Award of Contract - Building Demolition (Old Canron Site)

ADMINISTRATIVE REPORT
Date: October 20, 1997
Author/ Local: Kevin Kwok/ 7165
Dept. File No. Environmental
CC File: 5102

TO: Vancouver City Council
FROM:Manager of Building Management
SUBJECT: Award of Contract - Building Demolition (Old Canron Site)
RECOMMENDATION
THAT the base demolition contract with related environment abatement work for 145 West 1st Avenue (Old Canron Site) be awarded to Quantum Environmental Group Inc. for an amount of $590,597.20.
GENERAL MANAGER'S COMMENTS
The General Manager of Corporate Services RECOMMENDS approval of the foregoing.
COUNCIL POLICY
Contracts with a value of over $300,000 are referred to Council for award.
PURPOSE
The purpose of this report is to award the contract for demolition of the building at 145 West 1st Avenue (Old Canron Site) to the second lowest bidder.
BACKGROUND
On September 9th 1997, Council approved the demolition and required environmental abatement project at a budget of $1,500,000 on City-owned site legally described as Lots 1-8, Block 1, District Lot 2064, known as 145 West 1st Avenue; source of funding to be the Property Endowment Fund, and instructed the Manager of Building Management to prepare the demolition specifications and tender the project, with report back recommending the award of contract.
DISCUSSION
The base tenders are as follows:
1. Hazco Environmental Services Inc. $ 473,396.00
2. Quantum Environmental Group Inc. $ 590,597.20
3. Philip Environmental Services Ltd. $ 709,783.26
4. Laidlaw Environmental Services Ltd. $ 964,963.08
5. Halse-Martin Construction Co. Ltd. $1,441,677.00
The MTR Consultants Ltd. does not recommend the acceptance of the lowest tender.
The lowest base tender has omitted a number of unit prices which will have a potentially substantial impact on the total project cost. In addition, it has made extensive assumptions and qualifications which the Consultant finds unacceptable due to probable downstream environmental liability as well as additional high cost overruns likely to be caused by the rejection of proposed methods by the regulatory agencies.
The Consultant recommends the award of contract to the second lowest bidder at a base price of $590,597.20. This bid meets the City’s tender specification. The project cost will be higher than the base price with unit prices to be used for abatement and disposal as the actual quantities of hazardous materials and special waste are determined after the dismantling of tanks, steel plates, concrete floors, and removal of soil.
The project will start after the execution of the contract by Director of Legal Services and will be completed by April 30, 1998 to facilitate the Molson Indy improvements.
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