HomeMy WebLinkAboutMINUTES - 06081993 - H.5 j4,5_
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
TO: BOARD OF COMMISSIONERS DATE: May 8, 1993
FROM: Richard J. Martinez, Acting Executive Director
SUBJECT: CONSIDER THE REQUEST FOR SUBSTITUTION OF ROBERTS CONSTRUCTION COMPANY
BY WEST COAST CONTRACTORS,LOS NOGALES MODERNIZATION PROJECT,CA011004,LOS
NOGALES, BRENTWOOD
I. RECOMMENDED ACTION
Consent to the substitution of West Coast Contractors in place of Roberts Construction Co.at the Los Nogales
Modernization Project.
H. FINANCIAL IMPACT-
There is no fiscal impact in regards to this action except as indicated under"Consequences of Negative Action"
below. This construction contract is funded in full through the U.S.Department of Housing and Urban Development's
Comprehensive Improvement Assistance Program.
III. REASONS FOR RECOMMENDATION/BACKGROUND
On February 4, 1992 the Board of Commissioner's awarded a contract to West Coast Contractors, Inc. to
perform modernization work at the Los Nogales Public Housing Development in Brentwood. Under the provisions of
the contract,all work is to be completed within 440 calendar days or by July 10, 1993. The contract work is now nearly
completed except for the construction of.the wood fencing. :The wood fencing is being constructed by West Coast
Contractor's subcontractor, Roberts Construction. West Coast Contractors believes that Roberts Construction
Company's lack of timely performance will prevent completion of the work by the July 10, 1993 deadline; West Coast
Contractors proposes to perform the remaining work through its own forces.
Roberts Construction, in a letter dated April 29, 1993, protested the substitution refuting assertions by West
Coast Contractors that Roberts had abandoned the job and further claimed that delays by Roberts Construction Co.
occurred because of lack of adequate payment by West Coast Contractors to Roberts Construction Co. The payment
history by West Coast Contractors has been reviewed by staff;no conclusive evidence has been presented that supports
Roberts Construction's claim of lack of adequate payment. ;
In light of the "Request for Substitution" staff has reviewed the progress of the work at issue and has
determined that, given the remaining fencing to be constructed and projecting a schedule for this work based on
Robert's past performance rates, the work will not be completed by the July 10, 1993 deadline.
County Counsel has advised staff as to the acceptable reasons to consent to a substitution according to the
provisions of Section 4107 of the Public Contracts Code. Staff's recommendation to consent to the substitution is based
upon Subparagraph 7 which allows the public agency to consent if "the subcontractor is substantially delaying or
disrupting the progress of the work."
IV. CONSEQUENCES OF,NEGATIVE ACTION:
Should the Board of Commissioners elect not to consent to the Substitution, the lack of performance by
Roberts Construction may force West Coast Contractors unnecessarily into the Liquidated Damages provision of the
contract which would be charged against West Coast Contractors at a rate of $300 per day; further, West Coast
Contractor's may incur increased overhead. and other related costs due to delays; electing not to consent to the
substitution may result in construction claims against the Housing Authority.
CONTINUED ON ATTACHMENT: SIGNATURE:
RECOMMENDATION OF EXECUTIVE DIRECTOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S)
ACTION OF BOARD ON June 8. 1993 APPROVED AS RECOMMENDED X OTHER
VOTE OF COMMISSIONERS
X i 1NANIMOUS(ABSENT I HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT
AYES: NOES: COPY OF AN ACTION TAKEN AND ENTERED ON THE
ABSENT: ABSTAIN: MINUTES OF THE BOARD OF COMMISSIONERS ON THE
DATE SHOWN.
cc: Housing Authority
CAO ATTESTED June 8, 1993
Phil Batchelor, Clerk of the Board of Commissioners
BY DEPUTY
USJ
c Coo
a '`�, MEMORANDUM
G `Oh TRA C-0�4'`
T� O R
Date: May 13, 1993
To: Board of Commissioners
From: obert McEwan, Director of Development
Subject: Request for Subcontractor Substitution
Los Nogales Housing Modernization Project
West Coast Contractors, General Contractor
Roberts Construction Co. , Fencing Subcontractor
For your review, I have attached the following backup
information in regards to the pending Board Order to consider the
Request for Substitution:
1 . A copy of West Coast Contractors letter dated April 22,
1993 requesting the substitution.
2 . A copy .of our letter to Roberts Construction Co. dated
April 23, 1993 notifying them of West Coast Contractors
request.
3 . A copy of Roberts Construction Company's letter dated
April 29 , 1993 presenting their objections .
4 . A copy of my letter to West Coast Contractors dated May
5, 1993 requesting additional information.
5 . A copy .of West Coast Contractor' s letter dated May 10,
1993 in response to my request for additional
information which gives their accounting of the job
history and projection for completion of the work.
Although we have reviewed all the information enclosed
with this letter, for brevity, I have not attached all
of the material; I have, however, attached a copy of
their "Payment Summary" for your review.
WEST COAST CNTR14S PAGE 01
/22/1993 14: 09 7070640632
or
4171 SUISUN VALLEY ROAD
COAST SUISUN VALLEY,CA 94585
(707)864-1352
CONTRACTORG FAX(707)864-8632
April 22, 1993
Housing Authority of Contra Costa
P. O. Box 2759
Martinez, CA 94553
Attention, Bob mawan
References West Coast Contractors Job No. 201
Imos Nogales Housing Modernization
Subject: Request to Substitute Subcontractor
West Coast Contractors respects periLisSiOn to Substitute its own foroV or
another subcontractor to complete the contract work for the following
subcontractors
Roberts Construction
1510 Hartindale Drive
Martinez, CA 94553
510-370-7318
West Coast Contractors is prepared to take over the subcontractor's Work in
accordance with the Subcontract Agreement.
West Coast Contractorz requests permission to substitute subcontractors
because:
I. The listed subcontractor refuses to perform the work.
2. The listed subcontractor's performance its unsatisfactory and is
substantially delaying the progress of the work.
3. The listed subcontractor is in material breach of the Subcontract
Agreement with West Coast Contractors, Inc.
4. The listed subcontractor has abaroknied the job site an Went coast
Contractors is unable to contact the subcontractor.
West coast Contractors requests your Inmediate attention to this matter so
that e project can be completed an soon as possible.
Since 1yo,
in:e e
ly,
p
B shJ . ri7
r er,
Pres t
EWr/jaa
ccs Larry Dingus, Dingus and Boring
GENERAL ENGINEERING AND BUILDING
LICENSE NO. 442604
HOUSING AUTHORITY
of the
COUNTY OF CONTRA COSTA
3133 Estudillo Street • P.O.Box 2759 • Martinez,California 94553
FAX(510)372-0236
April 23, 1993 CERTIFIED MAIL
Roberts Construction Co.
❑ c«VWA m&m 1510 Martindale Drive
(510)372-0791 Martinez, CA 94553
(510)372-7308 Subject: CA011004 Los Nogales, Brentwood
Acct.S Flnenelal 3sMetro Los Nogales Housing Modernization Project
(510)372-8134 West Coast Contractors, General Contractor
O ►mtvmm"Me tomar Contract No. M912-9
(510)372-0796
O H—hV Opmdons
(510)372.7400
❑ Padvaing Dear Sirs/Ladies :
(510)372.5327
❑ Fw"nawbJThn1cW West Coast Contractors, Inc. has requested
(510)372.7391 approval for the substitution of its own forces in
place of Roberts Construction, the wood fencing
subcontractor listed in the West Coast Contractor
original bid for the subject project.
According to California Public Contract Code,
Section 4107 , the awarding authority, or its duly
authorized officer, may consent to the substitution of
another person as a subcontractor in the following
situations :
1 . When the listed subcontractor becomes bankrupt or
insolvent .
2 . When the listed subcontractor fails or refuses to
perform his or her subcontract.
3 . When. the listed subcontractor fails or refuses to
meet the bond requirements of the prime contractor as
set forth in Section 4108 .
4 . When the listed contractor is not licensed
pursuant. to the Contractors License Law.
5 . When the awarding authority, or its duly
authorized officer, determines that the work performed
by the listed subcontractor is substantially
unsatisfactory and not in substantial accordance with
the plans and specifications, or that the
subcontractor is substantially delaying or disrupting
the progress of the work.
April 23 , 1993/Letter/Page 2
Roberts Construction Co. .
Subject: CA011004 Los Nogales, Brentwood
Los Nogales Housing Modernization Project
West Coast Contractors, General Contractor
Contract No. M912-9
We are hereby giving you notice of the prime
contractor' s request. You shall have five working
days within which to submit written objections to the
substitution . Failure to file such written objection
shall constitute your consent to the proposed
substitution.
Sincerely,
Robert McEwan
Director of Development
Enclosure: West Coast Contractor' s letter dated
April 22, 1993
CC: West Coast Contractors
David Schmidt, County Counsel (w/encl . )
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HOUSING AUTHORITY
of the
COUNTY OF CONTRA COSTA
3133 Estudillo Street a P.O.Box 2759 a Martinez,California 94553
FAX(510)372-0236
May 5, 1993 FAXED May 5, 1993
1-707-864-8632
Bruce W. Fisher, President
❑ CW*W A&MnWm&m West Coast Contractors
(510)372-0791 4171 Suisun Valley Road
® Suisun Valley, CA 94585
(510)372-7308
❑ Fleral
Aca S Flnenclal SaMen
(510)372.8134 Subject: Los Nogales Modernization Project
❑ r1x-kvUr,ea—+al_ Contract No. M912-9
(510)372-0798 Request for Substitution of
❑ ' °paw'°`- Subcontractor/Roberts Construction , (West
❑ (510)37727400 Coast Contractors letter dated April 22 ,
Nkv
(510)372-5327 1 9 9 3 1
❑ rwtw Ra mwedwcd
(510)372-7391
Dear Mr. Fisher:
In light of the objections presented to this
office by Roberts Construction (see Roberts letter
dated April 29 , 1993, enclosed) , I am hereby
requesting the following information to assist us in
evaluating your request for substitution:
1 . Written work schedules submitted to West Coast
Contractors by Roberts Construction.
2 . Any and all correspondence to or from Roberts
Construction regarding scheduling.
3 . Your estimated date of completion of all contract
work, not including the fencing.
4 . Your assessment of how Roberts Construction has
or will impact the overall schedule for the project
and specifically when lack of adequate performance
from Roberts will . jeopardize your ability to complete
the contract prior to the date liquidated damages
would take effect.
5 . A statement as to any subcontractual requirements
for Roberts Construction to provide bonds under
Section 4108 of the Public Contracts Code, including
any advertisements for bids and when West Coast
Contractors first enforced this requirement -with
Roberts Construction.
6 . A history of payments to Roberts Construction.
May 5, 1993/Letter/Page 2
Bruce W. Fisher, President
West Coast Contractors
Per Section 4107 of the Public Contracts Code, it
is our intention to schedule a hearing before the
Board of Commissioners as soon as it can be docketed.
You will be notified of the time and date.
Sincerely,
Robert McEwan
Director of Development
CC: Roberts Construction
David Schmidt, County Counsel
EST
4171 SUISUN VALLEY ROAD
COAST SUISUN VALLEY,CA 94585
(707)864-1352
CONTRACTORS
FAX(707)864-8632
May 10, 1993
Housing Authority of Contra Costa
P. 0. Box 2759
Martinez, CA 94553
Attention: Bob McEwan
Reference: West Coast Contractors Job No. 201
Los Nogales Housing Modernization
Subject: Request For Subcontractor Substitution
West Coast Contractors (WCC) is requesting permission to substitute another
subcontractor and/or West Coast forces for Roberts Construction because
Roberts Construction (Roberts) has not met schedule requirements of the
Subcontract Agreement and may not complete the fence work within the Contract
time.
West Coast Contractors would like to see Roberts complete it's subcontract
work but based upon Roberts' performance during the past twelve (12) months,
Roberts will not complete the fence work until August 13, 1993:
Roberts Original Start Date. . . . . . . . . . . . . .5/18/92
Weeks Worked To Date. . . . . . . . . . . . . . . . . . . . .41 weeks
(5/18/92 to 5/1/93 less Dec. & Jan. for weather)
Quantity Completed (5/1/93) . . .79%. . . . . . . .3,500 LF
Quantity Remaining. . . . . . . . . . . . . . . . . . . . . . .1,300 LF
Add'l Time Required = 1,300 x 41 weeks = 15 weeks
3,500
Projected Completion Date (Roberts) . . . . . .5/13/93
The required completion date is July 10, 1993. Unless West Coast takes over
the fence work by May 26, 1993, the Contract work will not be completed within
the contract time. West Coast Contractors and its subcontractors are being
damaged due to increased overhead expenses, restricted capital, and reduced
bonding capacity, due to Roberts' slow performance.
If you have any questions do not hesitate to contact this office. The
following documents are attached for your review:
Subcontract Agreement - Section 12 requires that the Subcontract work "within
the time specified in progress schedules designated by the Contractor. . .".
— GENERAL ENGINEERING AND BUILDING —
LICENSE NO.442604
Page 2 - Request For Subcontractor Substitution
Progress Schedule - The original progress schedule included approximately
seven (7) weeks for fence work (Roberts had actually requested one (1) month).
Section 2.9 also makes reference to the Progress Schedule.
Public Works Contact Award Information. - Roberts indicated on its
apprenticeship form that the fence work would be done from 4/20/92 to 7/5/92
seven (7) weeks.
WCC letter dated 8/3/92 - After eleven (11) weeks, the fence work was only 25%
completed. WCC requested additional man power in order to complete the work
before the first week in February.
Roberts letter dated 9/15/92 - Roberts indicates in this letter that all fence
work would be completed before "October's draw".
West Coast memo Dated 9/17/92 - West Coast requests fence work to be completed
before, wet weather starts. Memo notes that the fence work is only 35%
complete after four (4) months of working on the fence.
West Coast letter dated 12/23/92 - West Coast requests Roberts to improve
progress in order to complete fence work by the first week in March, 1993.
Fence work is only 40% complete.
West Coast Telegrams dated 3/12/93 & 3/24/93 - West Coast Contractors requests
a plan which will outline Roberts method of substantially completing the fence
work no later than 4/2/93.
McInerney & Dillon letter dated 3/31/92 Roberts' attorney proposes a five
(5) week completion schedule. West Coast indicated to Roberts' attorney that
this schedule was adequate.
Draft Agreement - This agreement was proposed by Roberts' attorney. Roberts
continued to work at the job site under the terms of this agreement, but
Roberts would not sign the agreement. At this time (5/10/93), Roberts has
still not completed the posts.
Payment Summary - A chronological summary of progress payments indicates
that
West Coast has always made payments in excess to the amount due to Roberts.
Liability-Insurance - Roberts did not have liability insurance from 7/27/92 to
3/24/93.
Contractor License - Roberts did not have a contractor's license from 8/31/94
- 3/24/93.
Subcontract Bond - Roberts agreed to provide a subcontract bond when he
executed the subcontract (Section 11 of the Subcontract) . After signing the
subcontract, Roberts could not provide a bond. West Coast waived the bond
requirement.
...........ismi tiot to aity iflainFILC LPU
Page 3 - Request For Subcontractor Substitution
It is anticipated that all contract work will be completed by May 17, 1993.
The following work remains on the punch list:
1) Window Screen (1 each)
2) Door Lockset (1 each)
3) Patch AC cracks
4) Fence Work
Sinc ly,
WE C AST CQTnRS, C.
Bru Fisher,
President
BWFljma
i
t
' •hrrn fully discharged and all claims arising therefrom have been fully pai
' `^'^• rc of claims or waivers 0
PAYMENT SUMMARY
Billing Roberts Date Paid
Period Earned Owner Check Check Check Roberts
Ending Earned Amount($) Payment Number Date Amount($) To Date
05/31/92 5% $ 3,796 06/26/92 13755 07/01/92 $ 3,796 $ 3,796
13924 01/17/92 $35,515 $39,311
06/30/92 15% $11,389 08/05/92 14182 08/10/92 $ 3,092 $42,404
07/31/92 25% $20,089 09/01/92 14434 09/08/92 $ 3,202 $45,606
08/31/93 30% $23,886 10/06/92 14522 09/18/92 $ 1,100 $46,706
14696 10/07/92 $ 1,883 $48,589
14698 10/07/92 $ 31
14697 10/07/92 $ 1,118 $49,738
09/30/93 45% $35,275 10/30/92 14933 11/06/92 $ 5,689 $55,427
10/31/92 55% $42,868 12/10/92 16026 12/11/92 $ 1,898 $57,325
11/30/92 60% $47,132 01/11/93 16350 01/15/93 $ 2,164 $59,490
(Backcharges) $ 1,640 $61,130
01/31/93 74% $57,762 03/08/93 15336 03/26/93 $ 2,992 $64,121
04/30/93 79% $61,559 (Not Paid) -- -- -- --