To: Board of Supervisors
From: Warren Lai, Public Works Director/Chief Engineer
Report Title: Amendment No. 3 to Consulting Services Agreement with Vanir Construction Management, Inc. for Construction Management Services for Administration Building Demolition and Redevelopment Project, Martinez.
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Public Works Director, or designee, to execute a contract amendment with Vanir Construction Management, Inc. (Vanir), effective May 21, 2024, to increase the payment limit by $300,000 to a new payment limit of $4,464,690 and to extend the term from July 31, 2024 through March 31, 2025 to provide extended construction management services for the Administration Building Demolition and Redevelopment Project (ADR) located at 1026 Escobar, Martinez.
FISCAL IMPACT:
100% General Fund Capital Reserves.
BACKGROUND:
On November 17, 2020, the Board of Supervisors approved a Consulting Services Agreement with Vanir in the amount of $3,999,879 through the period of November 17, 2023 to provide construction management services for the Administration Building Demolition and Redevelopment Project.
On October 3, 2023, the Board of Supervisors approved Amendment No. 1 in the amount of $164,811 to a new payment limit of $4,164,690 and with an extended term from November 17, 2023 to July 31, 2024 to provide construction management services for an added communications tower.
Amendment No. 2 is an administrative amendment to implement an increase in billing rates as allowed annually under the terms of the consulting services agreement.
Multiple factors have delayed the projected final completion date of the project. The construction schedule, including project closeout, is now projected to extend at least through November of 2024 with a contingency buffer of four months to March 31, 2025. This amendment is required to provide for continued construction management services through the extended construction schedule.
Vanir has served continuously as construction manager for the Administration Building Demolition and Redevelopment Project since the project began. Therefore, it is recommended that the contract amendment be awarded at this time.
CONSEQUENCE OF NEGATIVE ACTION:
If the contract amendment is not approved, full construction management services needed for successful completion of the Administration Building Demolition and Redevelopment Project will not be provided by Vanir through project completion, and the timing and quality of delivery of the project will be negatively impacted, likely affecting both project cost and schedule.