The Township of Wellesley has saved more than $100,000 through its competitive tendering process for 2012 paving and gravel maintenance projects.
In a report presented to councillors meeting Monday night, general manager of community services Kevin Beggs indicated that the asphalt tender, secured by Steed & Evans, came in at $396,206.50, more than $82,000 below budget.
In a separate report Beggs indicated that Joe Kerr Ltd. had won the tender for gravelling operations in 2012 by submitting a bid of $185,400.00, nearly $26,000 below budget.
Councillors praised the work of staff in their budgetary work this year to ensure cost estimates were kept reasonable.
“What I look at is staff being able to predict the approximate prices. You did a good job of following the costs,” said Mayor Ross Kelterborn to Beggs.
Coun. Jim Olender also indicated that other municipalities across the region that he had talked to are experiencing similar savings as construction companies have had to become more competitive now that the government stimulus funding has ceased.
“Some said they’ve had over a millions dollars in savings,” Olender indicated. “These companies are looking for work now, and we’re benefiting at this end, too.”
In both of his reports, Beggs indicated that prices are always the unknown factor when tendering work, and that the budget of $478,503.84 plus HST for the asphalt paving tender, and $211,293.00 plus HST for the gravel maintenance, were based on the best information available to him. The asphalt paving budget was included in the roads capital budget for 2012, and the gravel maintenance was included in the 2012 roads operating budget.
For the asphalt tender, four companies responded. Capital Paving Inc. tendered $499,185.45, Coco Paving Inc. submitted a bid of $455,005.59, The Murray Group Ltd. submitted $433,387.51, but Steed & Evans won the contract with their bid of $396,206.50.
For the gravel projects, Wellesley received three responses; Steed & Evans Ltd. for $272,100.00, Donegan’s Haulage Ltd. for $209,400.00, and the winning bid from Joe Kerr Ltd. for $185,400.00.
Asphalt paving in 2012 is planned for Greenwood Hill Road, Moser Young Road, and Willow Way in the rural areas, and in the urban areas of Edgewood Court, Village Place and Parkview Drive in Wellesley, and Isabella Street, Gordon Hain Street, Adelaide Street and the fire hall in Linwood.
The focus of gravelling operations this year will be Greenwood Hill Road and Hackbart Road, as well as Hutchison Road and Boomer Line, Moser Young Road, Empey Road, Temperance Road, Mallott Road, and Bricker School Line and approximately 30,000 tonnes of gravel will be used.