RESOLUTION 88-19176 RESOLUTION NO. 88-19176
A RESOLUTION OF THE CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA,
AUTHORIZING CHANGE ORDER NO. 42 AND
INCREASING THE SCOPE OF THE CONTRACT WITH
GEORGE HYMAN CONSTRUCTION COMPANY FOR
KITCHEN AREA CHANGES, AND APPROPRIATING
THE FUNDS FROM CONVENTION CENTER BOND
FUND NO. 358.
WHEREAS, on or about February 2 , 1987 , the City of
Miami Beach entered into a contract with George Hyman
Construction Company for the expansion of the Miami Beach
( Stephen Muss Greater Miami and the Beaches) Convention Center;
and
WHEREAS, Service America Corporation requested the City
to implement certain changes to the kitchen areas after the
construction contract was entered into; and
WHEREAS, based on an estimate from the contractor of
approximately $250 , 000, the City authorized the contractor to
proceed with the kitchen changes; and
WHEREAS, when the work was performed by the contractor,
the contractor made a claim to the City of nearly $850 , 000 for
hard costs and delay claims; and
WHEREAS, the City has negotiated the hard costs portion
of the kitchen changes to a final agreed price of $394 , 462, and
wishes to pay the hard costs portion at this time and continue
negotiations with the contractor regarding the delay claim; and
WHEREAS, the kitchen cost of $394 , 462 is an increase in
the scope of the contract.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that Change Order
No. 42 , relating to kitchen changes in the amount of $394, 462 , is
hereby approved, with funds appropriated from Convention Center
Bond Fund No. 358 .
PASSED and ADOPTED this 2nd day of March ,
1988 .
111. I
VICE MAYOR
Attest:
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CITY CLERK
Form approved by Legal Department
FORM APPROVED
LEGAL DEPT
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OFFICE OF THE CITY MANAGER CITY HALL
ROB W.PARKINS 1700 CONVENTION CENTER DRIVE
CITY MANAGER TELEPHONE: 673-7010
COMMISSION MEMORANDUM NO. C? --(V
DATE: March 2, 1988
TO: Mayor Alex Dao • •nd
Members of t• City Corn Isstr
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FROM:• Rob W. Parks AMMO
City Manager P
CHANGE ORDER NOS. 42 AND 43 TO THE GEORGE HYMAN
SUBJECT: CONSTRUCTION COMPANY CONTRACT FOR THE CONVENTION CENTER
EXPANSION -- UNDERGROUND UTILITIES AND KITCHEN
Since the beginning of the Convention Center project, two major
problems have been hanging over our heads. One problem was
caused by inaccurate and incomplete underground information so
that many adjustments were necessary in the early stages of
construction. The other major problem was caused because of
requests for changes to the kitchen areas in the east side of the
Convention Center. As you may remember, the City entered into
its contract with the kitchen concessionaire after it had awarded
the contract for construction. Changes requested by the
concessionaire are the major reason for this second problem.
My staff has been working with the contractor to settle these
claims. It was decided that the nuts and bolts part of these
claims would be handled separately from the claims for damages
and delays.
To further complicate this process, is the separate agreement
between the City of Miami Beach and Service America for the
payment of the kitchen costs . When the initial request for
changes, as prepared by Service America' s consultant, was
submitted to the contractor for a price, it was estimated at that
time the price would be in the vicinity of $250 , 000 . Based on
this estimate Service America agreed to that cost. The City was
then required to take the schematic drawings prepared by Service
America and have its architects prepare contract drawings for
submission to the contractor for a final price. When all was
said and done, the contractor ' s price had escalated to almost
$850 , 000 . This is in addition to the approximately $133 ,000 that
the Service America paid the architects for the redesign.
Because the kitchen change is really a change in the scope of the
original contract, a resolution is attached to accomplish the
kitchen part of these claims as an increase in the scope of the
contract. The claim as related to the underground utilities is
not an increase in the scope of the contract because this is a
legitimate charge against the contingency.
It should be pointed out that what is recommended at this time
does not include any of the damage portion of the claim but only
the nuts and bolts. It should also be pointed out that the
difference between the original estimate for construction of
$250 ,000 (at that time no damages were included) and the final
agreed price of $394 , 462 is in the City' s opinion still
negotiable with Service America. The Administration ,'i ` 14
recommending the contractor be paid $394 , 462 at this time `to-
avoid any delays by the contractor while the City settles its
differences with Service America. AGENDA (I
-6
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ITEM -"
DATE 3 -2-Tcg
Commission Memorandum Page Two March 2, 1988
In summary, the total of the two claims is in excess of $1 . 2
million. The City has negotiated with the contractor that the
nuts and bolts part of the $1. 2 million is approximately $411 , 000
(kitchen plus underground) . The remaining amount of $800 , 000+ is
still in the process of negotiation and will be brought before
the Commission at a later time.
ADMINISTRATION RECOMMENDATION
The Administration recommends the approval of the above-described
change orders to the George Hyman Construction Company contract
for the underground utilities and kitchen revisions with the
funds for the kitchen revisions ( $394 ,462) to be appropriated
from Bond Fund 358 , Convention Center Expansion (the underground
utilities change order will be paid from the contingency
account) .
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ORIGINAL
RESOLUTION NO. 88-19176
(Authorizing the scope of the contract with
George Hyman Construction Company for Kit-
chen area changes, and appropriating the
funds from Convention Center Bond Fund
No. 358)
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