Title
Request to cancel tender 12-06 for the Upgrade of Parkland Drive from West of Highway 770 to East of Range Road 21(S).
Proposed Motion(s)
That Council approve the cancellation of Tender No. 12-06, Parkland Drive, Highway 770 to Range Road 21(S), Grading Granular Base Course, Asphalt Concrete Pavement and Other Work due to 2012 budget limitations and to re-tender the project in 2014.
Body
Administration Recommendation(s)
Administration supports and requests that Council approve the proposed motion.
Purpose
Administration believes that postponing the project will increase opportunities to find borrow material at a better price than currently offered by the private sector through the Contract/Tender process.
Summary
On August 14, 2012 Parkland County received six (6) bids for the subject project that ranged from $6,254,119.00 to $7,569,207.35 plus GST. The lowest bid received is $3,154,119 over the amount allocated in the 2012 budget.
The quantities for borrow excavation went up significantly since the budget was presented to Council in 2011 with ongoing changes of the slopes and ditch profiles. Also, as we were unsuccessful in securing borrow sources from adjacent properties, we hoped that delegating this responsibility to the contractor would be insignificant as compared to moving the tender to a later date.
Unfortunately, the unit prices presented were over budget and too high to be considered acceptable.
We believe the contractors encountered a situation that was similar to the one we faced and were unable to secure a source of material during the tender stage. As a result, contractors may have had no other choice but to increase the price for the supply and placement of borrow material.
By canceling this tender, Administration will have more time to find a suitable source will that minimize these risks and lower the unit price that is directly related to the haul and placement of borrow material.
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