2013-03-14-PBC-min - Laserfiche WebLink

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Lexington Permanent Building Committee 3-14-13 4.0 Bridge & Bowman Renovation Projects 4.38 Contract review 9/13/12 General discussion with Town Counsel on rights and remedies in TLT contract. Counsel reviewed all the letters and notices sent to TLT and did not have concern over the type and time of notice as it was given to TLT. However DPF did note that a copy of the letters did go to TLT in certified mail. Discussion on claim to TLT for owner costs to perform numerous tasks that were required for school use of both Phase 2 and Phase 1 . Letters outlining these claims or costs have been sent to TLT and to Counsel. PBC was notified of the issues and work performed. Expenses categorized as take over of work, clean up and corrections. Discussion on assessment of Liquidated Damages per spec requirements at $2,500 per day. Letters sent to TLT and to counsel, PBC advised. Claims are submitted as a CCD and Kevin is comfortable with this method. TLT has been advised that the town requires a full project schedule, a recovery schedule, certified payrolls in place and a release of liens from subs on payments made Counsel defined contract options with TLT are as follows: 1. Continue with TLT 2. Terminate for convenience 3. Terminate for Cause 4. Negotiate with Surety on take over or management oversight. However discussion suggested that these decisions should be tabled. Primary importance right now is meeting 10/15 deadline for heat. 4.41 Schedule and Contract 11-8-12 Discussion on moving forward with project raised past discussions on contract option discussions with Town Counsel. Parties concerned over moving forward with confidence. PBC asked for discussion with Daedalus Projects for evaluation of project schedule and Options on carrying forward with TLT. Two tasks requested. 1. Explore options on contract completion and how each path (termination for cause, termination for convenience, contact bonding company, etc.) would effect project completion, path, schedule, costs, and overall impact to project. 2. Examine project schedule (Construction & recovery) from TLT and evaluate the soundness / logic of the schedule, cash flow, and other aspects to be sure what is proposed is sound. Motion to empower Facilities to request proposal, up to $20,000 and to engage Daedalus to perform an evaluation of the proposed project schedule , cash flow, and contract options with TLT for the Bridge & Bowman Project. Motion : Jon 2: Eric Vote: 8-0 nd 4.43 Discussion with Daedalus on GC Contract 12/13/12 Bob White from Daedalus projects led a discussion on the processes and impact of termination of a construction contract. Termination for cause: Can be a very difficult process. Town counsel will need time to review all of the materials and facts before giving advice on whether or not to proceed. Most likely avenue would be failure to administer or to provide skilled labor or materials. Legal costs would likely be very high. B brought in same GC for completion. Bonding company could take 3-6 months to evaluate. Summer 2013 work likely canceled. Termination for convenience: Project would be audited and the town would buy out oh&p from GC. Daedalus estimates approx. $700,000 payment to GC plus cost to re-engineer project and re-bid. There would likely be a premium added by the new GC. Summer 2013 work likely canceled. Overall added costs could easily exceed $1 to 1.5 million. Continuation of Contract with GC: Bob talked with GC and met with the Owners, they want to turn project around. Best advice from Daedalus is work with GC and find a way to make the project better. Brief discussion on expansion of Daedalus services. Daedalus is already on board to review new schedule when it comes out from TLT, and provide feedback on schedule and viability. Any expansion of Daedalus Services can be addressed after schedule review. 2/14/13 Page 2 of 6