Title:
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Approve the Unilateral Termination for Cause of Benchmark Construction Company, Inc., of Bartlett, IL - Country Club Heights Sewer and Water Main Replacement (CC-3999-21/TAD) and authorize the Purchasing and Contracts Division Director to execute the Unilateral Termination. District4- Lockhart (Lorie Bailey Brown, CFO/Resource Management Director) Requesting Department - Utilities
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Division:
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Resource Management - Purchasing and Contracts
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Authorized By:
Lorie Bailey Brown, CFO/Resource Management Director
Contact/Phone Number:
Robert Bradley/407-665-7111
Background:
On April 12, 2022, the Board awarded Benchmark Construction Company, Inc. of Bartlett, IL (“Benchmark”), the contract for the Country Club Heights Sewer and Water Main Replacement Project, in the amount of $3,873,725.00. The parties executed the Agreement on May 3, 2022, and the County issued a Notice to Proceed on June 13, 2022, with a contractual deadline of 540 calendar days to Substantial Completion and an additional 30 calendar days for Final Completion.
In 2023, through two change orders, the County granted Benchmark an additional 116 days, extending the Substantial Completion date to March 29, 2024, and the Final Completion date to April 28, 2024.
Prior to April 19, 2024, the County notified Benchmark of deficiencies, delays, and non-compliance with project specifications and industry standards. Then, on April 19, 2024, the County issued a memorandum of deficiencies to Liberty Mutual Insurance Company (“Surety”) and Benchmark relating to the same. The County requested a plan acceptable to the County for completion of the project without further delay. However, Benchmark was unable to provide a reasonable, sufficient, and complete action plan to complete the project in accordance with the agreed upon terms and to rectify deficiencies and delays.
As a result, on May 17, 2024, the County issued Surety a formal Notice of Breach for failure to meet contractual obligations and requested Benchmark and all of its subcontractors to vacate the project site.
The County has sought input from its engineer, as well as an independent consultant. Each have concluded Benchmark has failed to perform work in accordance with project and contract requirements.
Given the ongoing delays, failure to meet Project specifications, and the County’s lack of confidence in Benchmark’s ability to complete the project, staff recommends termination for cause.
Requested Action:
Staff recommends that the Board approve the Unilateral Termination for Cause of Benchmark Construction Company, Inc., of Bartlett, IL - Country Club Heights Sewer and Water Main Replacement (CC-3999-21/TAD) and authorize the Purchasing and Contracts Division Director to execute the Unilateral Termination.