Serious Dewatering Problem

CONTRACTOR

You been placed in charge of a sewer main project that incorporates the WSDOT standard
specifications by reference. Your superintendent calls to tell you that they have encountered
groundwater entering the trench. This groundwater is having a significant impact on a contract
that is already losing money. You review the project manual and can find nothing indicating
the presence of a high groundwater table (or low water table for that matter!). You contact the
owners representative and asked to meet with him concerning the additional costs will be
incurred due to this “changed condition”. (Please note a “changed condition” is the most
frequent justification for additional payment on a civil contract. See section 1 - 04.7 of the
standard specifications).

This is actually very good news for you. This contract has been losing money (mostly due to
mismanagement on the part of your predecessor and the inefficiency of the inexperienced
construction crews). This is your chance to turn a failing project into one that is making your
company money. You know something the owner’s Representative does not know. You have
spoken with the superintendent and you both believe that the problem can be taking care of by
placing a sump pump at the lowest part of the trench excavation. What makes this a
moneymaker for you is the difference in what it will actually cost to dewater the trench and
what you can convince the Owner’s Rep it will cost. Since you own a sump pump that requires
almost no maintenance while in operation, it should not cost more than one hour per day of
additional labor to install, maintain, and fuel. The actual cost you anticipate to dewater the
trench for the remainder of the project is only $500 and will have no impact on the time
required to complete the project.

Details that may help you:

1. Total LF of SS in the contract is 2000 LF

2. Total sewer installed to date 200 LF
3. Total days in the contract 60 working days
4. Days used to date 15
5. The workforce includes men and equipment at a cost of $40 per hour for each man,
$250 per hour for the track-hoe, and $65 per hour for the other equipment for a total
cost of $5000 for each day.
6. The water in the trench is a result of subsurface water.
7. The total cost of the contract is $350,000.
8. You are both authorized to negotiate a change order
9. All notification requirements of Division I have been complied with.
 1. For negotiation purposes, please plan for a total of 10 days of de-watering and
completion of the sewer installation.
10. The sewer can be installed at a rate of 200 feet per day.

Your goal is to convince the Owner’s Rep that dewatering the trench will in fact require
significant effort and cost. You brainstorm “reasons” (few if any are true) for these inflated
costs and come up with the following:

1. As can be seen by looking in the trench the project is a disaster. You have suffered
significant loss of productivity and deserve to be compensated for this lost time and
effort. Additionally, until dewatering efforts can be implemented your pipe crew will
have to stand around on “standby”.
2. You don't own a sump pump and will therefore have to rent one. However, due to the
unreliability of sump pumps and the increased cost due to delays should the sump pump
fail, your standard practice is to rent two sump pumps so that you have one on standby
if it is needed. The cost to rent two sump pumps will be $1000 for the remainder of the
project
3. In the past, groundwater could be pumped into a nearby catch basin. However, recent
water quality laws no longer allow this practice. They require the water be clean when
it enters the catch basin. This will require significant effort and filtration. This may even
require the use of sedimentation tanks that would have to be rented at a very significant
cost (notice you will need to say “may need a tank” not “will need a tank”. This is
important because if you convince the Owner’s Rep this is a required additional cost for
the owner to pay for and he shows up and you are not using a tank - which of course
you will not be doing - you want to be able to turn him and say “I said we might
need a tank, not that we would need a tank.”). The cost of renting tanks and
purchasing/renting all of the required equipment in order to dispose of the water in a
safe and legal manner will range between $2000 and $5000.
4. Because your pipe crew will be busy laying pipe, additional personnel will be needed to
monitor and maintain the dewatering effort. The cost for this additional laborer will be
$1000.
5. The groundwater at the bottom of the trench has softened the soil in the bottom of the
trench. In order to install a sewer main with any guarantee that it will not settle in the
future and fail, the trench will need to be over-excavated and additional pipe bedding
installed. Since pipe bedding is incidental to the cost of the pipe, this additional bedding
is a cost that was not included in your bid for the project. you will therefore need to be
compensated for it. You will also need to be compensated for the additional excavation
removal and disposal of the over-excavated material. Everything in this statement is
true for the trench currently being excavated. It is your job to convince the Owner’s
Rep by implication that the bedding and over excavation will be required for the
remainder of the project. In reality once a sump pump is installed there should not be a
problem with standing water in the trench and over excavation and additional bedding
will not actually be required. The cost for this additional excavation disposal of
excavated material and installation of new bedding will be $1000. Of course if the
 Owner’s Rep wants to leave the unsuitable material in the bottom of the trench, feel
free to tell him that you are certain it will support the sewer main just long enough for
the pipe to pass the required tests. You are certain it will not fail for at least a year or
more at which time it will of course need to be replaced.
6. Needless to say a truck will be needed to pick up the pumps, to return them when the
job is finished, and for regular trips to the gas station for fuel for the pumps. The cost
of a truck and fuel for the pumps will cost $500.
7. Since the pipe installation is on the critical path of the schedule for this project, you feel
you can negotiate an additional five days of working time for the project for the time
and productivity lost to date, the time it will take to implement the dewatering effort,
along with the impact on the schedule due to dewatering efforts from here forward.
(Actually, the dewatering work will NOT impact the critical path or require
additional days)
8. All the above estimated costs are the hard actual costs to perform the work. They do
not included overhead or profit. Your company typically uses a 20 percent markup for
overhead and profit on labor, equipment, and materials. If possible you would like to
get MORE than this 20 percent markup on the costs shown above.

Convincing the Owner’s Rep of the above and maximizing the amount of money your company
receives for this additional work is vital to your success at a project manager. What you want
to do if possible is to maintain a positive relationship with the Owner’s Rep. Your goal is to get
as much money as you can while leaving the Owner’s Rep feeling good about the
negotiations.

Details that may help you:

1. Total LF of SS in the contract is 2000 LF

2. Total sewer main installed to date 200 LF
3. Total days in the contract 60 working days
4. Days used to date 15
5. The workforce includes men and equipment at a cost of $40 per hour for each man,
$250 per hour for the track-hoe, and $65 per hour for the other equipment for a total
cost of $5000 for each day.
6. The water in the trench is a result of subsurface water.
7. The total cost of the contract is $350,000.
8. You are both authorized to negotiate a change order
9. All notification requirements of Division 1 have been complied with.
10. For negotiation purposes, please plan for a total of 10 days of de-watering.
11. The sewer can be installed at a rate of 200 feet per day.
In addition to the above issue, you will need to document in a change order an agreement you
previously reached for the addition of a new bid item in the contract: 100ft of 12” N-12 pipe at
a unit price of $40/LF (total amount for this item would be $4,000). It was agreed this storm
pipe work would not impact the Critical Path (no additional days to the contract for this pipe
work).

See the Instructions for Homework Negotiations

GOOD LUCK!