“In general, when we put out bids, they are only estimates,” Environmental Management Deputy Director Hunter Bishop said. “It is concerning if it comes in a lot higher. That’s just the vagaries of the process.”
BID AMOUNTS COMING IN HIGHER, SOMETIMES LOWER, THAN COUNTY ESTIMATES
BY ERIN MILLER
WEST HAWAII TODAY
emiller@westhawaiitoday.com
Bids for county contracts are coming in up to 134 percent higher — and less frequently, as much as 60 percent lower — than county estimates.
The reasons behind the widely varying bid amounts is difficult to pin down, directors of two departments said this week.
Two of the biggest examples showing the estimated cost to actual bid disparity are the Waiakea Uka Park and Gym accessibility improvements and the asbestos removal project in the Corporation Counsel and Liquor Control offices.
The county awarded the park contract to Yamada Paint Contracting Inc., doing business as GW Construction, for $930,566, a 134 percent increase. Isemoto Contracting Co. Ltd. won the asbestos removal contract with a bid of $801,000, a 100 percent increase over the estimate.
Public Works Director Warren Lee said only two companies bid on the asbestos project.
“It could be a combination of things” leading to bids significantly higher than expected, Lee said. “You can’t put your finger on things.”
With the asbestos project, the removal of a hazardous material, perhaps other contractors just weren’t interested in the work, Lee said.
Higher-than-expected bid estimates get reviewed by the department, Lee added. Road project estimates are likelier to be on target, he said, because the department does those regularly.
“Stuff that doesn’t happen all the time, the estimates could be high, could be low,” he said.
Last fall’s Alii Drive sidewalk repair ended up costing about 60 percent less than the county anticipated. Lee said that’s because the contractor, Bolton, committed to “get in and get out” on the project, decreasing the amount of time needed for traffic control. Paying for off-duty police officers to direct traffic can significantly increase a project’s cost, Lee said.
Too low of a bid also triggers a review, to make sure a contractor didn’t forget to include the cost of a particular part of a job, he added.
Another Public Works managed project that had significantly higher costs than expected was the planning, design and construction of islandwide bus stops and shelters, which the department estimated to cost $440,000. Isemoto won that contract with a $599,000 bid, a 36 percent higher price than expected.
For that project, Lee said, the contractor must “mobilize and demobilize” at a number of sites within the right of way, which can add to the cost.
A message left earlier this week for Parks and Recreation Director Bob Fitzgerald was not returned about parks contracts, including the one at the Waiakea Uka park that saw the cost end up being more than double the estimate. Other recent Parks and Recreation contracts include the Waimea Park ballfield lights replacement, which was estimated at $100,000 but actually cost $164,000, a 64 percent increase.
Several Department of Environmental Management projects will also end up costing more than the county anticipated. The lowest bid for the Kailua Recycling and Transfer Station repairs and enhancement was $585,595, 46 percent higher than the estimated $400,000. Road repair and resurfacing at the South Hilo landfill will cost $160,030, 78 percent more than the county’s $90,000 estimate. The planning, design and construction of the Hilo Baseyard staff facility will cost 12 percent more than expected, at $680,000. The estimate was for $600,000.
But, as with other departments, Environmental Management saw some projects come in cheaper than anticipated. The Hilo Transfer Station truck parking and storage contract with Isemoto is for $295,000, a $55,000, or 16 percent, difference.
“In general, when we put out bids, they are only estimates,” Environmental Management Deputy Director Hunter Bishop said. “It is concerning if it comes in a lot higher. That’s just the vagaries of the process.”