RECOMMENDATION: Approve First Amendment to construction contract with Housing and Land Development Corporation dba IKLO Construction and appropriate funds.
SPECIFIC EXPLANATION: On February 10, 2021, by Ordinance No. 2021-0097, City Council awarded a construction contract to Housing and Land Development Corporation dba IKLO Construction and appropriated $3,942,000.00 for construction services, including a 10% contingency for the Restoration of City Hall Basement.
During construction in May 2021, two air handling units that are located in the City Hall Basement and service multiple floors in City Hall, were rendered inoperable. An emergency directive was given to install temporary air handling units until the fabrication and installation of the replacement units was completed. To properly operate the temporary units, an extensive ducting system was routed through the construction areas of the City Hall Basement Restoration project, preventing construction to continue in several locations for 205 days. This unforeseen condition required the project to be completed in multiple phases which significantly increased the original contract completion date and modified construction means and methods. Additionally, scope was added to the project, including an employee Wellness Center, which modified the mechanical and electrical systems, finishes, and furniture. Additional funding is necessary to complete the project.
Therefore, the General Services Department recommends that City Council appropriate the sum $591,300.00 out of the Miscellaneous Capital Projects/Acquisitions CP Series E Fund (4039) to the project to perform the additional scope of work. It is further recommended that City Council approve a First Amendment to the construction contract with IKLO Construction to increase the director’s authority to approve Change Orders up to 25% of the original contract price, which will exceed the original 10% contingency.
PROJECT LOCATION: 901 Bagby St. Houston, Texas 77002
DISASTER RECOVERY NOTE: This item is related to the impact of Hurricane Harvey DR4332, and it is the City’s intent to seek reimbursement from the Federal Emergency Management Agency (“FEMA”) and other eligible sources for such expenditures.
CIP FISCAL NOTE: No significant Fiscal Operating impact is anticipated as a result of this project.
Capital Project Information: See attached Form A for a breakdown of capital costs.
WBS No: D-HARVEY-7382-4-01-1E
DIRECTOR’S SIGNATURE/DATE:
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C. J. Messiah, Jr.
General Services Department