County of Wetaskiwin realized big savings through gravel tenders

  • Sep. 8, 2009 11:00 a.m.

Staff reporter

While the current global economic downturn may mean bad news for many, it turned out to be good news for the County of Wetaskiwin, which could realize savings of $1 million or more with the signing of a new contract for the 2010-2012 winter gravel program.

The County’s council directed administration to tender the supply and delivery of gravel for the central and western regions. Several bids were received ranging in price from $746,675 to $1.14 million per year in the central region, and from $283,800 to $493,950 per year in the west.

As a result, two separate tenders were issued to Hopkins Construction Ltd. for the central area and to T.J. Sagoo Transport for the west, both of which are three years in length.

“The county has received a much better response to its tenders this year, with more bids being received at lower prices, which is a result of the change in the economy,” said Reeve Garry Dearing in a prepared statement. “Having a set price for three years gravel supply allows the municipality to budget more effectively, saving approximately $1 million over the next three years.

With the tendering of the contracts, Dearing said council opted to take advantage of the current prices, which are expected to benefit the municipality in the short term while ensuring some recently obtained gravel supplies are established for long-term stability.

“The strategic planning process has provided council and administration the ability to plan long-term to secure gravel supplies, while being flexible enough to realize the short term benefits that today’s economy has to offer and to realize this substantial cost savings,” added deputy reeve Wayne Meyers.