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Council Memo #9.5 <br /> Page 2 <br /> personal finances), bonding capacity, and standing with sub-contractors. It is <br /> serious for the City because the City can sometimes acquire a reputation that <br /> might result in future slightly higher bids. <br /> But Al also understood the budget concern the Council has in having to pay <br /> more for construction contract administration, construction observation, and <br /> other costs due to the project taking longer than originally anticipated. <br /> Al pointed out the following numbers: <br /> Engineer's Estimate at bid (including the Alternates the Council ordered in) <br /> = $265,225 <br /> Contingency of 5% at bid = $13,260 <br /> Total Amount the City should have budgeted/been prepared to possibly <br /> expend = $278,485 <br /> Estimated Total Amount of Construction (not including the overlay of the <br /> north block) = $201,000 {an estimate of the final quantities times unit <br /> prices} <br /> Estimated Underrun (Savings) between Original Budget Amount and <br /> Estimated Total Construction Amount = $77,485 <br /> Note: Overlay of the north block was about $10,000. If one accounts for this, <br /> the underrun is still about $67,485. <br /> Al is asking the City Council consider the above dollars / analysis, and <br /> waive pursuing liquidated damages. <br /> Another way to look at it is that the approved Contract Total, with all <br /> changes — including the overlay of the north block— is a little over $226,000. <br /> Subtract off the estimated final cost of about $211,000 (including the <br /> overlay of the north block). <br /> The result is a $15,000 "underrun". <br /> WSN indicated earlier that their budget was over by about $17,000 —but <br /> they were not yet done. <br />