Additional Expenditure - Contract No. 59714

Reconstruction of Pavement on Christie Street

(Ward 21 - Davenport, Ward 23 - Midtown)

The Works Committee recommends the adoption of the following report (June 28, 1999) from the Commissioner of Works and Emergency Services:

Purpose:

To advise the Works Committee of an increase in cost of Contract No. 59714, Reconstruction of Pavement on Christie Street from Bloor Street West to Dupont Street.

Funding Sources, Financial Implications and Impact Statement:

Funds to cover the additional cost of the work are available within Capital Budget Account No. 292-810.

Recommendation:

It is recommended that approval be given for the expenditure of additional funds in the amount of $85,000.00, under Contract No. 59714.

Background:

Contract No. 59714 for the reconstruction of the pavement on Christie Street from Bloor Street West to Dupont Street was awarded by City Council at its meeting of November 25, 26, and 27, 1998, to Ferma Construction Limited, in the amount of $1,198,343.50.

The purpose of the contract was to reconstruct the existing pavement which had reached the limit of its design life, and to achieve the pavement narrowing objectives of the community.

Since the Interim Financial Control By-law requires that expenditures beyond the awarded value of a contract be reported to City Council, this report is to authorize the additional expenditure.

Discussion:

City Council at its meeting of October 1 and 2, 1998, adopted Clause No. 10 in Report No. 11 of The Toronto Community Council, entitled "Alteration of Christie Street", and enacted By-Law No. 702-1998 authorizing the alteration of Christie Street by narrowing the pavement between Bloor Street West and Dupont Street. At the same time, Contract No. 59714 for the reconstruction work was tendered and subsequently awarded to Ferma Construction Limited by City Council at its meeting of November 25, 26 and 27, 1998.

Although the contract had already been awarded, City Council adopted Clause No. 36 in Report No. 4 of The Toronto Community Council, entitled "Christie Street from Bloor Street West to Dupont Street - Refinements to Approved Roadway Narrowing Plan" on March 2, 1999, and in so doing, authorized further changes to the design. These changes addressed community objectives by introducing a visual narrowing, to break up Christie Street's long and broad sight lines, and by increasing the available parking supply. At the time, it was anticipated that the proposed amendments to the design would not significantly affect the cost of the contract previously awarded in November 1998.

A detailed estimate of the cost of the design amendments submitted by the contractor indicated that the changes would cost an additional $90,000.00. Since a provisional sum in the amount of $125,000.00 had been included in the reconstruction contract to cover contingency work and uncertainty with respect to subsurface conditions, it was anticipated that these funds would cover the cost of the design changes.

Reconstruction of Christie Street commenced on April 6, 1999, and was completed, as scheduled, on June 4, 1999. During the course of the work, the sub-base soil conditions were determined to be worse than anticipated, and it became necessary to excavate and replace additional sub-base material at a total cost of $86,500.00.

The provisional sum provided in the contract was inadequate to accommodate the impact of the design changes and the sub-base soils conditions and, as a result, a cost overrun of $85,000.00 was incurred. This represents approximately 7 percent of the total contract price.

The final cost of the work is $1,283,000.00. The additional cost of the work can be accommodated under the Capital Budget Account No. 292-810.

Conclusions:

The final cost of Contract No. 59714 in the amount of $1,283,000.00 is in excess of the award amount by $85,000.00. The additional costs were due to the design modifications requested by the community following award of the construction contract, and the need to dispose of a greater quantity of unsuitable sub-base material than was originally anticipated based on preconstruction investigations.

Contact Name and Telephone Number:

Tim Dennis

Manager Design and Construction, District 1

Technical Services

Phone (416) 392-6787; Fax (416) 392-7874