Economic Downturn Creates Buyer’s Market for Some Cities
The economic downturn has provided a good climate for the rare water utility that has available cash. Potential bidders are crowding pre-bid meetings, materials prices have fallen steeply, and many bid prices have dropped 15% to 40% below engineering estimates. “If you’re an owner, it’s a good environment for bidding,” says John Boisvert, chief engineer with Pennichuck Water Works, an investor-owned water utility in New Hampshire.
“It’s been a wonderful bidding climate to get projects done,” says Neil Goldfine, executive director of the Atlantic City (N.J.)Municipal Utilities Authority, which has been able to expand planned projects through stimulus funds and good bid prices.