Why it’s harder than ever for Colorado mountain towns to bid construction projects

For government entities — including local towns and state agencies like the Colorado Department of Transportation — most of its capital projects go through a bidding process to hire contractors.

However, the recent pinch for construction companies — a combination of high demand, rising and unpredictable construction costs and labor challenges — has made it more difficult for Eagle County municipalities to either receive bids within budget or find contractors at all.

“Over the past 25 years in the Vail area, it often seems that we have short periods of sharp increases in construction costs followed by periods of modest increases,” said Tom Kassmel, Vail’s town engineer. “However, the last few years have been unique with steep cost increases coupled with limited contractor availability.”

For several projects, the town of Avon has received no bids at all. Eva Wilson, the town’s public works director, said this included a project to repair town trails and an HVAC improvement project.

Kassmel said last year the town received no bids for a West Vail water quality project and for a West Vail pedestrian crossing improvement project. This year, one project — for Interstate 70 overpass improvements — also received bids.