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| DATE:
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10/21/2013 7:00:00 PM |
| SUBJECT: |
| Council Consideration of an Agreement of Settlement and Mutual Release with TIC and King Contracting. |
| BACKGROUND: |
| Gillette and TIC entered into a contract for $15,090,944, known as the Gillette Madison Pipeline Project In Town Piping/Potable Transmission Waterline to Wyodak, Contract Number 07EN58 – Contract #3 dated May 17, 2012 ( the “Contract”). TIC and King entered into a Subcontract dated August 24, 2012 (the “Subcontract”) for King to provide horizontal directional drilling for the Project. King encountered more rock than they anticipated especially in the area along Westover between Big Horn Tire and Burma Road, which added to their costs. Local contractors were hired to perform additional services which resulted in claims in the total amount of $308,484.95. The local contractors have not yet been paid and at least one lawsuit has been filed. King requested additional compensation from TIC for this segment of the project and TIC made a claim under the Contract for Differing Site Conditions, for around $1,100,000. When this claim was denied, TIC requested formal Mediation. Gillette, along with engineers from Burns and McDonald and representatives of the Wyoming Water Development Commission, participated in the Mediation with TIC and King. As a result of the Mediation a settlement was reached in the amount of $700,000. This settlement resolves all the claims between the parties over this aspect of the project and provides for direct payment to the local contractors of their claims. Overall, the contract with TIC has gone well, other than the performance of the directional drilling component. |
| SUGGESTED MOTION: |
| I move for the Approval of an Agreement of Settlement and Mutual Release with TIC and King Contracting. |
| STAFF REFERENCE: |
| Charlie Anderson, City Attorney |
| ATTACHMENTS: |
| Click to download |
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No Attachments Available
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