Tender PW-03-2023 Hot Mix Asphalt
Award
March 6, 2023 Council Meeting
Moved by: Murray Rutz
Seconded by: Adam Driscoll
That Council approves the award of Tender PW-03-2023, Hot Mix Asphalt, to the lowest bidder being H & H Construction Inc. Council acknowledges that this award will be lower than the amount bid to adhere to the adopted 2023 budget.
Carried
Staff Report
Report # PW-03-2023 - John Felix, Director of Public Works
Agenda date: March 6, 2023
Recommendation:
That Council approves the award of Tender PW-03-2023, Hot Mix Asphalt, to the lowest bidder being H & H Construction Inc. Council acknowledges that this award will be lower than the amount bid to adhere to the adopted 2023 budget.
Discussion:
The tender was prepared and advertised in a local paper and on our website. Five (5) firms requested tender packages and two (2) firms submitted complete tender packages on the closing date of February 28, 2023 at 10:00 a.m.
Contractor and Tender Price (excluding HST):
Greenwood Paving (Pembroke) Ltd. - $327,500.00
H & H Construction Inc. - $303,550.00
In 2022 this tender was awarded to H & H Construction Inc. in the amount of $62,312.50 + HST.
As indicated in the previous report, the construction industry is still recovering from losses and inflation experienced throughout the COVID-19 pandemic, which has been a contributing factor for higher commodity prices, increased labour rates, increased rates for diesel, supply chain challenges, and capacity to perform work among other factors.
Since 2020, pricing for this particular tender has increased significantly between 115% to 310%.
Financial Implication:
The funding for this tender was included in the 2023 budget along with amounts budgeted for sidewalk maintenance, hot mix asphalt patching, and hot mix asphalt resurfacing. Approximately $194,000.00 was allocated for this project. The quantities quoted in the tender document will need to be reduced and negotiated with the contractor to ensure compliance with the 2023 budget.
