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Posted
Some government entities require follow-ups with the bidders when there is a greater than 10% spread in bids to ensure that no group overread or underread the specifications.

And NDSU did that(it was in the article). At that point, I believe NDSU was required by state law to accept the MJ bid.

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Posted
And NDSU did that(it was in the article). At that point, I believe NDSU was required by state law to accept the MJ bid.

I'm glad they did the review. And yes, they have to take the lowest (meets criteria) bid at that point.

My guess is that MJ's bid reflected that they were already on campus (having done the NDSU Union work) so they had lower set-up/start-up costs.

Posted
I'm glad they did the review. And yes, they have to take the lowest (meets criteria) bid at that point.

My guess is that MJ's bid reflected that they were already on campus (having done the NDSU Union work) so they had lower set-up/start-up costs.

And, as the photos show, MJ ended up doing so, so much more. :)

I sure hope MJ has good insurance.

Hey, they said they wouldn't cut corners, they said nothing about not cutting columns. :D

Posted

Sometimes when a contractor comes in significantly lower than competitor's bids it is because he sees an opportunity for change orders somewhere in the bid documents. The other contractors may also have seen it, but wanted to cover their costs in the event the "possible change order" was rejected. With the cost over-run at the mansion and the collapse on this site, the costs on this project will now be scrutinized more than they would ordinarily be. MJ will have a tough row to hoe*.

*note the AC reference

Posted
I'm glad they did the review. And yes, they have to take the lowest (meets criteria) bid at that point.

My guess is that MJ's bid reflected that they were already on campus (having done the NDSU Union work) so they had lower set-up/start-up costs.

And, as the photos show, MJ ended up doing so, so much more. :)

I sure hope MJ has good insurance.

I hope NDSU has equally good insurance because I imagine there will be a dispute over allocating fault. If for some reason this was all M-J's fault (unlikely) and this was to put them of business (unlikely), I am sure a surety bond was required to bid the job. Like most accidents this will likely be mostly paid by the insurance and/or bonding companies involved.

Posted
I hope NDSU has equally good insurance because I imagine there will be a dispute over allocating fault. If for some reason this was all M-J's fault (unlikely) and this was to put them of business (unlikely), I am sure a surety bond was required to bid the job. Like most accidents this will likely be mostly paid by the insurance and/or bonding companies involved.

Like many other ND government entities, NDSU is insured through the state. The $500k from the State Fire and Tornado Fund will provide the capital to begin repairs, then the fund will make a claim against the general contractor's insurance, which may in turn make a claim against the excavation contractor's insurance, which may make its own claim against any outside advice or testing it may have sought. It took Fargo and NDSU something like 5 years to come to an agreement after the Fargodome flooded during a summer rainstorm and the water flowed into NDSU buildings through steam tunnels; I doubt this will be wrapped up any quicker.

Posted

Can I get some clarification here?

Ok, MJ is doing work on Minard Hall and it collapses (part of it anyways). In the ensuing fallout, NDSU submits a $500k claim to ITS insurance company.

Could someone tell me why?

If MJ Construction caused the collapse, should it be MJ Construction that files that claim with theirs?

How is NDSU culpable for this?

Thanks in advance for the clarification.

Posted
Can I get some clarification here?

Ok, MJ is doing work on Minard Hall and it collapses (part of it anyways). In the ensuing fallout, NDSU submits a $500k claim to ITS insurance company.

Could someone tell me why?

If MJ Construction caused the collapse, should it be MJ Construction that files that claim with theirs?

How is NDSU culpable for this?

Thanks in advance for the clarification.

It's required by state law. I don't understand why, but that's what was reported.

Posted
It's required by state law. I don't understand why, but that's what was reported.

The following is just a guess. NDSU doesn't want to pay for the extra repairs out of their own funds, and they shouldn't have to. Someone's insurance company will have to pay for it. But there will be a fight over who is responsible and who will pay for the repair work in the end. So the state of North Dakota insurance fund will front the cost of the repairs and then sort out the actual cause, which will help figure out who will ultimately pay. It may take several years to sort out who pays in the end and the State Fire and Tornado Fund is there to help state institutions in situations like this.

Posted
The following is just a guess. NDSU doesn't want to pay for the extra repairs out of their own funds, and they shouldn't have to. Someone's insurance company will have to pay for it. But there will be a fight over who is responsible and who will pay for the repair work in the end. So the state of North Dakota insurance fund will front the cost of the repairs and then sort out the actual cause, which will help figure out who will ultimately pay. It may take several years to sort out who pays in the end and the State Fire and Tornado Fund is there to help state institutions in situations like this.

I don't disagree with any of this reasoning, but I just want to reiterate that what NDSU wanted was not the reason they filed the claim with the State Fire and Tornado Fund. There is some form of state law or policy that says state institutions must file a claim and within a certain time limit. That's also why NDSU had to pull a figure($500k) out of thin air. The claim had to be filed, and the situation was too complex to get an accurate damage estimate within the time required. My guess is that NDSU picked a figure high enough to get at least most of the repairs done and will let the lawyers handle the nitty-gritty. I'd quote the relevant section from the Forum article, but they've decided to shut down my archive account even though they seemed happy to deduct the money from my bank account this month.

Posted
I don't disagree with any of this reasoning, but I just want to reiterate that what NDSU wanted was not the reason they filed the claim with the State Fire and Tornado Fund. There is some form of state law or policy that says state institutions must file a claim and within a certain time limit. That's also why NDSU had to pull a figure($500k) out of thin air. The claim had to be filed, and the situation was too complex to get an accurate damage estimate within the time required. My guess is that NDSU picked a figure high enough to get at least most of the repairs done and will let the lawyers handle the nitty-gritty. I'd quote the relevant section from the Forum article, but they've decided to shut down my archive account even though they seemed happy to deduct the money from my bank account this month.

A lot of these type claims get messy, so they may have just passed the law to run everything through the State Fire and Tornado Fund and then let them sort it out. It would put the state's interests in the hands of experts in the insurance industry to help protect the state rather than depend on people at the individual institutions. And it would be easier to just have a policy to handle all claims the same way rather than try to decide depending on the individual circumstances.

Posted
At an open forum Thursday, faculty and staff expressed concerns about relying on opinions of the same experts involved with the renovation before the cause of the collapse is known.

Ya-think?

http://www.inforum.com/event/article/id/265112/

Members of the Department of Sociology, Anthropology and Emergency Management have requested to be moved out of fourth-floor Minard.

{punch line here}

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Posted

Whats funny is that he was arrested at the Stop-N-Go at 4th Ave and 10th St....thats where The Northern (strip club) is located. Any chance he was drinking there. :glare:

Posted
Whats funny is that he was arrested at the Stop-N-Go at 4th Ave and 10th St....thats where The Northern (strip club) is located. Any chance he was drinking there. :glare:

Now how would you know that.

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