Agenda - Council - 10/14/2014 - Laserfiche WebLink

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LSA Design, Inc. Northwestern Building 219 North Second Street Suite 302 Minneapolis, MN 55401 T. 612.339.8729 F. 612.339.7433 www, lsa des ig n i nc,co rr, Planning Architecture Urban Design Memorandum To: Patrick Brama - Economic Development Manager From: William Fossing, PE Project: Ramsey Parking Deck Renovation Subject: Bidding Results and Recommendations Date: October 8. 2014 We have attached the bid tabulation for the Municipal Parking Ramp Facility Parking Enclosure project opened on September 17, 2014. As you are aware there was a significant gap between the April 2014 Engineer's Estimated Construction Cost ($193,930)and the low bid ($354,300), as well as a large spread between the two bidders ($98,000). We have gone back and reviewed the April estimate and the bid documents to try to identify the cause for these differences, and offer the following. 1. Scope creep: we added and upgraded some elements, such as access controls and a wider overhead door with precast header beam. 2. Escalation: many trades experience significant increases in labor and material rates over the summer. 3. Underestimated: some of the expenses for setting precast in a tight space were not accounted for. 4. Poor Bid Environment: many potential contractors had full schedules and did not bid. Based on this we recommend the following: • Reject all bids. • Revised documents to include alternate materials and finishes to provide more economy. We would review those with you for approval prior to rebidding. • Rebid in February 2015 for April award and July 2015 Final completion. We have updated the engineers cost estimate to account for items 1, 2 and 3 above plus escalation for 2015 costs ($249,420). With alternate materials and finishes we believe that the costs could be significantly lower. I am available to discuss and to meet with to review this issue as necessary. Attachments C: James Lasher - LSA LSA File 14-02.03