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Council approves change order, retainage release and final payments for Well 22 project
Summary
After negotiations with King Construction, Storm Lake approved change order #6 that reduced liquidated-damages exposure and accepted a contractor concession; the council also approved pay applications (including final retainage) that close out the Well 22 contract and declared substantial completion.
The Storm Lake City Council on July 6 approved a sequence of resolutions closing out work on the Well 22 project, including a negotiated change order, a retainage release and a resolution stating substantial completion.
City staff and the project engineer described negotiations with King Construction over liquidated damages originally calculated at $77,000 after delays. Through discussions with the contractor, project manager and engineer, the parties settled on liquidated damages totaling $37,500; King Construction agreed to pay half of that sum ($18,500), with the remainder resolved through a $108,500 net deduct to the project via contingency adjustments.
Project staff recommended approval of change order #6, which the council adopted by roll call. Council heard questions about measurable damages versus additional engineering fees; staff said the most quantifiable impacts were engineering costs and that some schedule and contract terms required practical negotiation.
Following the change order vote, the council approved pay application #14 in the amount of $98,368.08 as the final payment (release of retainage), and adopted a notice of acceptability and a resolution stating substantial completion for the Well 22 project.
Project staff said the total value of work completed to date (before final retainage release) was approximately $2,000,337.03 and that ISG recommended payment of interim pay application amounts. The council’s votes closed out the listed contract and allowed staff to move forward on Well 23 procurement and construction.
The council also approved a separate resolution accepting bids and authorizing award of contract for Well 23 to the low bidder, Sergeant Drilling, and directed staff to proceed with contracting and coordination with existing Well 22 infrastructure.
