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Ken Griffin -West Sandy Lake Bid Opening
From: Ken Griffin
To: Clay Phillips; Jim Witt
Date: 11/29/2005 3:23 PM
Subject: West Sandy Lake Bid Opening
CC: Paula Crocker
Jim/Clay
We opened bids today for West Sandy Lake Road from SH 121 to North Coppell Road and the
completion of Royal Lane. We had six bidders. The Engineers estimate was $4,684,000 and the low
bid was submitted by JRJ in the amount of $3,702,362. Also, we set the maximum calendar days at
400 and JRJ bid 300 calendar days. This means that the project could be complete before
Thanksgiving 2006.
This project was bid with a strong incentive for early completion and a strong disincentive to drag it
out. If JRJ completes this project in 200 calendar days, they will earn a $200,000 bonus. The
$200,000 will decrease by $2,000 a day until they are complete. Also, for every calendar day over 300
that it takes to complete the project, they will be assessed $2,000 in damages. We eliminated
substantial completion on this project. Completion is defined as "when you see the taillights of the last
piece of equipment leaving town".
I'm doubtful that they can complete this project in 200 calendar days, but if they do, the total cost
would only be $3,902,362 ($3,702,362 + $200,000 bonus). This is still about $775,000 under our
estimate.
ken g
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