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HomeMy WebLinkAbout08.b. Update re CSOD Construction Project & Substitution of Concrete ContractorCentral Contra Costa Sanitary District .b. ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: September 16, 2010 Subject: AUTHORIZE THE SUBSTITUTION OF WHITING /STILLWATER CONCRETE CONSTRUCTION, INC., THE LISTED SUBCONTRACTOR, WITH MCKAY AND COMPANY CONSTRUCTION, FOR THE CONCRETE WORK ON THE CSOD ADMINISTRATION, CREW, AND WAREHOUSE FACILITY, DISTRICT PROJECT 8208 Submitted By: Initiating Dept. /Div.: Alex Rozul, Senior Engineer Engineering / Capital Projects REVIEWED AND RECOMMENDED FOR BOARD ACTION: `1 A. Rozul i ecki A. Farrell K. Alm elly, rner ager ISSUE: Bobo Construction, Inc., general contractor, has requested substitution of a subcontractor listed on its bid forms for the CSOD Administration, Crew, and Warehouse Facility, District Project 8208. Board of Directors' authorization is required for the substitution. RECOMMENDATION: Authorize substitution of the concrete 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: Bobo Construction, Inc. informed the District on August 2, 2010, that its listed subcontractor, Whiting /Stillwater Concrete Construction, Inc., has walked off the job and can no longer perform the work due to financial problems. Under California Public Contract Code, Section 4107, substitution of a listed subcontractor is permitted when the subcontractor fails or refuses to enter into a contract with the general contractor. The awarding authority must consent to the subcontractor substitution to effect the change. BACKGROUND: Bobo Construction, Inc. listed Whiting /Stillwater Concrete Construction Inc. as their subcontractor for the concrete work on its bid proposal to the District for the CSOD Administration, Crew, and Warehouse Facility Project, DP 8208. On August 2, 2010, Bobo Construction informed the District that Whiting /Stillwater Concrete Construction, Inc. would no longer perform the work due to financial problems, and due to its financial difficulties the subcontractor has failed to perform the C: \Documents and Settings \tpilecki\ Desktop \Floodcontrol \8208- WhitingSubstitution PP.doc Page 1 of 4 POSITION PAPER Board Meeting Date: September 16, 2010 AUTHORIZE THE SUBSTITUTION OF WHITING /STILLWATER CONCRETE CONSTRUCTION, INC., THE LISTED SUBCONTRACTOR, WITH MCKAY AND COMPANY CONSTRUCTION, FOR THE CONCRETE WORK ON THE CSOD ADMINISTRATION, CREW, AND WAREHOUSE FACILITY, DISTRICT PROJECT 8208 work by walking off the job (Attachment 1). The value of Whiting /Stillwater Concrete Construction's work was $1,255,000 or 14.8% of the contract value of $8,455,000. In order to keep the project on schedule, Bobo Construction self - performed the concrete work until it could find a new concrete subcontractor. On September 2, 2010, Bobo Construction informed the District that it now seeks Board approval to contract with McKay and Company Construction for the necessary equipment, materials, and labor to complete the concrete work (Attachment 2). McKay and Company Construction will perform all site concrete work including curb and gutter, slabs, and the specialty permeable concrete work. Timely completion of the site concrete work is crucial to winterizing the site before the onset of wet weather. McKay and Company Construction is a local contractor with extensive experience in this type of work. Under California Public Contract Code, Section 4107, substitution of a listed subcontractor is permitted only in certain situations, including situations where the subcontractor fails to perform his contract work, or becomes insolvent or the subject of an order for relief in bankruptcy. District staff has advised Whiting /Stillwater Concrete Construction, Inc. of the requirement to notify the District in writing within five (5) working days of any objection to this proposed action; no objections have been received. District Legal Counsel has reviewed this issue and concurs with staff. RECOMMENDED BOARD ACTION: Authorize the substitution of the listed subcontractor, Whiting /Stillwater Concrete Construction, Inc., with a different subcontractor, McKay and Company Construction, for the concrete work for the CSOD Administration, Crew, and Warehouse Facility, District Project 8208. CADocuments and Settings \tpilecki\ Desktop \Floodcontrol \8208- WhitingSubstitution PP.doc Page 2 of 4 ATTACHMENT 1 BOBO CONSTRUCTION, INC. 9728 KENT STREET, ELK GROVE, CALIFORNIA, 95624 PHONE 916 -685 -2285 FAX 916- 685 -7373 Monday, August 02, 2010 Mr. Paul Seitz Central Contra Costa Sanitary District 5019 Imhoff Place Martinez, Ce 94553 RE: General Document Number GEN -008 CSOD Administration, Crow and Warehouse facility - 8208 Dear Mr. Seitz, This letter is to inform you that Whiting Concrete has walked off the job and will not be completing the concrete portion of the project. As of now Bobo Construction Inc is self performing the concrete work in order to keep the project moving forward and we Intend on signing up another concrete contractor to replace Whiting Concrete. Respectfully, Chris Baker Page 3 of 4 ATTACHMENT 2 BOBO CONSTRUCTION, INC. 9728 KENT STREET ELK GROVE, CA 95624 PHONE (916) 685 -2285 FAX (916) 685 -7373 Thursday, September 02, 2010 Mr. Paul Seitz Central Contra Costa Sanitary District 5019 Imhoff Place Martinez, Ca 94553 CSOD Administration, Crew and Warehouse facility -8208 Mr. Seitz, Please be advised that Bobo Construction Inc. will be using the following subcontractor to complete the site concrete: McKay & Co. 4095 Pacheco Blvd Martinez, Ca, 94553 925 -229 -8900 fax 925 - 229 -8938 Lic # 623129 7 Respectfully, eoz j Chris Baker / Page 4of4