HomeMy WebLinkAboutIR 8720INFORMAL REPORT TO CITY COUNCIL MEMBERS
To the Mayor and Members of the City Council
SUBJECT: ZIPPER BUILDING RENOVATIONS
No.
October 18, 2005
Page 1 of 1
This informal report is to inform Council that we will not be executing a construction contract with
Coronado Builders, the contractor initially selected for the Zipper Building renovation project. Just
prior to arriving at an agreement on the guaranteed maximum price for the project, we learned that, due
to severe financial difficulties, Coronado would not be able to acquire the required performance and
payment bond. Coronado proposed a joint venture arrangement with another local contractor that
would allow the project to be bonded, but such an arrangement would open us up to potential bid
protests since the joint venture is not the entity that was selected for the project.
This situation will adversely affect the project schedule, delaying the renovation work by 2 — 4 months.
Additionally, due to the volatility of construction materials prices in the wake of the recent hurricanes,
the delay experienced could also result in increased costs. These potential impacts do not justify taking
on the risk of contracting with a firm experiencing significant financial duress, and doing so in such a
way that exposes us to a bid protest. Either a contract default due to financial instability after the start
of construction, or a bid protest scenario could lead to problems even greater than those associated with
acquiring a different construction contractor at this point in the process.
Staff will work quickly to develop an alternative means of completing the project and will expedite the
execution of the alternative process as much as possible. A revised schedule will be promulgated as
Soo" it's devel ed.
Charl R. Boswell
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH. TEXAS