25th Avenue Grade Separation Closeout Change Order - Contract Change Order #244

Sep 12, 2026

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Closeout Change Order details for the 25th Avenue Grade Separation Project (17-J-C-048) summarizes the project background, including contract award in 2017 to Shimmick/Disney JV, subsequent budget reset in February 2021, and management of completion to the revised budget. It explains prior change orders, disputes over subcontractor escalation and time-related overhead claims, and the negotiation timeline from March 31 to May 3, 2022. A final settlement reduces additional payment, proposing Contract Change Order #244 for $5,774,764.15 to remain within budget without new funding.

LanguageEnglish

CategoryPresentations

FormatPDF

Pages7

Reading Time3 min

AccessFree to download

Closeout Change Order

Project Background

Project Status

Change Orders and Claims

Close-Out Negotiations

Contract Settlement

Recommendation

Closeout Change Order 25 th Avenue Grade Separation Project 17-J-C-048 Project Background • The Project was awarded in 2017 to Shimmick/Disney JV (SDJV) at a total contract value of $82.89 million, as part of an overall Project Budget of $180 million inclusive of District and other costs • In February 2021, the JPB Board approved resetting the Project Budget to $205.9 million, inclusive of contingency, based on several issues and remaining risks faced by the Project • Additional costs to finish the Project were contemplated in the new budget at that time • A strengthened Project Team led by a new Project Manager has since been managing completion of the Project to that budget • This current proposed change order is the result of the effort to thereby close out the Contract with SDJV within budget Project Status • The Project has reached substantial completion with all SDJV work, including “punchlist” work, now completed Change Orders and Claims • Previous change orders were issued to SDJV for various design changes, differing site conditions and utility conflicts but did not include compensation for subcontractor labor and material escalation as well as for new field instructions from JPB to resolve various issues • In addition, over the last few months, SDJV filed claims based on their view of additional Time-Related Overhead incurred as well as costs incurred by them which they claim were due to inefficiencies in completing additional work Close-Out Negotiations • In order to avoid additional administrative and overhead costs and stay within budget, the Project team engaged SDJV in a series of negotiations with the goal of agreeing on a comprehensive close out settlement agreement • Following a comprehensive exchange of information and clarifications, a series of negotiation sessions were held between March 31, 2022 and May 3, 2022 • JPB requested and received from SDJV additional requested documentation and analysis to justify their claims Contract Settlement • A final agreement was reached whereby SDJV and JPB agreed on a significant reduction in total additional payment due to the Contractor • The proposed change order will be for the value of $5,774,764.15 • The proposed settlement and change order will result in the Project staying within budget • No change in funding (from San Mateo TA, City of San Mateo, HSR, and Caltrans via the CPUC Section 190 Grade Separation Program) is proposed and no JPB funds will be required Recommendation • Approve the issuance of Contract Change Order \#244 (Project Wide Global Settlement) totaling $5,774,764.15 . • This will keep the Project within budget and eliminate exposure to any additional construction costs and unnecessary overhead costs.

FAQs

What is the purpose of the proposed closeout change order?

To close out the contract with Shimmick/Disney JV within the revised budget through a comprehensive settlement and issuance of Contract Change Order #244.

What was the negotiated value for Contract Change Order #244?

The proposed change order value is $5,774,764.15.

How does the proposal address budget and funding requirements?

The settlement and change order are intended to keep the project within budget without changing funding sources and without requiring additional JPB funds.

Sep 12, 2026

Upload by Franzy