Levelland council hears wastewater plant bids $6 million over engineer estimate; no award yet

Levelland city officials on a meeting in April reviewed bid results for a planned wastewater treatment plant, were told two contractors submitted bids roughly $26 million — about $6 million higher than the engineers— most recent opinion of probable cost — and agreed to postpone awarding the project until the council reconvenes April 28.

The council was presented bid tabulation details by Park Hill engineers, who said 216 parties downloaded bid documents and 28 were registered general contractors but only two general contractors submitted bids: MH Veil Constructors (Amarillo) and Brown McKee Contractors (Lubbock). Park Hill—s lead on the treatment design described the disparity between prior cost estimates and the submitted bids and said permitting and market conditions contributed to the gap.

The difference matters because the project has already gone through a multi-year design and permitting effort. City staff told the council the wastewater fund has limited remaining reserves and bond coverage that will not absorb the full increase without additional financing or shifting other projects. The council directed staff to collect follow-up questions and return with options at the April 28 meeting.

Park Hill presented the project history and cost timeline: the original engineering opinion of probable cost from design-phase work in late 2022 was about $16 million; an updated opinion presented in January 2025 was about $20.4 million; the low and responsive bid amounts presented at the March bid opening resulted in a construction cost near $26 million. Park Hill said permitting delays and a tight contractor market reduced competition; the firm offered to reduce its remaining construction-phase profit (about $175,000) and to work at-cost on some remaining engineering construction-phase tasks.

Council members pressed the engineer and staff on options: rebidding, value engineering, delaying the project and possible financing. Park Hill and the low bidder indicated they could negotiate substitute equipment or other adjustments after award, but engineers said many bid items are necessary for long-term plant performance and public-health reliability. The council noted that rebidding carried the risk of receiving no bidders or establishing a higher new benchmark price.

No formal award or motion was made. Park Hill said bidders have held their bids through May 15 and will work with the city on post-award value engineering if the council chooses to award. Council members asked that questions be funneled to a single city point of contact before the next meeting.

Ending: The council left the matter open for further review; the item will return to the council for a decision on April 28. Staff and the engineering team will provide additional documentation and answers to council questions before that meeting.