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City finds savings in capital projects

By: Jordan Ross

Posted: 03/8/2019 2:25 PM

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The City of Steinbach’s $3.6 million capital works program for this year is off to a thrifty start.

Council awarded two large tenders to Hy-Way Construction Inc. on Tuesday. Both bids came in under budget.

As part of a $2.6 million bid that bested three competitors, Hy-Way will expand Heritage Cemetery, reconstruct Elmdale Street between Barkman Avenue and Kroeker Avenue, and carry out the city’s pavement management program.

The work will be funded by a mixture of reserves, operating funds, and a loan.

In a separate project Councillor Jac Siemens noted was 20 years in the making, Hy-Way will also reconstruct a section of the Elmdale drain between Millwork Drive and Acres Drive. The company’s $657,000 bid bested eight others. The city had budgeted $850,000 for the work, though engineering estimates ran as high as $930,000, documents show.

Mayor Earl Funk attributed the low bids to the city’s practice of starting its tender process early in the new year, when construction companies are eager to line up summer work.

Savings realized at the tender stage are typically used to reduce a project’s debenture or complete small extras, Funk said.

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