Subject:
Title
Approve Spending Increase for Final Settlement with Hoar Construction for Police Station Construction
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DATE(S) OF PRIOR COUNCIL CONSIDERATION OF THIS ISSUE: Oct. 26, 2020, May 2, 2022
EXPLANATION AND SUMMARY:
On Oct. 26, 2020 the Vienna Town Council awarded the contract to construct the Police Station with Hoar Construction for a contract price of $13,237,514 plus a 5% contingency for a total contract amount of $13,899,389. Construction began in late 2020.
While the construction generally ran smoothly, on May 2, 2022 staff requested an additional authorization of $249,310 to cover change orders. That brought the total authorized amount up to $14,148,699. Though the May 2, 2022 authority increase was based on the assumption of limited additional future change order costs, this was not the case. Continuing issues with construction materials supply chain deliveries and additional unanticipated redesign configurations continued to add to the project cost. Downey and Scott, the Town's contracted project managers for the Police Station Construction project, have negotiated a final settlement and final change order with Hoar Construction. The final net change order, which includes a $43,000 credit to the Town for the substantial delay in project turnover, is $96,272. This delay was mainly due to subcontractors and inspections, and Hoar has agreed to the final amount.
This final settlement brings the project total to $14,167,202, an overage of $18,503 from the authorized amount.
Some project costs will be taken from seized assets (Asset Forfeiture Funds) for furniture. This is an allowable amount for seized assets and will cover the difference in authorization increases.
Staff is requesting an increase in Council authorization of $18,503 to make the final payment to Hoar and close the project.
Departmental Recommendation: Recommend approving increase in funding to Hoar Construction for final payment.
Finance Recommendation: Recommen...
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