A. If all bids exceed the budget for the project or an engineer’s cost estimate, the City may, prior to contract award, negotiate for a price within the project budget, including an amended project budget. Negotiations will begin with the lowest, responsive and responsible bidder. If negotiations are not successful, the City may begin negotiations with the next lowest responsive, responsible bidder. Negotiations may include the inclusion of value engineering and other options to attempt to bring the project cost within the budgeted amount. A contract may not be awarded under this section if the responsibilities of the contractor are significantly changed from the description in the solicitation documents, as determined by the City Manager.

B. If the low bid is substantially below the budget for the project and the engineer’s cost estimate, if any, the City may negotiate for additional work on the same project on the same terms as the bid. [Ord. NS-2159, 2011; Ord. NS-2145, 2010]