Tender PW-09-2023 Comfort/Information Centre Phase II
Award
At its meeting of October 3, 2023 Council of the Corporation of the Town of Petawawa approved the award of Tender PW-09-2023 as follows:
Resolution #9 - October 3, 2023
Moved by: Murray Rutz
Seconded by: Lisa Coutu
That Council reconsiders the motion recommended at the September 25, 2023 Council-In-Committee meeting, and proceeds with awarding Tender PW-09-2023 as follows:
That Council approves the award of Tender PW-09-2023, Comfort/Information Centre Phase II to Wade General Contracting Ltd. in the amount of $613,300.00 plus HST, subject to a reduction in the scope of work through a negotiated change order, and that Council approves the use of $459,060.00 in available funds to start construction in 2023. The remaining funds would be approved through the 2024 Budget process.
Carried
Staff Report
Report # PW-14-2023 - Chris Mantha, Director of Public Works
Agenda date: September 25, 2023
Recommendation:
That Council considers the following options and provides direction to staff regarding the award of Tender PW-09-2023:
- That Council approves the award of Tender PW-09-2023, Comfort/Information Centre Phase II to Wade General Contracting Ltd. in the amount of $613,300.00 + HST, subject to a reduction in the scope of work through a negotiated change order, and that Council approves the use of $459,060.00 in available funds to start construction in 2023. The remaining funds would be approved through the 2024 Budget process. OR
- That Council cancels Tender PW-09-2023 and directs staff to revisit the design criteria through engineering services to find additional savings and then re-tender for construction services in 2024.
Discussion:
The tender was prepared and advertised in a local paper and on our website. Three (3) firms attended the mandatory site visit, and one (1) firm submitting a complete tender package on the closing date of August 29, 2023, at 10:00 a.m.
Contractor and Tender Price (excluding HST):
Wade General Contracting Ltd. - Option 1 - $746,400.00
Wade General Contracting Ltd. - Option 2 - $742,400.00
Wade General Contracting Ltd. - Proposed Reduction in Scope of Work Subject to Change Order - $613,300.00
Financial Implication:
The tender document provided two options for potential tenderers to bid on. The difference between the two options was to bid on “western red cedar exterior siding and trim” in Option 1, and “James Hardie cement board exterior siding and trim” in Option 2. The tender document also provided the tenderer options for alternatives/substitutions, in order to reduce the base bid tender price. The Owner has the right to accept or reject any or all alternatives proposed.
The Tenderer recognizes the right of the Owner to reject any or all tenders in whole or in part of the Contract or to accept the tender or parts thereof judged most satisfactory is expressly reserved by the Corporation of the Town of Petawawa without liability on the parts of the Corporation or the prime consultant. The lowest tender will not necessarily be accepted.
The pre-bid estimate for this project was $607,810.00. The bid for the reduction in scope of work, subject to change order, is only $5,490.00 over the pre-bid estimate.
The Town’s 2023 budget was adopted prior to the finalization of the consultant’s pre-bid estimate, with an approved budget of $212,060.00. The bid for the reduction in scope of work, subject to change order, is approximately $401,240.00 more than the budgeted amount.
Staff has been able to source additional funds in the amount of $247,000.00 from the Community Services Department Capital – Building Civic Centre account, bringing the available amount of funds from the 2023 budget up to $459,060.00.
Further, there is the potential to receive a grant in the amount of $116,000.00 from the Ontario Trillium Foundation (this grant application is currently under review).
Without the grant approval there is a shortfall of $154,240.00 which could be approved by Council through the 2024 Budget process. It should be noted, if the Trillium grant application is successful, there is a potential shortfall of only $38,240.00 which can also be approved by Council through the 2024 Budget process.
