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AC School Board Special Called Meeting 20 Jun 2016 - REPORT Despite delays and consequent possible liquidate damages, the move in for the $1.7 million dollar facility and a coordinated razing of the old bus garage, is still doable before the start of school the second week of August 2016, Maintenance Supervisor David Jones says. Click on headline for complete story By Ed Waggener The Adair County School voted this morning to approve payment of $15,680, Pay Application #9 to Branscum Construction Company of Russell Springs, KY for its work as Construction Manager of the new Adair County Transportation Complex. The payment had been included in the Consent Agenda for the Thursday, June 16, 2016 regular meeting of the board, but was tabled when questions arose over delays in completion of construction and the question of liquidated damages claims was introduced. Representatives of Sherman-Carter Barnhardt, the architects, and Jonathon Smith and an associate of Branscum Construction were on hand for the meeting, as was the Adair County Board of Education attorney, Jeff Hoover, of Jamestown, KY. There were unforeseen problems along the way, including the installation of an underground electrical service behind the Adair County Primary Center. That installation proved unacceptable to Taylor County Rural Electric Cooperative. The line had to be relaid along Col Casey Drive at a cost of $50,000. Branscum Representatives noted that during the early days they had to work using generators to provide power to the site. Mike Smith of Sherman-Carter-Barnhardt noted that none of the cost for the electrical generator used was borne by Branscum. Both the architect's representatives and the board attorney advised the board that clauses in contracts for liquidated damages in delays for completion of projects had to be real, actual costs sustained because of the delay. In practice, they are not punitive, they said. Board Member Mike Harris took the same position. "We have a fine new facility," he said, adding that the plan to move in will happen before the start of the school year, as had always been the plan. Advising to pay remaining bills, he advised, "Move in. Move on. Get on with it." Board Member Terry Harvey argued that there had been real costs in the delays. "We've (the board and administration) have been tied up with this project when we needed to focus on other projects." Supt. Alan W. Reed echoed that opinion, saying, "My primary job is to improve the education of our students. If I'm tied up, as I have been on this project using time which should be spent on academics, then it is a real cost to the district and compensation for those costs and those costs should be reimbursed." Branscum, as construction manager, receives 15% of all costs, including cost overruns. For the $50,000 added cost of the relocation of the buried electrical service lines, for instance, they were paid an additional $7,500. Another bone of contention with the firm was that a "final walkthrough" checking items on a punchlist, had not been done. Representatives of the construction firm and the architects said that such a final walkthrough was not an absolute necessity, that with both parties, acting in good faith, would complete a project and turnover without the walkthrough. David Jones said that it was a policy of the school board to conduct the a walkthrough with both the architect and the construction manager before signing off to accept the building and complete the final payments. There is, the architects said, a one year warranty on the work, the Construction Manager would be obligated to make sure any deficiencies were corrected within that period. At the close of the meeting, the architects, representatives of Branscum, and David Jones, Maintenance Director for the School system conducted the walkthrough. Mr. Jones said that it went well. "There are a few minor things in front of us, but only one, the installation of the oil dispensing unit, which Barnes Plumbing is scheduled to do this week, which stands in the way." Jones that that he expected Bob Barnes to complete the installation within two or three days. We hope to move in as early as Thursday of this week, he said. Jones said that the construction manager also satisfactorily agreed to work out delivery of keys, which had not been done before. Still be be reconciled is the issue of the final payment for the final payment, including retainage, which totals $64,000 and whether any part of that will be deducted for liquidated damages. In the Thursday, July 16, 2016 Board Meeting, Board Member Terry Harvey had mentioned a calculation of $50,000 - and climbing - amount for liquidated damages. Whether that figure will prevail, or whether any liquidated damages are paid for the delay in delivery of the finish facility appears to be one for negotiation. Mr. Hoover told the board that it would be up to them to decide whether to seek liquidated damages or not, but that, at this special called meeting further discussion of that matter would not be proper, that it would need to be brought up in another meeting. That would have to be one called for that specific purpose or in a regular meeting, where adhering to a strict published agenda is not so strictly defined. Prospects for new school year Mr. Jones said that the logistics for the move from the old J.T. Coomer Bus Garage to the Adair Transportation Complex should, with no unforeseen circumstances, take place this summer and be complete before the start of the new school year the second week of August. He said that demolition of the old garage before the start of school should also be probable. Already, estimated figures for the demolition have been obtained, and it appears that costs will be relatively low, well below the minimum required for proceeding with a formal bidding process - and that work at the demolition site will be over before the start of school. This story was posted on 2016-06-20 15:04:18
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