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Home My WebLink AboutChange Order - 05CITY OF RENTON Parks and Recreation Department CONTRACT CHANGE ORDER AGREEMENT 5/12/2023 CONTRACT:CAG-22-014 CONTRACTOR:Redside Construction LLC CHANGE ORDER:#05 SUMMARY OF PROPOSED CHANGE: Reason/Justification: Cost increase for Hot Dip Galvanizing of structural steel (COP 16). DESCRIPTION: Item Qty. Description Unit Price Amount No.w/ WSST 1 1 Galvanizing cost increase (COP 16)29,896.00$ 32,915.50$ Total this Change Order:32,915.50$ ORIGINAL CONTRACT CURRENT CONTRACT NET CHANGE REVISED CONTRACT AMOUNT (W/ WSST)AMOUNT (W/ WSST)THIS ORDER (W/ WSST)TOTAL AFTER CHANGE Additional Calendar Days: (0) No Extension of Time. Completion Date is October 1, 2023. SIGNATURES: Contractor:Date: Project Manager:Date Approved By:Date: (Parks and Recreation Administrator) The payment specified and agreed to in this change order includes every claim by the contractor for any extra payment with respect to the work described in this change order. The work covered by this change order must be performed under the same terms and conditions as that included in the original agreement. All of the other terms of the original agreement remain in effect. 4,659,432.00$ 4,778,131.91$ 32,915.50$ $ 4,811,047.41 5/17/23 5/17/23 DocuSign Envelope ID: B7670019-3A40-4A66-9D83-243E3202980A 5/22/2023 | 10:49 AM PDT CAG-22-014, CO #5-23 Project Name:16 Project No. CAG-22-014 5/8/2023 R70-22 Description: a.-$ b.-$ DIRECT LABOR SUBTOTAL -$ d.-$ -$ a.-$ -$ a.-$ b.-$ -$ -$ a. b. -$ a.29,068.00$ b. 29,068.00$ 6. OVERHEAD & PROFIT a.-$ b.-$ c.NO CHARGE this COP -$ b.1.70 % of 1-6 494.16$ 494.16$ a.1.10 % of 1-7 319.75$ 319.75$ a.0.048 % of 1-8 14.34$ 14.34$ 29,896.00$ Form Revised 6/1/2004 12% (1st $50k, 4% above $50k) - Overhead bond adjustment payroll & volume driven liability insurance TOTAL (NIC WSST) 6% - Profit Business and Occupational Tax 10. B&O TAX 9. BOND 8. BOND 7. TOTAL OVERHEAD & PROFIT 9. TAX 7. INSURANCE material costs 2. MATERIAL COSTS 8. INSURANCE 5. SUBCONTRACTORS 1. CRAFT LABOR COSTS safety (NTE 2% labor, lines 1a, b, & c per WSDOT) Jesse Engineering - documentation attached 1. CRAFT LABOR COSTS 2. MATERIAL COSTS REDSIDE CONSTRUCTION LLC crew (apprentices, journeymen, & laborers) Source Documents: Extra cost for galvanizing impact from Jesse Engineering Direct Labor Costs: Contractor: Itemize all costs on attached COP Cost Breakdown form. for contracts under $3 million COP General Contractor Breakdown Summary Direct Supervision (NTE 15% Direct Labor) WCD # / COP No. Date: Contractor Ref. No. Gene Coulon Beach Memorial Park North Water Walk Improvements 3. EQUIPMENT COSTS 6. SUBTOTAL 4 owned / rented equipment (per spec approved source) small tools (NTE 3% craft labor per WSDOT) 3. EQUIPMENT COSTS 6. SUBTOTAL 5 Subcontractors (12% to $50k, 4% above $50k) SUBTOTAL 1 thru 3 4. SPECIALIZED SERVICES COP 16 Galvanizing Impact Page _______ of _______Issued 5/8/2023 DocuSign Envelope ID: B7670019-3A40-4A66-9D83-243E3202980A May 3 2023 Redside Construction Bainbridge Island, WA Attn: Sam Berry Re: City of Renton, Gene Coulon Beach Memorial Park North Water Walk Improvements #CAG-22-014 Jesse Bid File No. 2022-075 Rev.A Change Order #5 for galvanizing cost escalation Sam, Jesse Co. is submitting the this Change Order #5 in request to aid Jesse Company of the cost increase for Hot Dip Galvanizing initiated by Seattle Galvanizing long after award of the Gene Coulon Park project. At the time of bid in August 2022 the price of Hot Dip Galvanizing (HDG) was 0.57/lb. for progress doble dipping. In late October 2022 Jesse received notice from Seattle Galv. and Ace Galv. of expected price increases due to zinc and trucking cost escalation raising our progressive dip price to $0.75/lb. or a net increase of 24%. Seattle Galv. is the only West Coast source capable of progressive dipping the oversized South and West Walkway frames as has since been completed and billed at $0.75/lb. cost. At the time of bid, neither Jesse nor our sources have the ability to see more than 10-20 days into the future commodity markets for steel, stainless, aluminum, zinc, weld wire, rubber, UHMW and many other commodities that support our fabrication industry thus we most often validate our bid proposals from 30 to as low as 10 days determined by current market validity. Following are email notices we received from Ace Galv. and Seattle Galv. dated in late October 2022 providing notice of cost increases forth coming that indicate the $0.75/lb. rate for progressive dipping. Mon 10/31/2022 12:06 PM Hi Dave, hope your day is going well. Please plug in $.75/lbs. on finished weight. This will be a progressive dip, thus there is the possibility of warpage and maybe cracking of the steel as it heats and cools. (This is out of the galvanizers control). Any connecting point where the channel meets the beam, we need big cut out/copes/holes. This will help eliminate bare areas. Also, please consider bracing as we must handle this piece multiple times. Have a great day! Sales Manager Seattle Galvanizing Company, Inc. 19603 60th Ave NE | Arlington WA | 98223 C: (206)858-1492 | F: (206) 783-3101 www.SeattleGalvanizing.com DocuSign Envelope ID: B7670019-3A40-4A66-9D83-243E3202980A The Northwest’s Largest Galvanizer Oct. 2022 Good morning, We are hearing reports for a zinc mill that premium grade (what we use) will be increasing plus trucking needs to be reviewed. We will strive to keep our cost as listed below but I have a feeling it could be 0.10 – 0.13 per LB more. Progressive dip will be closer to 0.55 – 0.75 per Lb depending of the item. Ladders will be 0.75 per LB Thank you Michael Ace Galvanizing 206-762-0330 Ext 106 Attached with this CO #5 I am including a letter of cost increase from Seattle Galv. dated Oct. 31 2022 as well as three Seattle Galv. invoices for since completed HDG services dating from December 2022 thru March 2023 at $0.75/lb. If we equate the billed accumulated weight of 161,490lb. at $0.18/lb. (difference of $0.75 as billed minus $0.57 as bid) the Net Cost impact equates to $29,068.00 without profit or margin additions. Jesse Company is respectfully submitting this Change Order request to offset our over budget galvanizing expenses at cost to us for $29,068.00. We appreciate the City of Renton’s consideration to offset the price escalation incurred during fabrication. If you have any questions, please feel free to contact me at any time via telephone or e-mail. Respectfully, Dave Easterly Project Manager / Estimator Jesse Company 253-552-1520 office, 253-377-2954cell DocuSign Envelope ID: B7670019-3A40-4A66-9D83-243E3202980A The Northwest’s Largest Galvanizer October 31, 2022 RE: Notice of Price Increase Dear Valued Customers: During these unprecedented times, the team at Seattle Galvanizing has been offering competitive pricing and industry leading quality without any unnecessary interruptions to you. Due to the influence of many factors, including the continuing increase in prices of various raw materials and constraints in supply, it has become necessary to institute a general price increase on the services we provide. Rest assured that we have made every effort to keep our price increase to a minimum, as we understand the current global economic issue has had an impact on us all. We want to provide you with adequate notice of the price increase which will go into effect beginning December 1st 2022. We will be honoring all quoted prices for the current projects in the process of completion. Seattle Galvanizing Company, Inc. is committed to producing the highest quality product and service to our customers. In order to continue with this commitment, we are taking this initiative. A member from our team will be contacting you to go over this announcement in detail. In the meantime, please do not hesitate to contact us with any questions. We hope to maintain many more years of business relations with you and are looking forward to your continued patronage. Sincerely, Seattle Galvanizing Company, Inc. Regards, Juan Marquez, Seattle Galvanizing Company, Inc. 6010 199th ST NE | Arlington WA |98223 P: (206) 783-3100 EXT 107 | F: (360) 435-4226 www.SeattleGalvanizing.com DocuSign Envelope ID: B7670019-3A40-4A66-9D83-243E3202980A DocuSign Envelope ID: B7670019-3A40-4A66-9D83-243E3202980A DocuSign Envelope ID: B7670019-3A40-4A66-9D83-243E3202980A DocuSign Envelope ID: B7670019-3A40-4A66-9D83-243E3202980A