PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA             Item No.      5f 
ACTION ITEM             Date of Meeting   December 10, 2013 
DATE:    November 26, 2013 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:    Ralph Graves, Managing Director, Capital Development 
SUBJECT:  Consolidated Rental Car Facility Project Contract MC-0315405 Change Order
No. 1348 - Electrical Cumulative Impact 
Amount of This Request:                $0   Source of Funds:       Customer Facility
Charges 
Est. Total Project Cost:           $363,952,172 
Est. State and Local Taxes:         $24,323,353   Est. Jobs Created:           N/A 

ACTION REQUESTED
Request Commission authorization for the Chief Executive Officer to issue a change order for
the Consolidated Rental Car Facility (RCF) project to pay $1,840,940, which is the undisputed
amount of a claim from the contractor for electrical issues on the project and applicable sales tax.
There is no additional funding associated with this request, as there is adequate project budget to
cover the expenditure. 
SYNOPSIS
The Consolidated Rental Car Facility (RCF) opened May 17, 2012 and serves thirteen rental car
companies operating at Seattle-Tacoma International Airport. Since completion of the project,
Port staff has been engaged in project close out activities which include the settlement of
contractor claims. 
The Port received a certified claim on May 30, 2013, from the contractor on this project
requesting payment for increased costs to perform electrical work on this project. The amount of
the electrical claim received is, inclusive of interest, $19,439,279.99. The claim document stated
that the subcontractor had incurred increased costs for impacts on labor productivity, increased
field overhead, increased home office overhead and additional unsettled change order costs,
schedule delays, acceleration costs and claim preparation expenses. Port staff has completed its
review of the claim submitted and has validated that only limited payment is due for the impact
on labor productivity arising from the cumulative impact of multiple change orders. Staff's 
analysis concludes that $1,681,223 should be paid to the contractor for the cost of these impacts 
plus required Washington State sales tax. Port staff does not find entitlement for any other parts

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
November 22, 2013 
Page 2 of 4 
of the claim submitted. The total anticipated payment, including sales tax, is $1,840,940. As a
result of earlier project savings and prior Commission authorizations, adequate budget exists to
cover this requested expenditure. As a result, no additional funds are requested within this
authorization request.
BACKGROUND 
The Port issued a number of change orders to Turner Construction Company, the GC/CM
contractor on the consolidated rental car facility project. The primary electrical subcontractor on
the project has claimed that the amount of changed work was excessive and that the added work
caused an impact to its ability to efficiently perform the work. The Port received, through the
GC/CM, several notices from this electrical subcontractor during the construction of the work
that they were incurring inefficiencies. Although earlier requests for equitable adjustment were
submitted to the Port, those requests were superseded by a final, all-encompassing claim. The
Port did not receive that claim from the contractor until May 30, 2013, which was over a year
after the facility opened on May 17, 2012. As noted above, the value of the claim is, inclusive of
interest, $19,439,279.99. The claim received was quite lengthy, addressed some complex issues, 
but lacked some significant detail. It has taken Port staff many months to review and analyze it.
Port has now completed its review of the electrical claim and finds that the electrical
subcontractor is entitled to $1,681,223 for the labor productivity impact of cumulative change
orders on the project. This amount includes $1,572,298 for the electrical subcontractor and
$108,925 for the general contractor's fee. Other portions of the claim have been denied. 
Assuming the electrical subcontractor protests this decision, the remainder of the claim will be
submitted to a formal dispute resolution process. 
Current state law, RCW.39.04.360, requires the Port to issue a change order for the value of
extra work not in dispute. As such, we are requesting authorization to issue this change order.
Assuming Turner Construction and the electrical subcontractor protest, the remaining part of the
claim will be resolved through a formal dispute resolution process. 
FINANCIAL IMPLICATIONS 
There are no financial implications. 
Budget/Authorization Summary 
The following budget and authorization summary is for RCF Construction (CIP #C100266). 
Original Budget                             $360,793,256 
Revised Scope                              $5,787,330 
Program Savings                           ($17,021,741) 
Budget Transfers                             $13,743,327 
Current Budget                             $363,302,172

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
November 22, 2013 
Page 3 of 4 
Budget Increase                                $650,000 
Revised Budget                            $363,952,172 
Previous Authorizations                        $357,933,654 
Authorization Transfers                         $22,549,195 
Current request for Authorization                          $0 
Total Authorizations, including this request            $380,482,849 
Remaining Budget to be Authorized                       $0 
Source of Funds 
The RCF construction project (CIP #C100266) is included in the 2014-2018 capital budget and
plan of finance as a committed project. The source of funds for this project, as identified in the
plan of finance, includes Customer Facility Charge (CFC) revenues, bonds backed by CFC
revenues, and other Aviation sources. 
A total of $17,021,741 has been previously identified as savings for the RCF Construction
project. The total anticipated payment, including sales tax, is $1,840,940. In order to fully fund 
this anticipated payment, $650,000 of previously identified savings needs to be returned to the
project budget. 
Contract Information 
The following information relates to the contract and competitive award: 
Contract award date:                             May 30, 2008 
Original period of performance:           May 30, 2008, to April 1, 2011 
Previous contract extensions:                           333 Days 
Current Contract Completion Date:                February 28, 2012 
Contract extension this change order:                        0 Days 
Revised Contract Completion Date:                         N/A 
Original contract amount:                       $224,837,739.00 
Previous Change Order Nos. 001  1347:               $9,353,961.00 
Current contract amount                         $234,191,700.00 
CO 1348 Amount Construction Contingency            $1,580,884.00 
Revised contract amount:                       $235,772,584.00

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
November 22, 2013 
Page 4 of 4 
Original 2% MACC Contingency                  $3,334,160.00 
Previous Authorizations                          $1,993,668.00 
Current 2% MACC Contingency                  $1,340,492.00 
CO 1348 Amount 2% MACC Contingency             $100,339.00 
Revised 2%MACC Contingency                  $1,240,153.00 
Total Request, Change Order                       $1,681,223.00 
ALTERNATIVES CONSIDERED 
Pursuant to Section 39.04.360 of the Revised Code of Washington, the Port is required to issue a
change order for the undisputed amount of the claim. If the Port does not do so, interest will
accrue on the upaid amount at the rate of one percent per month. The Port has completed its
technical review of the contractor's claim and concluded that $1,681,223, exclusive of sales tax, 
is due. If the Port does not pay this amount, the contractor may bring suit against the Port and 
collect interest on the amount. In addition, the contractor may be able to recover attorneys' fees
and costs for wrongful withholding of the funds. As a result, the staff has not meaningfully
considered other alternatives to this request. 
ATTACHMENTS TO THIS REQUEST 
None. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
May 22, 2012, Final Monthly Staff Briefing on the Consolidated Rental Car Facility Program.