HomeMy WebLinkAboutCRPS-07-013 - Extension of Purchase Order #0600621 - Victoria Hills Community Centre ProjectJ
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Corporate Services
Report To: Members of Finance & Corporate Services Committee
Date of Meeting: January 29, 2007
Submitted By: L. Proulx, Director of Facilities Management
Prepared By: L. Proulx, Director of Facilities Management
Ward(s) Involved:
Date of Report: January 12, 2007
Report No.: CRPS: 07-013
Subject: EXTENSION OF PURCHASE ORDER #0600621 -VICTORIA
HILLS COMMUNITY CENTRE PROJECT
RECOMMENDATION:
That the City of Kitchener's Purchase Order #0600621 dated May 24, 2006 to PM Contracting
be extended from its original amount of $1,229,614.12 including GST to $1,465,641.14 including
GST to cover additional budgeted costs to complete the addition and renovations to Victoria
Hills Community Centre.
EXECUTIVE SUMMARY: N/A
BACKGROUND:
On April 11, 2006 Council approved Tender T06-020, Victoria Hills Community Centre Addition
and Renovations, to PM Contracting Ltd. at their adjusted tendered price of $1,229,614.12.
Work on this project proceeded in 2006 and occupancy of the addition occurred at year end.
Among other things, the project included a roof over the new addition and creation of an
additional new asphalt parking area.
The budget for this project included a contingency of 10% over the amount of the initial
purchase order.
REPORT:
Three issues contribute to the request to extend the amount of the Purchase Order:
1) During the course of construction, the cost of oil was on the rise. As a result, Staff
inquired, and the contractor confirmed, that they would be willing to honour their tender
price for asphalting if re-asphalting the existing parking lot were added to the job. Funds
in the amount of $49,600 had been previously budgeted for re-asphalting of the existing
parking lot at a later date.
January 12, 2007
Page 2
2) In the original tender package, the contractor had provided an alternate price for also re-
roofing the existing sloped roof in the amount of $35,437. This alternate item was not
included in the initial purchase order, however, site issues caused me to reconsider this
decision and take this option while construction was underway.
Undertaking the re-asphalting and re-roofing of the existing parking lot and existing roof
at the same time as construction of the addition also eliminates the need for further
disruption at the site in future.
3) Despite the soils report significant additional costs were encountered for soil remediation
in this project.
The result of these three issues is that, with the changes, the total costs now exceed 10%
above the initial purchase order. While the costs exceed the amount of the initial purchase
order, the project itself is not over-budget. With the 10% budgeted contingency, the funds that
had previously been budget for re-asphalting the parking lot and some economies we have
been able to achieve on other budgeted items, the project is actually slightly below budget.
However, Section 170.10.4 of the City of Kitchener Purchasing By-law requires a Council
resolution for increases exceeding 10% of the approved purchase order. This is the reason the
matter is before Council now.
FINANCIAL IMPLICATIONS:
Additional funding is not required, as the additional costs of this project will be funded by the
construction contingency and other existing funding in the construction budget.
COMMUNICATIONS: N/A
CONCLUSION:
This report is intended to deal with an administrative issue only. It does not seek any adjustment
in funding. We seek approval of the recommendation.
L. F'roulx, Gt I GMM III
Director of Facilities Management
LP/cr