14 - Belford Building Demolition Project - Change Order No. 2

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the north side of the property is to remain in place for historical purposes. The height of this wall to be salvaged would be approximately 8 feet. On November 13, 2023, the City Council approved award of the bid to Lloyd D. Nabors Demolition, LLC, and work began on Friday, December 1, 2023. On December 11, 2023, Change Order No. 1 was approved for $13,500.00 to salvage the antique chains and stars which held up the awning in front of the Belford building, along South Main. During the course of demolition, opportunities for reduction in the original scope of work, hence a reduction in the contract fees, have arisen. Staff recommends we amend the contract with Lloyd D. Nabors Demolition, LLC via Change Order No. 2. In the original contract the north wall of the neighboring property was to be demolished and rebuilt by the contractor at a cost of $94,500.00. During the demolition project it was determined this wall could be retained. Retention of the north wall resulted in reduction of the scope of work and fees, with only minimal work necessary to properly, and safely, keep the wall in place. The reduction in contract fees in Change Order No. 2 amounts to $86,850.00, reducing the final demolition contract amount to $514,650.00. STATUS OF ISSUE: Lloyd D. Nabors Demolition, LLC base bid was $493,500.00, with an additional cost of $94,500.00 to retain the north wall per terms of the agreement with SMA, for a total of $588,000.00 for the project. Lloyd D. Nabors Demolition, LLC included in their submittal an add -alternate of $13,500.00 for salvage of the stars and chains; this is reflected in Change Order No. 1, presented to, and approved, by City Council at the December 11, 2023 meeting. Approval of Change Order No. 1 resulted in a total contract amount of $601,500.00. Being most of the scope of work for retention of the north wall became unnecessary resulted in an overall decrease of $86,850.00 in the total contract amount, 14.4 % lower than the current contract amount of $601,500.00. Change Order No. 2 reflects the reduction of fees associated with the reduced scope of work for a contract amount of $514,650.00. BUDGET: The contract amount of $514,650.00 paid from the American Rescue Plan Act (ARPA) funding; this amount reflects both Change Order No. 1 and Change Order No. 2.