Peosta awards Cap Court lift station contract to low bidder Top Grade

Peosta’s City Council approved awarding the Cap Court Lift Station Improvement Project to low bidder Top Grade after staff reported bids ranged widely and Top Grade’s bid was substantially lower than staff’s estimate.

City staff reported four bids came in and that Top Grade’s low bid—around $750,000—was significantly below several competitors whose bids approached or exceeded $1 million. Staff cautioned that large bid differentials can lead to change orders later in a project and emphasized that unit prices cited by bidders will be binding.

Council asked staff how change orders would be managed; staff said change orders occur for added scope, quantity adjustments, or if something omitted in the plans is discovered, and that each change order would require council approval if it changes the contract price materially. A resident-review and construction engineering services agreement with BNK was presented; the contract covers on-site inspection and shop-drawing review and was approved by the council.

Council then moved to award the project to Top Grade and to approve the professional services contract with BNK; motions carried.

What’s next: Top Grade will mobilize and begin work; BNK will provide resident reviewer services and construction engineering oversight. Staff will return to council for approval of any change orders that alter the contract price.

Representative quotes

A city staff member summarizing bids: “Top Grade came in very favorable at about 750.”

On change orders, staff cautioned that they usually arise from added items or quantity differences and that unit prices are binding.

The council approved the award and the BNK construction engineering agreement during the meeting.