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Consent Item
<br />2023, to provide additional services and additional time to assist with project delivery caused by a time
<br />extension to the contractor (see below), which increased WO 6 by $263,133.00.
<br />On June 15, 2021, the BCC awarded Bid #2021026 to TLC Diversified, Inc. (TLC) for the construction of the
<br />Oslo WTP Improvements project for the amount of $10,665,515.65. The Notice to Proceed (NTP) was issued
<br />on August 4, 2021, setting the initial completion date to November 2, 2023. Subsequent to the award,
<br />approved Work Change Directive (WCD) 1, Change Order 1 (CO 1), CO 2, and CO 3 were issued to TLC that
<br />cumulatively added work items, and increased the contract value by $1,020,621.72.
<br />Due to delays in lead times for materials as well as an increase in scope through change orders, TLC was not
<br />forecasted to meet the November 2, 2023, final completion date. As such, IRCDUS approved WCD 2 to TLC
<br />on August 9, 2023, authorizing a time extension which extends the substantial completion date to March 15,
<br />2024, and final completion date to May 17, 2024.
<br />Analysis:
<br />Based on the progress of construction post August 9, 2023, when the time extension was approved via
<br />WCD 2, it became evident that TLC was not going to meet the March 15, 2024 substantial completion nor
<br />the May 17, 2024 final completion dates. This was confirmed by TLC in a bi-weekly meeting on February
<br />21, 2024. In said meeting, IRCDUS requested that TLC submit a formal request for a time extension. On
<br />March 1, 2024, IRCDUS issued the attached Notice of Intent (NOI) to Assess Liquidated Damages to TLC.
<br />TLC responded to IRCDUS's NOI on March 6, 2024 (see attached letter). The TLC response laid out the
<br />circumstances surrounding delays they encountered and provided a draft finishing schedule with key
<br />milestone dates to complete construction.
<br />IRCDUS staff, KHA, and TLC held meetings to review the draft finishing schedule and develop agreed upon
<br />options to minimize the additional time beyond the May 17, 2024 final completion date. The discussions
<br />include potential additional costs to IRCDUS for the time extension to which the TLC project manager
<br />proposed a deduction from the contract value to offset any cost increase to IRCDUS. As a result, TLC has
<br />submitted CO 4 (see attached) that includes 1) a second time extension of 77 days to yield a new final
<br />completion date of August 2, 2024 (1,094 days from NTP), and 2) a Change in Contract Price for line item 345
<br />of the schedule of values, which totals $54,928.65 reduction.
<br />As noted above, granting TLC the second time extension request will result in additional costs to IRCDUS to
<br />retain KHA for continuation of construction phase services. Upon request by IRCDUS, KHA provided
<br />Amendment 2 to WO 6 for additional construction phase services through August 2, 2024, for the amount of
<br />$51,359.00. Amendment 2 to WO 6 includes coordination and progress meeting attendance, preparation of
<br />meeting minutes, construction observations, and inspector and engineer observations.
<br />The effect of deducting $54,928.65 from the TLC contract value and incurring the additional cost for KHA
<br />services, will result in a net savings of $3,569.65 in the overall cost of the Oslo Water Treatment Plant
<br />Improvements project.
<br />Funding: I
<br />A net reduction of expenses in the amount of $3,569.65 ($54,928.65 for the reduction in TLC contract value
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