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Council awards reverse osmosis water treatment plant contract to low bidder; total estimated project cost falls below budget
Summary
The Lamar City Council voted to award the reverse osmosis water treatment plant contract to the low bidder, Hughendorn Construction of Canton, S.D., for $20,390,000. Council and the engineer said competitive bidding and local funding lowered the expected overall cost to about $27 million, under the original $35 million estimate.
The Lamar City Council voted Tuesday to award the contract for a new reverse osmosis water treatment plant to the low bidder, Hughendorn Construction of Canton, S.D., and heard a summary of bids and cost estimates from the project engineer.
Mike Washburn of McLaren Engineering in Sioux City told the council that five bids were received for the water treatment plant and that Hughendorn Construction submitted the low bid of $20,390,000. Washburn said the engineer’s estimate had been $26,950,000 and described the bid environment as competitive. He also reviewed related bids: Well 15 received a low bid of $2,198,000 from L&L Builders of Sioux City, and the raw water main received a low bid of $287,000 from Vanderpool Excavating of Orange City.
Washburn recommended awarding the plant contract to the low bidder, citing competitive pricing and reference checks on similar projects in the region. He told the council the combined bids, including contingencies for construction unknowns, produced an all-in project estimate of about $27,000,000, down from an earlier project budget of $35,000,000. City staff noted the project will be funded through bonds and paid by user rates.
Councilmember (unnamed) moved to adopt the resolution to award the contract to Hughendorn Construction in the amount of $20,390,000; the motion passed on a roll-call vote with Pick, Wick, Sturgeon, Bruns and Goodchild recorded as voting yes.
Council members asked whether the low bids were affected by timing and by using local funding sources rather than federal or state funding; the engineer said timing, contractor availability, and the use of local funding that avoids some federal/state requirements contributed to lower prices. The engineer also reported favorable subcontractor participation and that several firms had previously worked in the region.
The council recorded no additional addenda or immediate change orders at the time of award. City staff and the engineer said contingencies are included in the ~$27 million all-in estimate to cover construction unknowns.
