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Council questions $186,600 change order for State Street pump station; administration eyes designer recourse
Summary
The water division's $186,600 change order for additional instrumentation and bypass work drew sharp council criticism over why the scope was not included in the original bid; administration says it will pursue designer errors-and-omissions and consult the city solicitor.
The Warwick City Council and finance committee pressed the water division and administration April 6 about a $186,600 change order tied to improvements at the State Street pump station.
Chief of water Jerry Wlette said the change order covers labor and materials to install instrumentation and control equipment at multiple pump-station locations and is necessary to allow staged construction and bypassing of flows. He said some installations must be completed at related sites before work at State Street can proceed.
Council members and the finance chair expressed surprise and frustration that the work and required electrical installations were not included in the original bid packets. "How is it that this equipment ... wasn't known when this thing first came to us for a bid?" the chair asked. Council members described the unplanned cost as "fiscal irresponsibility" and said the city had been "blindsided."
The administration said the omission predates the current director and noted that a design firm (identified in the record as Beta/Hot Engineering) prepared the specifications; staff said they are exploring legal recourse against the designer under errors-and-omissions coverage. The assistant city solicitor's office had reviewed addenda and advised the administration that some language created ambiguity; the solicitor's office had not yet given a final legal opinion on a claim at the time of the meeting.
Staff reported limited preparatory work at the station and that construction was scheduled to start in early April. Members asked whether pausing and rebidding would be possible; staff said rebidding could expose the city to liquidated damages and would likely delay construction and risk service impacts.
Council members asked for regular updates on legal steps and for the city solicitor to evaluate remedies. Administration officials said they have considered going after the designer and will consult the city solicitor's office to determine appropriate next steps.
The committee asked the administration to keep the council informed of developments and said it expects documentation of communications with the designer and legal counsel as the city decides whether to pursue a claim.
