Commissioners discuss options for higher than expected bid on sewer line project

WADESBORO — Adam Kiker from LKC Engineering updated the Anson Board of Commissioners on the gravity sewer project extension in the Wade Mills Area.

Bids for the project opened about two weeks ago.

“This project is one that you have been considering for about eighteen months,” said Kiker. “ I have been doing this eighteen years and I have never seen two bids that were .3% apart from each other, and all five were highly qualified firms that we work with often. The low bidder was Columbus Utilities, $89,400; we have had a nice conversation with them, to make sure they understand our expectations and your team’s expectations for the project. If you are inclined to move forward with the project, we would recommend that you award it to Columbus Utility.”

After Kiker opened the floor to commissioner questions, Chairman JD Bricken inquired, “What is the time frame on the bids?”

The bids area valid sixty days from the date of the bid opening, Kiker answered.

Acknowledging that the bid came in higher than the board expected, Bricken inquired, “Is there any process to possibly look at re-bid or re-requesting like to put it out again for an updated bid, because we were not prepared for that amount… we have a problem with this amount. At what point, if possible, could you [LKC] re-bid it and seek a wider audience or maybe they would be able to fine tune it a little bit?”

Responding to the commissioner, Kiker explained, “I would ask that you rely on your attorney… but our experience is the statutes indicate that if you go through a formal bid as you have and the project is over the funds available, you would first attempt to negotiate with the low bidder. In this particular case, it’s a linear project, with a specified number of pipe, number of manholes… there might be a way to save some based on feedback from the low bidder, but you are not going to save 10%, or even any more than that, just because of the scope of the project.”

If the commissioners were to re-bid it, there would need to be enough material changes to the scope of the project to warrant such a change. It can’t simply be re-done in an effort to get a difference price.

“I would also offer Mr. Chairman, that we believe in this current environment that you got very good pricing, compared to what we are seeing across the board,” Kiker said. “We think that it is more than likely if you did rebid it…the prices would go up in our opinion.”

“I think we are committed to do this project… I just think we need to negotiate and see if there is any possibility of reducing this number any and then we can decide,” stated Commissioner Jarvis Woodburn, agreeing with a suggestion made by Sossaman to speak with Columbus Utility, regarding a more palatable price.

“I would be happy to have that conversation, I would just ask that you temper your expectations,” cautioned Kiker.

“I have a question,” interjected Commissioner Jamie Caudle, “The budget your firm presented to us, back I guess in March of 2022, is when we set the [initial contractor cost fee] budget for $640. You give us that budget and we approve to go ahead, and now we get a bid for $788, can you explain why in your best guess, the bid is much higher?”

“You described the process correctly,” answered Kiker. “We give you a preliminary opinion of construction cost. At the time, about a year and a half ago, based on our experience with similar jobs in the market at that time, our estimation of what we thought that would cost and we presented you a budget for that. The answer to why are the bids so much higher versus now is simple; the amount of work available for these types of contractors is very overwhelming. It is very much a name your price market for those individuals.”

“Does a project like this typically take, what, 18 months to get to the bid process?” asked Caudle.

“That is a really good question, and we [LKC] will take some responsibility for that,” Kiker said. “We had some delays getting things going on our side and then we had delays getting DOT to approve this. I don’t know how to assign that [blame] either way, getting the design completed took longer than we wanted to inside our shop. Just to be real candid, there is a lot of similar situations I just mentioned with the contractors facing a volume of workload, everyone that is in our business, that is difficult to manage.”