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Item No. 7.a.
Public Hearing to
Increase the Construction Contract Retention
for
The Seismic Improvements for HOB
District Project 8226
Andrew Antkowiak
Provisional Capital Projects Division Manager
September 20, 2012
Central Contra Costa Sanitary District
Public Contract Code Amendment
• In 2011 the Governor signed SB 293 modifying Public
Contract Code Section 7201 to set the maximum retention
on a construction contract at 5 %.
• This requirement began January 1, 2012 and sunsets
January 1, 2016.
• The intent of the bill is to provide some financial relief to
contractors and subcontractors during these challenging
economic times by reducing retention from 10% to 56/6.
• The retention amount may be increased for a specific
project with a finding by the elected Board of Directors that
the project is substantially complex to justify the increased
retention.
• The finding must be made at a properly noticed and
scheduled public hearing prior to bidding the project.
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Background
On September 6, 2012, the Board established
September 20, 2012, as the date for a Public Hearing to
receive comments on increasing the construction
contract retention amount to 10% for the Seismic
Improvements for HOB, DP 8226.
Notice of the Hearing was advertised in the Contra
Costa Times and San Ramon Valley Times on
September 10, 2012
Substantially Complex Project
Staff believes that the Seismic Improvements for
HOB is a substantially complex project.
• The seismic retrofit consists of welding additional plates and braces
on each of the nine columns that run the full height of HOB.
• The perimeter of HOB is supported by cantilevered beams which will
require temporary shoring during the welding work.
• With the addition of new structural steel, many critical building support
systems will require permanent relocation. This will necessitate
modifications of electrical, HVAC, and fire suppression systems.
• Staff anticipates that a number of sub - contractors and suppliers will
be used by the general contractor, and that the coordination of this
work will be difficult.
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Welding plates on the columns will impact all areas and floors of
the building and associated electrical, mechanical, architectural
and other improvements.
Staff Recommendation
• Find that in accordance with Public
Contract Code Section 7201, the
Seismic Improvements for HOB,
District Project 8226, is substantially
complex to justify increasing retention.
• Adopt a resolution increasing the
construction contract retention amount
to 10 %.
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Questions...?