Okaloosa County BOCC — September 15, 2015 — Consider Change Order 14-07 to C14-2184-FM with Lord & Son — agenda request

BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: September 15, 2015 TO: Honorable Chairman and Members of the Board FROM: James Puckett SUBJECT: Consider Change Order 14-07 to C14-2184-FM with Lord & Son Construction, Inc. DEPARTMENT: Facility Maintenance BCC DISTRICT: 2 STATEMENT OF ISSUE: Staff requests approval of change order 14-07 to contract C14- 2184-FM with Lord & Son Construction, Inc for the Sheriff's Investigation Building. The requested change order will return unspent material funds from the owner direct purchasing program to the construction contract, however the overall Guaranteed Maximum Price (GMP) will remain unchanged. BACKGROUND: The Guaranteed Maximum Price (GMP) for the Sheriff's new building included all the materials necessary to complete the project. In an effort to save from paying sales tax on materials for the project the county implemented the Owner Direct Purchase (ODP) program whereby products were acquired by the County directly. Purchase Orders for materials were prepared and all materials were delivered to the site. With construction now complete, it has become evident that some of the purchase orders were for material quantities greater than what was required to construct the building. Because the material costs were previously removed from the GMP any savings experienced by way of a reduced amount of materials utilized are to be returned to the construction management contract. Material savings in the amount of $16,389.26 are being removed from the ODP program and placed back into the construction management contract with Lord & Son. This change order does NOT alter the overall GMP for the project (which includes the construction management contract with Lord & Son plus the material purchase costs). OPTIONS: Approve/disapprove change order 14-07 to Contract C14-2184-FM with Lord & Son Construction, Inc in the amount of $16,389.26; increasing the current contract value to $993,219.87. RECOMMENDATIONS: Staff recommends approval of change order 14-07 to Contract C14- 2184-FM with Lord & Son Construction, Inc in the amount of $16,389.26; increasing the current contract value to $993,219.87. RECOMMENDED BY: APPROVED BY: John Hofstad, County Administrator