Council backs recommendation to reject contractor change order for salt-storage dome project

Burns Harbor staff recommended that the Town Council reject a change order submitted May 5 by Area Construction for the town's salt-storage dome project, and the council moved to adopt that recommendation.

Staff explained the basis for the recommended rejection: the contract specifications had provided six foundation options for the dome and left it to the contractor to choose an option at bidding time and coordinate with the foundation manufacturer. The contractor later submitted a change order claiming uncertainty about which option applied. "Basically, we provided in the specification 6 options for the software, the dome itself. In doing so, there is 2 type of foundation ... those 6 options, it was up to the contractor to decide at the time of bidding," a town representative explained. In summary, staff said that uncertainty is the basis for rejecting the change order.

Council members sought assurance that rejecting the change order would not pause or delay construction. Staff replied that the original contract remains in force and the contractor will continue the work as specified. "No. The contract still applies," a staff member said.

The council asked for a short presentation rather than a long technical briefing before voting. A motion was made to accept the recommendation to reject the change order and to proceed under the terms of the existing contract.

Why it matters: rejecting a contractor change order can preserve the town's original contract price but may raise questions about contractor claims and potential disputes. The council recorded no amendment to the contract and emphasized continuation of the project under existing terms.

Next steps: staff will notify the contractor of the council's decision; the project is to proceed under the existing contract terms unless further claims or modifications are presented and accepted.