Laserfiche WebLink
07 -13 -1994 15:23 612 636 1311 <br />Memorandum <br />1994 Street Improvement Project <br />Page 2 <br />BONESTROO & ASSC. P.03 <br />COST INFORMATION <br />The table attached to this memo compares the bids received with the prebid estimates of <br />the preliminary report and the engineer's estimate. <br />Comments on bids received: <br />The bids received compare adequately with the preliminary estimates when adjusted for <br />changes in scope (the addition of the trail). As such we expect final costs to be within <br />acceptable tolerance with the preliminary estimates. <br />However, the bid amounts are about 5 to 10 percent higher compared to our expectations <br />during a "normal" market. The higher price is due to the current oversupply of street <br />construction work. This oversupply has recently pushed the costs of street and utility work <br />higher than what has been typically experienced over the last 12 to 18 months. <br />Council could rebid the project in the spring in the hope that more favorable bid prices <br />would be received. Bids received in spring 1995 may be lower if the oversupply of work <br />dissipates as it typically does. The savings may be in the 5% range ($24,000). However <br />there is risk that the market may not be favorable. The primary risk would likely be <br />material prices - especially the cost of asphalt cement. <br />TIMING OF CONSTRUCTION <br />The work would commence in August with total completion in October. This schedule <br />would require road closure to school buses during the first month to six weeks of school. <br />If the work was rebid in the spring, the work would be scheduled to occur during the <br />summer school recess. <br />The disadvantage to postponing the project is the delayed benefits received from the project <br />- i.e. new street and trail. If the work is postponed, some patching and maintenance of the <br />existing street would be necessary. <br />Page 8 <br />