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HomeMy WebLinkAboutDTS-08-166 - Contract Admin & Inspection - King St Streetscape ProjectREPORT Report To: Mayor and Members of Council Date of Meeting: Date: December 8, 2008 Submitted By: Grant Murphy, Director, Engineering Services Prepared By: Jim Oakley, Manager, Engineering Construction (741-2412) Ward(s) Involved: All Date of Report: December 1, 2008 Report No.: DTS-08-166 Subject: CONTRACT ADMINISTRATION AND INSPECTION SERVICES, FOR KING STREET STREETSCAPE PROJECT RECOMMENDATION That the normal procedure for the selection of Engineering Consultants be waived; and That the City retain the IBI Group as the Engineering Consultant to undertake the Contract Administration and Inspection of the King Street Streetscape project; and further That an extension to the original purchase order to the IBI Group be approved in the amount of $498,399 excluding GST, to cover the Contract Administration and Inspection services for the King Street Streetscape project. BACKGROUND: The IBI Group was awarded the Phase 1 section of this project, for the Environmental Assessment and preliminary design portion only, in 2006. The original bid comprised of two phases; phase one for design and phase two for contract administration during construction. Although the IBI Group was also the lowest bid for the contract administration portion of the bid, the City only awarded the work to IBI for phase one due to uncertainties on project scope at the time, and therefore the phase two portion for contract administration and inspection was removed from the consultants scope of work. This phase two portion fee was based on an estimated construction duration of 60 days and the Per Diem rate worked out to $1,686.67 The design phase has been completed and an updated cost from the IBI Group has been received for the contract administration, phase two portion of this work. REPORT: IBI has submitted a contract administration fee that is based on a much more complex design basis that will require, increased on site coordination efforts as well as increased communication efforts with the project team and the downtown businesses. The total number of working days for two construction phases covering 2009 & 2010, has been estimated at 230 days and this Per Diem rate works out to $2,166.95/day, which includes a 10% contingency, but excludes 5%GST Engineering has examined this submitted fee from IBI and believe that is reasonable considering that; the scope and complexity of this project has increased significantly, the project will be carried over a two year period, and the cost of living increases from 2006 being factored in. FINANCIAL IMPLICATIONS: Submitted contract administration fee from IBI Group for two phases of construction through to 2010 which includes a 10% contingency, but excludes 5% GST is: $498,399 Total Project Funding E D I F $3, 830, 000 Roads Program $1,500,000 CSD Parkettes $ 350,000 Provincial Grant $3,200,000 Total Council Approved Funding $8,880,000 Urban Design $ 150,000 Cost Recovery Utilities, hydro, Telecoms} $ 601,157 Total Funding $9,631,157 Incurred and Anticipated costs Engineering, Design and Consulting $ 988,232 Contract Administration & Inspection $ 498,399 Construction Contract * $7,235,396 Lighting and Traffic pole procurement $ 679,130 Art and Urban Vitality $ 230,000 Total Projected Costs $9,631,157 Balance $ 0 2 CONCLUSION: The IBI Group has been deeply involved with this project for the past two years and has the most knowledge of the complexities of the unique designs for the King Street Streetscape. IBI has also taken great pride and ownership of this project and would very much like to continue with this project through the various construction stages. In waiving the normal procedure for the selection of an Engineering Consultant for this project, would benefit the City by eliminating the need for a knowledge transfer from the IBI Group to another consultant, which may result in potential construction errors and delays. The City would also benefit by not incurring additional costs and time delays in advertising, short listing, interviewing, and selecting a consultant through the normal procedure. Engineering believes that the IBI Group is the best choice to provide the required contract administration for this project and that they would provide for a seamless transition from the design phase to the construction phase of this project. Jim Oakley, C.E.T. Manager, Engineering Construction Grant Murphy, P. Eng. Director, Engineering Services, 3