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HomeMy WebLinkAboutDTS-06-177 - Onward Ave Reconstruction ) c,_> KITCHENER Development & Technical Services ~ Report To: Date of Meeting: Submitted By: Prepared By: Ward(s) Involved: Date of Report: Report No.: Subject: Councillor Berry Vrbanovic, Chair of Finance and Corporate Services Committee December 11 th, 2006 Dave Mansell, P.Eng, Director of Engineering Mike Henderson, C.E.T., Supervisor Engineering Asset Management Ward 1 December 11 th, 2006 DTS 06-177 ONWARD AVENUE RECONSTRUCTION (KING STREET TO WEBER STREET) ASSESSMENT OF LIQUIDATED DAMAGES REPORT RECOMMENDATION: That the request for additional engineering fees of $11,760.74 submitted by Stantec Consulting Ltd. relative to Expression of Interest E04-074 (Consultant Services - Onward Avenue Reconstruction), be approved. EXECUTIVE SUMMARY: The reconstruction of Onward Avenue between King Street and Weber Street was substantially completed September 15th, 2006. The reconstruction was complicated by the Terracon's inability to successfully test and commission the temporary watermain system. This ultimately resulted in a delay to the project's completion as well as additional consulting and testing fees. After the project was completed the engineering consultant Stantec Consulting Ltd. submitted a request for compensation based on additional working days over and above those indicated within the contract. The reason for the request included the need for additional inspection time and additional effort ultimately related to the repeated failed temporary watermain testing. The contractor was given opportunity to advance or "catch up" their construction schedule after the time when the temporary watermain testing became a problem and to the end of the contract's stipulated working days. Engineering staff have been reviewed the request for additional fees and the assessment of liquidated damages are in place within the contract expressly for this purpose. The requested fee increase in this report is the direct result of notification to Terracon Underground Ltd. that liquidated damages would be applied to compensate for costs incurred due to working days exceeding the amount stipulated within Contract T06-008. BACKGROUND: Expression of Interest E04-074, Consultant Services - Onward Avenue Reconstruction was awarded to Stantec Consulting Ltd. late in 2004 and an agreement for those services entered into on February 3rd, 2005. After the project was awarded to Stantec Consulting Ltd. the original scope was expanded as outlined and approved within a previous report to council, DTS 06-119. This expanded work included an Environmental Assessment related to traffic calming and contaminated material removal. After construction was completed, a separate request for additional fees related to this project was submitted. The liquidated damages assessment can be directly related to the time lost with the temporary watermain systems failed commissioning and the resulting extra sampling and testing. This delay resulted in the contract's working days being extended beyond the original scope. In order to recover those costs to the City the Liquidated Damages clause within the contract was invoked. REPORT: After construction was completed, a separate request for additional fees from Stantec Consulting Ltd. related to the project was submitted. Stantec Consulting Ltd. requested compensation for work that was in excess of the original fee estimate and fee estimates for the expanded scope. The claim can be summarized as follows; 1) Additional watermain testing and sampling The amount of effort (staff time and sampling costs) required by Stantec to adequately test and sample the temporary watermain exceeded the fee estimate submitted for this work. The additional expenditures were required in an effort to ensure proper water quality was achieved for the residents of Onward Avenue during the construction. Terracon's efforts resulted in this temporary watermain requiring 7 rounds of testing and sampling prior to acceptance and commissioning. 2) Additional inspection and contract administration time due to working days being exceeded The temporary watermains repeated commissioning failures resulting in several inefficient construction procedures being undertaken by Terracon Underground Ltd., in order to move forward with the construction schedule. This ultimately affected the construction schedule by 11 working days. Terracon Underground Ltd. was given opportunity to recover this lost time to their schedule through the balance of the construction activity but was ultimately unable to maintain their contractual schedule. This directly affected Stantec's staffing requirements for the project relative to their field inspection time and their contract administration time. FINANCIAL IMPLICATIONS: Funding Available: Index Code 852403 Balance $187,593.89 (excluding GST) Funding Required: $11,760.94 (excluding GST) Balance Remaining: $175,832.95 (excluding GST) CONCLUSION: Engineering staff have reviewed in detail the request for increased fees for Stantec Consulting Ltd. related to the assessment of Liquidated Damages and believe that compensation of $11,760.94 (excluding GST) is warranted to Stantec Consulting Ltd. for the increased working days on this project. An analysis of the funding for this project shows that holdbacks applied to Terracon Underground Ltd. will fund the additional consulting fees. Mike Henderson, C.E.T. Supervisor, Engineering Asset Management Dave Mansell, P.Eng Director of Engineering