UPDATE: City of Sioux Falls Engineering Department off 100%+ on cost overrun projections for 6th Street bridge
UPDATE: Here is a copy of the final bid tabulation: 6th Street Bridge
I understand inflation and cost overruns, but I am not certain how you can be off by 100%?
Recently the city had a change order (cost overrun) on the wastewater project for over $500,000 with NO explanation. With the 6th street bridge, the council gets a short email from Public Works Director, Mark Cotter (Click on the attachments for Item #27)
Good Afternoon City Council and City Council Staff,
On December 22, 2022, we bid the 6th Street Downtown Project. The major elements of this project include a new bridge over the Big Sioux River, extensive underground public and private utility work, a large bore through quartzite rock under the railroad tracks to allow for the utilities to cross, and the elements for the future quiet zone/whistle reduction crossing. The project came in significantly over the engineer’s estimate at $21.8M. There are a number of drivers that make this project difficult to estimate:
• Limited bidders – This is a very complex project coupled with fact that there is a significant amount of bridge work in the region and several contractors are full or are nearly full for the year,
• Project access is a challenge and primarily must be built from one side, the east side,
• Limited staging area coupled with risk of high river flows with spring rains/runoff,
• Tight labor market and continued high construction cost inflation,
*The original cost estimate put out for bid was $8,867,228 with it expecting to come in at 12,919,000 (as of 12/22/2022) that bid came in at 100%+ overrun of $21,821,916 with an additional add on of $238K for a steel railing (*Bid tabulation from the SF Public Works Engineering Department).
I get it, cost overruns occur, but maybe the city council needs to be asking Mark Cotter how they can be off by over 100% when inflation last year was around 7%. Something isn’t adding up.