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HomeMy WebLinkAbout09.a. Authorize subsitution of subcontractor, DP 8208Central Contra Costa Sanitary District ' BOARD OF DIRECTORS .Q. POSITION PAPER Board Meeting Date: August 4, 2011 subject: AUTHORIZE THE GENERAL MANAGER TO APPROVE, IF NECESSARY, THE SUBSTITUTION OF JOSEPH BROTHERS ENTERPRISE, INC., THE LISTED SUBCONTRACTOR FOR THE DRYWALL INSTALLATION AND FINISH ON THE CSOD ADMINISTRATION, CREW, AND WAREHOUSE FACILITY, DISTRICT PROJECT 8208 Submitted By: Initiating Dept. /Div.: Alex Rozul, Provisional Capital Projects Engineering /Capital Projects Division Manager REVIEWED AND RECOMMENDED FOR BOARD ACTION: a,�- A. Rozul A. Farrell K- James M. elly General nager ISSUE: Bobo Construction Inc., general contractor, is considering substitution of a subcontractor listed on its bid for the CSOD Administration, Crew, and Warehouse Facility, District Project 8208. Board of Directors' authorization is required for the substitution. RECOMMENDATION: Authorize the General Manager to approve substitution of the drywall subcontractor on the CSOD Administration, Crew, and Warehouse Facility, DP 8208. FINANCIAL IMPACTS: The proposed substitution will not result in any additional cost to the District. ALTERNATIVES /CONSIDERATIONS: Under California Public Contract Code, Section 4107, substitution of a listed subcontractor is permitted when the work performed by the listed subcontractor is substantially unsatisfactory and not in substantial accordance with the plans and specifications, or that the subcontractor is substantially delaying or disrupting the progress of the work. The awarding authority or its duly authorized officer must consent to the subcontractor substitution to effect the change. As an alternative the Board could hold a special Board meeting to consider this matter, if necessary. BACKGROUND: Bobo Construction, Inc. (BCI) listed Joseph Brothers Enterprise, Inc. (JBEI) as their subcontractor for the drywall installation and finishing on its bid proposal to the District for the CSOD Administration, Crew, and Warehouse Facility Project, DP 8208. JBEI has been unable to complete the Level 5 finish required on the drywall. This type of finish is common in.commercial /industrial construction. In addition, JBEI is approximately four weeks behind schedule with their work on the project critical path. N: \PESUP \Cbradley \POSITION PAPERS \Rozul \8208 JBEI Substitution.doc Page 1 of 2 POSITION PAPER Board Meeting Date: August 4, 2011 subject: AUTHORIZE THE GENERAL MANAGER TO APPROVE, IF NECESSARY, THE SUBSTITUTION OF JOSEPH BROTHERS ENTERPRISE, INC., THE LISTED SUBCONTRACTOR FOR THE DRYWALL INSTALLATION AND FINISH ON THE CSOD ADMINISTRATION, CREW, AND WAREHOUSE FACILITY, DISTRICT PROJECT 8208 The delay in completing the drywall finish is setting back construction of subsequent work by other subcontractors. To attempt to get back on schedule and complete an acceptable Level 5 finish, BCI brought on another drywall subcontractor to augment JBEI. However, their efforts have been unsuccessful. On July 22, 2011, BCI informed JBEI that the quality of their drywall finish is still substantially unsatisfactory, and that JBEI has until August 4, 2011 to satisfactorily complete their work. JBEI has filed a Stop Notice on the job. The value of the JBEI work is $418,775 or approximately 5% of the contract value of $8,455,000. Under these circumstances, Bobo Construction, Inc. may seek Board approval to substitute JBEI to complete the drywall finish. Under California Public Contract Code, Section 4107, substitution of a listed subcontractor is permitted only in certain situations, including situations where the subcontractor performs the work substantially unsatisfactorily. District staff will continue to work to resolve this situation. However, because there is only one Board meeting in August, we are requesting General Manager authority to approve a substitution should this become necessary before the next Board meeting. RECOMMENDED BOARD ACTION: Authorize the General Manager to approve, if necessary, substitution of the listed subcontractor, Joseph Brothers Enterprise, Inc., with a different subcontractor, to complete the drywall work for the CSOD Administration, Crew, and Warehouse Facility, District Project 8208. NAPESUMbradley \POSITION PAPERS \Rozu1\8208 JBEI Substitution.doc Page 2 of 2