A low bid for an upgrade in Union’s sewerage system, submitted in July, may have to be invalidated, costing the city about $60,000 more than expected.
The issue has to do with the winning bidder, JWB Construction of Taylorsville, and their inability, thus far, to submit a performance bond to cover the construction.
On municipal bids such as this, the bidders are first required to provide a bid bond, normally 10 percent of their proposed building costs, and a performance bond that will cover the costs of construction in the event the company reneged or went out of business before the project was completed.
JWB did include their bid bond, about $28,000, with their low bid of $251,251 for the upgrade that has been mandated by the Environmental Protection Agency.
But, as of last Tuesday night’s August meeting of the Board of Aldermen, JWB has not produced a performance bond for the project.
Kwana McCary, who administers the city's bidding process for East Central Planning and Development District in Newton said that without the required bond, the contract can not be signed.
If JWB doesn’t produce the bond, they will have to forfeit their $28,000 bid bond and the city’s work will fall to the second lowest bidder, Greenbrier Construction of Brookhaven.
Greenbrier’s bid of $339,950 was $88,699 higher than JWB’s.
The project is being funded by a federally funded Community Development Block Grant.
The aldermen voted to give JWB until Aug. 14 to produce the needed paperwork or forfeit their bid bond and lose the project.
In other action, the Aldermen:
•Voted not to increase the city’s ad valorem tax millage for 2018.
In some pre-budget planning, the Aldermen voted to leave the current rate of 34 mills in effect for another year. The new budget will be adopted at the September meeting.
•Cancelled three hearings on unkempt property.
• Voted to spend $250 for a football season advertisement in The Newton County Appeal.
• Met and welcomed new police officer Steven Bell.
