The tenders are in and Grey County has realized more than $2 million in cost savings for a pair of major road projects in 2025.
At its meeting on March 14, county council received a pair of staff reports about the award of tenders. The tenders for both jobs were significantly under budget, resulting in a savings for the county.
The reports were received as part of the consent agenda and members of council did not make any comments on the two projects.
The first project will see an 11.1-kilometre section of Grey Road 12 pulverized and paved. The section of road is between Grey Road 40 and Grey Road 112/Sideroad 16 in the municipalities of Meaford and Grey Highlands.
The project includes the following work:
- 11.1 km of reconstruction
- 3.30 m lanes with 1.20 m paved shoulders
- Culvert replacements
- Guiderail replacements
- Road platform widening in select locations
- The anticipated project window falls between May 5, 2025 and September 19, 2025
- Grey Road 12 will be open to traffic with intermittent alternating lane closures throughout the duration of construction.
The approved budget for the project was $7,426,000.
However, the lowest bid for the work from IPAC Paving Limited came in at $4,813,036.11, with a 15-per-cent contingency totalling $721,955.42 and $23,300 for geotechnical investigation that total project cost is $5,558,291.52.
This leaves the county with a project surplus of $1,867,708.48.
In a report, county staff said the surplus means $957,952.28 of development charges funding to be used for the project will now remain in the development charges reserves. The budget surplus for the project will be $909,756.20.
The county received five bids for the project ranging from just over $4.7 million to just over $5.5 million.
The second project will see a 5.5-kilometre section of Grey Road 9 pulverized and paved. The section of road is located between Grey Road 23 to 275 metres east of Southgate Sideroad 3. The project is located in the Township of Southgate.
The project includes the following work:
- 5.5 km of reconstruction
- 2.3 km of overlay pavement preservation
- 3.50 m lanes with 1.25 m paved shoulders
- Culvert replacements
- Guiderail replacements
- Road platform widening in select locations
- The anticipated project window falls between June 9, 2025 and July 31, 2025
The total approved budget for the work was $3,841,000.
The lowest tender amount from Cox Construction Limited came in at $2,797,164.38, combined a 15-per-cent contingency of $419,574.66 and $27,800 for geotechnical investigations brought the total project cost to $3,244,539.04.
The total project surplus is $596,460.96, with $341,501.40 being development charges money that won’t have to be used and a general surplus of $254,959.56.
The county received six bids for the project ranging from just over $2.7 million to just over $3.4 million.