On April 18, 2022, a unit price contract was awarded to John Neri Construction at a total cost contract of $6,521,255.50. The FY2022 Budget provided $6,522,000 for this improvement project. This agenda follows up procedurally as indicated in an earlier project update memorandum from September 30, 2022, that explained a significant change in design that was required to navigate numerous sanitary sewer and storm sewer utilities in and near the intersection of Arlington Heights Road and Hintz Road.    

By mid-November, the project was substantially completed with the exception of project retainage intended to ensure restoration work and utility installations survive winter conditions. In the meantime, the consulting engineer have evaluated, measured, and reviewed all contract costs with the contractor, and that information was reviewed with Village Staff for concurrence with the proposed final quantities required on the project. It was determined that the final project balancing change order including the significant sanitary design changes resulted in an overall contract reduction.

The constructed total cost for the original scope the project was $5,471,679.42.  The total cost of Change Order #1 was $656,554.92 resulting in a total final project cost calculated at $6,128,234.34.  This results in a contract reduction of $393,021.16 or roughly 6% below budget.  This includes a retainage in the amount of $122,564.69 which will be held until next year to protect against any issues that arise between now and next spring. Staff is still reviewing additional time needed for the engineering contract associated with this project and will be bringing a change order for future consideration after final determinations are made. 

Savings from this contract will be returned to the Capital Projects Fund (401) accordingly.

RECOMMENDATION

It is recommended that the Village Board approve this Final Balancing Change Order for the contract for the Berkley/Hintz Infrastructure Improvement Project to John Neri Construction of Des Plaines, Illinois, to reflect a final construction cost in the amount of $6,128,234.34.