Item Coversheet


Meeting Date: 3/31/2015
Item Creation Date: 2/17/2015

20JAI531 Nerie Construction, LLC

Agenda Item#: 35.


2015-266 - ORDINANCE appropriating $1,909,628.00 out of Water & Sewer System Consolidated Construction Fund; awarding contract to NERIE CONSTRUCTION, LLC for New Front Easement Reconnections; setting a deadline for the bidder's execution of the contract and delivery of all bonds, insurance, and other required contract documents to the City; holding the bidder in default if it fails to meet the deadlines; providing funding for engineering and testing, and contingencies relating to construction of facilities financed by the Water & Sewer System Consolidated Construction Fund (5159-02)


SUBJECT:  Contract Award for New Front Easement Reconnections - Nerie Construction, LLC -   WBS# R-002015-0017-4.  


RECOMMENDATION:  Accept low bid, award construction contract, and appropriate funds.  


SPECIFIC EXPLANATION:  This project includes the relocation of sewer services for approximately one hundred (100) properties within various locations throughout the City.  


DESCRIPTION/SCOPE: This project relocates the sanitary sewer services connection from the back easement main to the existing front easement main.  The contract duration is 730 calendar days.  


LOCATION:  The work order project area is generally bounded by the City Limits.   BIDS:  Two (2) bids were received on  September 11, 2014 for this project as follows:    


                Bidder                                                                Bid Amount
            1. Nerie Construction, LLC                                    $1,804,408.00

            2. Reliance Construction Services, L.P.                $2,617,745.74


AWARD: It is recommended that this construction contract be awarded to Nerie Construction, LLC, with a low bid of $1,804,408.00.  


PROJECT COST:  The total cost of this project is $1,909,628.00 to be appropriated as follows:  

Bid Amount                                      $1,804,408.00

Contingencies                                  $     90,220.00

Engineering, Testing Services         $     15,000.00

Engineering Testing Services will be provided by A & R Engineering and Testing, Inc. under a previously approved contract.  


HIRE HOUSTON FIRST: The proposed contract requires compliance with the City’s ‘Hire Houston First’ ordinance that promotes economic opportunity for Houston businesses and supports job creation. In this case, the proposed contractor meets the requirements of Hire Houston First.  


PAY OR PLAY PROGRAM:  The proposed contract requires compliance with the City’s Pay or Play ordinance regarding health benefits for employees of City contractors. In this case, the contractor provides benefits for some employees but will pay into the Contractor Responsibility Fund for others, in compliance with City policy.  


M/WSBE PARTICIPATION:  The goal established for this project is 17% MBE and 7% WBE. The Office of Business Opportunity has reviewed and approved the following plan as a good faith effort of the contractor in complying with the MWBE goal. The contractor has submitted the following proposed MBE/WBE participation of 16% and 8% respectively to satisfy the goal for this project.



Name of Firms                        Work Description                  Amount          % of Contract

To-Mex Construction, LLC     Rerouting Services               $288,705.28      16.00%  

TOTAL                                                                                 $288,705.28      16.00%        



Name of Firms                        Work Description                  Amount           % of Contract

Posey’s Construction              Rerouting Services               $144,352.64         8.00%

    & Development, Inc., DBA 

    Posey’s Tractor Service 

TOTAL                                                                                  $144,352.64         8.00%  


All known rights-of-way and easements required for this project have been acquired.  

Amount of Funding:
$1,909,628.00 - Water and Sewer System Consolidated Construction Fund (8500)
Contact Information:

Jason Iken, P.E.

Senior Assistant Director

Phone:  (832) 395-4989