Council approves $426,585 change order for Port Arthur animal shelter after contractor finds buried foundations

Port Arthur City Council approved May 6 a change order increasing the construction contract for the city's new animal shelter by $426,585.34, citing unexpected underground conditions discovered during excavation that required redesign and additional work. The council also approved a linked budget amendment to cover the increase.

What the council approved Construction Zone (contractor) submitted change order number 1 (actually noted in the packet as change order number 2) to increase the contract by $426,585.34 and to add 214 calendar days to the contract timeline; the new contract total was stated in the staff report as $8,376,034 (construction total) with the revised completion target discussed as October (staff schedule). Council voted to approve the change order and the budget amendment (Ordinance PO7331) that reallocated capital funds to cover the increase.

Why the increase occurred John Polk of Construction Zone told council crews encountered previously unknown concrete foundations (piles/pylons) and other subsurface obstructions at the site formerly occupied by Saint Mary's Hospital, which required additional excavation, redesign of foundations and extra work. Architect Paul Barnett (PGAL) and code-compliance manager Darlene Thomas Pierre described the work as involving additional underground remediation and foundation reconfiguration; staff said Entergy and other utility-related coordination was also pending and had affected sequencing. The project manager reported the current completion target as October, after the added days are applied.

Council concerns and staff answers Several council members, including Councilmember Doucette and Councilmember Kinlaw, said they had visited the site and were surprised by periods with reduced visible activity; they pressed staff on why the subsurface conditions had not been identified earlier and on how the contingency had been used. Finance director Lynn Boswell said the city had initially budgeted a capital authorization that included contingency (the packet and staff said the budgeted reserve for the project included approximately $300,000 in general contingency and additional unspent capital dollars in the capital fund). Staff explained the requested change order will be covered by the capital account and that a budget amendment was required to reallocate restricted capital funds to the construction line-item.

Contractor and schedule details Construction Zone said the added contract sum was primarily driven by removal of unexpected piles and additional support/foundation work; the contractor said crews have resumed work and that the schedule shows a finish in mid-to-late calendar Q3/early Q4 (architect said October in the hearing). The city project team said delays also resulted from required revised engineered foundation details.

What council asked staff to do Several council members asked for copies of the construction contract and change-order documentation, and for more frequent project reporting. Staff said they would provide the requested contract and ongoing project updates to council.

Ending Council approved the change order and the budget amendment; staff will provide the contract and a clearer schedule and will continue coordination with the architect and contractor on the revised completion timeline.