HomeMy WebLinkAbout10.c Bobo Construction substitution of subcontractorCentral Contra Costa Sanitary District
' BOARD OF DIRECTORS ~ 1~ G~
POSITION PAPER
Board Meeting Date: August 5, 2010
Type of Action: DELEGATE AUTHORITY
subject: AUTHORIZE THE GENERAL MANAGER TO APPROVE THE
SUBSTITUTION OF WHITING/STILLWATER CONCRETE CONSTRUCTION, THE
LISTED SUBCONTRACTOR, ON THE CSOD ADMINISTRATION, CREW, AND
WAREHOUSE FACILITY, DISTRICT PROJECT 8208
Submitted By: Initiating Dept/Div.:
Paul Seitz, Associate Engineer Engineering /Capital Projects
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
P~ ~ _~ ~'r/a' ~~1.~-
P. Seitz A. Rozul cki - A. Farrell K. Alm es M elly,
ener anager
ISSUE: Bobo Construction, Inc., general contractor, has requested 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, however, the replacement subcontractor is not yet known.
RECOMMENDATION: Delegate authority to the General Manager to approve
substitution of the concrete subcontractor on the CSOD Administration, Crew, and
Warehouse Facility, DP 8208.
FINANCIAL IMPACTS: The proposed delegation of authority and subcontractor
substitution will not result in any additional cost to the District.
ALTERNATIVES/CONSIDERATIONS: Bobo Construction, Inc. informed the District
that their concrete subcontractor 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 to
complete their subcontract, or becomes insolvent or the subject of an order for relief in
bankruptcy. The awarding authority must consent to the subcontractor substitution to
effect the change.
BACKGROUND: Bobo Construction, Inc. listed Whiting/Stillwater Concrete
Construction as its subcontractor for the concrete work on its bid proposal to the District
for the CSOD Administration, Crew, and Warehouse Facility Project, DP 8208.,
Whiting/Stillwater Concrete Construction has informed Bobo Construction that they can
no longer perform the work due to financial problems, and due to the financial
difficulties the subcontractor has failed to perform the work by walking off the job.
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POSITION PAPER
Board Meeting Date: August 5, 2010
Su6jecr. AUTHORIZE THE GENERAL MANAGER TO APPROVE THE
SUBSTITUTION OF WHITING/STILLWATER CONCRETE CONSTRUCTION, THE
LISTED SUBCONTRACTOR, ON THE CSOD ADMINISTRATION, CREW, AND
~I1/AREHOUSE FACILITY, DISTRICT PROJECT 8208
The value of Whiting/Stillwater Concrete Construction's work was $1,255,000, or 14.8%
of the contract value of $8,455,000.
Under these circumstances, Bobo Construction, Inc. now seeks Board approval to
contract with a different concrete subcontractor to supply the necessary equipment,
materials, and labor to complete the concrete 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 received a letter of request from Bobo Construction, Inc. (Attachment 1) to
substitute Whiting/Stillwater Concrete Construction, Inc. with an alternate concrete
subcontractor that will be determined in the future. 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 objections to the substitution; no objections
have been received yet. District Legal Counsel has reviewed this issue and concurs
that the future requested substitution should be granted.
RECOMMENDED BOARD ACTION: Delegate authority to the General Manager to
approve the substitution of the listed subcontractor, Whiting/Stillwater Concrete
Construction, Inc., with a different subcontractor, to be determined in the future, for the
concrete work for the CSOD Administration, Crew, and Warehouse Facility, District
Project 8208.
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ATTACHMENT 1
BOBO CONSTRUCTION, INC.
9728 KENT STREET, ELK GROVE, CALIFORNIA, 95624
PHONE 996-685-2285 FAX 916-685-7373
Monday, August 02, 2010
Mr. Paul Seitz
Central Contra Costa Sanitary District
5019 Imhoff Place
Martinez, Ca 94553
RE: General
Document Number GEN-009
CSOD Administration, Crew 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 tv replace Whiting Concrete.
RespectfuNy, ~
c
Chris Baker