The Town of Vermilion is moving to replace some aging sanitary sewer infrastructure.
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The work includes 620 metres of sanitary trunk line, manholes, tie-ins to the existing system, culvert replacements, earthworks, restoration and related infrastructure improvements.
There were six submissions received for the project.
“As part of the tendering process we put out an RFP, received six submissions, they went through an evaluation process with our consultant,” said Robert Dauphinee, director of infrastructure and planning services. “We ended up with two of our proponents coming in with similar scores, a score of 80 (for) both of them. Our evaluation criteria specifically states (what) we do in the event of a tie, we award it to the lowest bidder.”
With the tie between 640 Earthworks and Pidherney’s Inc. in the overall score, the lower RFP price of 640 Earthworks gave them the edge. Pidherney’s RFP price was $2,088,024, while 640 Earthworks came in at $1,619,121.69, leading to the recommendation that evening to award the contract to 640 Earthworks.
According to the technical memorandum presented to council, engineering consultant McElhanney estimated the construction cost was approximately $1.9 million.
With 640 Earthworks coming in $300,000 below the estimated price, it raised some concerns for council.
“When I was looking through the bid criteria here, of the four qualified applicants, the one with the lowest rated work plan is your recommendation here, and my understanding of this job here is it’s very complex, it’s logistically challenging,” Coun. Kellen Snelgrove said. “While I want to save as much money as we can for the town, I just worry are we setting the company up to fail?
“Are we fully confident they can follow through and finish this job?”
Administration clarified they feel confident the work will get done.
“In talking with our consultant and their experience with the proponent, they feel comfortable that this is something within their ability to do,” Dauphinee said. “They are a smaller outfit, so when we see lower bids from a smaller outfit that’s not uncommon; they aren’t carrying the overhead that some of the larger ones might carry.”
He also noted they have experience working with the company.
“We have some experience with them,” he said. “We found them very competent and very proficient.”
Dauphinee explained they do have protections built into their contracts should the work not be completed to their standard.
“Our contract documents will have clauses in there that require them to complete the work and that with our oversight we feel will provide us the protection we need to ensure the work is complete to what we expect,” he said.
Marilyn Lavoie, the town’s director of corporate services, outlined the specifics around the protections built into their contract.
“The requirement is a consent of surety or a performance bond as well as a labour and materials payment bond, each at 50 per cent of the contract price,” she said.
“Our standard contracts do have some termination clauses. In the event that we are not satisfied, we do have the right to terminate given so much notice, as well as with cause or without cause.”
Work is expected to be completed before the winter season.
“We anticipate an early fall start into late fall,” Dauphinee said. “It’s planned to be completed just before winter.”
Council awarded the contract for the 2026 sanitary trunk replacement to 640 Earthworks in the amount of $1,619,121.69.
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