Title
Resolution to Award a Construction Contract to Posen Construction, Inc. (Bid No. 3916, $663,620.88) for the Millers Creek Bank Stabilization Project
Memorandum
Attached for your review and approval is a resolution to award a construction contract to Posen Construction, Inc. in the amount of $663,620.88 for the Millers Creek Bank Stabilization Hubbard to Glazier Project.
The purpose of this project is to stabilize the bank of Millers Creek at several locations along the stretch between Hubbard Street and Glazier Way. Currently, severe bank erosion is occurring during peak flows in the creek and is threatening the City’s infrastructure, including the non-motorized pathway running along Huron Parkway and an exposed sanitary sewer line.
Eleven sets of plans and specifications were distributed to contractors, subcontractors, and suppliers who expressed interest in the project. Three (3) bids were received and opened on June 4, 2008. The lowest responsible bid, by Posen Construction in the amount of $663,620.88, is approximately $67,170.00 lower than the engineer's estimate of $730,791.00. A tabulation of the bids is also attached.
Posen Construction, Inc. received Human Rights approval on June 5, 2008. All employees of Posen Construction, Inc. assigned to work on the project will receive compensation in accordance with the Living Wage Ordinance.
Council approved this project and the associated funding as part of the FY08 Capital Budget process. While the project scope remains unchanged, the City will incur a higher cost for the project than originally anticipated. The University of Michigan has declined to participate financially, though they are providing an easement and access through University property for the project construction. In addition, the City was unsuccessful in obtaining grant funding to offset project expenses. These two funding sources were anticipated to offset costs by $400,000.00. The City is funding the project in its ...
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