New Roads are designed to last 30-40 years

Since the Road Commission designs the roads, defines all the specs and supervises the contractor throughout the project, the Road Commission is responsible for any design issues.  Thus, the contractor doesn’t warranty the road design per se.  There is a 2-year "workmanship warranty" that runs from the contractor to the Road Commission, meaning that if there is an issue with the contractor's work within the 2-year period after completion, the contractor fixes issue at the company’s expense.  We talked to the Township DPW Director on this point; he indicated that any workmanship issue would generally come to light in the first two years. 

In addition to RCOC oversight and inspections during the project, the Township’s DPW and/or Engineering departments will be on site, making sure the contractor is doing what they are supposed to do and following the Township requirements. 

The Township and the Road Commission will also have a contract that requires the Township to provide "preventative maintenance" on the roads for a 5-10-year period.  That maintenance is designed to ensure the roads stay in great condition as long as possible.  After the 5-10 year period, the Township does continue to maintain the roads on behalf of the Road Commission. 

According to the Road Commission, the roads are designed to last 30-40 years.

The costs in the petition are estimates.  What if the bids come in higher than the estimate?

Actual contractor bids will come in before final Bloomfield Township approval of the SAD. 

·       If the bid exceeds the estimate by less than 10%, no additional steps are necessary for the Township to approve the SAD. 

·       If the bid exceeds the estimate by more than 10%, there is an extra public hearing at a minimum.  The Township Board could choose to require us to recirculate the petition if the bids exceed the estimate by what the elected Township Trustees believe is too much.  Once the bid is accepted and the SAD is approved, that is the cost figure used in the assessment to each resident. 

What if the contractor does not spend all of the contingency included in the assessment for a section?

There is a 10% construction contingency included within the total cost of the project for each SAD.  The contingency provides for unforeseen issues that may come up during the project.  There may be money left over when construction is completed if the whole contingency isn’t used.  If the amount left over is more than 5% of the construction cost, it gets refunded to the residents in the SAD at the end of the 15-year SAD life.  The residents who own the homes in the SAD at the end of the 15 years are the ones that will receive the refund. If the residual left in the SAD after 15 years is less than 5%, that residual stays with the Township to be spent on road maintenance.