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Council questions profit on contractor deduct in Kelly Oaks pavilion change order
Summary
Councilors queried why the contractor retains overhead/profit on a $450 deduct in change order #5 for the Kelly Oaks pavilion; staff said paperwork and administrative work may explain the charge and council deferred action pending contract review.
Council discussed change order #5 for the Kelly Oaks pavilion, a deduct of roughly $450 that nonetheless includes an overhead/profit line in the amount (10 percent was cited). Council members questioned the fairness of paying profit on work not performed. Staff and the architect's representative said administrative and paperwork tasks can justify certain costs, but councilors asked staff to review the contract language and consider whether to take action.
One council member said the city could take no action tonight and requested a clearer table listing change-order items. Another member asked staff to review how the contractor documented overhead and profit on deducts for future projects. No final vote on the change order occurred at this meeting.
