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City struggles to find bidders for infrastructure projects

Steps taken to reduce risk to contractors in hopes of attracting bids
29024465_web1_200702-TST-grand.trunk.pathway.end
The City of Terrace continues to look for bidders for the Grand Trunk Pathway west to Kitsumkalum. (File photo)

The City of Terrace has redoubled efforts to find companies interested in two key infrastructure projects worth nearly $2 million after no one bid on one project and just one unsatisfactory bid was submitted for the second project.

No bids were received to build a pedestrian/cycling path from the intersection of Apsley and Lakelse Ave. to the old Skeena Bridge and just one bid, which failed to meet bond requirements, was submitted to finish off the Grand Trunk Pathway pedestrian/cycling route from Frank St. and Hwy16 to the Kalum River Bridge.

City engineering and public works director Jonathan Lambert said he and his staff were disappointed but not necessarily surprised at the lack of response to the first project which has an overall budget of $1.05 million and to the second one which has a budget of $921,000 when bids closed April 22.

“Contractors are either already committed to projects, too busy to pursue these relatively small projects, or they weren’t able to meet the project bid bond and/or performance bond requirements,” said city engineering and public works director Jonathan Lambert.

To made the projects more attractive to companies, the city has has adjusted contract specifications to reduce the risk contractors take on to complete the required work.

“Staff has been pre-ordering items such as water/sewer/storm pipe, electrical conduit, etc. which are subject to supply chain disruptions, to remove that risk from contractors, provide some additional certainty to their time frame, and make the projects easier to bid on,” said Lambert.

The city has also reduced the dollar value of guarantees it normally requires from companies posted in the form of bonds signifying that they can do the work and that the work will be done if they cannot finish the job.

“These projects are considerably less complex and, correspondingly, unanticipated issues that may arise during construction are less impactful than they would be in a road construction project,” Lambert said.

“Reducing the bid and performance bond requirements makes bidding on the projects more viable to a broader range of contractors.”

If not working to reduce risk in the form of supply chain disruptions or in dollars, the city is also impressing upon contractors that it is undertaking a number of significant construction projects outlined in a five-year plan.

“For many contractors this means in-town work (without accommodation and meal costs) and the benefits to employees of being home every night,” said Lambert.

“When a contractor works with the City of Terrace, they will be working with experienced and efficient project managers who will work closely with them and have the capacity to see projects through to a mutually successful completion.”

At the same time, Lambert said the city is looking at the possibility undertaking construction projects by itself using local construction workers.

“Carefully managed, alternate construction delivery methods also have the potential for significant cost savings to the municipality,” he added.

Bids now close May 6 for the Grand Trunk Pathway extension to the Kalum River Bridge and May 10 for the pathway to the old Skeena Bridge.

Should acceptable bids be received for both, contracts will be awarded within a week, said Lambert.

And if an acceptable bid is received that is over the budget for a project, options will be presented to council when it meets May 24, he added.