SUBJECT
title
Approve Change Order No. 001 (Deductive) to Guaranteed Maximum Price GMP-6 with Florida Water Partners for the Southeast Wellfield Transmission Main (Action)
body
DESCRIPTION
Guaranteed Maximum Price GMP-6 with Florida Water Partners was approved by the Project Board on January 28, 2026 in the amount of $32,297,597.00. GMP-6 consists of two (2) Southeast Wellfield Transmission Main construction packages (Construction Packages 2C and 3B - 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-6 is provided in Exhibit “B”. As shown in Exhibit “B”, the sales tax savings for GMP-6 Change Order No. 001 is $523,566.54 based on a total pre-tax or bid amount of $8,723,609.06 for ductile iron (“DI”) pipe (Construction Packages 2C & 3B) and high density polyethylene (“HDPE”) pipe (Construction Package 2C only). Change Order No. 001 deducts the total material cost of $9,247,175.60 from GMP-6 to allow the Cooperative to direct-purchase these materials, resulting in a revised Guaranteed Maximum Price of $30,026,089.40. A subsequent deductive change order will be required for the direct purchase of HDPE pipe for Construction Package 2C.
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-6 with Florida Water Partners for the Southeast Wellfield Transmission Main.
FISCAL IMPACT
Tax savings in the amount of $523,566.54.
CONTACT INFORMATION
Mark Addison