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May 11, 2017 <br />Mr. David Sorensen <br />Project Manager <br />City of Tukwila <br />6300 Southcenter Blvd <br />Tukwila, WA 98188 <br />Re: Cascade View Safe Routes to School, Phase 11 <br />Bid Results <br />Dear Dave, <br />We have verified Hoffman Construction as the low bidder for the Cascade View Safe Routes to School <br />Phase 11 Project at $1,412,889.25, approximately 14% over the engineer's estimate of $1,237,646.00. In <br />review of unit bid prices, the major areas of difference are summarized below: <br />Lump sum items for removal of `Structure and Obstruction' and `Clearing and Grubbing' totaled <br />$64,000 over engineers estimate. These items are often higher than engineers estimate as they <br />occur early in the project and provide front end cash flow for remaining work items. Although <br />higher than estimated, they are consistent with the second bidder and are not unreasonably <br />unbalanced. These items represent 6.8% of the total bid. <br />HMA paving items totaled $39,000 over engineers estimate. There is a lot of roadway work <br />under construction and we have seen pavement bid prices rising throughout the region over the <br />past month. As an example the April 20, 2017 edition of the Daily Journal of Commerce <br />published bid results for 5 agency overlay projects in the region as follows: <br />• Tukwila <br />— Low bid $212,000 over engineers estimate (4/19) <br />• Everett — <br />Low bid $384,000 over engineers estimate (4/18) <br />• Eugene — <br />Low bid $145,000 over engineers estimate (4/18) <br />• WSDOT <br />— Low bid $637,000 over engineers estimate (4/19) <br />• WSDOT <br />— Low bid $291,000 over engineers estimate (4/19) <br />Unit prices for Hoffman are consistent with other bids received, so I consider this representative <br />of the current bid environment. HMA represents 14% of the total bid price as the overlay of S <br />133" was added to the grant funded project. <br />3. Concrete items for curb, gutter, sidewalks, driveways and ADA ramps totaled $80,000 over <br />engineers estimate. Similar to HMA, concrete prices associated with roadways have also been <br />on the rise. Due to the amount of work in the region, we are seeing a lot of turnover of <br />21 <br />