September - University of Nebraska

PROJECT COST: $57,700,000
Two unforeseen conditions were experienced in the campus utility
distribution system during the summer of 2007 that complicated and delayed
construction and resulted in claims for additional compensation from the
contractor.
The first claim is related to a requirement in the contract documents to
isolate and remove two chilled water lines, located on the north side the
Sorrell Center, from the main campus chilled water loop prior to the
construction of extensive retaining walls and terraces. Faulty valves in the
loop made isolation of the lines as specified impossible without risk to the
campus. An alternate approach to the problem was found, but required
delay of all site construction on the north side of the building from late 2007
until 2008 resulting in a claim for additional site construction cost.
The second claim is related to delays in extending campus steam and chilled
water to the Sorrell Center from the East Utility Plant. Unforeseen
underground utility conditions greatly complicated and delayed the
installation of steam and chilled water lines, along with poor weather
conditions and extensive delays in rerouting public utilities. These
conditions resulted in providing steam and chilled water to the building later
than planned resulting in a claim for rescheduling interior finish and
mechanical work.
After review of the two claims, UNMC and the Kiewit Building Group have
agreed that additional construction costs were incurred. The recommended
change order in the amount of $415,000 can be accommodated within the
original project budget; it will not require a project budget increase or
budget reallocation.
Construction Start: June 2006
Projected Construction Complete: August 2008
ON-GOING FISCAL
IMPACT: Operating and Maintenance (FY 2006/2007) $ 1,411,566
1% Total Assessment 577,000
SOURCE OF FUNDS: Donations and Other Funds $57,700,000
SPONSOR: Donald S. Leuenberger
Vice Chancellor for Business & Finance
RECOMMENDED: Harold M. Maurer, M.D., Chancellor
University of Nebraska Medical Center
DATE: August 14, 2008