TITLE
Recommendation to authorize City Manager to execute all documents necessary for the Fourth Amendment to Design-Build Contract No. 28388 between the City of Long Beach and ARB Structures, Inc., for the completion of construction of the Phase I parking structure at the Long Beach Airport. (District 5)
DISCUSSION
The City of Long Beach (City) and ARB Structures, Inc. (ARB Structures) entered into a Design-Build Contract (Contract) dated August 1, 2003, that has been subsequently amended three times. ARB Structures is constructing the Phase I parking structure and related site work at the Long Beach Airport. During the course of construction, a dispute developed regarding Contract interpretation. The dispute was resolved in principle by the parties pursuant to a mediation conducted in accordance with the Contract. The City and ARB Structures now desire to amend the Contract to reflect the resolution of the disputed items.
In consideration of the agreement by ARB Structures to reduce the Contract Price and certain other concessions, the City has agreed that the Contract Price shall be a fixed price or lump sum price, as opposed to a guaranteed maximum price, and all applications for payment submitted by ARB Structures shall be processed accordingly.
In order to complete the construction of Phase I, an amendment to Design-Build Contract No. 28388 is required. The Fourth Amendment contains the following major terms and provisions:
• Owner: City of Long Beach.
• Design-Builder: ARB Structures, Inc.
• Contract Price: Owner shall pay Design-Builder the sum of $41,295,162 (a reduction of $1,174,944) plus $346,828 for the additional labor, materials, and equipment required for early completion, should the Work be complete prior to July 15, 2011, for construction of Phase I of the Parking Structure. Phase I of the Structure shall consist of the following Stages:
o Stage I - $4,500,443 - Design, Engineering and Construction Document Preparation;
o Stage I...
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