TITLE
Title
LEES CHAPEL DESIGN BUILD CONTRACT GMP CHANGE ORDER
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SPONSOR
Sponsor
Eric Hilton (Facilities)
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BACKGROUND
Background
On March 21, 2024, the Board of Commissioners awarded a Design-Build contract to (Contract number 90006226) Blum Construction (Blum) for Design Build services for the upfit of the Lees Chapel Treatment Center. This contract was to provide design and pre-construction services to develop a Guaranteed Maximum Price (GMP) amendment to the contract for the completion of the construction work described in the contract scope, in compliance with Department of Health Service Regulations (DHSR) requirements.
On February 6, 2025 the Board of Commissioners authorized the GMP amendment in the amount of $4,572,724 to complete the construction portion of the Design-Build contract.
On May 14, 2025 Blum Construction notified the County of the presence of mold uncovered during the demolition and construction efforts. An environmental testing firm confirmed that there were areas of contamination in the resident rooms and in the interior of the HVAC ductwork. The recommendation of the testing firm based on the test results was to remove the affected materials and replace the HVAC duct, drywall and contaminated surfaces.
On June 10, the mold removal and remediation effort began. It was concluded on June 26 and Blum returned to work. To begin restoration of the materials removed during remediation, Blum sought competitive pricing for the HVAC duct, drywall, insulation, wood and other affected building components.
In addition to costs related to the mold, this change order includes three (3) other items. First, the Technical Review Committee (TRC) required additional scope items not covered in Blum’s original GMP. Second, the generator supplier was changed due to design and delivery issues. Third, a cost savings was realized after the fire water line was verified to be larger than initially intended, eliminating the new line from the GMP scope.
The additional mold remediation work will have an impact of approximately three (3) months on the construction schedule. Construction work is now expected to be complete on December 31, 2025.
In summary the change order charges are as follows. Detailed pricing is attached.
General Conditions Due to Schedule Extension $ 76,139
Mold Related Expenses $ 436,813
TRC Changes $131,166
Generator Change $30,000
Contractor Mark-ups (per contract) $64,690
Fire Water Line Deletion ($106,523)
Total $632,284
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BUDGET IMPACT
Budget Impact
Capital Building Construction Fund
Lee's Chapel Residential Treatment Renovation (Amend)
$632,285 increase in appropriated Fund Balance
$632,285 increase in appropriation to capital project
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REQUESTED ACTION
Requested Action
Staff recommends amending the Design-Build GMP Contract 90006226 to increase the GMP amount by $632,284, and authorize staff to take all reasonable steps to modify the contract accordingly; approve project ordinance amendment.
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