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  2. Finance Committee - Agenda - 1/15/2020 - P133

Finance Committee - Agenda - 1/15/2020 - P133

By dnadmin on Mon, 11/07/2022 - 13:34
Document Date
Fri, 01/10/2020 - 11:24
Meeting Description
Finance Committee
Document Type
Agenda
Meeting Date
Wed, 01/15/2020 - 00:00
Page Number
133
Image URL
https://nashuameetingsstorage.blob.core.windows.net/nm-docs-pages/fin_a__011520…

SANBORN li HEAD

20 Foundry Street
i Building Trust. Engineering Success. Concord, NH 03301
Mr. Jeff Lafleur December 13, 2019
Superintendent File No. 3066.18
Nashua Division of Public Works, Solid Waste Department
840 West Hollis Street

Nashua, NH 03062

Re: | Review of Contractor Change Order Request from Charter Contracting Company LLC
Phase III Construction Project
Four Hills Landfill
Nashua, New Hampshire

Dear Jeff:

On November 27, 2019, Charter Contracting Company LLC (Charter) submitted their second
request (Change Order #2) for a change order for the Phase III Construction Project. As you
are aware, the City of Nashua (City) issued a $175,000 change order (Change Order #1) on
September 3, 2019 that was accepted by Charter on October 9, 2019. As requested by the
City, Sanborn, Head & Associates, Inc. (Sanborn Head) reviewed Charter’s Change Order #2,
provided backup information, and discussed the change order request items with
representatives of Charter.

This letter, prepared as required by Section 10.05 of the General Conditions of the Contract
between the City and Charter, summarizes Sanborn Head’s review of the change order
request.

CHANGE ORDER REQUEST

Charter’s Change Order #2 consists of two parts — quantity changes and an out-of-scope
work item. Charter’s cost summary, which includes their final contract price, is provided as
Exhibit 1. Charter provided additional information for the out-of-scope work item (Exhibit
2). Subsequently, and as part of resolving material quantity changes, as-built survey
information was provided by Charter to backup quantity changes presented in Change Order
#2.

The following addresses each of the Change Order #2 items as it is known as of the date of
this letter. Sanborn Head recognizes that increases to the contract value will increase
Charter’s performance bond. As such, for this review, bond increases will not be considered
on an individual pay item basis as sometimes presented in the enclosed exhibits. Rather, a
1.5 percent allowance for the performance bond will be added to the total contract increase,
if any. Also, as agreed upon during our review of Change Order #1, Charter’s rates were
assumed to be fully loaded, therefore any charged “overhead” was ignored.

SANBORN, HEAD & ASSOCIATES, INC. www.sanbornhead.com

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Finance Committee - Agenda - 1/15/2020 - P133

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