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File #: 170500.    Version: Name:
Type: Staff Recommendation Status: Passed
File created: 10/24/2017 In control: City Manager
On agenda: 1/6/2022 Final action: 1/6/2022
Title: Approval and Ratification of the S.E. 4th Street Reconstruction Takeover Agreement (B)
Attachments: 1. 170500_Takeover Agreement DAB-Western #647 - Gainesville_FINAL_20220106
Related files: 210557.
Title
Approval and Ratification of the S.E. 4th Street Reconstruction Takeover Agreement (B)

Explanation
D.A.B. Constructors, Inc. (“D.A.B.”) entered into a contract with the City of Gainesville for the S.E. 4th Street Reconstruction Project on January 12th, 2018 (legislative #170500). On July 28th, 2021, D.A.B. sent a letter to the City of Gainesville defaulting on the contract and invoking the Surety Performance and Directions Regarding Future Payments (Default Notice). Western Surety furnished the Public Construction Bond No. 30021214 (Bond) in the amount of $5,010,328.88 with D.A.B. as the Principal and the City as the obligee.

The City negotiated with Western Surety and executed a Takeover Agreement, in the interest of time to complete construction and abate disruptions to the neighborhood and to traffic. Western Surety has retained a Completion Contractor to fulfill the requirements of the Takeover Agreement. The original terms and conditions of the contract remain in place except as noted in the Takeover Agreement. The Completion Contractor must deliver the original final project as approved by the City Commission.

Fiscal Note
The total authorized amount of the contract, including retainage, additions and deductions, is $4,969,024.91. D.A.B. has been paid $3,152,490.42 to date. The City will assess liquidated damages in the amount of $100,000 as well as receive payment for incurred costs related to corrective or remediation work and site maintenance on the project in the amount of $22,656.15. The City agrees to pay Western Surety the contract balance as work is completed subject to the terms and conditions of the original project. The current contract balance is $1,478,868.09. These numbers are subject to minor changes as the City is still performing site maintenance which is billable to the project.

Strategic Connection
This project is related to Goal 3: “A Great Place to Live & Experience”. It aids in objective 3. Revitalize eastside nei...

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