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Council approves $2.48 million deductive change order on wastewater project; $2 million allowance retained
Summary
Council approved a deductive change order on the wastewater treatment plant project that staff said reduces contract cost by $2,477,757.04 through specification adjustments; council discussed retaining a $2 million allowance for unforeseen construction needs and approved the change order.
City staff and the project engineer presented a deductive change order for the wastewater treatment plant project that reduces the contract price by $2,477,757.04. The engineer explained the reductions came from substituting equivalent equipment, removing a nonessential coating on basins, switching one preengineered metal building to galvanized material and changing certain earthwork items to unit-price items.
"With a total savings of, $2,477,757.04," the engineer said, noting the team also elected to hold $2,000,000 in the contract as an allowance for items that may arise during construction. Council members discussed whether the savings should be returned to the project loan to reduce debt service or retained as an on-project contingency; one council member said he would vote no because he preferred applying savings to debt reduction.
After discussion the council voted to approve the deductive change order; roll-call votes recorded one 'no' vote. Staff said the action aims to reduce near-term contractor costs while preserving an allowance to address unforeseen construction conditions without frequent council-level change orders.
