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Oak Ridge awards Veterans Honor Green Phase 2 contract to Parker Construction at $66,200; council caps contingency to match budget
Summary
After receiving four bids, the council awarded the Phase 2 construction contract for Veterans Honor Green to Parker Construction at a negotiated $66,200 and set a contingency cap so the project stays within the $70,180 available budget; the item passed after debate and a reconsideration motion.
The Town of Oak Ridge awarded construction of Veterans Honor Green Phase 2 to Parker Construction after the lowest responsible bid was value-engineered down to $66,200. The council also limited contingency so the total would not exceed the project budget of $70,180, which includes $20,180 raised by the special events committee and grant funds.
Town staff reported that four bids were received and the lowest responsible bid was initially $72,800; a value-engineered alternative recommended by the landscape architect reduced the contract amount to $66,200. Staff requested a 10 percent contingency in case of minor change orders; the project budget, however, totaled $70,180. Council members debated whether to accept a standard 10 percent contingency or to cap contingency to keep the project within the existing budget.
Courtney Harton, speaking for the Special Events Committee, said the committee had continued fundraising and that the project should not be slowed. Staff clarified the contingency would be town budget authority in case of change orders and was not a contractor request. After discussion, the council approved a motion to award the contract at $66,200 with the contingency limited so the total would not exceed $70,180. A later motion to reconsider the contingency passed and the item ultimately carried with a supermajority vote.
Town staff said construction could begin in May or June and the contractor anticipated completing the work in about 60 days. If the special events committee raises additional funds, the council would have to authorize use of those funds. The town’s landscape architect supported the value-engineered choice as appropriate for the site and for protecting nearby pines.
The council’s approval moves Phase 2 of the Veterans Honor Green project forward; staff will administer the construction contract and any change orders within the contingency cap approved by council.
