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Township warned of up to $515,194 shortfall on 574 Gravel Pike demolition; board approves partial payments on related projects
Summary
Engineers told the Perkiomen Township Board the demolition at 574 Gravel Pike could cost between $158,700 and $730,250 depending on permitting and required work, potentially creating a $515,194 budget shortfall; the board authorized partial payments for related demolition and roadwork contracts.
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Perkiomen Township officials on Aug. 6 heard a detailed update on demolition work tied to the Hazard Mitigation Grant Program and approved several contractor payments related to roadwork and demolition while weighing potential budget impacts.
Township Engineer Nicholas Szeredai reported the township has received PADEP Chapter 106 approval and a PennDOT Highway Occupancy Permit with conditions for the 574 Gravel Pike demolition but is still awaiting a PADEP/Army Corps Chapter 105 Joint Permit. He presented two demolition cost scenarios: a best-case Scenario 1 at $158,700 (minimal embankment work) and a worst-case Scenario 2 at $730,250 (additional borings, backfill, temporary barriers, guiderail and other items). If the worst-case scenario materializes, the estimated budget deficit would be $515,194; a FEMA/PEMA-approved line-item rescope could reduce the deficit to an estimated $340,250.
Szeredai said bid documents will be prepared around Scenario 1 but emphasized uncertainty tied to permit conditions and potential unforeseen costs. He recommended pausing after structure demolition to perform borings and retain a Pennsylvania licensed geologist before proceeding with retaining-wall demolition, noting some guiderail purchases and installation would not be covered under the Hazard Mitigation Program.
The Board separately authorized Change Order No. 1 (repair to an inlet) in the 2024 Road Project in the amount of $7,838.86 and approved Payment Application No. 1 to Highway Materials, Inc. for $340,228.78 (partial payment). The Board also approved Payment Application No. 1 to BRB Contractors for a partial demolition payment of $59,985.00. All motions carried unanimously.
Engineer Szeredai recommended the Board plan the 2025 budget to accommodate potential excess costs tied to 574 Gravel Pike, and he will prepare bidding documents and a follow-up letter to the township’s project manager for FEMA/PEMA coordination.
