Cape Charles award $6.2 million contract for new municipal building

The Cape Charles Town Council awarded a $6.22 million construction contract for a new municipal building during its June meeting, marking a major step forward in a project that has been years in the making.

Town staff is recommended the council authorize Town Manager Rick Keurogolian to award the contract to Hoy Construction, Inc. of Norfolk, the lowest of seven bidders for the project. The company submitted a bid of $6,220,779, which town officials say is consistent with the project’s estimated cost. Staff also recommending approval of a 5% contingency reserve of $311,039 to cover unforeseen construction expenses.

The new municipal building is part of Cape Charles’ Community Strategic Plan and is intended to consolidate the town’s legislative, administrative, and police operations into a single facility designed to better serve residents.

Plans for the building were prepared by HBA Architecture. The project was originally planned for a town-owned parcel on Cassatt Parkway but was later relocated to seven town-owned parcels at the northeast corner of Randolph Avenue and Fig Street. Town officials said the site change is expected to reduce development costs.

Seven bids were received, ranging from $6.22 million to $8.33 million. According to town staff, Hoy Construction has been in business since 1933, holds the appropriate Virginia contractor’s license, and is considered both a responsive and responsible bidder. Hoy is currently constructing condos in Bay Creek.

The town’s Fiscal Year 2027 budget includes $5 million for the project to cover anticipated construction costs through June 30, 2027. Because construction is expected to take approximately 420 days, the remaining funding will be included in the Fiscal Year 2028 budget. Officials noted that the allocation between the two fiscal years may be adjusted as work progresses.

The project was unanimously approved by the Council.