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Board re-awards Education Center concrete work to Axel Olman after original bidder withdraws
Summary
The board approved awarding Work Scope 3A for Education Center concrete to Axel Olman for $98,588 after the lowest bidder (Kelleher Construction) withdrew; administration said it will pursue the bidder's bid bond and the schedule impact was about one week.
The Forest Lake Board of Education approved awarding Work Scope 3A (concrete work for the Education Center boilers) to Axel Olman for $98,588 after the lowest bidder, Kelleher Construction, notified the district it could not fulfill the contract.
Director Renberg Eide told the board the construction manager, Kraus Anderson, informed the district that Kelleher Construction had a business problem and could not complete the work. The district asked the second-lowest bidder whether it would honor its bid; Axel Olman agreed and the board was asked to award the work in the amount of $98,588.
Renberg Eide said the difference between the original low bid and the awarded bid was about $18,000 and the award fits within the project's contingency. He said the district plans to pursue the bidder’s bid bond for potential recovery. The timing impact was minimal — “probably about a week,” Renberg Eide said — and the district expected to schedule crews once the plan is finalized.
A motion to award the contract was made and seconded. The board took a roll-call vote: Member Tyson, Member Haglund, Member Revaline, Member Christensen, Member Corcoran, Member Antonson and Member Castle each voted “aye.” The motion carried unanimously.
Renberg Eide said the project remains on schedule within contingencies and the district will attempt to recover costs through the bid bond process.
The board did not record any amendments to the award during the meeting.
