to the schedule. There are sufficient funds remaining in the approved project budget to cover this contract increase. This will bring the new total contract value to $12,080,562.37 and will extend the substantial completion date to December 16, 2024.
Construction is on schedule to be substantially complete by the end of 2024. County staff estimates another $150,000 in work scope changes could arise in the remaining months before final completion. This would be consistent with the percent increase observed on County projects of this size and complexity. As is customary, staff will return in the spring of 2025 with a request for the County Board to authorize a fourth and final contract amendment after the completion of construction when all costs are known. Sufficient funds remain within the approved project budget to also cover these future estimated changes.
RECOMMENDATION
recommendation
Staff recommends authorizing a second contract amendment with Schreiber Mullaney Construction Company, Inc., in the sum of $363,943.55, and adding ten working days to the schedule, to cover changes in the work scope of the Crisis and Recovery Center project. This will bring the total authorized contract amendments to this construction contract to $563,672.37 and the new total contract value to $12,080,562.37.
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EXPLANATION OF FISCAL/FTE IMPACTS
Funds totaling $14,100,000 were included in the earlier adopted Capital Improvement Program budget for the design and construction of the Crisis and Recovery Center. Sufficient funds within the project budget are available for this amendment.
☐ None ☒ Current budget ☐ Other
☐ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
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WHEREAS, the 2023 Capital Improvement Program (CIP) Adopted Budget as amended for the Crisis and Recovery Center project is a total of $14,100,000; and
WHEREAS, by Resolution No. 23-380 (August 29, 2023), the County Board approved the original contract with Schreiber Mullaney Construction Company, Inc., in the sum of $11,516,890; and
WHEREAS, with the original contract authorization, staff was also authorized to execute up to $250,000 worth of post-award changes; and
WHEREAS, to date, staff executed one contract amendment totaling $199,728.82 to amend the work scope and to extend the substantial completion date by 15 working days; and
WHEREAS, a second contract amendment is being requested to add $363,943.55 and 10 working days for additional work scope changes; and
WHEREAS, the total authorized contract amendments to this contract would then be $563,672.37 for reimbursement of known construction change orders on the project; and
WHEREAS, the new substantial completion date of the construction contract will be December 16, 2024; and
WHEREAS, there are sufficient funds within the approved project budget for this amendment.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby authorizes the Facilities Management Director to execute a contract amendment with Schreiber Mullaney Construction Company, Inc., 1286 Hudson Road, Saint Paul, MN 55106, in an amount not to exceed $363,943.55 and to add ten working days to the schedule, for a maximum contract total not to exceed $12,080,562.37, subject to approval by the County Attorney’s office as to form.
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PREVIOUS BOARD ACTION
23-380; 08/29/23
ATTACHMENTS
Attachment: Summary of Work Scope Changes
BOARD GOALS
☐ A Great Place to Live ☐ A Healthy Environment
☐ A Successful Place for Business and Jobs ☒ Excellence in Public Service
CONTACT
Department Head: Mike Lexvold
Author: Patricia Bremer