Council Notebook: Stormwater contract under budget

City engineer says cost savings will likely be applied to project's second phase

Miramichi city council has awarded a $317,000 contract to upgrade the stormwater system in the Kerr mini-home park. (GOOGLE STREET VIEW PHOTO)

MIRAMICHI - The lowest bid on installing a stormwater system in a mini-home park was more than $158,000 under budget, and the city’s engineer says the savings will likely be used for the project’s next phase.

At Tuesday’s meeting, city council unanimously awarded a contract worth $317,210.20, taxes in, to local firm Vye Construction and Paving for Phase 1 of the stormwater upgrades planned for the Kerr mini-home park in Taintville.

Engineering director Mark Buckingham said the low bid was only $27,640.80 below the engineer’s estimate of $344,885.

“It was quite a bit lower than the available funding amount, but it’s quite close to the engineer’s estimate,” he said. “The low cost was due to the timing of Phases 1 and 2, so knowing that we have some unspent funds will help with Phase 2. We expect Phase 2 to cost more than the available funding for Phase 1, so it will work out in our favour.”

Buckingham said the city’s general capital budget includes $475,921.61 for the project. Vye’s low bid was $158,711.41, less than that.

Vye was also among seven bidders on the project. The others were local firms North Shore Construction ($326,715) and High Tech Industries ($397,923.58), Rockwood Construction of Mundleville ($449,454.50), Birch Hill Construction of Moncton ($453,318.50), Saint-Isidore Asphalt ($503,987.50), and LCL Excavation of Charlo ($554,127.50).

In a report presented to council, Buckingham said the work includes clearing and grubbing a wooded area, installing a storm sewer system, adding sediment and erosion control measures, and restoring the area. The tender closed on Monday.