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<br />URS <br /> <br />June 22, 2004 <br /> <br />AGENDA ITEM 7.A <br /> <br />Mrs. Michelle Wolfe <br />City Administrator <br />City of Arden Hills <br />1245 West Highway 96 <br />Arden Hills, MN 55112 <br /> <br />RE: 2004 Pavement Management Program <br />Edgewater Neighborhood <br /> <br />Dear Mrs. Wolfe: <br /> <br />Bids were received and opened for the above-referenced project on June 8, 2004. Bids were <br />received from two (2) contractors. The tabulated bid outcome is as follows: <br /> <br />1. <br />2. <br /> <br />Contractor <br />Amt Construction Company, Inc. <br />Forest Lake Contracting, Inc. <br /> <br />Bid Amount <br />$1,059,189.76 <br />$1,308,986.00 <br /> <br />Engineer's Estimate <br /> <br />$1,000,000.00 <br /> <br />All bids had proper bid guarantees in the amount of ten percent (10%) of the total bid as required <br />by the Project Manual. URS completed a bid tabulation to verify the total bid amounts and have <br />attached a copy of the bid tabulation for your information. <br /> <br />Amt Construction Company, Inc. submitted the low bid with a total base bid amount of <br />$1,059,189.76. The low bid is approximately $59,000 (6.0%) greater than the engineer's <br />estimate. The difference between the engineer's estimate and the bid amount appears to be evenly <br />spread over the roadway and watermain items included in the contract. Costs for storm sewer and <br />sanitary sewer work are slightly above or below the final engineer's estimates. Based upon bids <br />received on similar projects this summer, construction costs in general are experiencing a <br />significant increase apparently related to costs of oil and steel. Discussions with contractors prior <br />to the bid indicated some concem over the limited working space within the neighborhood, <br />which could also factor into higher unit costs for items due to less efficient construction <br />processes. For these reasons, the low bid amount appears to be reflective of the current market <br />and represents a reasonable cost for the work included in the contract. Contractors who did not <br />submit bids but purchased plans indicated that they were not able to meet the schedule of the <br />project considering their current workloads. <br /> <br />Thresher Square. 700 Third S,reer Sourh . Sui,e 600 . Minneapolis. MN 55415' Phone: (612) 370-0700' Fax: (612) 370-1378 <br /> <br />. <br /> <br />. <br /> <br />. <br />