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Rehoboth approves outfall change order for $2.25 million

$43 million project under budget; punch-list items remain before officially wrapped up
September 21, 2018

Story Location:
229 Rehoboth Avenue
Rehoboth Beach, DE 19971
United States

One ocean outfall project contract down. Three more to go.

Rehoboth commissioners continued toward the completion of the estimated $43 million ocean outfall project by unanimously approving a change order worth $2.25 million during a workshop Sept. 7.

Prior to the approval, Public Works Director Kevin Williams said the action closes out the single largest contract of the four-contract project – the water portion, which, as of Sept. 4, was going to cost almost $30 million. He said the city had agreed to the changes after negotiating with its contractor, who had requested nearly $3 million in change orders.

The most costly item was $1.2 million associated with field conditions different from what was expected. The city also agreed to pay approximately $629,000 for a weather delay claim and almost $403,000 for damage to the diffuser during construction.

Damage to the diffuser had been a sticking point. The contractor originally sought more than $900,000. During the construction process, one of the large concrete blankets used to secure the outfall pipe to the ocean floor was dropped on the diffuser. Williams said the city took a percentage of the blame because it had bought into the process and assumed some of the risk when the decision was made to use the concrete blankets. That was the philosophy on that one, he said.

Williams said the contractor agreed to withdraw a fourth claim, related to project overhead, for $102,000.

Mayor Paul Kuhns said in addition to the money saved through the negotiation process, the city saved another $700,000 to $800,000 because Henlopen Avenue, Canal Street and State Road are now paved and won’t have to be done as part of the city’s recently instituted street maintenance program.

Not everyone in the room was excited about the negotiated amount of the change order.

Former Commissioner Walter Brittingham said he did not think the city should be capitulating to the contractor for damage to the diffuser. He said he understood the city and the contractor may have jointly agreed to use the material, but it was up to the contractor to do the work successfully.

“It’s just wrong,” he said.

Even with the change order, the project is still expected to come in more than $1.5  million under budget.

The three remaining contracts associated with the overall outfall project – force main, effluent pump and Phase 1 of capital improvements – have a total of 11 line items under review or still at an estimated cost. Williams said he doesn’t expect the amounts to change much, if at all.

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