THE PUBLIC WORKS DEPARTMENT/FACILITIES MANAGEMENT DIVISION RECOMMENDS APPROVAL OF THE ABOVE MOTION.
On April 22, 2014 (Item No. 31), the Board of County Commissioners approved the open-end contract between Broward County and Allied Contractors, Inc., (Allied) for Job Order Contract, Bid No. T1144107B1. Under the agreement, Purchase Order FMD0000557 was issued for the Medical Examiner North Building Roof Replacement Project for the total amount of $352,015 and a total time of performance of 173 calendar days, including 83 days of approved time extensions due to inclement weather. On March 24, 2016, Facilities Management Division staff issued a Notice to Proceed to Allied requiring the work to be completed by June 21, 2016.
Design services for the roof replacement project were provided by roofing and waterproofing consultant A/R/C Associates, Inc. Consequently, on May 11, 2016, the Facilities Management Division issued Purchase Order FMD0000217 to A/R/C Associates, Inc. to provide project administration services, which included attending progress meetings, generation of punch list tasks, project acceptance, warranty documents and in-process project inspections.
On April 27, 2017, 288 days after the time for performance, Allied finally reached substantial project completion (Exhibit 1). However, between March and April 2017, the Facilities Management Division in conjunction with the roofing consultant, A/R/C Associates, Inc., issued 13 Notices of Non-Conforming Work. The notices identified a variety of installation defects and provided references to the appropriate contract section pertaining to the specification. Allied was required to respond within three calendar days of receipt of the Notices of Non-Conforming Work. To-date the County has not received an official response to any of the notices.
In May 2017, the Facilities Management Division conducted quality assurance tests on the new roof. The results revealed that of the nine different roof locations that were tested, eight failed. Upon notification of the failed quality assurance tests, Allied contested the test method used and requested that the Facilities Management Division retest all locations using an alternate test method allowed by the contract. However, results from the second, alternative quality assurance test showed failures at the same eight out of nine test locations.
Due to non-conforming work, failed quality assurance tests and other extenuating issues such as unfinished work which caused damage to the building, the Facilities Management Division has denied all payment requests except for Pay Request No.1 for $74,780 less 10% retainage.
In October 2017, Allied filed a lawsuit against the County for non-payment for work performed. However, on February 1, 2018, the lawsuit was dismissed by the Circuit Court of the Seventeenth Judicial Circuit, Broward County, Florida.
On December 19, 2017, the Facilities Management Division sent a certified letter to Allied, notifying them of Broward County’s Intent to Terminate Agreement for Cause pursuant to Section 12 (b) of the contract (Exhibit 2). The surety company representing Allied Contractors, Inc., Capitol Specialty Insurance Company, was included in the notice.
On December 29, 2017, Allied responded to the Facilities Management Division's Intent to Terminate Agreement for Cause with a proposed work plan to rectify the issues (Exhibit 3). The Facilities Management Division and A/R/C Associates, Inc. reviewed the plan; however, it was determined to be insufficient as it did not include a viable work plan for correcting all deficiencies.
On January 29, 2018, Capitol Specialty Insurance Company responded to the Facilities Management Division's Intent to Terminate Agreement for Cause. The surety requested information and stated that its performance obligations will not be initiated until the contract is officially terminated for default (Exhibit 4).
On May 9, 2018, the Facilities Management Division sent a memorandum to the Purchasing Director with a recommendation to terminate the agreement with Allied (Exhibit 5). If the recommendation to terminate is approved, the Facilities Management Division will pursue Allied's performance bond for the correction and completion of the Medical Examiner North Building roof. |