Low bid on Lake St. rebuild is $2 million more than city budgeted

City council will be asked Monday to award a $2-million contract to Sault Ste. Marie's Trimount Construction Group Inc. for reconstruction of Lake Street between Queen Street East and the entrance to Bellevue Park.

Trimount was low bidder among three companies that submitted tenders for the job.

Its original tender was $5.4 million, more than twice the city's capital budget allocation of $2.5 million.

"In an effort to reduce costs, staff performed an analysis of the underground infrastructure on this section of Lake Street and determined that the pipes are in generally good condition for their age," says Dan Perri, municipal services and design Municipal Services and design engineer

"Staff recommend eliminating most underground work, with some minor repairs required in isolated areas," Perri said in a report prepared for Monday's city council meeting.

"A reduced scope of work limited to road base, surface works, and isolated sewer repairs was negotiated with the low bidder, resulting in a revised tender price of $1,992,185.70 (excluding HST).

"When allowances for engineering costs and non-recoverable HST are added, and PUC water costs are removed, the City’s cost to complete this project is projected to be $2,291,810."

"As the roadwork portion of the project is over budget, staff are seeking approval to utilize prior years uncommitted capital transportation funds to complete the project."

"As subsequent tenders come in for the other projects, staff will monitor the 2024 construction program to ensure that they come in, on or near budget.

"Staff will report back to council at a future meeting with other tender reports and an update on how the program is tracking," Perri said.