ERIN – Erin council has reneged on its March 9 decision to award a $2.96 million contract (pre-tax) to B.E. Construction Ltd. for Centre 2000 renovations.
On March 15, Christopher Ferguson of Orangeville-based DH Architects Inc. emailed town infrastructure director Nick Colucci and finance director Wendy Parr, among others, alerting them to an error made by the firm in its contractor recommendation.
DH Architects reviewed six bids submitted by contractors wanting the job, concluded B.E. Construction Ltd. met the job requirements with the lowest bid, and recommended the Toronto-based company for the work.
Staff further endorsed the DH Architects recommendation in submitting it to council, and on March 9, council approved it.
But it turns out the architectural firm made an error in its financial analysis and double-counted add-on jobs related to mechanical and electrical work that were already factored into the overall project cost.
Lawyer Christopher Lee of the town’s Toronto-based legal counsel Loopstra Nixon explained the conundrum to Erin council on March 28.
The town had the option of opting in or out of proposed additional work in the tender, but the work was agreed to and included in the base bid price.
“[The work was] already in the base bid and [it was] added by the architect a second time,” Lee said.
Once the numbers were reevaluated, the lowest bidder was Toronto-based CPM Group Inc., with a total tax-in project cost of $3.15 million, $5,117 lower than B.E.’s bid of $3.16 million.
Lee told council CPM’s bid was not only the least expensive option at the base bid price, but also for any other project iteration.
“So, if the analysis is done correctly, then CPM Group wins under any possible configuration,” Lee said.
“As a result of the analysis [by] DH, the town has made an incorrect determination of the lowest bidder,” Lee summarized of the “factually incorrect” decision.
The original March 9 decision was reversed in a council vote, and council also unanimously voted in favour of reissuing the tender, meaning any interested company will have to bid again.
A total of $1.1 million approved by council to come from reserves to help pay for the overall project cost will remain untouched.
According to town spokesperson Lavina Dixit, a previously allotted $1.93 million federal-provincial government infrastructure grant is unaffected by the snafu.
The Advertiser asked town staff, through Dixit, when the project would be retendered, and if the project’s scope will change in the new tender.
Dixit supplied answers on March 31, respectively stating “as soon as possible” and “this is under review.”
Responding to additional emailed questions about whether town staff could have caught the error, and if DH Architects will be used again to retender the project, Dixit provided a statement that didn’t answer the questions.
It read, in part, the town’s “process is currently under review” and an update will be provided to council “when available.”
According to a B.E. Construction general manager speaking to the Advertiser by phone, the company wasn’t contacted about Erin council’s initial decision to award the company the work, and only learned of developments from a reporter.
The company may bid on the project again, the manager said, depending on the scope of work included in a future tender.
DH Architects did not immediately reply to a request for comment.
