On April 15, 2019, the Village awarded a contract to Martam Construction, Inc. for the construction Area 4 - Campbell/Sigwalt Downtown Sewer Improvements Project. 

Staff anticipated challenges and potential additional expenses as construction on the Downtown Sewer Improvement Project proceeded last year. Constructing large diameter sewers in the oldest part of town presented numerous challenges and conflicts with existing utilities. The attached memo dated October 9, 2020 describes the additional work and time that was required to complete the construction contract. Change Order #2 increases the $3,704,283.73 current contract by $107,761.72 to a final contract amount of $3,812,045.45 and also changes the contract completion date from September 27, 2019 to December 1, 2019. The change order amount is partially offset by the $48,000.00 paid by the Sigwalt 16 private development project for mutually beneficial changes to the sewer construction contract, resulting in a final net Village cost increase of 3.1% to the original contract value of $3,649,582.80.

Sufficient funds are available from Storm Water Control Fund reserves.

RECOMMENDATION

It is recommended that the Village Board approve Change Order #2 & FINAL for the construction contract with Martam Construction, Inc. in the amount of $107,761.72.

In addition, a budget amendment is recommended to the Storm Water Control Fund Construction in Progress – Area 4 Campbell/Sigwalt, Account Number 426-7101-571.50-25 (SW1804), in the amount of $107,800.00 from Storm Water Control Fund reserves.