Port of Seattle Changes Estimate on Project

Port of Seattle staff changed their internal estimate on a project to build a new cruise ship terminal near the Magnolia Bridge after the bids came in 30% over the Port's estimate. By changing the estimate after bids were submitted, Port staff avoided having to notify the Port Commission of the higher bid. The Port's policy requires that any bid that is more than 10% higher than the estimate must be submitted to the Commission for review.

Read the Seattle Times article from December 18, 2008 for more details.

RCW 39.04.020 is the state law that requires public agencies to develop estimates on public works projects. In summary, it requires the following for any public works project:

• Develop plans and specifications
• Develop an estimate of the cost of the work
• Have the plans, specifications, and estimate filed in the office of the individual or body authorized to require the work
  
• Have the plans, specifications, and estimate approved by the authorized individual or body

The law doesn't address the issue of modifying the estimate after bids have been submitted. Such a practice does appear to circumvent the public's interest, and in the case of the Port, appears to be at variance with the Port's internal policies that requires Commission approval of contract awards where the low bid is 10% or more of the estimate.

What practices does your public agency use with respect to development of estimates?