November 18, 1998
TO:Works & Utilities Committee
FROM:Commissioner of Works and Emergency Services
SUBJECT:Engineering Consulting Fees and Additional
Expenditures for the Zebra Mussel Control
Facilities at the Horgan Filtration Plant
Contract WS-1-92
Purpose:
To authorize additional engineering fees for contract administration and site supervision and
to authorize additional expenditures for the performance of extra work related to Contract
WS-1-92, Zebra Mussel Control Facilities for the F. J. Horgan Filtration Plant.
Funding Sources:
Funding is available in the approved 1998-2002 Water and Wastewater Services Division
Capital Works Program, Zebra Mussel Control, Water Supply Account C-WS005.
Recommendations:
It is recommended that authority be granted to:
(1) issue payments to Marshall Macklin Monaghan Limited, Consulting Engineers, for
additional engineering services provided under the terms of the present engineering
agreement, pertaining to Contract WS-1-92, "Zebra Mussel Control Facilities for the F.J.
Horgan Filtration Plant", in the amount of $87,747.06 for contract administration and site
supervision, including the Goods and Services Tax; and
(2) issue payments to the contractor, Trist Construction Limited, in the amount of $39,242.57,
including the Goods and Services Tax, for necessary additional work for the construction of
the Zebra Mussel Control Facilities at the F. J. Horgan Filtration Plant.
Background:
Metropolitan Council on January 30, 1991, by adoption of Management Committee Report
No. 3, Clause No. 17, authorized the engagement of the firm of Marshall Macklin Monaghan
Limited (MMM) for design services for Zebra Mussel Control Facilities for the F.J. Horgan
Filtration Plant, at a cost not to exceed $80,000.00, including the Goods and Services Tax
(GST).
The design was completed within the agreed fee limit and tenders were called on August 5,
1992. With the report for the award of the construction contract to Trist Construction Limited
(TCL), in the amount of $621,880.00, Metropolitan Council on September 30, 1992, by
adoption of Management Committee Report No. 31, Clause No. 22, authorized the extension
of MMM's services to include contract administration and site supervision during
construction at an estimated cost of $87,000.00, including GST, based on an anticipated
construction period of 6 months. However, the contractor had tendered a 12 month
construction period and the aforementioned estimated engineering fees for site services were
inadvertently not adjusted to match the construction period tendered.
Discussion and Justification:
The Order to Commence was issued on November 20, 1992, but no site work could start until
five months later, at the end of April 1993, when pipe was delivered to site, after alternatives
for pipe suppliers were reviewed.
Due to Ministry of Labour (MOL) strict diving requirements during construction, which were
not anticipated during the design phase, diving work was considerably delayed. These
requirements, which only became apparent through MOL site reviews, included full plant
shut-downs in lieu of reduced flows for diving at the plant inlet well, extra back-up equipment
for lifting divers, extra temporary power for the lifting equipment. Concurrently, unscheduled,
but necessary shut-downs at the R.L. Clark Filtration Plant and, later at the R.C. Harris
Filtration Plant, prevented diving at the F.J. Horgan Filtration Plant. Work was interrupted,
further delayed and ultimately, due to adverse and unsafe winter conditions, postponed until
the spring of 1994. These unexpected plant shut-downs were required by the Water Supply
Division and were necessary to address urgent water quality issues.
The contractor, therefore, demobilized for the 1993/1994 winter, with the intent to re-start the
following spring. However, no work was possible in the month of April 1994, due to another
unscheduled, but necessary shut-down at the R.L. Clark Filtration Plant, required to address
critical water quality issues similar to those of the previous year. Some work was possible in
May and early June, but ultimately the peak summer water demand period, between June and
September, prevented further "marine" work as contractually specified until the end of
September 1994.
Unforeseen technical issues further interrupted the progress of this project, requiring review
and modifications to the contractor's procedures, some of which involved design
modifications by MMM. In some instances this required contractually implemented extra
work and, in other cases, City staff implemented the modifications to reduce costs and make
the system operable. Some of the major technical issues were as follows:
underwater wall penetration through the caisson wall of the plant inlet well for piping,
including successful testing of the temporary bulkhead;
underwater connections between the caisson wall penetration piping and the raw water sample
lines;
successful pressure testing of the chlorination and sample lines installed in the intake;
evaluation of the existing pre-chlorinating system to remedy hydraulic problems and to rectify
loss of vacuum at the existing chlorine injector during increased high lift pumping rate
periods;
elimination of air leaks on the suction side of sample pumps to stop excessive vibration of the
discharge piping and pulsing of the pressure relief valves, including the relocation and
reorientation of these valves;
modification and reinstallation of the underwater chlorine diffuser ring and sample intake
points, within the intake structure;
rebuilding of the sample pumps to correct damage caused by pipe material trapped in impeller
housing;
modifications to the sample pumping system, including adjusting computer programming to
eliminate chlorine residual in the raw water sample;
elimination of excessive vibrations and damage to the check valves on the discharge lines of
the chlorine booster pumps, when automatic switch over of the duty and standby pumps was
engaged.
These technical issues required considerable time by all parties involved, as the identification
of the problems and the solutions, often, required a trial and error process, in most cases
involving several months, prior to a successful resolution of the issues. However, as the new
zebra mussel control facility is integrated with the water purification system, the integrity of
the system, its safety and quality were of primary concern and never compromised, although
the project schedule was negatively impacted.
We have agreed with MMM that the costs which could be attributed to MMM for resolving
the technical problems amount to $16,050.00, inclusive of GST. This amount will be deducted
from the consulting engineering fees invoiced and reduces the balance of outstanding
payments to MMM, under the terms of the engineering services agreement, to an amount of
$87,747.06.
To-date MMM has been paid engineering fees in the cumulative amount of $204,112.94,
including GST. Of the total amount, $80,000.00 was paid for design fees and $124,112.94 for
contract administration and site supervision. Further payments have been withheld, until all
design liabilities issues had been resolved with MMM and the Zebra Mussel Control System
was successfully commissioned and operating satisfactorily. These two issues have recently
been achieved and accordingly, we are now seeking approvals for the additional expenditure,
within existing funding authorities.
During construction, the engineering fees for contract administration and site supervision of a
contract, to a great extent, are proportional to the actual duration of the contract. For this
contract, although its duration increased 43 months from the original estimate (from 6 to 49
months), due to unforeseen and unexpected circumstances, we are recommending the
approval of an upset fee limit for contract administration and site services of $211,860.00,
including GST, which is equivalent to a total of less than 15 months of engineering
construction services. When compared to the initial fee based on 6 months, this represents an
increase in duration of services of only 3 months, beyond the 12 month period tendered by the
contractor.
The extra work that was approved and paid to-date to TCL totals $67,769.00, including GST,
for necessary additional work, representing the maximum amount allowed under the former
Metro By-Law No. 146-90. Although no further extra work could be paid, it was necessary to
proceed on site with additional items of extra work with the contractor's forces, to address
some of the technical issues previously listed, which became apparent during construction, to
avoid further delays and work stoppages. The additional work items total $39,242.57,
including GST.
The contractor has notified us of his intent to claim for changed conditions, impact costs and
extended duration costs in the approximate amount of $800,000.00. Once the detailed claim is
received, a rigorous analysis of the claim will be performed to identify any valid portions of
the claim and to negotiate with the contractor, in an effort to resolve the claim without
litigation. If additional project funding will be required at that time, this issue will be the
subject of a further report to Council.
Conclusions:
The engineering services of MMM Engineering Limited for contract administration and site
supervision of Contract WS-1-92 were required for a longer period of time than originally
estimated, due to reasons beyond the consultant's control. Accordingly, an additional fee
increase in the amount of $87,747.06 should be authorized resulting in an upset limit of
$211,860.00 including GST for contract administration and site supervision.
The additional work performed by the contractor, TCL, was essential to ensure a safe and
proper operating zebra mussel control system and, therefore, payment for the necessary
additional work in the amount of $39,242.57 should be authorized.
Contact Name and Telephone Number:
Mr. A.F. Piccolo, P.Eng.,
Senior Project Engineer, Technical Services Division
Telephone No.: (416) 392-8853
T.G. Denes, P.Eng.
Executive Director
Technical Services
B.H. Gutteridge
Commissioner of Works and Emergency Services
AFP/ph 950.10-2
