Project: 3208 GLWA Oakwood CSO HVAC Upgrades

STATEMENT OF PROBLEM:

On the GLWA provided estimate form, CCC mistakenly included base bid budgets for roofing work within the allowance lines instead of in the base bid section. 

ROOT CAUSE:

Misinterpretation of the allowance bid category which was "Roof Repairs". Technically, the base bid roofing work that was required was roof repairs, however, the allowance portion was meant for T&M repairs needed beyond the base scope. 

COURSE OF ACTION:

CCC notified GLWA of the mistake before construction began but GLWA did not respond or take action. Much farther into the project, the GLWA division manager informed CCC that the money could not be moved to the base bid category because it may look fraudulent in an audit. Due to this, CCC was not able to directly bill for the base bid cost of the required roof repairs which was a direct cost of $271K. 

LESSON FOR FUTURE PROJECTS:

Prior to submitting bids, the allowance portions must be carefully reviewed to be sure the budgets are in their proper allocated sections.