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and the estimated costs compared to those included in the bids received. It was the opinion of +VG <br />architects that cost per square foot would be approximately $301, considering the scope of the project. <br />However, the lowest bid came in at approximately $384 /square foot, a 27.5% variance to the <br />Specifically, staff requested the architects to have the third party provide the following: <br />1. An opinion on the quality and completeness of the tender documents issued by the City, <br />2. An opinion on the associated cost estimates and whether they fairly represented the contents of <br />the tender documents, <br />3. An opinion on the construction costs that could be anticipated in March of 2018, and <br />4. An opinion on the actual tender results, including the possible contributing factors for the higher <br />than anticipated results. <br />That third party cost consultant undertook a review of the documentation provided for the Doon Pioneer <br />Park Expansion and forwarded the following opinion/findings: <br />1. The tender documents issued by the City appeared to be clear and complete. <br />2. The market conditions in the Kitchener-Waterloo region appear to be experiencing increased <br />construction activity, which may have resulted in limited availability of trades and/or sub-trades <br />(It should be noted that this poses particular problems for smaller projects like the Doon <br />expansion and renovation). <br />3. The construction cost as prepared by +VG, may have been on the lower range for some of the <br />elements of this project. Although construction of a stand-alone facility could be anticipated at <br />approximately $300 /square foot, a premium of approximately 10% is expected on the total <br />construction cost of the Doon expansion and renovation because: <br /> The construction program is integrating with an existing facility, and <br /> There is a loss of economies of scale given small size of the project. <br /> The costs estimated for demolition and site work were also believed to be low. <br />4. In their opinion, having only 3 bidders submit a bid does not constitute a fully competitive <br />process. <br />5. Had the project been open to a larger pool of contractors with restrictions on the use of non- <br />union trades minimized or eliminated (which is not possible for the City of Kitchener), bid results <br />might have been closer to the budget. <br />6. The bid form was complex for a project of this size and scope (a small expansion and <br />renovation) in a heated market. <br />Although it was the consultants opinion the bid forms were too complex for a project of this size, staff <br />believe the forms prove to be very helpful when changes (e.g. changes to project scope) occur during <br />the project, to ensure we are working with appropriate pricing. <br />In summary, there may have been a number of factors acting together which contributed to the <br />variance in the pre and post tender cost of this project. <br />8 - 2 <br />