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Solo bidder on bridge maintenance project draws concern from council

Jun 8, 2021 | 12:43 PM

MEDICINE HAT, AB – Whether or not to issue a tender to a lone bidder of a city bridge maintenance project, became a topic of discussion at Monday’s council meeting.

Horseshoe Hill Construction, with headquarters in Ontario, was the only bidder for the project, that would see the rehabilitation of four pedestrian bridges in the city

The company has a history in Medicine Hat and went into insolvency under a different name, many years ago.

During the meeting, Coun. Brian Varga questioned city staff as to why only one bid was received.

“It always troubles me when there is a big project, and we only have one bidder that comes to the forefront. I know that we always look to have people come from our own city to bid,” Coun. Varga said.

He then asked city staff if the work was specialized, thus requiring the help of an outside company.

Pat Bohan, director of city assets, said the work does require a unique skill set. He also called it a troubling situation, largely brought on by the high amount of stimulus projects happening around the country.

“The federal investment on infrastructure projects is really putting a lot of strain on developers and project contractors,” said Bohan.

The bridge maintenance project is funded with federal grant money through the Investment in Canada Infrastructure program. Work will be completed along four pedestrian bridges in the city including the pedestrian bridge over Highway 1, Altawana Drive, and Kensington. The pedestrian bridge by Division Avenue and CPR will also receive updates.

According to a report to council, Horseshoe Hill Construction originally placed a bid of roughly $3.5 million, nearly three times the city’s budget of $1.2 million. But Bohan said the company was willing to do a reduced scope of work. The final bid was $1,037,100.

Painting, the application of anti-slip coatings, handrail, fence, and pier repair are among some of the work that will occur.

When pressed about the initial bid, Mayor Ted Clugston said price escalation is something the city is having to navigate as they work to complete the stimulus projects.

“If this was normal times, we would probably cancel this and rebid it at a later date, but of course as you are well aware, we have to get these projects done or we lose the stimulus money, and you are seeing it everywhere,” he said.

Under the Investment in Canada Infrastructure Program, projects must be completed by the end of 2021.