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To: Board of Commissioners From: Jonathan B. Marshall, Deputy County Manager co Michael K. Downs, County Manager Date: 1/30/2018 Ra Raging Ridge Road Extension Close Out I have been corresponding with the NC Department of Transportation, including an in person meeting in October 2017, about a final close out of the Raging Ridge Road Extension project. There was a delay while they worked out final billing with the contactor and sent their close out documents to Raleigh. That has been completed and we have received the final billing in keeping with the agreement between NCDOT and the County. That billing is attached but I requested additional information on the cost overruns that resulted in additional funds requested from Cabarus County. That information was provided by Jeremy Sawicki an Assistant Resident Engineer in Division 10. The verbatim response is pasted below: "I apologize for this taking as long as it did. I will do my best to break this down. Let me preface this with the fact that I don't intend to insult anyone's intelligence, but I have worded much of this with the assumption that the audience you are providing this to is not familiar with this type of work/ vocabulary. Liquidated Damages - Original assessed damages for this contract were $20,000.00 for 20 days@ $1,000 per day beyond the intermediate contract completion date. Due to overruns ($24,362.70), pro rata was awarded to the contractor. Pro Rata was calculated as follows; $24,362.7/ contract bid price $1,444,444.44= 1.69% X contract days 425= 7.18 days. 8 days was awarded because 7.18 is rounded up due to the fact that any partial day is awarded as a full day. With 8 days being awarded to the contractor, this would reduce penalties to $12,000.00. Thus $12,000.00 was withheld from payment to the contractor. Overruns - The overruns to the physical work that took place on this contract was $24,362.70. Of this amount, $7,178.75 was price adjustments for fuel and asphalt content. This price cannot be controlled nor forecast, and is a dollar amount that must be paid to the contractor for market price Fluctuations on fuel and liquid asphalt after the beginning of the contract. The remaining $17,183.95 ($24,362.70- $7,178.75) is overruns to items of work that were performed in which more work was required than was estimated in the plans and the contract. Upon evaluation of the contract quantities, we believe that this added cost is in the additional borrow material that was required to construct the grade. To construct the roadway, this contact required 2,847.4 cubic yards of additional borrow material not accounted for in the original plan quantity. This was an additional cost of $31,321.40. There are other line items in the contact that overran and under ran, but I believe that these other items were either negligible or in some cases negated each other. The overrun of the borrow was the only quantity that substantially exceeded the original plan. The rest - In regard to the remaining amount of the invoice beyond overruns to the project ($34,241.96- $24,362.70= $9,879.26), 1 will not be able to break this down for you, as the only charges I have control/ knowledge of are related to the construction of the project and construction related administrative costs for personnel. As can be seen on pages 5 and 6 of the invoice Attachment number t \n F-1 Page 44