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City engineer: change order adds $280,000 lump‑sum bypass pumping to Gulf of Interceptor project

City of Hot Springs Board of Directors · February 11, 2026

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Summary

City Engineer Gary Carnahan said change order No. 5 would convert monthly bypass pumping charges to a lump sum of $280,000 after project delays increased bypass time; he said prior negative change orders reduced the overall contract but this addition is needed to cover underestimated bypass duration.

City Engineer Gary Carnahan explained a proposed change order (R26‑34) to the Gulf of Interceptor sewer replacement contract with Coakley Company Inc. The work replaces roughly 5,000 feet of pipeline — originally bid at about $9 million to $9.5 million — replacing a 36‑inch line with a 42‑inch line. Carnahan said earlier negotiations and change orders previously reduced the contract by approximately $1.2 million, bringing the contract down to a little over $8 million, but the contractor underestimated the months required for bypass pumping. Bypass pumping — isolating flow while replacing the main in the same trench — is taking more time than anticipated. Carnahan said staff negotiated with the contractor and converted monthly bypass fees to a lump‑sum agreement of $280,000 to complete the remainder of the bypass work.

Carnahan framed the change order as necessary due to schedule and scope realities rather than design changes and pointed to detailed backup in the board packet. The board will see R26‑34 for formal action at the Feb. 17 business meeting.

The presentation noted the project remains roughly $1 million below the original budget after a prior negative change order; however, the added $280,000 addresses unanticipated bypass pumping duration.