RECOMMENDATION:
Enact an ordinance approving an additional appropriation to the Construction Contract with The Gonzalez Group, LP for the Restrooms Renovation Project at William P. Hobby Airport (HOU). (Project No. 209)
SPECIFIC EXPLANATION:
On July 22, 2020, City Council enacted Ordinance No. 2020-635, authorizing a Construction Contract with The Gonzalez Group, LP, appropriating the sum of $2,878,320.60 for the Restrooms Renovation Project at William P. Hobby Airport (HOU).
The City Council appropriated funds in Ordinance 2020-635 on July 22, 2020 as follows:
$2,573,021.00 Construction Services
$ 257,302.10 10% Contingency
$ 47,997.50 Engineering & Testing
$2,878,320.60 TOTAL
The Construction scope elements of this project include the sequential renovation of two sets of restrooms located near Gates 40-43 and 45-47, respectively, in the HOU Terminal Building.
After completion of demolition for the first set of restrooms, a number of unforeseen changes were needed, including the removal of existing structural steel hangars; replacement of corroded steel studs and floor track; exterior glass replacement and glazing; chilled water, heating system, and fire protection piping relocation; partial wall re-design; and vent line reroutes.
In November 2020, the unforeseen conditions exhausted approximately 95% of the original appropriated project contingency. As a result, on December 9, 2020, City Council enacted Ordinance 2020-139, appropriating an additional $750,000.00 to pay for the costs associated with unforeseen conditions.
Afterward, during construction, the project incurred over 50 Requests for Information (RFIs) and 47 Requests for Change Orders (RFCOs), resulting in a cumulative construction delay of approximately 95 calendar days. As a result, the Contractor submitted delay claims for extended general condition costs totaling $224,422.00. The primary cause of delay is attributable to the needed re-design of the sink islands. The HAS City Engineer has entered into reimbursement discussions with the design firm of record to address the escalated project costs directly related to the identified design errors and omissions.
It is now requested that City Council approve a second additional appropriation in the sum of $225,000.00, raising the project contingency amount to cover the costs associated with the additional unforeseen conditions.
M/WBE Participation:
The M/WBE goal for this project is 38% (22% MBE, 16% WBE). To date, The Gonzalez Group, LP has achieved 30.37% participation towards the goal. The unforeseen conditions that led to significant additional appropriations resulted in fewer MWSBE opportunities than anticipated when the goal was assigned.
CIP Fiscal Note:
No Significant Fiscal Operating impact is anticipated as a result of this project
Director's Signature:
________________________
Mario C. Diaz
Houston Airport System