HomeMy WebLinkAbout1976 03-31 Engineering firm answers charges on cost overruns THE REVIEW Engineering firm answers'1 9760
charges on cost overruns
by Scott Carlson renegotiated rate of 165 percent for field At the Feb. 12 meeting, Bruton
Certain cost overruns and time delays work and 150 percent for office work.But speculated that a firm could come up with
in construction of some road projects in the firm agreed to accept a compromise a low rate knowing that at some future
Maplewood under the Howard,Needles, of 150 percent for both field and office time that it wouldn't be adequate.
Tammen and Bergendoff engineering work with the understanding the firm's Rottinghaus,in his letter to the city,
firm were unavoidable, according to a travel expenses for permanent personnel stated that allowing for renegotiation of
company spokesman. would be taken care outside of the surcharge rates can be beneficial for both
B. H. Rottinhaus,spokesman for the agreement. the city and consultant.
firm,made that formal response,in a Maplewood city councilmen appeared "The consultant can more accurately
letter to a city official, after the satisfied with the new renegotiated estimate his cost for each year and need
Maplewood city council balked at the agreement which affects certain north- not add a contingency as protectionfrom
firm's attempt in February to renegotiate south road projects expected for com- unknown factors," Rottinghaus stated.
rates for certain engineering projects pletion this year. "In turn the city can readily comprehend
including Beam Avenue. But they also indicated a strong interest the reasonableness of the surcharge rates
Mayor Robert Bruton, in particular, in having as much work performed by the knowing that charges are not overinflated
was concerned that there was nearly a city's own engineering department at the outset in anticipation of inflationary
$60,000 cost overrun on a particular Beam whenever possible. trends over the period of project of some
Avenue contract. And the tenor of the In addition Councilman John Greavu duration."
council's Feb.12 discussion was that the suggested that the bigger projects might
engineering firm was derelict in per- be put out for bids."I know we're in an The increase in the surcharge rate from
milting the occurrence of certain time impasse here but in putting up the big 140 to a 150 percent will apply to the
delays and overruns in cost. projects we should look to see if we can following projects: Woodlyn, Lydia,
BUT ROTTINGHAUS,IN HIS letter to get bids from somebody else,"he said. Beam, Ariel and Radatz and some
Maplewood public works director Robert Collier said that no formal bidding has miscellaneous engineering and planning
Collier,stated,"Most project delays are taken place in the past but the city has services.
essentially beyond the control of the negotiated for some agreements with Some projects have very little work left
engineer. The delays are ordinarily other firms in the past. and so the surcharge rate on the Beam
caused by one or more of the following:by He said that Howard,Needles,Tammen Avenue improvement,from Chippewa to
lack of right of way or construction and Bergendoff were selected for the Bellaire and Hazelwood to Highway 61
easement,inclement weather,and labor Beam Avenue project because of the will not be adjusted.
disputes. firm's diversified staff.
"In addition,multiple contracts for a Bruton indicated that educating the Although the surcharge increase from
single project and sequential construction council may help since"we have no way 140 to 150 percent would seem to be a tt
to suit available funding tend to lengthen of knowing whether $360,000 (for the percent increase it is more like 4 percent
schedules,"Rottinghaus added. Beam contract)is a good deal or a bad since it covers a two year period,Rot-
Originally the firm was asking for a deal." tinghaus stated.