Interwest Construction Inc. 5/1/2019 Change Order 12

Interwest plans to make up the shortfall to the commitment amount through increasing participation of the other DBE Subcontractors on the Project as well as solicitation of DBE firms if additional work is added to the Project. Specifically the plan to reach the COA goal includes the following options in order of precedence: • Unsigned Change Order Proposals: There are a number of Change Order Proposal items affecting DBE subcontractor work currently under review with the City. Most significantly, the COA DBE Electrician Electric West has provided a proposal for revisions to the lighting design totaling over $153,000. It is anticipated that the City is likely to approve a significant portion of these proposals and that approval of even a portion of the proposals would exceed the $68,505.67 shortfall. • Added Unit Price Work: The rebar quantities on the project have been overrunning to date and it is anticipated that the overrun will continue on the remaining rebar Bid Item B6 "Steel Reinforcing Bar for Bridge." Rebar Bid Items A92 and B5 have overrun respectively 65% and 37% and it is reasonably expected that B6 will overrun by 30% as well. Puget Sound Steel and Western Industries are affected by this expected overrun and both have already exceeded the anticipated participation amounts due to the incurred quantity overruns. If Bid Item B6 does overrun by 30%, these two firms would contribute $13,500 minimum to the DBE participation and reduce the listed <$68,505.67> shortfall to <$55,005.67> or less. Interwest and the City expect the quantity to overrun by the listed 30%at a minimum. Additionally, over and above the listed pay quantity of rebar there is incidental additional rebar required for installation and forming. Interwest pays to purchase and install this added rebar over and above the Plan Quantity which will further increase the participation amounts of these two DBE's. • Added Incidental Work: o Electric West: Interwest anticipates additional temporary electrical work for Electric West to facilitate site construction. To date this has totaled $1,701.64. Interwest anticipates at least an additional $3,000 such work to occur on a T&M basis. As this work is not part of a signed Change Order, it has not been included in the forecasted DBE participation total listed above and any work that does occur will reduce the forecasted shortfall. o Meko Construction for Concrete Pumping: Interwest has paid Meko to pump the 932 CY of concrete placed to date for a total amount of$23,323.85 or$25.03/CY on average. Plan quantity for remaining concrete placement is 120 CY which will be more costly to place than concrete placed thus far due to the location and type of concrete. Using the unit cost to date, Meko will contribute a minimum of an additional $3,003 to the DBE participation and likely significantly more based on Interwest's knowledge of the work to be performed. o Metro Painting for Traffic Control: Metro was listed for a fixed dollar value of traffic control which Interwest forecasts fully expending sometime in May or June of 2019. This will be well in advance of the project completion in December of 2019 leaving significant amounts of additional traffic control work to be performed. The outstanding balance of Traffic Control work can be performed by Metro to reach the minimum DBE Participation listed in the COA. By employing a combination of the above remedies, Interwest is confident it is still possible to exceed the COA DBE goal based on known facts and conditions of the Project at this time. Interwest remains committed to meeting the COA DBE Goal to the best of our ability and we fully believe it is still possible to meet and exceed the Goal. 2 of 3