After bids exceed estimate, Southern Pines staff recommend town act as general contractor for Whitehall carriage work

Town staff told the council that while the carriage‑house building renovation is complete, the site‑work phase has run into procurement challenges. Bids for the site contract were sparse: the first bid solicitation in May drew no bids; a second solicitation in June produced a single bid from Sandhills Contractors at about $1,100,000, roughly double the town’s 2023 estimate. Negotiations reduced the number to about $956,000 before bid bond.

State purchasing law requires the town to attempt negotiation when bids substantially exceed estimates. Staff said negotiations with the bidder yielded limited flexibility, and council was advised that staff did not feel comfortable recommending the contract at that price. To meet deadlines connected to a $185,000 Convention and Visitors Bureau grant that funded roughly half of the renovation work, staff recommended the town serve as general contractor and bring smaller subcontracted trades on sequentially to reduce total cost. Council accepted the update and was advised that no formal vote was required to decline awarding the bid before its expiration; staff will proceed with the recommended path and continue to follow state purchasing laws.

"We certainly expect we better be doing it for way less than $956,000," a staff presenter told the council after describing negotiations with Sandhills Contractors and the procurement history.

Staff also detailed the immediate site‑work scope: a one‑way paved road for fire access, a small gravel parking area, brick patios, sidewalks, and limited utility and stormwater work — all required for certificate of occupancy and public access to the carriage house. The council asked staff to track subcontractor procurement and bring cost estimates back as they solidify.