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After a subcontractor on the Sycamore Street bridge project failed to fulfill its work within the approved time frame and budget, Jon Conzett of Calhoun-Burns and Associates, Inc. appeared before Creston City Council during its regular meeting Tuesday to request an increase to the project’s budget of $12,500. Additional services provided beyond original the scope of the project is $26,400.
No action was taken.
In a Dec. 6 letter to Creston Mayor Gabe Carroll, Conzett stated, “Due to the subcontractor’s lack of skill, poor workmanship, and inefficiency, [Garden and Associate’s] services were over twice that originally anticipated.”
The city contracted with Calhoun-Burns to engineer the Sycamore Street bridge project and Herberger for removal and construction of the new bridge. Garden and Associates is a subcontractor of Calhoun-Burns, hired for underground utility design work and underground resident inspection to the specifications of the Iowa Department of Transportation, who is partially funding the project. Giza Contracting was hired as a subcontractor of Herberger to complete underground utility construction and paving.
The $12,500 requested is to pay Garden and Associates for observation fees. Those could possibility be recouped once a final audit of the project is complete.
Conzett pointed out a key point, that the city signed an 80/20 agreement with the Iowa Department of Transportation. The DOT is paying 80% of the construction costs of the project.
“The DOT has a vested interest in this project, that is why there are required to audit it at the end. But that $12,500 in liquidated damages, 80% technically is the DOT’s,” he said.
Conzett said liquidated damages will also be assessed at the completion of the project, which are about $12,500. The bridge has been reopened, however, restoration work will continue into the spring. Because the city’s contract is with Herberger, they are not allowed to go after Giza for liquidated damages. Herberger could then pursue collecting those damages from Giza.
Conzett said with the project also came a lot of improvements to the neighborhood’s water system that the DOT paid 80%, since part of the city’s utilities had to be relocated as a result of the project. He said the discount to the upgrade at the DOT’s expense should be kept in mind as they evaluate the request.
“So if I’ve got this straight, had the subcontractor done their job appropriately, we wouldn’t be paying this extra $12,500,” said Carroll.
“That’s correct,” said Conzett.
Conzett said Garden and Associate’s proposal for their work, which was folded into Calhoun-Burns’ supplemental agreement with the city was based on what an average underground contractor could accomplish in a day.
“The project was bid, we knew the prime (contractor), we eventually knew the subs (contractors), and then we lived it – the lack of progress,” said Conzett. “It was alarming, quite honestly just alarming, in terms of the inefficiency, the lack of communication, the added involvement of Water Works staff. I can honestly say, I’ve been in this business 30 plus years and I’ve never seen anything like it. I told Mike and staff in our early meeting, I think you could have got more pipe in the ground if you went to the high school and hired some kids. That’s how bad it was.”
Garden and Associates
Austin Smith said Garden and Associates said when installing a sanitary sewer run that was budgeted for five working days took 11.
“The subcontractor did’t have the material on site. They were arguing against one another in terms of who the foreman was, so we knew right off the bat we were going to be in trouble because that was the easy part of the work,” said Smith.
Smith said the water main portion of the project was far more challenging. He said the install of hydrants that should have taken three or four days took two weeks each.
During a portion of the project, residents in the area went without water for periods of time. Water Works waived notice periods so that subcontractors could get in to complete work.
“Anytime we thought we could come up with assistance to contractor to give them easier install, they just turned around and just lingered,” said Smith.
Smith said Garden and Associates, who were contracted for inspection, had to also wait on paving, as that was subcontracted through the subcontractor (Giza) who was subcontracted by Herberger.
“We essentially have no option but to eat part of this. We had no option of not being there. Because if we weren’t there I’m assuming it would have got even worse than when we were there and the observer covering this project has 25-30-some odd years of experience with Creston Water Works.
Smith said Rick Reed with Creston Water Works was essentially coaching Giza’s crews through install and not what anyone had signed up for.
“We’re supposed to be there to make sure everything installed per plans and specification, not here’s how we’re going to build this. Not ‘Give me your tools, here’s your fittings, here’s how it goes together,’” said Smith. “Luckily we had no drive time, it was just down the street, otherwise our fees would have just been far worse from what they are already.”
Carroll asked what happens if the council chooses not to pay the $12,500, Smith said Garden and Associates is essentially out and would have to approach Creston Water Works directly, but they are under contract to the city.
Carroll then asked if a reimbursement would be likely, to which Conzett said it is.
“In terms of enforcement of liquidated damages, that is likely,” he said.
Creston Water Works General Manager Steve Guthrie said the overrun costs could have been avoided.
“We were neither notified nor did we authorize any extra inspection hours when the hours were up,” said Guthrie. “We should have been contacted and could have assumed the inspector responsibilities ourselves and done it in house. It was never brought to our attention until it was too late.”
Councilman Terry Freeman said by approving the $12,500, the city takes a chance for not being approved for a reimbursement.