Agenda 01/28/2025 Item #16K 4 (Approve an Amendment to a mediated Partial Settlement Agreement with Quality Enterprises USA, Inc)1/28/2025
Item # 16.K.4
ID# 2025-211
Executive Summary
Recommendation to approve an Amendment to a mediated Partial Settlement Agreement with Quality Enterprises USA,
Inc., concerning Design-Build Agreement No. 20-7708, pertaining to the construction of the Veteran’s Memorial
Boulevard Extension Phase I project, and to authorize the Chairman to sign the attached amended Partial Settlement
Agreement.
OBJECTIVE: To approve the attached Amendment to a mediated Partial Settlement Agreement concerning final
project closeout documents and remaining retainage payment on the Veteran’s Memorial Boulevard Extension Phase I
project.
CONSIDERATIONS: On October 27, 2020 (Agenda Item 11.A), the Board approved Design-Build Agreement No.
20-7708 with Quality Enterprise USA, Inc. (“QE”), for the Design-Build of the Veterans Memorial Boulevard Extension
Phase I (the “Project”) from Livingston Road to the Collier County Schools District’s new high school site Aubrey
Rogers High School (“ARHS”) in the guaranteed maximum price of $10,065,000. Under the Agreement, QE was
responsible for both the design & construction of the following items: enhancing signalized intersections at Livingston
Road & Veterans Memorial Elementary, a new intersection at ARHS, widening of existing roadway from Livingston
Road to the Secoya Reserve Community, a new construction of a divided four lane roadway connecting to the new
ARHS, full length shared use paths on each side of the roadway, drainage improvements, construction of a wet detention
pond, several dry detention ponds, & preparation for the installation of a sound wall along the Imperial Golf Club
community.
On April 23, 2024 (Agenda Item 16.K.8), the Board approved a Partial Settlement Agreement (the “PSA”) with QE to
settle and resolve the following disputed issues: (1) the actual date of substantial completion (QE contended it is May
30, 2023, and the County contended it was July 25, 2023), (2) reimbursement of Payment Application No. 24, dated
January 18, 2024, submitted by QE for undisputed work, primarily because of the inability to resolve the previous
substantial completion issue, and (3) addressing any remaining deficient or repair work that needed to be completed by
QE, which was largely contingent upon dry site conditions and memorialized in a Punch List attached to the PSA.
This proposed Amendment to the PSA arises, in part, because QE was unable to complete the Punch List work by the
time agreed upon in the PSA because the site conditions were too wet. The work has since been completed and accepted
to the satisfaction of the County. The attached Amendment to the PSA extends the deadline QE originally had to
complete the work through the date that the work was actually completed and accepted by County staff. By extending
that deadline, the County will be able to reimburse QE the remaining retainage amount of $130,000 that was withheld as
part of the Board approved PSA. Additionally, the Amendment to the PSA also includes an additional 10-year
warranty from QE to the County covering the following drainage-related structures where video inspections failed to
provide clear footage of the completed work: (1) Control Structure CS-1, (2) Pipe Runs S139-S138, S133-S134, and
Mitered End Sections (MES) S135 and S126 (Pond 1). This extended warranty represents a material benefit to the
County covering critical drainage structures.
Approval of the Amendment to the PSA will resolve the remaining issues that were mediated and memorialized by the
parties in the PSA. To move the construction of the project to conclusion, the parties reserved a separate disputed claim
asserted by QE concerning reimbursement for additional embankment fill material that QE contends could not have
been anticipated by the design criteria provided by the County (the “Embankment Claim”). The parties have engaged in
informal good faith negotiations concerning the Embankment Claim and will be bringing the proposed resolution of that
issue back to the Board as a separate future agenda item in a Final Settlement Agreement, which will resolve all issues
pertaining to this project.
In summary, the attached Amendment to the PSA extends the deadline that the parties originally agreed QE had to
complete the Punch List work, which it could not timely complete due to weather conditions out of its control. By
extending that deadline, the County will be able to reimburse QE for the completion of the Punch List work by remitting
the retainage that had been withheld as required by the PSA. Finally, QE is also providing the County with an extended
ten-year warranty covering various drainage control-related structures, which otherwise would only be covered by a
one-year warranty. The County Manager’s Transportation Engineering staff recommends that the Board approve the
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1/28/2025
Item # 16.K.4
ID# 2025-211
attached Amendment to the Partial Settlement Agreement as stated above.
FISCAL IMPACT: The Amendment to Partial Settlement Agreement does not present any additional financial impact
not otherwise authorized in the Board approved Agreement, as amended by previous change orders.
GROWTH MANAGEMENT IMPACT: There is no impact to the Growth Management Plan related to this action.
LEGAL CONSIDERATIONS: This Settlement Agreement has been reviewed and approved by the Collier County
Manager’s Office and the County Attorney’s Office. This item is approved as to form and legality and requires majority
vote for Board approval.
RECOMMENDATIONS: That the Board approve the attached Amendment to Partial Settlement Agreement with
Quality Enterprises USA, Inc. concerning Design-Build Agreement No. 20-7708 pertaining to the construction of the
Veterans Memorial Boulevard Extension Phase I project and authorize the Chairman to sign the attached amended PSA.
PREPARED BY: Scott R. Teach, Deputy County Attorney
ATTACHMENTS:
1. Amendment to Partial Settlement Agreement
2. Partial Settlement Agreement - Quality Enterprises Board Approved 04.23.24
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