FROM: James D. Herberg, General Manager
Originator: Kathy Millea, Director of Engineering
SUBJECT:
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NEWHOPE-PLACENTIA TRUNK SEWER REPLACEMENT, PROJECT NO. 2-72B & 2-72C
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GENERAL MANAGER'S RECOMMENDATION
recommendation
RECOMMENDATION: Recommend to the Board of Directors to:
Receive, file, and deny the claim submitted by OHL USA, Inc. (OHL) dated November 22, 2022 for Newhope-Placentia Trunk Sewer Replacement, Project Nos. 2-72B and 2-72C.
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BACKGROUND
Orange County Sanitation District (OC San) awarded a Construction Contract to OHL for Newhope-Placentia Trunk Sewer Replacement, Project Nos. 2-72B and 2-72C, in May 2018. During construction, OHL submitted several change orders. While OC San accepted most of these, some were rejected. OHL has now submitted a claim based on the rejected change orders.
RELEVANT STANDARDS
* Ensure the public's money is wisely spent
PROBLEM
OHL has submitted a claim under the Government Code. The claim is without merit.
PROPOSED SOLUTION
Deny the claim submitted by OHL.
TIMING CONCERNS
Denial of a Government Code claim, and notice thereof, triggers the running of the statute of limitations.
RAMIFICATIONS OF NOT TAKING ACTION
The statute of limitations will be longer.
PRIOR COMMITTEE/BOARD ACTIONS
October 2021 - Approved a contingency increase $1,164,840 (2%) to the construction contract with OHL for Newhope-Placentia Trunk Sewer Replacement, Project Nos. 2 72B and 2-72C, for a total construction contingency of $6,989,040 (12%).
April 2021 - Approved a contingency increase of $2,038,470 (3.5%) to the construction contract with OHL for Newhope-Placentia Trunk Sewer Replacement, Project Nos. 2-72B and 2-72C, for a total construction contingency of $5,824,200 (10%).
May 2018 - Awarded a construction contract with OHL for Newhope-Placentia Trunk Sewer Replacement, Contract Nos. 2-72B & 2-72C, for a total amount not to exceed $58,242,000, and approved a contingency of $3,785,730 (6.50%).
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