Delavan awards $8.43 million library expansion contract to Corporate Contractors Inc. amid debate over bidding error

Delavan officials awarded the Delavan Library expansion contract to Corporate Contractors Inc. (CCI) on a voice vote after weeks of review of bids and follow-up legal and technical checks. The award covers the base bid of $8,282,900 plus Alternate No. 3 for elevator modifications, bringing the total to $8,433,300.

The decision matters because the apparent low bidder reported a substantial arithmetic omission in its bid that reduced its tabulation by roughly $320,000 (about 4.6% of the bid total). That prompted extended discussion among the library board, the finance committee and the common council about whether CCI should be allowed to withdraw the bid, be held to the submitted price, or be rejected for not being a “responsible” bidder.

Christy Monk of FEH Design, the project architect, told the joint meeting that Corporate Contractors Inc. had informed the city it would “honor their bid” and that, based on searches and correspondence, the firm appeared to meet statutory requirements to be considered the apparent low and responsible bidder. Monk said the city’s records showed no judgments or liens against CCI and that the firm had obtained the required bid security.

Saul Glaser, attorney for CCI, told the bodies that the contractor’s legal position was that it believed the omitted allowance created a legitimate bid mistake that would permit withdrawal under Wisconsin law, but that because the city’s attorney disagreed CCI had elected to honor the submitted price rather than pursue litigation. “If the city of Delavan doesn’t want CCI to do the job, I think you’re free to say no,” Glaser said, adding that if the city agreed the error was excusable CCI would seek to withdraw the bid (and had indicated flexibility to contribute up to the bid-bond amount to resolve the matter). Glaser also explained that adding money to the submitted number at this stage would not be legally allowed under bidding rules.

Jamie Bloomfield, vice president for Corporate Contractors, apologized to Delavan leaders and said the omission was a “mathematical error” in the bid sheet. Bloomfield said the company would perform the work to the same quality regardless of the error, adding, “We’re gonna honor our bid… The quality of the job is gonna stay the same.” He also said the subcontractors proposed for the project would be local (from Janesville and Beloit area) and that CCI would not bring out-of-state crews for the work.

Several board and council members voiced concern that a large bid error could signal wider problems in project oversight or execution. Members pressed FEH Design and staff on measures to protect the city if CCI proceeded: FEH’s contract includes site visits (Monk said the standard of care on this project was biweekly progress visits, with 32 visits included in the firm’s current scope) and a requirement for an independent third-party testing agent to verify structural work such as concrete strength and rebar placement. The team presented estimated costs for additional oversight (roughly $800–$1,500 per added visit) and said those testing and inspection costs are included in the project budget.

City staff and committee members also discussed bonding remedies. Meeting participants were told the project will require a 100% performance and payment bond after award; if a contractor becomes nonresponsive or defective work is discovered, the performance bond is the mechanism to secure completion or replacement of the contractor. The city’s counsel and CCI’s counsel both explained that if a performance bond were called there could be a pause in work while the bonding company arranged remediation or completion.

Finance staff clarified the magnitude of the bid omission: the finance representative noted the omitted amount was $320,000 (not $400,000 as had been discussed earlier), and observed that the error represented about 4.6% of the contract value. The finance representative also noted that even with the omitted amount included, CCI would still have been the lowest bidder.

After discussion, the Delavan Library Board voted to award the expansion to CCI for $8,433,300 (base bid plus Alternate No. 3). The finance committee recommended award to the common council, and the common council then voted to award the contract to CCI for the same total. The motions were approved by voice vote; roll-call tallies were not recorded in the transcript.

The meeting record shows the bodies opted to accept CCI’s pledge to proceed at the submitted price and to rely on the project team’s inspection regimen, the performance bond, and the independent testing agent as safeguards. Council and board members signaled continued attention to oversight during construction but did not adopt additional formal conditions or penalties in the public motions.

Votes at a glance: - Library Board: Motion to award Delavan Library expansion to Corporate Contractors Inc., base bid $8,282,900 + Alternate 3 (elevator) = $8,433,300. Outcome: approved (voice vote; tally not specified). - Finance Committee: Motion to recommend award to common council with same totals. Outcome: approved (unanimous voice vote; tally not specified). - Common Council: Motion to award Delavan Library expansion to Corporate Contractors Inc., same totals. Outcome: approved (voice vote; tally not specified).

What remains: FEH Design will proceed with construction-phase services, including the scheduled site visits and coordination of a third-party testing agent. The award triggers procurement steps for performance and payment bonds and execution of contract documents before field work begins. The transcript notes prior discussion of the item at earlier meetings and that the legal question about bid withdrawal was a principal reason the joint bodies held this session.

Ending — next steps: With the contract awarded, staff and the design team will finalize bonding and subcontractor documentation and begin preconstruction coordination. The record shows council and board members expect regular construction oversight and testing to verify the project meets the contract documents and budgeted allowances.