4.7. SR 10-18-1993
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132G Energy Pad Drive
SL Pul. UN 5SllIS-S202
Gl2-544.4389
filar. 612-544.9446
9800 SheIanI ParkWilY, Ste.llI2
Minneapolis, HN 55441-6451
612-54&-8432
Far. 612-544.6398
OCT - 7 19S3
ITEM 4.7.
October 6, 1993
File: 230-137-30
Mr. Pat Klaers
City Administrator
City of Elk River
13065 Orono Parkway
Elk River, MN 55330
RE: WASTEWATER TREATMENT PLANT
U.V. BUILDING
Dear Mr. Klaers:
On September 23, 1993, we opened bids for the proposed disinfection building at the
wastewater treatment plant. We received bids from Gridor Construction ($202,900.00) and
Barbarossa Construction ($263,000.00). The low bid was approximately twice what we had
anticipated for the project.
Due to the high bid, we contacted Gridor Construction to determine the basis for their bid.
They provided a breakdown of the major material suppliers and subcontractors which
accounted for about half of their total bid. In several cases, Gridor, as the General
Contractor, received only one.quote for a particular work item. This lack of competition
likely increased the cost. In addition, the project is rather small relative to typical projects
of this type so there was a limited amount of interest by general and subcontractors.
We have met with Darrell Mack and discussed the possible options available. In general, we
feel that the low bid is too high and it would be possible to break the project down into
smaller workable tasks. In effect, the City would act as their own general contractor and hire
subcontractors to complete the various work items. Based on our discussion with Darrell,
he is comfortable with this approach and we would be available to assist him in obtaining
quotes, staking, inspection, and negotiations with suppliers and subcontractors.
We would recommend rejection of the current bids and return of the bid bonds to the two
contractors. We would also recommend that the project be turned over the City staff to
complete in a timely fashion with recognition of the June 30, 1994, operational deadline.
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Mr. Pat Klaers
October 6, 1993
Page Two
If you have any questions or need additional information, please let us know.
Sincerely,
MSA, CONSULTING ENGINEERS
Ste~fl:#~
Terry J. l"faurer,. P .E.
TJM:tp
cc: Darrell Mack
137-0604.oct
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