Public Works director recommends change order to replace ineligible subcontractor for Beach/Oak Ridge paving

Public Works Director Habegors told the Brainerd City Safety and Public Works Committee that staff recommends approval of change order number 1 for improvement 21 13, the Beach/Oak Ridge paving project. He said the original subcontractor, Anderson Brothers, is not eligible under Minnesota Department of Transportation guidance and that Landware provided a replacement proposal using Knife River to perform the asphalt work.

Habegors said the replacement proposal requests a unit-price adjustment of $6.35 per ton and that the project estimate is about 18,000 tons. "The price per ton is $6.35," he said, and recommended the committee approve the change order so the contractor can finalize subcontractor pricing and submit a formal bid.

Committee members asked whether Knife River will apply the asphalt and whether the city faces liability because the subcontractor changed. Habegors answered Knife River will perform the asphalt work and said the city is "free and clear" of liability pending Landware’s formal submission of subcontractor lists and pricing.

After brief discussion the committee moved, seconded and voted in favor of the change order; the chair announced the motion carried. The committee did not record individual vote names in the transcript. The city will receive a formal subcontractor and pricing submission from Landware as the prime contractor proceeds through the procurement process.

The committee also asked staff to review contracting language and vendor risk allocation to confirm whether contract terms protect the city if a prime’s subcontractor defaults. Staff said they will relay the concern to the city attorney for review and return with any recommended contract-language changes.