City of North Miami Beach (“City”) issued an Invitation to Bid No. ITB-21-006-SG (“ITB”) for NMB Police Department Restroom Renovations. The City and Florida Palm Construction, Inc entered into an agreement for renovations to include demolition, modernization and efficiency of the men’s and women’s restroom and shower-room facilities in an estimated expenditure of $162,140 approved by City Commission on April 20th, 2021 by Resolution No. R2021-34.
Additional architectural drawings were needed to attain the required County permits for project completion and it was determined that due to supply chain shortages many materials, fixtures and furnishings had increased in cost or discontinued, coupled with an increase in labor cost since the award of the initial award fifteen months prior.
A cost review was conducted for the fixtures and furnishings which substantiated the cost increases in the change order for $80,224. The increased total in the amount of $242,364.00 is inclusive of the cost of labor and materials to complete the renovation project. This cost increase of 49.5%, is significantly lower than several responses received at the bid closing fifteen months prior.