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Council approves two road change orders after subcontractor ineligibility; asks staff to review contract language
Summary
Council approved change orders for the Beach Oakridge reconstruction ($18,981) and the Willow Street roundabout ($29,123.12) after MDOT guidance made Anderson Brothers ineligible as a subcontractor; members asked city attorney to review contract language to protect taxpayers.
The Brainerd City Council on Tuesday approved two change orders for city street projects after staff said MDOT determined a subcontractor, Anderson Brothers, was no longer eligible for the work.
Safety and Public Works Committee Chair Tad Ericson presented change order No. 1 for the Beach Oakridge reconstruction in the amount of $18,981, saying Landre Construction supplied an eligible replacement subcontractor and that mobilization and per-ton unit-price adjustments produced the increase. The council approved the change order on a voice vote.
Change order No. 2 for the Trunk Highway 371B (Willow Street) roundabout, in the amount of $29,123.12, was similarly the result of replacing an ineligible subcontractor; staff cited a $21.32 per-ton unit price adjustment for this project and said the roundabout's smaller volume helps explain the different per-ton impact. Council members discussed whether contract language should better protect the city if a subcontractor defaults or becomes ineligible; City Attorney Langel said the answer depends on contract language and applicable state rules for projects under state statutory umbrellas.
Chairman Johnson later summarized that the Beach Street change order represented about an 8% increase while the roundabout represented about an 18% increase after the subcontractor change. Council asked staff to review contract protections and to return with recommended language or options.
Why it matters: Both change orders increase project costs and reflect risks that arise when subcontractors become ineligible for state-influenced projects. Council’s request for contract-language review could change how future projects allocate risk.
What happens next: Staff will provide follow-up information (including percent and dollar breakdowns by line-item if available) and the city attorney will review contract language for possible revisions.
Attribution: Direct quotes and figures in this article are taken from committee reports and council discussion in the meeting transcript.
