On Tuesday, the Virgin Islands Port Authority held its monthly board meeting and approved a $2.6 million change order with AT Construction Solutions for the CEKA Parking and Transportation Center project.
Five board members approved Change Order No. 4, granting $2,623,849.18 and a six-month time extension, as a means of equitable adjustment, to AT Construction. With the additional $2.6 million, the Parking and Transportation Center project contract with AT Construction has been raised from $29,066,027.52 to an overall value of $31,689,876.70. Preseton Beyer, director of engineering for the Port Authority, said that certain items related to costs incurred above and beyond the existing line-item costs from change order negotiations that occurred last August.
“On March 16 and 17, 2023, AT Construction Solutions submitted change order applications number 4, 5, and 6 to VIPA in the combined amount of $3,648,396.08,” said Beyer. “These three change orders cover the following items: time and cost impact of lead-based paint, escalation of costs due to previous time adjustments to the contract, and time and cost impact of slag supply chain disruption.”
Port Authority consultants Kimley-Horn and Associates, their project team, and a construction change order specialist unaffiliated with the project reviewed the change orders and determined that the proposed costs and time requests were reasonable and justifiable. However, a mutually equitable adjustment was made and the $2.6 million and six-month time extension were proposed.
Beyer said that while there is no provision in the contract that allows for the payment of escalation costs, the costs incurred associated with the change in market conditions were a reasonable accommodation that would ensure that the project could progress in a time-effective and efficient manner.
Board member Celestino White Sr. questioned whether it was an unavailability issue or a quality issue regarding the materials for the project.
“Part of the issue had to do with the supply chain,” said Executive Director Carlton Dowe.
Beyer added that it was the unavailability of raw materials for concrete that caused the adjustment.
The project is now slated to end on Dec. 31.
Members Derek Gabriel, Willard John, Kevin Rodriguez, Leona Smith, and White were present and voted to approve the change order.
