PORT OF SEATTLE 
CORRECTED COPY                   MEMORANDUM 
COMMISSION AGENDA               Item No.       5c 
ACTION ITEM             Date of Meeting    April 23, 2013 

DATE:    May 31, 2013 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:   Ralph Graves, Managing Director, Capital Development Division 
Janice Zahn, Assistant Engineering Director 
SUBJECT:  Change Order No. 097 for the East Marginal Way Grade Separation Project,
Contract MC-0316219, CIP C800237 

Amount of This Request:  $492,000.00 
Source of Funds:        Project Construction Contingency 
Est. State and Local Taxes: $0.00           Est. Jobs Created:   None 
ACTION REQUESTED: 
Request (1) Ratification of $232,159 for costs already incurred in excess of current
authorization for the East Marginal Way Grade Separation project; (2) additional
authorization in the amount of $1,637,841 to complete outstanding work on the project for
a total project authorization of $55,456,171; and (3) authorization for the CEO to issue
Change Order Number 097 for the project's Contract MC-0316219in the amount of $492,000
and for a time extension of 126 working days to the contract duration. 
SYNOPSIS: 
The purpose of this project was to construct a new vehicular overpass structure to separate
vehicular traffic from rail traffic at the intersection of lower Spokane Street and East Marginal
Way. The project includes: 
Pavement improvements at the existing street connections 
Realignment of a portion of Spokane Street surface street to pass under the new overpass 
Installation of an earthquake drain system under the retained fill 
Utility relocation and construction of a water quality vault 
This change order provides the compensation for the indirect expenses related to the Port-caused
delays that caused damages to the contractor, Mowat Construction Company.  Any direct
expenses related to these impacts have been paid for by previously issued change orders. The
total delay is the result of two distinct impacts:

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 31, 2013 
Page 2 of 4 
1.  Design revisions to the west intersection due to designer errors delayed the
contractor's work as well as a redesign of the south intersection due to ongoing
permiting issues with the Union Pacific Railroad (UPRR) and design revisons from 
the City of Seattle. 
2.  Reconstruction of a 21" diameter water main that was required by the City of Seattle
(reference Change Order No. 54). 
This change order will be issued for the fixed amount of $492,000 and a time extension of 126
working days. The value of the change order is the result of analysis of the claim as well as
independently performed assessments of Port-caused impact and additional cost escalation
related to further dispute resolution processes. 
The source of funds for this change order will come from the existing contract construction
contingency, requiring no additional funds. The contract currently has an executed change order
rate of 7.84%, which becomes 10.54% after execution of this change order. This change order is
the final change order associated with this construction contract. 
Project closeout and budget reconciliation is difficult due to the age of this project, the multiple
sources of funds, and the complexity of expenditures. Once staff determines the exact status of
budget and expenditures we may need to return to Commission for additional authorization. 
BACKGROUND: 
The East Marginal Way Grade Separation project is a roadway improvement project near the
East Marginal Way/South Spokane Street intersection.  The grade separation is a complex
geometry bridge structure that moves surface traffic above both Burlington Northern/Santa Fe
and Union Pacific Railroad tracks. The completed project services north, south and eastbound
traffic, improving freight mobility for Terminals 5, 18, and 30 as well as providing safer transit
for all traffic with the elimination of railroad crossings in this vicinity.
Mowat Construction Company was the low bidder with contract execution on October 26, 2009.
The base contract amount is $18,250,482.70 with a contract completion date of September 15,
2011.
The grade separation is open to traffic  in its final interim configuration.  Remaining
administrative items between the Port and the City of Seattle include a memorandum of
understanding and final acceptance letters from Seattle Department of Transportation (SDOT)
and Seattle Public Utilities (SPU). Commission authorization for a follow-on construction
project to put the East Marginal Way Grade Separation (EMWGS) in its final configuration will
be requested once the south intersection design changes can be agreed upon by the Port, UPRR
and City of Seattle.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 31, 2013 
Page 3 of 4 
CHANGE ORDER DESCRIPTION: 
The following information relates to the pending change order scope and cost: 
Change Order No. 097 
Provide compensation for unreasonable schedule impacts to the Mowat Construction Company 
(MCC), due to delays from the Union Pacific Railroad as well as redesign efforts on the south
and west intersections. The contract time would be extended by 126 working days due to these
impacts. The time established for substantial completion of the work would be extended to 570 
working days. Mowat Construction Company would be compensated in the amount of $492,000
for these impacts. 
This compensation settles all costs and time extensions related to the Port's impact to the Mowat
Construction Company on the East Marginal Way Grade Separation project. 
PROJECT JUSTIFICATION: 
Due to complications with the railroads and numerous design changes, MCC's work was
delayed, causing them to incur additional time and costs for field equipment, extended field
office overhead, and home office overhead. This amounts to 126 working days of compensable
delay. This project utilized a Seattle DOT contract format that uses "working days" as opposed
to calendar days, which do not equate to each other. The 126 working days associated with this
contract equates to 294 calendar days. 
The contractor presented a delay claim to the Port of $681,835.58 for direct and indirect
expenses related to the delay. The resulting change order value is the result of a settlement
between MCC and the Port based on analysis of the claim as well as independently performed
assessments of Port-caused impact and additional cost escalation related to further dispute
resolution processes. 
FINANCIAL ANALYSIS: 
The funds to pay for this change order are part of the project construction contingency funds that
were included in previously approved authorizations of $50,700,000. The project authorization
includes grants from both Freight Mobility Strategic Investment Board (FMSIB) and the
American Reinvestment and Recovery Act (ARRA). No additional project funds are being
requested as a result of this change order. 
CONTRACT INFORMATION: 
The following information relates to the contract and competitive award: 
Contract award date:                           October 23, 2009 
Original period of performance:   November 30, 2009  September 15, 2011 
Previous contract extensions:                       0 Working Days 
Contract extension this change order:               126 Working Days 
Current Contract Completion Date:                    July 6, 2012

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 31, 2013 
Page 4 of 4 
FINANCIAL INFORMATION: 
Original contract amount:                        $18,250,482.70 
Previous Change Orders Executed:                   $1,430,967.45 
Current contract amount                         $19,681,450.15 
This request, Change Order No. 97                      $492,000 
Subtotal Construction Costs                       $20,173,450.15 
Anticipated sales tax @ 9.5%                            $0.00 
Revised Contract Amount                       $20,173,450.15 
OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST: 
None 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: 
January 24, 2012, the Commission authorized the issuance of Change Order Number 054
for the not-to-exceed amount of $371,000 for the replacement of the existing 20-inch
diameter water main that runs adjacent to the project site. 
May 18, 2010, the Commission authorized the issuance of Change Order Number 015 for
the not-to-exceed amount of $430,000 for the disposal of contaminated soil excavated
from the site. 
March 24, 2009, the Commission authorized an increase of $17,200,000 for a total
project authorization of $50,700,000 and authorized advertisement, bid and award of the
construction project. 
March 6, 2006, the Commission granted staff project-wide authorization for the East
Marginal Way Grade Separation project with a total project authorization of $34,500,000.