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PUC approves multi-million-dollar contingency transfers for Irvington Tunnel and WD2551
Summary
The commission authorized transfers to construction contingencies for the Irvington Tunnel (WD2581) and contract WD2551 to cover pending change orders and risks, including water seepage and rock conditions; both items passed by voice vote.
The San Francisco Public Utilities Commission approved two contract contingency transfers to cover pending change orders and construction risks.
Irvington Tunnel. Jeet Bajuwa, manager of the Project Management Bureau, explained the request to move $8,005,495 and a 53‑day extension into construction contingency for contract WD2581 (Irvington Tunnel) to fund approved and potential change orders tied mainly to water seepage and variable ground conditions. Project staff reported the tunnel was about 83% complete with approximately 900 feet remaining and said water ingress is the primary ongoing challenge. The commission approved transferring the already‑approved funds into construction contingency and authorized the general manager to use them as needed.
WD2551. Bajuwa also presented a request to transfer part of previously approved baseline funds into construction contingency for contract WD2551, asking for an increase of $46,914,611 to bring the total revised contract amount up to $449,443,646 to cover pending change orders and known risk trends. Commissioners discussed the transfer and approved the request by voice vote.
Why it matters: Both items move previously authorized budget authority into construction contingency so staff can manage change orders and finish major infrastructure projects without returning for each modification. Staff said these actions address practical site conditions and reduce administrative delays associated with processing multiple small change orders.
What’s next: The general manager is authorized to approve future modifications within the approved contingency amounts and to proceed with managing the projects to completion.
