SUBJECT
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Approve Change Order 001 (Deductive) to Guaranteed Maximum Price GMP-5 with Florida Water Partners for the Southeast Wellfield Transmission Main (Action)
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DESCRIPTION
Guaranteed Maximum Price GMP-5 with Florida Water Partners was approved by the Project Board on July 30, 2025 in the amount of $39,273,265.00. GMP-5 consists of three (3) Southeast Wellfield Transmission Main construction packages (Construction Packages 3A, 4B and 5 - Exhibit “A”).
Rule 12A-1.094, F.A.C., Public Works Contracts, “governs the taxability of transactions in which contractors manufacture or purchase supplies and materials for use in public works contracts, as that term is referred to in Section 212.08(6), F.S”. Additionally, Article 14 of the Construction Manager-at-Risk (“CMAR”) Agreement allows the Cooperative to exercise its right to purchase directly various construction materials, supplies and equipment that may be part of a Subcontract (a.k.a., “Cooperative Purchased Material”).
A summary of Cooperative Purchased Materials for GMP-5 is provided in Exhibit “B”. As shown in Exhibit “B”, the sales tax savings for GMP-5 is $493,819.88 based on a total pre-tax or bid amount of $8,227,831.36 for DI, PVC and HDPE pipe. Change Order No. 001 deducts the total material cost of $8,721,651.24 from GMP-5 to allow the Cooperative to direct-purchase these materials, resulting in a revised Guaranteed Maximum Price of $30,551,613.76. In accordance with the CMAR Agreement, the Contractor (i.e., Florida Water Partners) remains responsible for shop drawings, placing ordering, taking delivery, installation/testing of materials, and warranties. Additionally, the Cooperative is not liable for interruption or delays, defects or other problems associated with Cooperative Purchased Material.
RECOMMENDATION
Approve Change Order No. 001 (Deductive) to Guaranteed Maximum Price GMP-5 with Florida Water Partners for the Southeast Wellfield Transmission Main.
FISCAL IMPACT
Tax savings in the amount of $493,819.88.
CONTACT INFORMATION
Mark Addison