Additional Engineering Support - Grandview Tank Rehabilitation Project
The City issued Purchase Order (PO) 078676 for $179,896 to DePauli Engineering Services (DES) in December 2013 for the design and construction oversight of the Grandview Tank Rehabilitation Project from Fund 202. The contract with Paso Robles Tank Company (PRT) listed a final completion date not to exceed March 25, 2018. Due to a number of issues with the Contractor, this date was exceeded, and liquidated damages in the amount of $500 per day have been accruing.
The costs for engineering and construction oversight services would have come in under budget had PRT met its milestones. However, due to the overrun in schedule, the original engineering services budget has been exceeded. Utilities Staff requested a cost estimate from DES for the additional work to complete the project. Attachment 1 is the Cost Proposal submitted by DES.
These additional costs will be offset by liquidated damages assessed to PRT, along with a potential claim against PRT's performance bond.
The Project has a remaining balance of $1,511,450 left. Requested Council action is to increase the current PO by $76,439 using available funds left in the project.
- Fiscal Impact:
- $76,439 outflow from Fund 202. Please note that City intends to file claim against contractor for this amount. In addition, liquidated damages against contractor have been accruing at a rate of $500 per day since March 25, 2018.
- Staff recommends approval of increase of $76,439 to current PO.
- Speaker's Name
- Dennis Romero