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• <br />ANALYSIS <br />The Contractor (Indian River Industrial Contractors, Inc.) has requested a reduction in contract <br />retainage pursuant to the contract documents Section 500, Article 5. Payment Procedures attached herein <br />as Exhibit -A. The Contract documents provide for a reduction in retainage when the Contractor has made <br />sufficient progress in the Work and there is not a specific cause to withhold greater than 5 percent (5016). <br />The contract documents define two (2) payment procedures for allowing a reduction in retainage. <br />The first reduction in retainage is calculated at 10% of 600/6 construction value when the Contractor has <br />achieved in excess of 605/6 of the completed work. Since the Contractor has achieved in excess of 98% <br />completion as of this date the request for reduction in retainage is permissible pending Board Approval. <br />The second reduction in retainage payment allows for 95% payment (5% retainage) of the portion of the <br />contract price when the Contractor has achieved in excess of 60% of the completed work. Again, since <br />the Contractor has achieved in excess of 98% completion the request for reduction in retainage is <br />permissible pending Board of County Commission Approval. <br />a.) <br />Original Contract Amount <br />$10.672.415.00 <br />b.) <br />Net Change through Change Order No. 1(Deduct) <br />($4,536,811.64) <br />c.) <br />Contract Price with all approved Change Orders <br />$6.135.603.36 <br />d.) <br />value of Work performed to Date (add) <br />$6.049.238.61 <br />e.) <br />Payment for Stored Materials <br />$5.085.56 <br />TJ— <br />Total Amount Famed to Date <br />$6.054.324.17 <br />g.) <br />Amount Retained (100/6 of 6016 of contract value) (Deduct) <br />($368,136.20) <br />h) <br />Subtotal <br />$5,686,187.97 <br />iJ <br />Amount Paid to Date by the County <br />$5,359,876.10 <br />IJ <br />Payment per this Pay Request (#16) <br />$326.311.87 <br />1c) <br />Total Unpaid Amount Remaining in Cc== <br />$449.415.39 <br />CONCLUSION <br />It is Staffs recommendation that the Board of County Commissioners approve the following <br />items as outlined above and presented below: <br />a.) Release Payment #16 to Indian River Industrial Contractors Inc. in the amount of $326,311.87 <br />(which includes the reduction in retainage). As presented in Exhibit -B. <br />b.) Allow for a reduction in retainage (5%) on subsequent Contractor pay requests pursuant to the <br />guidelines outlined in the contract documents, Section 500 Article 5, Progress Payments. A 5% <br />retainage shall be held for the remainder of the Work until such time that Final Completion has <br />been achieved and the County has approved all required documents. <br />c.) Authorize the Chairman to execute all necessary documents. <br />LIST OF EXHIBITS• <br />Exhibit A. Excerpt from Contract Documents Section 500 Article 5. Progress Payments <br />Exhibit B. Contractor's Request for Payment No. 16. <br />MAY 099 2000 <br />-59- <br />600K J PAGE .35 <br />• <br />