Madison Heights extends Delicio Contracting pricing for residential and sectional concrete projects; $2.28 million proposed

Madison Heights City Council unanimously approved contract extensions with Delicio Contracting on Jan. 13 to preserve current pricing for the upcoming construction year for two city paving programs: the R-3 residential road construction contract and the major and local sectional concrete replacement contract.

City staff told the council Delicio was the successful bidder for both contracts in the most recent bids (R-3 bid March 2024; major/local sectional bid February 2023) and had offered to extend its current pricing. Staff and the city's engineering consultants recommended the council adopt the extensions. The presentation noted the extensions were expected to save the city money in the current market.

The council was told the proposed budget cost for the work is $2,281,000, with funding proposed in the FY2025–26 budget; alley repairs are included in the planned work. Council members praised staff for securing the pricing extension and said it represented a substantial savings given rising construction costs.

The council moved to accept the contract extensions; the motion carried by voice vote.

Details captured during the meeting: - Contracts involved: R-3 residential road construction; major and local sectional concrete replacement. - Contractor: Delicio Contracting (successful bidder for both contracts). - Proposed project budget presented to council: $2,281,000 for FY2025–26 (includes alley repairs). - Rationale: Locking current prices for an additional year reduces exposure to rising construction costs; resurfacing/repairs scheduled per CIP and project timelines.

The council did not provide a line-item budget in the meeting; staff said the final funding will be included in the FY2026 budget process.