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DPW awards $1.79 million concrete-rehabilitation contract after unusually low bids

2405796 · February 26, 2025

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Summary

At its Feb. 26 meeting, the Indianapolis Board of Public Works approved a $1,788,000 contract to Reith Riley Construction Company for the Concrete Rehabilitation 2024 CCMG project after bids came in roughly 50% below the engineer's estimate. staff described the results as a product of aggressive bidding in a slow market.

The Indianapolis City Board of Public Works voted Feb. 26 to award a contract to Reith Riley Construction Company, Inc. to perform the Concrete Rehabilitation 2024 CCMG project (ST-2411) in a total not-to-exceed amount of $1,788,000.

The project covers concrete pavement rehabilitation on Lyndhurst from 16th Street to Crawfordsville Road and on Woodland Drive between 70 First and 70 Ninth. Substantial completion is scheduled for Aug. 30, 2025, with final completion set for Oct. 14, 2025.

Engineering staff told the board the engineer's estimate for the construction was $3,568,059. Four bids were received on Feb. 13, 2024; the winning bid was roughly half the engineer's estimate. Jason Watt, administrator of construction for DPW Engineering, told the board the low result reflects intense competition among contractors because “there's just not a lot of projects being put out on the street by either INDOT or other municipalities or DPW,” and that contractors “are being aggressive with their bids.”

Board members asked about what “aggressive bidding” means in practice. Watt explained contractors adjust bids based on workload and a desire to keep employees and sell materials, and that the current market volatility and flat inflation have contributed to lower unit prices.

The board approved the award by voice vote with no recorded opposition. Staff will proceed with contract execution and the construction schedule described in the contract documents.

The contract award moves the project into the procurement and contract-administration phase; construction timelines and final contractor performance will be reported in subsequent DPW updates to the board.