County bridge contract $761,000 over budget

2006-07-20 / Local News

By WES KELLER Freelance Reporter

Dufferin County Council has awarded the contract to replace Black's Bridge on County Road 25 (formerly Highway 25) at a cost about $215,000 more than the lowest bid, based on the lowest bidder's having faxed a bid bond instead of sending the original document along with the tender.

Premier Concrete Contractors of Richmond Hill, described as "a rather new company doing bridges in the area of $500,000," had the lowest bid at about $2.05-million.

The next higher, i.e. the second lowest, was from Looby Builders (Dublin) Limited - described as a "larger, well established company that does numerous bridges a year, some larger than the Black's Bridge replacement," won the bid at a total cost of about $2.26million.

In total, there were six bids ranging from the low of $2,046, 823 to a high of $3,596,400, against a budgeted cost of $1.5-million. Public works director Trevor Lewis attributed the rise to a combination of a busier season for contractors and the skyrocketing costs of aggregates and steel.

The council was faced with a two-pronged quandary last Thursday when it considered the tenders.

First off, the lowest of the tendered amounts was more than $500,000 over budget. Staff had recommended the bid that was $761,000 over budget on the basis of legal advice with respect to what might seem a technicality in the tendering process.

The lowest tender lacked an original of the bid bond, but did include a faxed copy. (The existence of such a bond is virtual proof that the bidder is competent to complete the contract within the quoted price. Insurers say that bond underwriting is based on a zero probability of loss, unlike property/ casualty insurance.)

On the basis of the known existence of the bond, county staff expressed no doubt about the ability of Premier to fulfill the contract.

Additionally, as an insurance broker, Shelburne Mayor Ed Crewson says a faxed copy of a bid bond - all that his town requires during the tendering - would be binding on the bonding insurer.

But, said Public Works Director Trevor Lewis in part in his report, "solicitors Cassels Brock ... have suggested accepting the second lowest bid based on the fact that the tender documents are very specific. If we award the contract to a bidder who had not met the requirements, how will that affect future bidders?"

He quoted two clauses of the tender document: "Reproductions and copies will not be accepted," and "Failure to include a bid deposit will result in disqualification."

Mr. Lewis described something of a dilemma. The lowest bidder might challenge an award to someone charging more, on the basis that the lowest bid should be accepted.

On the other hand, the second-lowest could challenge on the strength of an argument that the lowest hadn't complied with the requirements of the tender.

After considerable discussion, a motion to defer the voting was lost, with Mayor Crewson, Amaranth Mayor Bob Currie and Melancthon Mayor Garry Matthews along with Deputy Mayor MacGregor and Amaranth Deputy Mayor Don MacIver combining for 10 of 27 weighted votes.

Subsequently, in a second recorded vote, the council moved to grant the tender to Looby Builders at a tendered price of $2,261,243 including GST.

Opposing the award were mayors Crewson, Currie and Matthews along with deputy mayors MacIver and Deb Fawcett of Melancthon.

Black's Bridge is on a curve in the roadway just south of Summer Place in East Luther Grand Valley. It is an old-style arched bridge with approaches long considered dangerous to speeding traffic.

The bridge does have room for two cars meeting in opposite directions, but not for cars and trucks to pass.

Mayor Crewson noted that at about $2.2 million, the project eats up more than one-third the $6-million Dufferin got from the Harris government toward the cost of future maintenance when it downloaded Highways 24, 25 and 9 west of Orangeville.

Had the bridge still been on a provincial highway, the entire replacement cost would have been borne by the province.

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