2025 8 11 Work Session Packet website

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PUBLIC WORKS 
 
 
“The $455,000 difference on Heritage matches a pattern we have been seeing on a lot of projects 
this spring and early summer, though 39% is on the high side. Lately, we have heard from several 
contractors that steel prices have jumped, mostly because folks are being extra cautious with 
tariff risks. The bigger issue we have run into is a real shortage of earthwork contractors. 
 
On our recent bid for Pellissippi State Community College, the winning contractor said they had 
to beg earthwork crews to even price the job. That kind of situation drives prices up fast. I cannot  
 
say for sure it played out the exact same way here, but a smaller job like Heritage can be harder 
to get subs to commit to, and that usually means higher numbers. 
 
All in all, the bidding climate has been bumpy this year, and contractors seem to be building in 
more cushion than usual to cover their risks.” 
 
Given the bid deadline was recently extended for the site work at Mt. Verd Industrial Park due to a lack 
of interested bidders , including the omission  of companies which almost always bid on government 
projects in McMinn County, it is plausible that this same situation is occurring locally and has contributed 
to the higher-than-expected bids.  As mentioned above, staff are working with the architect to identify 
potential cost cutting measures.  Once a contractor has been awarded the bid, we will  include them in 
these discussions to get additional input as to how the project costs might be reduced.  If we can cut costs 
while complying with the grant requirements and maintaining a quality product, we will do so. 
 
The following items are included with this memo as additional attachments: 
• Bluegrass Recreation Sales and Installation LLC quote for RFP #24-09 
• Proposed Contract with Wilson Construction 
• Bid Evaluation and Recommendation Letter from Lose Design 
 
Action Item 
City Council to approve purchase of site amenities from Bluegrass R ecreation Sales and Installation 
through RFP 24-09 which was previously awarded to the company. 
 
City Council to award RFB 25-09 to Wilson Construction Group LLC for construction services related to the 
Heritage Park LPRF Grant Project. 
 
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