RECOMMENDATION: Approve First Amendment to Design/Build contract with David E. Harvey Builders, Inc., and appropriate additional funds.
SPECIFIC EXPLANATION: On February 17, 2021, by Ordinance No. 2021-117, City Council awarded a Design/Build Contract to David E. Harvey Builders, Inc., to provide construction phase services for the Houston Police Headquarters Building – Levels 12, 24 and 26 Renovation Project and appropriated $4,570,381.00 for the project. On June 30, 2022, David E. Harvey Builders, Inc. submitted the Guaranteed Maximum Price (GMP) which exceeded the estimated construction cost. After an internal review of the GMP, the General Services Department (GSD) has determined it to be fair and reasonable considering current construction industry cost escalations.
Therefore, the General Services Department recommends that City Council appropriate the sum of $509,000.00 out of the Police Consolidated Construction Fund to the contract with David E. Harvey Builders, Inc. for the project. Due to cost escalations, additional funding is necessary to complete the project. Therefore, it is further recommended that City Council approve a First Amendment to the construction contract with David E. Harvey Builders, Inc. to increase the director’s authority to approve Change Orders up to 12.04% of the original contract price, which will exceed the original 10% contingency.
PROJECT LOCATION: 1200 Travis St., Houston, TX 77002
FISCAL NOTE: No significant Fiscal Operating impact is anticipated as a result of this project.
DIRECTOR’S SIGNATURE/DATE:
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C. J. Messiah, Jr.
General Services Department
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Troy Finner
Houston Police Department
WBS No.: G-000202-0001-4