Council learns reasons for Parkside delay in work session

by Mary Coblentz
The Wellman City Council held a work session prior to Monday night’s regular meeting to discuss issues with SG Construction concerning the Parkside Activities Center, which is expected to be completed and open in January.

This was the hardest set of drawings that I’ve ever been involved with

The discussion centered around the possibility of liquidated damages for the delay of the opening, which was originally scheduled for August 1, 2009. In the contract with SG Construction, the city has the right to assess $500 per day liquidated damages after August 1. It is expected that the project will be completed approximately 160 days later than planned.
SG Construction co-owners Dan Massner and Ron Massner addressed the council regarding the delay.
Dan Massner noted that the weather had been very rainy and very snowy, with nearly 25 more inches of rain than average. Also, there were delays with getting the building drawings completed in a timely manner. SG Construction works with Butler Buildings, a company in Australia which designs and manufactures prefabricated buildings. Massner stated that he has had a very good working relationship with Butler over the years, and this delay was very unusual for the company.
The delay in getting the building drawings was nearly five months, and Massner explained that the suppliers and subcontractors had been planning on an earlier start date and some had other jobs lined up.
While working with Butler Buildings, Shive-Hattery architect Brian Gotwals said there was a lot of “back and forth” which took time, and several issues were discovered including a contradiction in the building code regarding occupancy.
Gotswald said, “This was the hardest set of drawings that I’ve ever been involved with.”
Council member Bob Goodrich noted that he and others in the community noticed that there was no work done “on nice days – Fridays and Saturdays.”
Massner explained that his crew worked four 10-hour days per week, and he didn’t have additional money in the budget for more man hours.
Council member Matt Latcham asked if the change orders for the project added days. Gotwals explained that many companies do request more time along with additional money for changes, but SG Construction did not request any additional days.
Massner noted that SG Construction tried to get the project done in a timely manner, and even delayed part of the construction at the request of the city to accommodate the city’s July 4 celebration.
The council will consider the matter at a future meeting. Massner told the council that his company has never paid liquidated damages, and it has never been involved in a lawsuit for liquidated damages.
During the brief regular meeting, the council:

• held a public hearing on the city’s hazard mitigation plan. There were no oral or written comments;
• passed a resolution to adopt the hazard mitigation plan;
• thanked council member Goodrich for his eight years of service. This was Goodrich’s final meeting as a council member. He chose not to run for reelection. Goodrich said, “Wellman has turned in a positive direction, and I hope it continues (that way). He said that one of the most positive things that happened in Wellman while he was in office was the nearly 90 percent voter approval for the Parkside Activities Center;”
• heard from Allen Leichty who said that the city needs to look to the future when deciding about the possible liquidated damages against SG Construction. He said there will other projects in Wellman and, “I don’t want to burn bridges. It would be these gentlemen I’d want to come back and bid on projects;” and
• heard from Tom Buckwalter regarding concerns that the Parkside project may not be finalized in time to utilize all the Vision Iowa grant money. City Administrator Dave Ross said that he has looked into the figures, and believes the city will meet the requirements. However, the issue is something that will be closely monitored.

The council also approved some change orders and rejected some:

• A change order for $137.55 to reconfigure the sprinkler system in a storage area was approved. This change was required by the fire marshall;
• A change order for replacing lights with another type of light in the men’s locker room was rejected;
• A change order for $4,410 for curb and gutter at the base of the retaining wall was rejected. Ross explained that the work had already been done, but the cost was “much more” than it should have been;
• A change order for $1,650 for a shadow box fence for the trash area was rejected at Ross’s recommendation. Ross said he didn’t think a wooden fence was needed when there was a cement wall and trees already in the area;
• A change order for $2,551.65 for over-excavation for water issues was approved;
• A change order for $4,882.50 to move guard rails to the right height was rejected. Ross said the proper height was specified in the plans and “It’s not up to the city to (fix) their mistake;”
• A change order for $787.50 for river rock between the retaining walls was approved;
• A change order for $1,732.50 to extend the guard rail system to the childcare area was approved;
• A change order for $5,384.73 for changes to the mechanical system was denied until more information is received;
• A change order for $658.35 to redo wiring and put a pendant light over the pool table was approved; and
• A change order for $438.90 to paint between the double doors was approved.

Ross said these change orders add $6,306.45 to the project, bringing the total change orders to approximately $167,000. The city budgeted $250,000 for the change orders.