Eastern Iowa Airport project’s cost jumps due to administrative fees

The tab for a partially federally-funded construction project at The Eastern Iowa Airport increased substantially from an engineer's estimate primarily due higher administrative costs.

The Cedar Rapids Airport Commission on Monday awarded an $873,708 contract to Rathje Construction of Marion for construction of a terminal ramp expansion and rehabilitation of a taxi lane for the airport's northwest T-hangar.

The engineer's estimate for the work was $605,588. Todd Gibbs, airport operations director, told the commission that contract 'mobilization” or administrative costs projected at $15,000 were bid at $188,500 because of the additional work involved with a federally-funded project.

'Some of our larger projects funded with federal airport improvement program grants require that Davis-Bacon wages be paid and the payroll must be certified weekly,” Gibbs said. 'Our contract administrator must do wage interviews with employees to assure they are being paid what they are supposed to be paid.

'There also are ‘Buy American' requirements, where you sometimes see challenges trying to source certain materials that meet that requirement. Some contractors in this area will not bid on such a project because they know the administrative burden is more than they can handle.”

The Davis - Bacon Act of 1931 is a federal law that requires paying local prevailing wages on public works projects.

The terminal ramp expansion is needed for airliners to maneuver after the B concourse is expanded as part of a $55 million passenger terminal remodeling project.

The other bidder for the airport project, Streb Construction of Iowa City, wanted $944,860 to do the work. The bid included administrative costs of $250,000.

Gibbs said the airport has sufficient funds to pay the increased cost.