B&McD's original scope of services was to provide field engineering, inspection and project management services for Contract 3 (TIC) and Contract 4a (Garney).  B&McD's original scope also included program management controls and related services for a 40-month project duration for other, future phases.  The City Council approved B&McD's original Construction Phase Services Agreement during the May 21, 2012 City Council Meeting.

The original B&McD construction phase agreement amount(s) are summarized as follows:

~ Contract No. 3 (TIC):  $757,821.00;

~ Contract No. 4a (Garney):  $1,420,594.00; and

~ Construction Program Management Controls for a 40-mo duration: $1,788,991.00.

The above mentioned estimates were based on, among other services, a single full-time inspector working 9 hours a day, 5 days a week during construction for each construction contract.

Both contractors have performed work beyond a regular 8 hour work day, 5 days a week.  Additionally, both contractors have employed multiple crews, simultaneously, to perform the work.  Largely based on the additional contractor work effort, B&McD has exhausted their construction inspection budget.

City Staff feels it is important to maintain full-time inspection for both crews during installation of the new pipelines.

Attached for your consideration is an amendment to B&McD's construction phase services agreement to increase their inspection budget by $280,000 to be allocated as follows:

~ Contract No. 3 (TIC): $31,210.00 increase; and

~ Contract No. 4a (Garney):  $248,790.00 increase.

The above amounts will ensure adequate inspection coverage through Garney's anticipated substantial completion date of September 6, 2013.  If the contractor is unable to substantially complete the project by this date, the cost for B&McD's additional inspection beyond the substantial completion deadline will be born by the contractor.

Staff recommends your approval.