Wastewater project costs increase in Evansville
EVANSVILLE — Improvements to Evansville’s wastewater treatment facility are in limbo after costs jumped from an estimated $4.25 million to $7.2 million.
The project was estimated at $4.25 million when it was put out for bids this spring, but bids came in higher than expected last month, City Administrator Dan Wietecha said.
No bids have been awarded, but the city council Tuesday night approved a budget amendment that would enable signing contracts.
“But I suspect that there will be some things that the public works committee and engineer need to discuss in terms of does it make sense?” Wietecha said. “It probably does, but if we proceed with the project at this price level (we want to ensure) that it really is the right decision.”
Upgrades are needed to comply with state Department of Natural Resources nitrate standards, he said.
“We really don’t have a lot of options, we have to do something,” he said.
The city expects to hear by the end of summer if its application for stimulus money will be a winner. That would pay 50 percent of the construction costs.
C.D. Smith Construction of Fond du Lac came in with the lowest bid at $5.79 million.
City Engineer Dave Sauer predicted bids to come in near $5 million because of additions to the project and feedback from contractors throughout the bid process, Wietecha said.
Additional costs outside of the bid continue to be more than expected, he said.
“Every time we talk to someone it’s, ‘geez, the price just went up again,’” he said.
The $7.2 million price tag includes a $580,000 contingency fund, he said. The remainder of the project costs are overhead expenses—legal, financial, bond counsel and interim costs for interest during construction.
“It adds up to a much different number than anybody wanted,” he said.
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Jul 20, 2009 at 11:12 a.m.
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Does anyone know what the engineering costs are on this project? I'm guessing from the city's budgeted 3.6 million, engineering fees were roughly 220K (6% of budgeted project cost). Unless there were extras added to the project after the contracts were signed by the city and the selected engineering firm, that is what they would get paid. I'm not sure if this qualifies as "outrageous" given that this is a pretty unique and complex treatment plant. BTW, I'm in the engineering business.
Jul 19, 2009 at 4:15 p.m.
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Back about 8 years ago when I attended most plan commission meetings, westside development was expanding at a rapid pace. The city engineer was specifically asked whether the treatment plant had capacity. He said something like at least another thirty years worth. He was certain.
We were all told that development would only help the city. Gee, should we be surprised that the city has to spend so much more than they get from the benefits of development?? If all this, plus westside flooding ain't enough to call for a moratorium, I don't know what is.
Jul 17, 2009 at 4:08 p.m.
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I do believe they have applied for stimulus money. You get what you pay for? When it comes to engineering costs, there should not be that much difference and that is what is driving the costs up for the most part.
Jul 17, 2009 at 2:55 p.m.
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You get what you pay for...
Most of the US needs to be refitted to accomodate all the changes that have occured on the land since these systems were put in place. Obama should be awarding money hand over fist for projects like this one.
Jul 17, 2009 at 12:55 p.m.
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It does seem odd its so high, I think Eville needs to keep shopping around.
Jul 17, 2009 at 11:41 a.m.
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I didn't know engineering and construction companies were so busy during this super recession. I would have thought they would lower the price just to get the work.
Jul 16, 2009 at 9:09 p.m.
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Surprising if they were in such close contact with the contractors.
Jul 16, 2009 at 7:51 p.m.
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The engineering costs on this are outrageous.
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