Background:
On February 23, 2021, the City Commission approved the Second Amendment to the agreement between the City and Stiles Construction (Stiles), establishing the Guaranteed Maximum Price (GMP) for the Municipal Campus Expansion Project. The project includes the construction of a new City Hall building; a free-standing parking garage; improvements and expansion to the existing amphitheater, including a new Great Lawn; covered walkways; associated site improvements; and demolition of the former City Hall and fire station buildings. The City began occupying the new City Hall building in July 2023.
During the course of construction, Stiles submitted five Potential Change Orders (PCOs) involving claims for additional compensation: PCO 32 - Delayed Commencement; PCO 123 R2 - Energy Code Compliance; PCO 228 - Light Fixture Delay; PCO 207 - Chamber Ceiling Delay; and PCO 414 R4 - Amphitheater Canopy Column Covers. Each PCO was submitted to the City's Architect of Record, Song + Associates, Inc. (Song), for review and initial determination. City staff subsequently conducted a comprehensive review of each claim and held multiple negotiation meetings with Stiles to evaluate the basis, relevance, and associated costs, including consideration of unforeseen conditions and delays not attributable to the contractor.
As a result of these negotiations, staff and Stiles reached a negotiated resolution of the outstanding PCO claims. Prime Contract Change Order (PCCO) 114, in the amount of $500,000, represents the negotiated resolution of the five PCO claims, which initially totaled more than $1.6 million.
A total of six punch list and project closeout items remain and are currently being addressed by Stiles. The City has retained sufficient contract funds to ensure completion of the remaining work and satisfaction of Stiles' outstanding contractual obligations. Once these items are addressed, final project closeout will occur. There are no outstanding claims or change orders for the project.
City staff and Song have reviewed the proposed change order and find the negotiated amount of $500,000 to be fair and reasonable.
Authorization is requested for the City Manager to execute the attached Change Order No. 85 and PCCO 114 in the amount of $500,000, representing the negotiated resolution of the five identified PCO claims.