Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8c
ACTION ITEM
Date of Meeting
July 12, 2022
DATE: June 30, 2022
TO: Stephen P. Metruck, Executive Director
FROM: Tina Soike, Engineering Director, Engineering, Environment and Sustainability
Janice Zahn, Assistant Engineering Director, Construction Services
SUBJECT: Industrial Waste System – Segregation Meters (CIP #800655) Change Order Time
Extension Over 60 Days
Amount of this request:
$0
Total estimated project cost:
$3,889,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to execute a change order to
Contract MC-0319775 IWS Segregation Meters to add up to 109 Calendar days to the Contract
Duration to reconcile the contractual completion date to the actual completion date.
(CIP #C800665)
EXECUTIVE SUMMARY
This change order requires the addition of up to 109 calendar days to the Contract Duration.
Commission action is required under the General Delegation of Authority because the additional
time being added to the contract is over 60 calendar days. No additional project funding is
included with this request.
Description of Change
This change order will revise the contract completion date and settles all claims due to Port and
Contractor impacts to the project schedule.
Background
The 2016 King County permit required the Port to identify measures to meet future reduced
effluent limitations. This Industrial Waste System Segregation Meters project is the first of a
series of approved capital program improvements to improve the Industrial Waste Treatment
Plant efficiency and comply with the 2025 reduced effluent limitations. The project installed four
(4) additional Total Organic Carbon analyzers to provide the required data precision needed for
effective segregation of influent.
COMMISSION AGENDA – Action Item No. 8c Page 2 of 3
Meeting Date: July 12, 2022
Template revised June 27, 2019 (Diversity in Contracting).
On April 20, 2021, the Port executed a construction contract with Macro-Z-Technology Company
in the amount of $1,644,000.00 with a contract completion date of October 17, 2021. The
Contract has experienced cost and schedule growth, due to several Change Orders for design
changes to accommodate differing site conditions, and operations and maintenance
requirements. Additionally delays in delivery of critical material occurred due supply chain issues
for which the Contractor is entitled to additional time. As a result, actual Substantial Completion
was not issued until February 3, 2022, 109 days after the original contract completion date.
Discussions with the Contractor are ongoing, but upon agreement, this Change Order will
encompass any credit due to the Port for any impacts to the Port and additional time and cost
due the Contractor.
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Do not authorize the issuance of the Change Order, continue further Dispute
Resolution Processes.
Pros:
(1) Further negotiations may result in a larger credit back to the Port.
Cons:
(1) Delays project closeout and increase Port costs to continue negotiations.
(2) Creates a risk of potential for litigation.
(3) Additional staff soft costs, potential legal expenses.
This is not the recommended alternative.
Alternative 2 – Authorize the issuance of the Change Order to extend the Contract duration by
up to 109 days. If executed, this will be the final Change Order on this project and will settle all
outstanding claims between the Contractor and Port.
Pro:
(1) Settles all claims between the Port and Contractor and allows contract close-out to
commence.
Cons:
(1) Eliminates potential additional credit to the Port.
This is the recommended alternative.
ATTACHMENTS
None.
COMMISSION AGENDA – Action Item No. 8c Page 3 of 3
Meeting Date: July 12, 2022
Template revised June 27, 2019 (Diversity in Contracting).
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
February 9, 2021 The Commission authorized a budget increase of $1,615,000 for the design and
construction for an estimated total cost of $3,889,000.
June 27, 2017 The Commission authorized design and construction for an estimated cost of
$1,142,000.
