(02-28-2025, 06:44 PM)leilanidude Wrote: First with a new one coming along. The small number of contractors able to do these jobs invites cost disasters. They seem to take turns at who will get the contracts and the bids tend to be surprisingly close to each other, considering they can be for tens and tens of millions.
https://bigislandnow.com/2025/02/18/bids...-estimate/
Yes, I posted about this project in another thread several days ago.
Post 28
As for the small number of contractors able to do this work, what would be a “better” answer? Having the County, State and/or Federal Government spend a few hundred million MORE (TAXPAYER DOLLARS) on public works road building projects so we can get MORE than a handful of contractors to do this work? Maybe pave every mile of substandard subdivision roads?
Where would these new additional contractors come from? How would these new contractors be able to get the tens of millions of dollars of equipment needed to do road building work? And then, were would all the additional workers needed to fulfill such an arrangement come from? And live?
Further, could it be that the range of bids being close has something to do with the knowledge of the contractors submitting the bids? Or must it always be a nefarious, underhanded and corrupt scenario?
I would assume you know that public works projects, such as these road building projects, and the bridge projects are “contract cost substantiated” contracts. All costs incurred, be it proposed in the bid and as expensed during the actual work are substantiated to the contracting arm of the government, be it the County, the State or the Federal Government or any combination. Labor costs are substantiated thru certified payrolls that prove all hours worked have been paid, most commonly as “prevailing” wages or under the construction trades various unions. Third party material suppliers must attest with what’s known as a lien waiver that the general contractor has paid them and the amounts of their payments. Sub-contractors have the same compliance requirements as well and must be disclosed up front in the bid.
Additionally, most of these contractors limit the amount the contractor can charge for its indirect and overhead costs as well as profit, generally a set percentage over the actual direct costs incurred.
As well as these projects require the contractor to put up a payment and performance bond that guarantees the contractors performance and payment of all costs incurred during the project. These bonding costs can be up to 5% of the actual bid amount and can vary due to the contractors past performance history, its financial make-up, as well as require the owners to possibly have to put up personal lines of credit to support the issuance of said bonds.
(02-28-2025, 06:44 PM)leilanidude Wrote: But, you being a relative newbie, the long history of road and bridge cost overruns and change orders may be unknown to you.
Well now, my husband and I bought our 3 lots in the Acres in 1986. Spent 2.5 years building our main home. Moved here in 1989, although commuted back and forth to the mainland for 30ish years, but, yes, I am still a newbie, and what could I possibly know about the long history of road and bridge cost overruns and change orders?
But you say it with such astounding confidence!
(02-28-2025, 06:51 PM)Obie Wrote: The County as they usually do, underestimated the cost and provided the contractor with a survey of the construction are that was incorrect.
The contractor wisely built a survey road and revised their bid based on the conditions that they found. The county and the contractor then negotiated and eventually came to an agreement.
This added time to the project and the county has to pay more but I'm not sure how much.
"But extra fill is a very easy to compute change order.
X number of additional loads times X dollars per load, plus delivery"
Try maybe 100,000 loads.
They actually bring in a portable rock crushing plant and make their own fill.
Don't take my word for it, drive down to 4 corners and take a look or better yet, go down on a Sunday and drive up over the berm on the left side and drive the survey road to Pohoiki.
Take a sturdy 4x4 jeep.
I have friends who did this a couple of months ago and they took a video. She limited who can see the video so I can't post it here.
The hills and valleys are impressive and nothing like the highway 132 construction.
I can appreciate all that. I don’t need to take a sturdy gas guzzling 4X4 jeep to understand common sense.
I’d say bringing in a portable rock crushing plant and making their own fill was a brilliant idea on behalf of the contractor.
But I highly doubt that was doable for pennies on the dollar. The purchase price of a 2025 D9 is north of 2 million. How many do you want? And you want it shipped WHERE??