Template revised September 22, 2016.
COMMISSION
AGENDA MEMORANDUM
Item No.
8d
ACTION ITEM
Date of Meeting
July 12, 2022
DATE: June 14, 2022
TO: Stephen P. Metruck, Executive Director
FROM: Tina Soike, Director Engineering Services
Janice Zahn, Assistant Director Engineering, Construction Services
SUBJECT: WTCW HVAC Replacement (CIP: C800199) 60 Days
ACTION REQUESTED
Request Commission authorization for the Executive Director to execute a change order to
Contract MC-0320086 World Trade Center West HVAC Replacement Project to add up to 100
Calendar days to the Contract Duration to reconcile the contractual completion date to the actual
completion date.
EXECUTIVE SUMMARY
This change order requires the addition of up to 100 calendar days to the Contract Duration.
Commission action is required under the General Delegation of Authority because the Change
Order includes a time extension of more than 60 days. No additional project funding is included
with this request.
Description of Change Order
This change order revises the contract completion date due to supply chain impacts to the project
schedule.
Background
This project at the WTCW building will provide an energy efficient and sustainable replacement
for the building’s existing 22-year-old mechanical system.
On January 22, 2021, the Port executed a construction contract with Johansen Mechanical, Inc.
in the amount of $2,798,000. The Contract has experienced some cost and schedule growth due
to unidentified conditions in the Basis of Design which have extended the current Contract
completion date by 36 days to April 8, 2022. On 1/19/22, the Port executed Change Order #02
which directed the contractor to upgrade the current fire alarm system. This was a discretionary
change added to the scope of this project to minimize future (and greater) impacts to the Central
Waterfront Elevator Upgrade Project which would require the upgraded system in order to
complete work at the Bell Street Elevator. As a part of upgrading the current HVAC system, fire
alarm work was required so rather than have the HVAC project complete it’s work only to be
undone immediately afterward by the Elevator project, the scope to upgrade the alarm panel
COMMISSION AGENDA – 8d Page 2 of 3
Meeting Date: July 12, 2022
Template revised September 22, 2016; format updates October 19, 2016.
was transferred to HVAC. Supply chain issues related to worldwide disruptions delayed the
delivery of the fire alarm components until May of this year. The fire alarm system upgrade was
completed on May 26, 2022. Final functional testing, commissioning needed to be held until
after the fire alarm was completed. Those activities are on-going but will be completed shortly
The current value of the Contract is $2,983,556.17.
FINANCIAL IMPLICATIONS
There is no additional funding being requested with this action.
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Do not authorize the issuance of the Change Order.
Pros:
(1) None.
Cons:
(1) Delays project closeout and increases Port costs to close out the project.
(2) Creates a risk potential for litigation due to Contractor’s protest of the assessment of
Liquidated Damages.
(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 100 days. If executed, this will be the final Change Order on this project and will settle all
issues between the Contractor and Port.
Pro:
(1) Settles all issues between the Port and Contractor and allows contract close-out to
commence.
This is the recommended alternative.
ATTACHMENTS TO THIS REQUEST
None
COMMISSION AGENDA – 8d Page 3 of 3
Meeting Date: July 12, 2022
Template revised September 22, 2016; format updates October 19, 2016.
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
July 14, 2020 The Commission authorized and approved Design and Construction funding
for the project.
January 12, 2021 The Commission authorized additional funding of $555,000 for design and
construction.
