Agenda Item #32
Palm Bay Elementary School - Additional Construction Management Services
The School Board approved the Guaranteed Maximum Price (GMP) submitted by Wharton Smith under their continuing services contract for construction management for the mechanical, electrical and plumbing renewal at Palm Bay Elementary School on March 15, 2016. The scope included replacing only the worst four of the nine air handling units because of limited budget, even though the remaining available surtax funds were supplemented with approximately $260,000 of capital funds.
The construction manager has identified subcontract buyout and value engineering savings within the original GMP that can be applied towards replacing the remaining five air handling units. The savings ($274,590) along with the utilization of the $30,000 project contingency and a change order increasing the GMP by $41,365, will allow all nine air handling units to be replaced, as intended in the sales surtax program. The construction management team, along with the designer and District staff, were able to find alternative materials (pre-insulated pipe and galvanized pipe stanchions, for example) that meet District standards while reducing cost. This is an excellent value for the District as all of the failing equipment will be replaced now and the need for an additional project phase in a later year has been eliminated.
As a result, Wharton Smith, Inc. has proposed a revised GMP in the amount not to exceed $1,393,498 that includes replacing all nine air handling units.
Board approval is required for change orders exceeding $50,000. In this case, the net change order is only $41,365, but the change in project scope, coupled with the use of the savings and contingency warrants review by the School Board. Approval is requested as a consent agenda item without prior information in order to complete the project this summer.
The proposed change order will be funded with capital as sales surtax funds have been fully utilized on the project.
Approve the change order to the construction management services GMP with Wharton Smith, Inc. in the amount of $41,365, which increases the GMP to $1,393,498.
Approve increasing the project construction budget by $41,365.
Consent w/o Information - 5/24/2016
Authority for Action
Involves Expenditure of Funds Directly in the Classroom
Source of Funding
Susan Hann, P.E., Director of Planning and Project Management 633-1000 ext. 446
Attachment: PBES AHU Change Order Attachment.pdf