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Select Board approves contractor and Haley Ward change orders; board keeps roughly $21,600 in retainage
Summary
The board approved a $27,072.06 contractor change order and a roughly $31,000 engineering change order from Haley Ward, while retaining about $21,578 in retainage; town staff said approximately $40,000 remains unclaimed in the grant account after these approvals.
Board members reviewed change orders and a pay application related to an ongoing town construction project and approved both the contractor change order (about $27,072.06) and an engineering change order from Haley Ward (about $31,000).
A town staff member explained the contractor change order stemmed from quantity increases observed in payout 3 and time-related costs such as police detail. The staff member also cited slow contractor performance, crew shortages and an incorrect hydrant delivery as contributors to additional costs. "Quantity increases in the field, which were triggered by payout 3," the staff member said when asked what the $27,072 covered.
Finance analysis presented to the board indicated that, after approving these change orders, approximately $40,000 of previously unclaimed grant funds would remain available. The board discussed using retainage to cover incomplete items: the town is holding 5 percent retainage on each invoice and presently withholds retainage on three pay applications; the current retainage balance cited was approximately $21,578.
Board members expressed frustration with contractor performance and with paying for time-related items such as police detail, though the board approved the change orders. One member said they were concerned about using taxpayer funds to cover overages even when grant funds are available; staff replied the town can hold retainage until work is completed and that the state does not require unused grant allocations to be returned if they are not claimed.
The board also heard that the contractor will likely be documented for performance and could be excluded from future bids if warranted. Staff said that final payout and any release of retainage will be conditioned on satisfactory completion of punch-list items.
The motion to approve the Haley Ward change order and the contractor pay application was moved and seconded; the board voted in favor.
The discussion detailed several clarifications: the $27,072.06 figure was tied to payout 3 quantity increases; Haley Ward’s change order covered engineering; the town is withholding 5 percent retainage from invoices, and staff recommended using retainage to address unresolved items before releasing final payments.
The board did not set a specific date for final release of retainage; staff said retainage will not be released without board approval and can cover repairs or incomplete work.
