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Authority denies contractor escalation request, reviews North I‑81 sewer costs
Summary
Silver Spring Township Authority reviewed a Sept. 12 engineer memo on the North I‑81 sewer extension, declined Pact One LLC’s request for material‑cost escalation, and noted a final payment will be reviewed in October; staff was directed to seek updated hardship information for 7 Wild Rose Lane.
The Silver Spring Township Authority on Sept. 18 declined a contractor request to adjust payments for material‑cost escalation on the North I‑81 sewer extension while reviewing remaining project costs and scheduling a final payment for review at its October meeting. Authority Engineer Gregory Rogalski presented a Sept. 12 memo outlining contract totals, change orders, and project balances.
Rogalski told the board that contractor Pact One LLC requested an escalation allowance for materials encountered during construction and that the contractor had been cooperative with challenges including permitting blasting and agreeing to a rock buyout. The board declined the request, stating that escalation allowances are typically covered at bid submission and therefore were not appropriate to add post‑award.
Manager James Stevens circulated a project cost review memo that lists combined general and pump station contract costs for the North I‑81 work at $11,706,965, with $10,467,785.67 paid to date. The memo itemizes a $150,000 rock buyout, wet well lining of $33,906, and other change orders; it also shows a remaining general contract balance of $1,239,179.33 and projects other near‑term payments for October and beyond.
The board also discussed a Hardship Application submitted by the owner of 7 Wild Rose Lane. Members said the form as submitted lacked current and complete information; staff was directed to resend the application and request up‑to‑date documentation before the board will consider any financial arrangement related to the property.
The board did not vote on further project funding at the meeting; Rogalski said Pact One will submit its final payment for review at the October meeting.
