SUBJECT
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Approve Change Order No. 001 (Deductive) to Guaranteed Maximum Price GMP-2 with Florida Water Partners for the Southeast Wellfield Transmission Main (Action)
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DESCRIPTION
Guaranteed Maximum Price GMP-2 with Florida Water Partners was approved by the Project Board on September 18, 2024 in the amount of $71,571,699.19. GMP-2 consists of Construction Package 1 which is 42-inch water transmission main in the Lake Wales area and Construction Package 6 which is 12-inch water transmission main in the Bartow area. Construction of both packages is currently in progress.
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").
The bid price for large-diameter pipe and valves on Construction Package 1 was $11,459,094.32. The corresponding sales tax associated with these material purchases is $648,722.32. Change Order No. 001 deducts the material cost ($11,459,094.32) from GMP-2 to allow the Cooperative to direct-purchase these materials, resulting in a new Guaranteed Maximum Price of $60,112,604.87. 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-2 with Florida Water Partners for the Southeast ...
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