Item 17 - Amend Agreement for Construction Engineering Services: SR-55/Ritchey Street Water Improvements

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Page 1 of 5 February 8, 2023 Mr. Gabriel Guerrero-Gabany, P.E. City of Santa Ana 20 Civic Center Plaza Santa Ana, CA 92701 RE: Construction Management Services for RFP 21-066 Estimate for Additional Budget – Increase to Total Contract Amount Dear Mr. Guerrero-Gabany, Through Bi-Weekly Owner/CM meetings and the Monthly Report, the Construction Management (CM) Team has kept the City informed as to the status of the CM budget and that additional budget for CM services will be required to complete the work. At this time, it appears the existing funds will be expended end of March 2023, based on the current usage rate. In general, the budget increase is due to 5 factors: 1) Additional admin work hours for various project issues, 2) Addition of CM scope for specialty inspections and scheduling included in Amendment 1, 3) Addition of CM scope for specialty inspections and scheduling to be included in Amendment 2, 4) Inspection OT/DT for Jack & Bore 72 hr/wk 5) Additional work periods of CM planned sched vs Contractor actual work sched. The original budget was built upon the assumption of the continuation of the CM budget with 6 months construction after March 2023 (2 months Ph-1 and 4 months Ph-2), as well as closeout (less than 1 month fulltime). The Contractor’s current schedule update shows an increase in the schedule of 6 months in Phase 1 as compared to our original budgeted time (before construction bid). The time increase to the Contractor’s schedule paired with the special issues/unbudgeted costs that have caused a budget overrun, are resulting In an additional 12 months to be applied to the CM budget. As requested by City staff, we have prepared an estimated cost for the CM Team to complete the project. Our analysis was performed using “to-date” defined as through November 30, 2022. CM PLANNED COSTS VERSUS ACTUAL COSTS: The CM Team has experienced many significant special issues that have arisen on the project as well as administrative setbacks on behalf of the Contractor that have required more hours from our staff than was originally proposed. These special issues and administrative items are detailed below. As a result of these, CM Costs have Exceeded Planned Cost to-date by $ 157,239.37, which is ~40% over the Planned-To-Date for the Construction Period. When the savings from Pre-construction planned costs are applied, this represents $ 151,559.72. PM/RE and Contract Administrator Costs: During this period, the PM/RE position exceeded the original planned estimate by ~95%, or ($128,328.30), the Contract Administrator position exceeded planned estimate amount by ~10%, or ($10,984.96), the Inspector position was under the planned amount by ~4%, $ 7,034.45, and the Utility Coordinator position was under the planned amount by ~13%, $ 3,523.00. Note: The above differences between planned and actual costs include some of the costs that were included in Amendment No. 1 such as CWA Rate difference and utilizing a Jr. Office Engineer to offset Administrative time with a lower rate – the details of that Amendment are broken down below. Overage Costs from Original Estimate Due to Project Special Issues To-Date: (128,328.30) EXHIBIT 1