5a Memo

PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA                   Item No.         5a 
Date of Meeting       May 18, 2010 
DATE:      May 4, 2010 
TO:         Tay Yoshitani, Chief Executive Officer 
FROM:     Ralph Graves, Managing Director, Capital Development Division 
SUBJECT:   Change Order No. 15 for SeaTac International Airport 2nd Floor HVAC Upgrade 
MC-0316086 

ACTION REQUESTED:
Requests authorization for the Chief Executive Officer to issue a no cost Change Order No. 15 
for the 2nd floor HVAC Upgrade at the main terminal building at Seattle-Tacoma International
Airport to add the additional time required (70 days) to complete the project. 

SYNOPSIS:
The subject project provides a new air supply for the HVAC systems to the north side of the 2nd 
floor main Terminal Central Administration Building and the concessions located directly below
on the ticketing level. The provision of new air supply for the HVAC system will allow HMS
Host (Host) to proceed with the construction of its new offices on the 2nd floor.  The original
design of the roof pitch pockets was changed during construction to limit annual maintenance
and impacts to the roofing membrane still under warranty. The contractor's schedule was
impacted 55 days as a result of this change. During punchlist, the design engineer identified
non-conforming work and a design deficiency at the HVAC duct structural supports. Another 15
days of time extension is required to address this concurrent delay. All direct costs were
addressed in separate change orders. 

BACKGROUND: 
After the construction contract award and construction was underway, the contractor raised
concern about impacts to the existing roof warranty if the design details in the contract
documents were installed. The POS agreed to pursue the redesign and authorized the design
team to move ahead with the work. The complexity of the roofing design and working through
the specific details resulted in multiple shop drawing resubmissions and resulted in a 55-day
delay to the construction schedule.

COMMISSION AGENDA 
T. Yoshitani, Chief Executive Officer 
May 12, 2010 
Page 2 of 3 

During construction, the Structural Designer of Record (SDR) visited the project on two
occasions, once in January 2010 and then for final inspection on March 16, 2010. On March 16,
2010, two non-conformance issues with the HVAC structural supports were observed that
required corrective action as follows: 1) incorrectly installed duct collars in four places; and 2)
one structural member fabricated differently from the design. In addition, a design deficiency 
was identified at an insufficiently supported branch duct. On March 19, 2010, the SDR issued
sketches with the corrective action required. These fixes required fabrication, removal and
replacing of the insulation to make the needed repairs and some miscellaneous painting. After
reviewing the sketches, the contractor estimates that an additional 15 days would be required to
complete the work in the field.
We are requesting Change Order No. 15 be issued for an additional 70 days needed to officially
complete the project with the sign off of the building permit.
CHANGE ORDER DESCRIPTION AND JUSTIFICATION: 
The following information relates to the pending change order scope and cost: 
Change Order No. 15 
Scope of work: Add an additional 70 calendar days to the contract time.
Justification: The original contract specified January 23, 2010, as both the beneficial
occupancy and the substantial completion date. Under the contract, the contractor cannot 
achieve substantial completion without the punchlist completed and all permits signed
off. The delays as identified above were not anticipated when the team decided to change
the pitch pocket design.   The Port, its consultants and the contractor worked diligently to
mitigate the construction schedule impacts. When Port staff evaluated the delays, we
found that both parties had delays, which resulted in late completion of the project. In the
case of concurrent delays to a project, both parties are responsible for their own costs that
are incurred as a result of delays. The contractor agreed not to request cost for extended
overhead and the Port agreed not to assess Liquidated Damages.  Therefore, we are
requesting Change Order No. 2 be issued for 70 non-compensable calendar days.
Consequences of not proceeding: The contract would remain open, and the General
Contractor would not be able to get its retainage.

FINANCIAL ANALYSIS:
This is a no-cost change order.

COMMISSION AGENDA 
T. Yoshitani, Chief Executive Officer 
May 12, 2010 
Page 3 of 3 

CONTRACT INFORMATION: 
The following information relates to the construction contract and competitive award: 
Contract award date:                                            May 28, 2009 
Original period of performance:             May 28, 2009 to January 23, 2010 
Previous contract extensions:                                           5 Days 
Current Contract Completion Date:                         January 28, 2010 
Contract extension this change order:                                  70 Days 
Revised Contract Completion Date:                            April 9, 2010 
Original contract amount:                                       $790,000.00 
Previous Change Orders:                                       $114,331.02 
Current contract amount                                        $904,331.02 
This request, Change Order No. 15                                     $0.00 
Revised contract amount:                                      $904,331.02 

PREVIOUS COMMISSION ACTION: 
On March 23, 2010  Commission authorization of $203,000 to pay additional in-house and
consultant costs to complete the project, for a total authorization to date of $1,700,000. 
February 24, 2009  Commission authorization for construction and approval to advertise for
construction bids for the 2nd floor Heating, Ventilation and Air-Conditioning (HVAC) Upgrades
Project at Seattle-Tacoma International Airport in the amount of $1,282,350, for a new estimated
total project cost of $1,497,000. 
March 25, 2008  Commission authorization for Second Floor HVAC Design at Seattle-Tacoma
International Airport for estimated cost of $214,650.

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