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Contractor staff on other projects we are involved with as skilled workers are being hired away <br />for better wages in order to keep up with demand. Concrete work represents over 19% of the <br />total bid price. <br />These items account for the entirety of the $183,000 difference from engineers estimate with other <br />items having typical +/- variations. I observed no indications of bid imbalance in the Hoffman unit bid <br />prices. <br />Although we recognize that funding may not be available at the amount bid, we do consider this to be a <br />good bid, reflective of current market conditions, and worth consideration of award for the following <br />reasons: <br />6 bids were received with the top 3 bids within 2.4% of the low bidder and top five bids within <br />6.3% of the low bidder. The tight grouping of bids indicate a good level of competition and <br />representative of value in the current construction market. <br />Construction activities are ramping up in all sectors throughout the region and forecasts are <br />good for that to continue. Although there will always be some seasonal variation in bids, the <br />general trajectory of pricing will continue to rise. Re- bidding a project that received little <br />competition in the busy season sometimes benefit from additional bids in the off season. <br />However, given that we had a good number of bidders and competitive grouping of bids it may <br />be risky to hope for better results in the future if the current construction market continues. <br />There is minimal cost savings that could be achieved by reducing the project scope and still meet <br />grant funding requirements. The only `optional' elements with respect to grant funding <br />requirements are: <br />o Overlay of S 133rd Street — This was added due to the poor roadway condition and need <br />to relocate portions of the road in order to avoid right of way impacts from the grant <br />funded sidewalk. <br />o Water Quality retrofit of contributing drainage basin —this portion of the project was <br />added based on the opportunity to retrofit the entire basin at reasonable cost from a <br />dedicated water quality funding source. <br />We have a long history of monitoring local bid activity to provide accurate project cost estimates for <br />Tukwila and other agencies around the region. Unfortunately, when the market changes suddenly, <br />there is no accurate track record for the first month or two of that change to form a basis to accurately <br />re- calibrate estimates. The project plans, specifications, and estimate were developed in January when <br />the project was submitted for bid authorization to WSDOT. We had not seen any real change in bid <br />climate until the overlay programs described above that would lead us to revise the January estimate, <br />but this project was already out for advertisement at that time. <br />Please don't hesitate to contact me if you have questions or would like to discuss. <br />Very truly yours, <br />Nelson Davis, PE <br />Principal <br />22 <br />