Background/Purpose of Request:
On November 2, 2020, the Board of Commissioners authorized the Chairman and Clerk to the Board to execute the construction contract with Ralph Hodge Construction Company for the construction of the Shallotte Transmission Water Line. A Notice to Proceed was then issued on December 10, 2020. This 24-inch pipeline will increase water transmission capacity to areas of the county to the south and west of Shallotte and provide redundancy to the existing single transmission main through Shallotte.
The project’s original base bid was set up for the installation of 24-inch Ductile Iron Pipe (DIP) with an alternate for 24-inch PVC pipe installation. Although DIP is typically used for large diameter water lines, the alternate for PVC was selected based on the fact that it is a redundant pipeline.
The contractor, Ralph Hodge Construction Company, has informed staff that there is currently a severe manufacturer delay in the production of 24-inch PVC pipe due to lack of certain raw materials. Production time on large diameter PVC pipe is currently unknown. In an effort to avoid extreme delays and also provide a more desirable product, the contractor recommends the installation of 24-inch DIP which is readily available. The cost for this change will be $365,046.00.
On January 6, 2021, a Change Proposal was executed resulting in a $40,000.00 credit to utilize Fusible PVC in lieu of HDPE on all horizontal directional drills. This credit will reduce the net additive Change Order #1 to $325,046.00.
Staff recommends that the Board approve a budget amendment and Change Order #1 in the amount of $325,046.00 to include an additional 56 days for associated pipe production delays to the Shallotte Transmission Water Main contract with Ralph Hodge Construction Company. The new contract total value will be increased from $5,433,500.00 to $5,758,546.00 with a revised completion date of February 4, 2022. This revised contract amount is still below the original low base bid of $5,895,500.00. |