Special Board of Aldermen 11-22-2021 Page 8
Laurie Ortolano
Well, it's not in the DPW package and it's not in the Finance package from Wednesday night. Not the amendment.
The boilerplate document is there but | really can't find the amendment that would have the specific language. So I'm
not certain what it means that the guaranteed maximum price as it is amended from time to time. That seems to me
to open a door to say that these costs can be adjusted. And here's my concern. When Harvey came and gave a cost
estimate in August to the DPW facility, they talked about how difficult a time it is right now. We all know that and they
were hoping that things would settle out and calm down. I'm almost done, right?
Chairman Dowd
Yes.
Laurie Ortolano
I'll sit down and continue with — go on.
Chairman Dowd
All right. I'll answer the guaranteed maximum price. | have a little familiarity since I've done 12 schools. The
guaranteed maximum price says as long as nothing changes, that's all you'll pay. It could be less because if it costs
them less to do the project, the city gets the money back or doesn't have to spend it. The force majeure means that if
they are unrelated circumstances that cause exceedingly higher prices. With a review of Legal and the vote of the
committee, we can try to help them get whole. Not necessarily have to but we have the ability to.
The other thing is as we go along if we make changes to their contract - if we change the design and it happens a lot
in school projects because they’re so big, it's usually minor things for the most part. Then it has to be approved by
whichever committees are involved before you can change the contract for the added cost.
Also as we go along, we've had this happen several times on the school projects, when we go to do things the items
come in under the cost that was estimated and we do a change to the contract, the city gets that money back. So
that's the changes for the guaranteed maximum price. Everything stays the same. That's what they build it for. Mr.
Griffin did you want to add anything about the contract?
John Griffin, CFO
| actually Mr. Chairman, | don't have anything to add. | think you're a nice job explaining it. | think it's always a work
in progress with these contracts and | think they'll be able to fit in the underneath the proposed amount - the amount
of the guarantee price. That's what | have to offer. Thank you.
Chairman Dowd
There is also contingency built into the guaranteed maximum price and that can cover things as necessary. But if it's
not used, that money comes back to the city or never spent. Are there any other questions related to that? Okay.
Again, testimony in favor? See none.
TESTIMONY IN FAVOR - None
TESTIMONY IN OPPOSITION
Laurie Ortolano
Laurie Ortolano, 41 Berkeley Street. Just to continue where | left off. So do we have force majeure clauses in our
contracts?
Chairman Dowd
All of them.
