Isle of Palms council approves roughly $151,000 change order to resolve utility conflicts on Waterway Boulevard pathway project

At a special meeting, the Isle of Palms City Council voted to approve a change order of roughly $151,000 to complete three utility offsets on the Waterway Boulevard pathway project, after staff described how the items were on the plans but omitted from the unit-cost bid tab.

Rick, an engineer with Thomas & Hutton, told the council that while the three offsets near 32nd Avenue appeared on construction plans they were not included as separate line items in the unit-cost bid tab. He said the project primes and subcontractors consequently bid seven offsets rather than the ten reflected on the plans, leaving the city to pay subsequently submitted change orders for the missing work.

"They sent me a change order for $427,000 and I said, 'Well, this is unacceptable. We can't have this,'" Rick said, describing the contractor B&C's initial proposal and the staff effort to find a lower-cost option.

Staff described a negotiated solution: the prime contractor re-assigned the three remaining force-main offsets to an approved subcontractor called Anson, applied a $75,000 contingency and waived or trimmed several markups and escalation claims. That combination reduced the requested change order to roughly $151,000, which staff said produces a net project increase of about $102,000 compared with the originally approved contract after accounting for a prior $49,000 deductive change order.

Councilmembers pressed staff on oversight and procurement practice. One councilmember asked how multiple bidders had missed the three offsets; staff and the engineer pointed to a unit-cost bidding approach and a holiday-season bid period that limited subcontractor participation. Another concern was that at least some of the offsets were performed before a finalized change order, raising questions about supervision and compliance with contract approval procedures.

Council discussion also focused on possible savings staff could implement without returning to the council: Rick presented line-item reductions for sod and driveway replacement. He said the sod line item in the contract is about $92,000 and that tighter specification and reduced use could save an estimated $60,000; a conservative driveway reduction could save about $57,000. Staff proposed using deductive unit-line adjustments that would be handled at the staff level and reflected in the final project accounting.

The council debated whether to hold the contractor to fuller financial remedies or to work cooperatively to limit delay and deliver the project. Councilmembers noted the contractor had been cooperative in identifying cost reductions and that rebidding mid-project could carry its own risks.

A motion to approve the change order was made and seconded; the council took a voice vote and answered in the affirmative. The record contains inconsistent numeric transcriptions of the motion on the audio, but staff summarized the approved revision as a roughly $151,000 contractual change that raises the net contract by about $102,000. Staff said they would pursue the sod and driveway deductions as unit-cost reductions and return to council if more formal action is required. The meeting adjourned at 5:53 p.m.