Title
Township Road 510, Range Road 50 to Range Road 51 - Budget Approval Request
Proposed Motions
1) That Council approve an additional amount of $383,244.22 of MSI funding, to an upset limit of $1,433,344.22, for Township Road 510, Range Road 50 to Range Road 51 (1.71Km).
2) That Council approve an additional amount of $569,600.94 of MSI funding to extend the current project limits identified in Motion 1) by 0.81Km for Township Road 510, Range Road 45 to Range Road 50. Assuming the additional funding identified within Motion 1) is approved, the new upset limit would be $2,002,945.16.
Body
Administration Recommendation
Administration supports the proposed motions as presented.
Purpose
Additional funding is required to be approved prior to awarding a 2017 Capital Road Project (Township Road 510; Range Road 50 to Range Road 51) as the tender process resulted in higher costs than what was approved within the 2017 budget. Engineering Services further proposes the project limits be extended to include the 2018 portion of the Capital work as a matter of efficiency and proposed cost savings. The tender prices are deemed to be competitive and the work can be accomplished within a single construction season; limiting time and energy required to manage one project vs two.
Summary
Engineering Services, with the assistance of Procurement Services, recently completed a construction tender process for Township Road 510 between Range Road 50 and Range Road 51. The results of the tender were within 2% of the pre-tender estimate completed by the project consultant. Prior to tendering the project, Engineering Services was aware that the pre-tender estimate was higher than approved budget however, a strategic decision was made to complete the tender process and return to Council a single time with confirmed values post-tender. The alternative was to go to Council for budget approval with a pre-tender estimate and potentially return to Council with a post-tender price OR ex...
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