As we reported here, the question of whether or not Ontario Specialty Contracting would continue with their bid to demolish the Aud was up in the air, based on dropped scrap steel prices. Originally, OSC stood to increase the value of their $1,498,078 Aud demolition contract bid by selling the Aud's steel for reuse.
Today, the Erie Canal Harbor Development Corporation (ECHDC) announced that OSC has in fact opted out of their bid and that an un-amended contract will be offered to Western New York-based DEMCO, Inc.
The contract with DEMCO is likely to be approved by the ECHDC board of directors at its upcoming December meeting.
“Even in these tough economic times, ECHDC remains determined to keep the waterfront revitalization effort moving,” said Jordan Levy, chairman, Erie Canal Harbor Development Corporation. “The Aud demolition contract process has presented us with certain external dynamics beyond our control. However, we’re encouraged to have quickly reached an agreement with another strong local firm, which will allow us to avoid any long-term delays or the need for a rebid.”
Titan Wrecking & Environmental LLC was the next lowest bidder, but after hearing of OSC's possible withdrawal, they filed a written withdrawal confirmation. As a result, the ECHDC agreed to formally bypass the first two firms’ respective bids, thereby avoiding possible litigation and allowing the Harbor Corp. to tender the demolition contract offer to third bidder, DEMCO, Inc.
“DEMCO, Inc. is aware of the current economic climate and has expressed a clear commitment to this project,” said Levy. “We’re confident that the firm can handle the Aud demolition work in a timely and cost-effective manner.”
Following approval, the revised contract will require DEMCO, Inc. to commence work by late-December 2008, and finish no later than late-spring/early-summer 2009. The total authorized contract reflects DEMCO's original bid and includes a base fee of $1,646,000, as well as an additional $97,000, to cover the costs of removing various commemorative architectural elements from the exterior of the building.
A contingency fee to cover any change orders that may result from a need for asbestos and other remediation needs as the demolition progresses may also be authorized by the board of directors during the December meeting.
ECHDC plans to pay for the Aud demolition contract through monies received via an agreement with the New York Power Authority (NYPA) and remaining grant funds provided by the County of Erie for asbestos remediation. C&S Companies provided the original engineering estimate for Aud demolition, assessing the work to cost roughly around $4.0 million.
An ECHDC spokesperson said, "This is a slight bump up, but it's still well under the original projected cost. Also, DEMCO is aware of steel prices, but in a better position to deal with that."