The Town of Stettler cancelled a tender it had planned for the municipal water reservoir after a series of events led the contractor to double the price originally tendered apparently due to the inflation problem.
Town council cancelled the tender at the June 7 regular council meeting.
Director of Operations Melissa Robbins gave councillors a report on a situation she stated doesn’t happen very often.
“Approved 2021 capital budget is $50,000 to paint the exterior of the water reservoir,” stated Robbins in her report to council.
“September of 2021, town council awarded the request for quotation (RFQ) to AlumaSafway Inc. in the amount of $41,173.15. Scheduling issues arose and the contractor was not able to complete the work before the outside temperatures dropped and hoarding would have been required and was not included in the work.
“The decision to delay the work to summer of 2022 was agreed to between AlumaSafway and the town.
“May 2022, AlumaSafway requested an approved expenditure for product prices increases, which the terms of the quotation allows. The revised quote is $98,000 to $105,000.
Administration has been unsuccessful negotiating a reasonable price increase to complete the work and therefore is recommending cancelling the RFQ award to AlumaSafway and sending the project out for new quotations. AlumaSafway Inc. agrees to these terms.”
During discussion Robbins stated she understands the price pressures companies are under right now yet she was not able to come to an agreement with AlumaSafway.
“Administration respectfully recommends that Town of Stettler council cancel the RFQ award of the water reservoir painting previously awarded to AlumaSafway Inc. and directs administration to send the project out for new quotations,” stated Robbins’ report.
Coun. Wayne Smith stated he couldn’t believe how much more the proposal was being boosted and felt the tender should be closer to $50,000.
Again, Robbins pointed out the construction industry is under a lot of inflationary pressures right now.
Mayor Sean Nolls responded though that inflation hasn’t climbed by 110 per cent.
Councillors unanimously approved by resolution to cancel the tender previously awarded to AlumaSafway and send the project out for new offers.
Stu Salkeld, Local Journalism Initiative Reporter, East Central Alberta Review