Lafayette swallows 169% bid premium for urgent Glick Wells expansion

Lafayette swallows 169% bid premium for urgent Glick Wells expansionDriven by rising system demands and the need for critical supply redundancy, the Lafayette Board of Public Works and Safety has approved a $3.7 million contract for two new water wells after electrical costs and a sparse bidder pool shattered the original estimate.

Reynolds Construction was awarded the $3.71 million contract for the Glick Wells 6 and 7 project, significantly exceeding the $2.19 million engineer's estimate.

The massive cost delta was heavily driven by medium-voltage electrical components, which came in $800,000 higher than the contractor anticipated.

The bidding pool shrank dramatically after one contractor cited excess workload and another dropped out at the last minute due to workforce shortages.

City officials opted not to rebid the project, citing the urgent need for redundancy as aging wells break down more frequently amid rising water demands.

Lafayette, Indiana, is moving forward with a critical water supply project despite facing the stark reality of the current infrastructure construction market. On March 31, the Board of Public Works and Safety approved a $3,715,000 contract with Reynolds Construction for the Glick Wells 6 and 7 Project—a figure 169% higher than the original $2,193,000 engineer's estimate. Andrew Gordon, Senior Project Manager at Wessler Engineering, explained the massive discrepancy to the board. A primary driver of the premium was the medium-voltage electrical power source required for the well field. Reynolds Construction's electrical subcontractor quote came in $800,000 higher than the contractor initially anticipated. The project also suffered from a severely constrained bidding environment, leaving Reynolds Construction as the sole bidder. Gordon noted that during the pre-bid phase, up to three potential prime contractors showed interest. However, one formally declined, asking to be removed from the plan holders list due to an existing heavy workload. Another withdrew at the last minute, realizing they lacked the available workforce and time to complete the job. Despite the $1.5 million premium, city officials determined that delaying or rebidding the project posed an unacceptable risk to the municipal water supply. Lafayette Water Works Superintendent Steve Moore emphasized that system demands are steadily increasing, while the utility's older wells are experiencing more frequent breakdowns. "The need for these wells is increasing daily," Moore told the board. "When they break down, we absolutely have to have something to replace those wells because we could get ourselves into a position where we can't supply the demand." The two new wells will provide essential redundancy for the Glick Well Field, where taking down a well for maintenance has become an annual occurrence over the past several years. The city plans to engage Reynolds Construction in value engineering now that the contract is officially awarded. Gordon indicated to the board that while the savings will not close the entire $1.5 million gap, they hope to reduce costs by a margin in the hundreds of thousands of dollars. The project is slated for a 270-day timeline to substantial completion, meaning the new wells are expected to be pumping water into the Lafayette system by Thanksgiving. Funding to cover the increased construction costs will be reimbursed through a bond ordinance that was adopted for an upcoming water rate increase.