2.5 ERMUSR 08-10-2021______________________________________________________________________________
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UTILITIES COMMISSION MEETING
TO:
ERMU Commission
FROM:
Chris Kerzman – Engineering Manager
MEETING DATE:
August 10, 2021
AGENDA ITEM NUMBER:
2.5
SUBJECT:
Field Services Facility Expansion Project – Subcontractor Performance Bond Credit
ACTION REQUESTED:
Approve Change Order Number 2 for the Subcontractor Performance Bond Credit.
BACKGROUND:
ERMU staff and RJM Construction have had discussions on the subcontractor default insurance
policy, due to the default by the steel subcontractor for the Field Services Facility Expansion
project. Bidders included costs for both payment and performance bonds in their bids, but due
to RJM carrying an SDI policy the subcontractor performance bonds were not used. RJM
received pricing for deductions of the unused performance bond premium costs and submitted
this deduction as a credit to the guaranteed maximum price. RJM still carries a payment and
performance bond for the entire project.
DISCUSSION:
The attached change order documents the credit to the guaranteed maximum price for the
removal of unused subcontractor performance bonds.
ATTACHMENTS:
• Change Order Number 2 for Subcontractor Performance Bond Credit
39
DocuSign Envelope ID: FAFED8C1-63CB-4454-9C58-590D03129F0F
8/5/2021
Theresa Slominski
40
830 Boone Ave North
Golden Valley, MN 55427
MINNEAPOLIS OFFICE
Change Order
Contract Number:
Change Order #:
To :
Change Order Date :
PCO # Description
Elk River Municipal Utilities - Field Services Faciltiy
02
08/04/21
Amount
You are directed to make the following changes in this Contract:
Elk River Municipal Utilities
13069 Orono Parkway
Elk River, MN 55330
-58,229.886Subcontractor Performance Bond Credit
25,759.00
Total:-58,229.88
12,180,926.00The original Contract Sum was . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The net change by previously authorized Change Orders was . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12,206,685.00The Contract Sum prior to this Change Order was . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
-58,229.88The Contract Sum will be decreased by this Change Order . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12,148,455.12The new Contract Sum will be . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The new Contract Completion date as of this Change Order will be 6/1/2022
Accepted By Contractor:Architect/Engineer:Authorized By Owner:
RJM Construction, LLCElk River Municipal Utilities
830 Boone Ave North13069 Orono Parkway
Elk River, MN 55330 Golden Valley, MN 55427
By: _______________________
Date: _____________________
By: _______________________By: _______________________
Date: _____________________Date: _____________________
,
25,759.00
20520-0154Project:
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Please sign and return original to RJM Construction LLC
DocuSign Envelope ID: FAFED8C1-63CB-4454-9C58-590D03129F0F
41
DocuSign Envelope ID: FAFED8C1-63CB-4454-9C58-590D03129F0F
42
DocuSign Envelope ID: FAFED8C1-63CB-4454-9C58-590D03129F0F
43