Engineer's Letter of Recomendation for Utility Construction Contract 7-8-21FOLEYSHALD ENGINEERING, LLC
14503 GROVER STREET, SUITE 102
OMAHA, NE 68144
T 402.804.3993
EN 6INEER ING
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July 7, 2021
City of Blair, NE
218 S 16th Street
Blair, NE 68008
Northern View Utilties - Phase 2
Bid Results
City of Blair, NE
FSE #: 039.001
Dear Members of the Council:
The Northern View Utilities — Phase 1I project was publicly bid on July 7, 2021. One bid was
received and opened, with the low bidder being Thompson Construction with a bid amount of
$608,700.00. The published Engineers Estimate for the project was $499,500.00 which puts
the low bid at 21.8% above the published engineers estimate. The bid tabulation is included
for reference.
We have reviewed the bids, the higher bid amount appears to be driven by overall
construction industry workload, and recent material cost increases for pipe.
Most of this price increase was from the stormwater detention system. This project was
designed to utilize HDPE pipe to reduce the costs of the detention area, however after
discussions with the low bidder, it was determined that the price to install HDPE has seen
major increases in the last few months and would have been double that of using concrete
pipe. So concrete pipe was utilized in the contractors bid to keep costs as low as possible.
For comparison, adjusting the engineers cost estimate fi•om 72" HDPE to 72" RCP puts the
low bidder at 8% above the engineers estimate.
Based upon this review, we recommend to the Council that the contract be awarded to
Thompson Construction.
Please feel free to contact us with any questions.
Sincerely,
Brett D. Shald, PE
Project Manager I