I-229 contract has a ‘sweetener’ clause

Capitol News Bureau

PIERRE, S.D. (KELO) — An Alexandria, Minnesota, company that submitted the low bid to resurface part of I-229 in Sioux Falls will have some additional encouragement.

There’s a special wrinkle in the contract that will either benefit or penalize Central Specialties Inc., depending on how fast the work gets done.

The South Dakota Transportation Commission approved low bids for the I-229 project and 12 others Thursday.

The I-229 work involves repairing concrete pavement and asphalt concrete resurfacing on the northbound and southbound lanes between the Louise Avenue and Western Avenue exits.

The state Department of Transportation plans to “rent” the I-229 project area to the contractor for $3,500 per day. SDDOT is trying to encourage the project to be done safely but with the least possible interruption of traffic.

Central Specialties bid a base of $2,966,084.03 and said the work would be done in 415 days at a cost of $1,452,500.

The other bidder was Asphalt Surfacing Co. of Sioux Falls. Its base price was $3,138,998.75 and the work would take 528 days at a cost of $1,848,000.

Both base amounts were higher than the official base estimate of $2,358,124.80.

The state commission decided to accept the department’s recommendation to go with Central Specialties even though its base bid was 25.8% above estimate.

“Although the low bid is higher than anticipated, we feel the low bid price is justifiable, considering the condition of the existing concrete and potential maintenance that might be necessary if the project is not constructed this year,” department official Sam Weisgram said.

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