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HomeMy WebLinkAboutCO 5 CAG-14-090 CO #5-15 CITY OF RENTON Public Works Department CONTRACT CHANGE ORDER AGREEMENT CONTRACT: CAG-14-090 SW 7th St/ Naches Ave SW Storm System Improvement C.O.# 5 Project—Phase 1 CONTRACTOR: Road Construction Northwest, Inc. SUMMARY OF PROPOSED CHANGE: CO-5 Correction for Different Prevailing Wage Rate Force Account Road Construction Northwest is using Signature Landscaping as a subcontractor to repair the irrigation system that was removed as part of the new storm system construction. On April 29,the Washington State Department of Labor& Industries (L&I), Prevailing Wage Section returned Signature Landscaping's Statement of Intent to Pay Prevailing Wages for correction to the wage rate used for landscaping workers(see attached email and WAC). L&I stated that Signature Landscaping cannot use Landscaping Construction wage rates to restore landscaping that is part of an underground water or sewer project. The wage rate for Underground Utilities (WAC 296- 127-1389, Laborers—Underground Sewer and Water) must be used instead. The difference in cost between Landscape Construction Irrigation Installers ($13.56/hour) and Underground Sewer and Water, Pipe Layer ($42.46/hour) is$28.90/hour. Signature Landscaping used the Landscaping Construction wage rate in their cost estimate for the work so using the Underground Utilities wage rate will add approximately$5,656.00 to Signature Landscaping's labor costs. Signature Landscaping was not aware that L&I requires a different wage rate when landscaping work is part of an Underground Utilities project, and has requested that the City reimburse the cost difference between the wage rates. Road Construction Northwest shall submit Signature Landscaping's certified payroll data to document the workers, hours, and labor costs paid for using the Landscaping Construction wage rate and the corrected wages paid to the workers using the Laborers-Underground Sewer and Water wage rate. Road Construction Northwest agrees not to add an additional Contractor Markup to the cost difference between the wage rates. The estimated costs for this change order are per the attached April 29, 2015 email from Road Construction Northwest. Actual costs will be determined by certified payroll data submitted to the City. CO-5- Estimated cost for difference in Wage Rates=$5,656.00 Working Days Additional Working Days added to the Contract for this Change Order: 0 H:\File Sys\SWP-Surface Water Projects\SWP-27-Surface Water Projects(CIP)\27-3570 Hardie Ave-SW 7th\1604 Change Orders\2015-0511 CO-5 S W 7th-Naches.doc\DCtp ORIGINAL CONTRACT AMOUNT CURRENT CONTRACT AMOUNT ESTIMATED NET CHANGE ESTIMATED CONTRACT THIS ORDER TOTAL AFTER CHANGE $1,975,032.00 $2,087,064.04 $5,656.00 $2,092,720.04 SIGNATURES; (4- Contractor: - / Jeffrey M.Kanyer I President Date: 5 Project Engineer: �^W Date: Approved By: Dater j Lys Hornsby, sydomsofiltor v Approved By: '(� Date: er*$ tlmmormsn,PWAdml lrator r" 0 H:\FIIe Sys\SWP-Surface Water Projects\SWP-27-Surface Water Projects(CIP)\27.3570 Hardie Ave-5W 7th\1604 Change Orders\2015-0511 C0.5 SW 7th-Nache s.doe\DCtp Daniel W Carey To: Matt Wagester Subject: RE: Signature Landscaping L&I Correction Notice 5-8-15 D. Carey April 29th Email edited. Unneeded conversation removed. From: Matt Wagester (mailto:ma (&rcnw.coml Sent: Wednesday, April 29, 2015 9:17 AM To: Daniel W Carey Subject: Signature Landscaping L&I Correction Notice Hi Dan, It appears that there is an issue with Signature Landscaping prevailing wages. L&I is making Signature pay general labor rates and not landscaping. L&I determined that the irrigation installation fell within this category. I don't think it would be fair to stick them with the additional cost,since they are not typically a public works contractor and were requested by the City to do this work.What do you think?The additional cost is$5,656.00 Thanks, Matt Matt Wagester Road Construction Northwest,Inc. M MalIOD&NW.com From: Dave Ford _ Sent:Tuesday,April 28, 2015 8:58 AM To:Tim Dust Subject: RE: Correction Notice Right you are. Made the change so the total due is 5656.00 now Dave Ford i Signature Landscape Services, Inc. 425-868-5885 Office 425-868-0281 Fax www.signaturels.com From: Dave Ford Sent:Tuesday, April 28, 2015 8:07 AM To:Tim Dust Subject: RE: Correction Notice Tim Apparently, because it was an underground utility project, landscape wages cannot be paid. L&I takes a very restrictive approach about when landscape wages can be used. I When I read the WAC referenced, it does specifically state that landscape restoration work applies to the underground utility wage classification. Sorry I didn't catch this sooner, but I assumed as you do that the work we are actually doing is the work that would determine the wage. That would be great if RCNW is willing to give us a change order to cover some or all of the cost. Gross wages due for work so far come to about$5800.00 Dave Ford Signature Landscape Services, Inc. 425-868-5885 Office 425-868-0281 Fax www.signaturels.com From:Ziegert,Charles 0(LNI) [mailto:ziec235CMLNI.WA.G0V1 On Behalf Of LNI RE Prevailing Wage Worker 1 Sent:Tuesday,April 28, 2015 7:22 AM To:Dave Ford Subject: RE:Correction Notice Good morning, The wage rate look up page can be found at: https://fortress.wa.gov/lni/wagelookup/prvWagelooku aSDX With your bid due date of 7/8/2014 the following wage rates were I effect: County Trade Job ClassificationWage Holiday; Overtime Note King Laborers Underground Sewer Et General Laborer Et Topman $41.69 7A 31 Ater King Laborers - Underground Sewer Et Pipe Layer r$42.46 7A 31 Water Thank you, Chuck From: Dave Ford fmailto•Dave Ford signaturgls coml Sent:Tuesday, April 28, 2015 7:16 AM To: LNI RE Prevailing Wage Worker 1 Subject: RE: Correction Notice I looked at the WAC referenced in you notice. I don't see any wages listed. I don't see wages listed on the journey level prevailing wage list either. Where do I find what the wages are for underground utilities? Thanks Dave Ford Signature Landscape Services, Inc. 425-868-5885 Office 425-868-0281 Fax www.sianaturels.com 2 From: PW1@lni.wa.gov(mailto:PW1Ca lni.wa.Qov1 Sent:Tuesday,April 28,2015 7:07 AM To: Dave Ford Subject:Correction Notice Correction Notice Prevailing Wage Section Department of Labor & Industries PO Box 44540 Olympia, WA 98504-4540 Statement of Intent to Pay Prevailing Wages (360) 902-5335 Company Name: Intent Id ,SIGNATURE LANDSCAPE SRVCS INC 690520 _ . 'Prime Contractor: _ `Prof.Name: R C N W SW 7th St/Naches Ave SW Storm System Improvement ;Project `Contract Awarding Agency: ;Contract#: RENTON, CITY OF SWP-27-3570 . ._ _ _. Company Returned To: IDate Received: Date Returned: `SIGNATURE LANDSCAPE SRVCS INC 4/22/2015 .4/28/2015 Your form has been returned for correction. Please make the corrections indicated below and resubmit. If needed, you may provide the information/explanation by using the "Notes" function on the button of the returned form pages. • Landscape Construction (WAC 296-127-01346) wage rates cannot be used to restore the landscape after an underground water or sewer project. You must use the Under round Utilities (WAC 296-127-01340 or WAC 296-127-01389) wage rates for this work. The wage rate you will use will depend upon if the work is done by hand or hand tools,or if done using power equipment. Please make the corrections to the classification(s) and wage rate(s) and then resubmit your form for processing and approval. Thank you 3 WAC 296-127-01389: Utilities construction (underground sewers and water lines). Page 1 of 1 WAC 296-127-01389 Agency filings affecting this section Utilities construction (underground sewers and water tines). For the purpose of the Washington state public works law, chapter 39.12 RCW, utilities construction is defined as follows: The construction, alteration, repair or improvement of water mains, sanitary sewer mains, underground storm sewers and branch lines to buildings but not underneath buildings, within cities, towns, suburbs and subdivisions. The work includes, but is not limited to: (1) Clearance of right of way preparatory to the excavation of trenches or ditches. (2) Excavation and trimming of trenches or ditches (including establishing and maintaining grade). (3) Shoring, building of manholes, catch basins, etc. (4) Distribution of pipe and skids, placing of skids and pipe over the trench or ditch. (5)The cleaning, sealing, doping and wrapping of the pipe after the joints have been welded and before lowering the pipe into the trench and alignment. (6) Lowering of the pipe and the removal of the skids. (7) Backfilling, compaction and resurfacing of trenches or ditches (e.g., asphalt work necessary to cover the trench or ditch, but all other asphalt work is excluded). (8) Cleanup and restoration of right of way (e.g., restore landscaping). [Statutory Authority: Chapter 39.12 RCW, RCW 43.22.270 and 43.22.051. WSR 00-15-077, § 296- 127-01389, filed 7/19/00, effective 7/19/00.] http://app.leg.wa.gov/WAC/default.aspx?cite=296-127-01389 04/29/2015 Page 1 of 1 State of Washington Department of Labor & Industries Prevailing Wage Section - Telephone 360-902-5335 PO Box 44540, Olympia, WA 98504-4540 Washington State Prevailing Wage The PREVAILING WAGES listed here include both the hourly wage rate and the hourly rate of fringe benefits. On public works projects, worker's wage and benefit rates must add to not less than this total. A brief description of overtime calculation requirements are provided on the Benefit Code Key. Journey Level Prevailing Wage Rates for the Effective Date: 7/08/2014 County Trade Job Classification Waste Holiday Overtime Note :King Landscape Construction Irrigation Or Lawn Sprinkler $13.56 1 Installers King Landscape Construction Landscape Equipment $28.17 1 Operators Or Truck Drivers King Landscape Construction Landscaping or Planting $17.87 1 Laborers https://fortress.wa.gov/lni/wagelookup/prvWagelookup.aspx 04/29/2015 Page 1 of 1 State of Washington Department of Labor & Industries Prevailing Wage Section - Telephone 360-902-5335 PO Box 44540, Olympia, WA 98504-4540 Washington State Prevailing Wage The PREVAILING WAGES listed here include both the hourly wage rate and the hourly rate of fringe benefits. On public works projects, worker's wage and benefit rates must add to not less than this total. A brief description of overtime calculation requirements are provided on the Benefit Code Key. Journey Level Prevailing Wage Rates for the Effective Date: 7/08/2014 County Trade Job Classification WaUe HolidaylOvertime Note King Laborers - Underground Sewer General Laborer Et Topman $41.69 7A 31 a Water King Laborers - Underground Sewer Pipe Layer $42.46 7A 31 Et Water https://fortress.wa.gov/lni/wagelookup/prvWagelookup.aspx 04/29/2015