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Awarding the Construction Contracts

A Guide for Project AdministrationContents

Introduction to Contract Award............................................4Attending the Bid Opening....................................................6Reviewing Bids and Recommending an Award......................7

Who Reviews the Bids?.............................................7Evaluating the Bids.................................................................7

Identifying the Lowest Bidder..............................................8Assessing Bidder Responsiveness.......................................8Assessing Bidder Responsibleness......................................9Notifying a Rejected Low Bidder........................................10Arriving at an Award Recommendation.............................12

Completing the Construction Award Recommendation Form..............................................................................................12

Gaining Concurrence from Purchasing..............................15Notifying the Successful Bidder.........................................16

About the Notice of Intent to Award......................................16Scheduling a Project Orientation Meeting.........................18Requesting Contract Submittals........................................18

Additional Steps for State-Funded Projects...........................23Collecting and Checking Contracts and Submittals........24

Receiving Contracts and Submittals.....................................24Checklist for Contracts and Submittals.................................24Forwarding Contracts and Submittals...................................26

Preparing the Contract Approval Package.......................27About the A-910 Contract Approval Form.............................29Completing the A-910 Form..................................................29Assembling Contract Documents for Processing...................34

Preparing the Notice to Proceed........................................35About the Notice to Proceed.................................................35Requesting Additional Submittals.........................................37

Awarding the Construction Contracts Revised June 2002

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Preparing the Notice of Commencement..........................38About the Notice of Commencement....................................38

Figures1 Notice to Rejected Bidder2 Construction Award Recommendation Form 3 Notice of Intent to Award4 Sample Agenda for Project Orientation Meeting5 Bid Extension Letter6 A-910 Form 7 Notice to Proceed 8 Notice of Commencement

Charts 1 Process Flow for Contract Award, Steps 1–3 2 Process Flow for Contract Award, Steps 4–7

Revised June 2002 Awarding the Construction Contracts

Changes to Awarding the Construction Contracts

Revision 2, June 2002Changes made as part of this revision appear with a in the margin.

Page Description/Reason

13 Text change: It is no longer necessary to enter the fund number on the Construction Award Recommendation Form. This step was deleted from the instructions.

17 Figure change: The Notice of Intent to Award was updated to show optional information about the project orientation meeting.

18 Text change: Information was added about the Project Administrator’s option of scheduling a project orientation meeting.

19 Figure change: A new figure, “Sample Agenda for Project Orientation Meeting”, was added.


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Introduction to Contract AwardTo award construction contracts, Project Administration works closely with the Senior Financial Analyst and University Purchasing. During the Contract Award phase, Project Administration will: 1. Attend the bid opening conducted by University

Purchasing. At this meeting, bids are opened, read aloud, and recorded.

2. Analyze the bids and make an award recommendation. Working together, Construction Management personnel and the Senior Financial Analyst analyze the bids for price, completeness, and compliance with the Ohio Revised Code (ORC). They then develop an award recommendation for Purchasing. If Purchasing agrees with the award recommendation, a Purchasing representative signs the form.

3. Notify the successful bidder(s). Once Purchasing and Construction Management agree on the award recommendation, the Project Administrator sends the “Notice of Intent to Award” to each successful bidder (Construction Contractor). Within 10 days of the notice date, the Contractor must sign and return four Contracts for Construction; four escrow agreements or one copy of an escrow waiver (depending on whether the Contractor chooses to have a portion of its pay escrowed); and all other required contract submittals. If the project uses State funds, the Senior Financial Analyst prepares the Capital Budget Request (CBR) for release of State funds at this time, and the CBR is submitted to the State for approval.

4. Collect and check contracts and submittals. The Project Administrator may either review the submittals as the Contractor returns them by mail, or call for a meeting with the Contractor to review the documents. In either case, the Project Administrator must examine all submittals and work with the Contractor to ensure that deficiencies are corrected. The Project Administrator then provides the contracts and submittals to the Senior Financial Analyst, who checks them to ensure compliance with ORC and University requirements.


5. Prepare the contract package, including the A-910 form, contracts, and appropriate submittals, for internal approval.

6. Send each Contractor a “Notice to Proceed”. This notice advises the Contractor of the date on which it can begin project work.

7. Prepare the “Notice of Commencement” for University records.

Chart 1 on the following page shows the process flow for the first three steps of awarding construction contracts.


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Chart 1: Process Flow for Contract Award, Steps 1–3

Attending the Bid Opening Outcome All bids have been opened, read aloud, and recorded.

University Purchasing has provided a record of all bidders and bid amounts (the “Bid Tabulation”) to the Project Administrator. After the deadline for submitting construction bids has passed, University Purchasing conducts the bid opening. The Project Administrator and Associate Architect, if applicable, attend. Sealed envelopes containing each company’s completed bid documents are opened. Bids are read aloud and recorded by a representative of Purchasing. After the meeting, Purchasing prepares the Bid Tabulation spreadsheet, an official record of all bidder names and bid amounts. Purchasing forwards a copy of the Bid Tabulation to the Project Administrator along with copies of each company’s bid documents. The bid opening is a public meeting, and the received bids constitute a public record. However, although the bid opening will reveal the lowest bidder(s), the decision to award a contract is not made until Construction Management and Purchasing have reviewed all bids and agreed on an award recommendation.


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Reviewing Bids and Recommending an Award

Outcome The Project Administrator and others have reviewed the bids and developed a recommendation for the contract award(s). The Senior Financial Analyst has completed the Construction Award Recommendation Form and submitted it to Purchasing for review and concurrence.

Who Reviews the Bids? The Project Administrator takes part in reviewing bids and developing appropriate recommendations for the contract award(s). This effort also requires the involvement of other individuals, including: The Senior Financial Analyst; The Associate Architect, if applicable; and The Owner/Client, if appropriate based on the project.

After determining which bidder to recommend, the Project Administrator notifies the Senior Financial Analyst of the recommendation. The Senior Financial Analyst reviews the bid documents and, if he or she agrees with the Project Administrator’s recommendation, prepares and signs the Award Recommendation form. The Award Recommendation form is then forwarded to Purchasing for review and concurrence.Input from the Owner/Client can be desirable, especially if the bids include alternate items that the Owner/Client must decide whether to accept or reject.

The above individuals (the “bid review team”) work together to arrive at an appropriate award recommendation.

Evaluating the BidsDepending on the project, the bid review team may be considering all or a combination of the following bid types: Aggregate bids (a single bid is offered for all construction

contracts), Revised June 2002 Awarding the Construction Contracts

Combined bids (a bid is offered for two or more of the construction contracts), or

Separate bids for each construction trade.

The goal of bid evaluation is to identify the lowest responsive and responsible bidder and recommend that bidder for the contract award. While in most cases the lowest bidder will get the contract, Ohio law provides that the lowest bid can be rejected if the award would not be in the best interest of the University. Bids that are “nonresponsive” or “nonresponsible” are not considered to be in the University’s best interest. To evaluate bids, the team should begin by identifying the lowest bidder. Next, the low bidder’s qualifications (“responsiveness” and “responsibleness”) should be evaluated as described below.

Identifying the Lowest Bidder To determine which bid is lowest, the bid review team should first decide whether to accept any or all alternate items included with the bids. The Owner/Client should be involved in decisions regarding alternates. For each bidder, the total of all accepted alternates is added to the base bid to determine the total bid amount. If no alternates are accepted, the base alone is the total bid amount. Once the lowest bidder is identified, the team’s next task is to determine whether the lowest bidder is both responsive and responsible, as described below.

Assessing Bidder ResponsivenessResponsive bidders are those whose bids address and comply with all substantive requirements of the contract documents. To be considered responsive, a bidder must include all of the following required bid documents, completed and properly signed, in its Bid Envelope: The Bid Form, The Bid Guaranty and Contract Bond Form, and


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The Power of Attorney of the agent signing for the Contractor’s Surety (the person or entity providing the Contractor’s bid guaranty or bond).

Note: Bidders must submit the Responsibleness of Bidder Form either with the Bid Envelope or, if separately, within 72 hours of the UC Senior Financial Analyst’s request. Otherwise, the bid will be rejected. See the chapter “Preparing for Construction Bidding” for more information about the Responsibleness of Bidder Form.

A bidder could be considered “nonresponsive” for any of the following reasons: Any of the bid documents are missing the required

signatures. The bid guaranty amount shown on the Bid Guaranty

and Contract Bond Form is insufficient (i.e., the amount shown is not the full amount of the firm’s base bid plus alternates). However, leaving the bid guaranty amount blank is permissible.

The contract bond is executed by a Surety not licensed in Ohio, and the form is not countersigned by an Ohio Resident Agent as required by the ORC.

The bidder proposes to use a material or piece of equipment other than the standards specified in the contract documents, and the proposed substitution has not been approved as an equal (as described in the Front-End Specifications).

All blanks are not completed on the Bid Form. The Bid Form does not make clear whether bids for

alternates are additions to or deductions from the base bid.

The bidder neglects to acknowledge receipt of addenda on its Bid Form.

Assessing Bidder Responsibleness Responsible bidders are those who have demonstrated satisfactory performance on previous contracts; who comply with all applicable laws, including Equal Employment Opportunity (EEO) and wage laws; who possess appropriate licenses and certifications; and who


provide satisfactory answers to the questions on the Responsibleness of Bidders form. A bidder could be considered “nonresponsible” for any of the following reasons: The bidder promises it will acquire a needed certification

in the event it is awarded the contract, but the bidder does not actually possess the certification at the time it submits the bid.

The bidder has demonstrated unsatisfactory performance on a previous University project.

The office of the Ohio Attorney General has provided information to the University about the bidder’s past non-compliance with EEO, wage, or other applicable laws.


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The bidder’s experience, financial condition, legal status, management capabilities, facilities, and/or ability to perform the contract, as outlined in the Responsibleness of Bidder form, are not satisfactory to the University.

The bidder’s principal place of business is located outside the tri-state area (southeastern Indiana, northern Kentucky, and Ohio), and the state where the business is located grants preference to contractors headquartered in that state when awarding contracts. (This is a provision of Ohio law [ORC 153.012].)

The bidder has an unsatisfactory safety record.

Notifying a Rejected Low BidderIf the bid review team determines that the lowest bidder is nonresponsive and/or nonresponsible and should not be awarded a contract, Ohio law requires the University to notify the bidder by certified mail. Purchasing prepares and sends this rejection letter. Purchasing requires justification any time the lowest bidder is not being recommended. The Senior Financial Analyst provides this justification to Purchasing via e-mail as soon as the bid review team reaches its decision. This e-mail message must present all the reasons the lowest bidder was judged nonresponsive and/or nonresponsible. An example notice sent by Purchasing to a rejected low bidder appears on the following page as Figure 1.



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Figure 1: Notice to Rejected Bidder

Bidder’s Right to AppealA lowest bidder whose bid is not accepted has the right to appeal the University’s decision. The rejected bidder must submit its protest in writing within 5 days of the University’s rejection notice. The University will conduct a hearing, and the bidder will have an opportunity to present its objections. The contract award (for an appealed contract only) must be delayed until the University has heard and considered any appeals from rejected bidders whose protests were filed within the time allowed.

Arriving at an Award RecommendationIf the bid review team determines that the lowest bidder is both responsive and responsible, the team should recommend awarding the contract to that bidder. At that point, the team can complete the Construction Award Recommendation Form (see instructions below). If the lowest bid is rejected because the bidder is nonresponsive and/or nonresponsible, the Senior Financial Analyst notifies Purchasing immediately so the rejection letter can be sent. The team can consider the next-lowest bid and evaluate that bidder as described above; however, any appeals from rejected bidders must be heard before another bidder is considered. The University also has the right to reject all bids and re-advertise the project. The bid review team might choose this option if, for example, the first responsive and responsible bid is priced too high.

Note: In the event two equally qualified bidders submit the same low-bid amount, the University has the right to choose a bidder by tossing a coin. Both bidders can be present for this determination.

Completing the Construction Award Recommendation FormAfter determining which bidder to recommend, Senior Financial Analyst prepares the Construction Award


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Recommendation Form, showing the recommended bidder(s). The Senior Financial Analyst signs this document to formalize the recommendation. It is then forwarded to Purchasing for review and concurrence.


The Construction Award Recommendation Form appears on the following page as Figure 2. To complete it, follow these steps:1. Enter the complete project name. 2. Enter the University project number. 3. Enter the quotation number.

Note: The quotation number is issued by Purchasing; it can be found on the Price Inquiry Package. A single quotation number is assigned to the bid package as a whole. 4. Enter the date bids were opened. 5. Enter the Project Administrator’s name. 6. Do one of the following:

If the bid review team is recommending acceptance of separate bids for each construction contract, enter the trade for each construction contract in the TRADE column; or

If the bid review team is recommending acceptance of an aggregate bid for all contracts, enter Aggregate Bid in the TRADE column.

7. Do one of the following: For a recommendation of separate bids, enter each

bidder’s name next to its trade in the LOWEST RESPONSIVE/ RESPONSIBLE BIDDER column; or

For a recommendation of an aggregate bid, enter the bidder’s name next to the words Aggregate Bid in the LOWEST RESPONSIVE/RESPONSIBLE BIDDER column.

8. If any alternates are being accepted, enter a brief description of each alternate next to the corresponding bidder in the ALTERNATES SELECTED column. (If no alternates are being accepted, enter N/A.)

9. If any of the bids being recommended contain minor deficiencies in paperwork, enter the vendor’s name and a brief description of the problem in the blanks provided. (If no irregularities were identified, enter N/A.)

Note: Purchasing works with the bidder to ensure that all errors in bid documents are corrected and the documents returned to the University in a timely fashion. Purchasing and Legal also have the final determination on whether an error is significant enough to cause rejection of the bid.


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The Senior Financial Analyst must sign the recommendation before it is forwarded to Purchasing for concurrence.



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UNIVERSITY OF CINCINNATIDIVISION OF THE UNIVERSITY ARCHITECT

CONSTRUCTION AWARD RECOMMENDATION FORM

Project Name:

Project No:

Quotation No:

Bid Opening:

Project Responsibility:

Construction Management is recommending the award of the following contract(s) for the above referencedproject to the lowest responsive bidder(s):

TRADE LOWEST RESPONSIVE/RESPONSIBLE BIDDER

Bid irregularities/items which need correction prior to issuing a Notice of Intent to Award Letter:

DESCRIPTION OF IRREGULARITY/ISSUE

Recommended By: Phone: 556-3157Kimberly Miller

Date:

Concurrence By:

Date:

VENDOR

ALTERNATESSELECTED

1

2

3

4

5

6 7 8

9 9

Senior Financial Analyst signature

Purchasing signature

s:\shareall\forms\cm\Construction_Award Recommendation Form.xls Revised 9/26/01

Figure 2: Construction Award Recommendation Form

Gaining Concurrence from Purchasing Purchasing conducts its own review of bids after the bid opening. Before signing its approval of Construction Management’s recommendation, Purchasing must be satisfied that all the recommended contracts are in the University’s best interest. In rare cases, Construction Management and Purchasing do not agree on an award recommendation. If this happens, the parties must meet and discuss the difference of opinion until a consensus is reached.


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Notifying the Successful Bidder

OutcomeThe Project Administrator has sent the “Notice of Intent to Award” to each successful bidder. Following the instructions in this notice, bidders have prepared and returned all required contract submittals to the University within the allotted time frame.

If the project uses state funding, the Senior Financial Analyst has prepared a Capital Budget Request (CBR) for the release of construction funds. Once Purchasing and Construction Management agree on an award recommendation (and any errors in the bidder’s paperwork have been corrected), the bidder can be notified. The Project Administrator sends each successful bidder a Notice of Intent to Award.

About the Notice of Intent to Award The Notice of Intent to Award does not authorize the bidder (Construction Contractor) to begin work. Work cannot begin until a contract has been properly approved and a Purchase Order issued by Purchasing. Instead, the Notice of Intent to Award advises the Contractor that the University plans to award it a construction contract. The award is contingent on University approval and the Contractor’s timely return of the following documents: Four copies of the proposed Contract for Construction

(also referred to as the “Form of Contract”), which the Contractor must sign and return to the University within 10 days of the date shown on the Notice of Intent to Award. (The Project Administrator or a support staff member should include these contracts with the notice.)

Four copies of an escrow agreement or one copy of a waiver of escrow (depending on whether the Contractor chooses to have a portion of its pay deposited in an escrow account).

Additional documents the Contractor must forward to the University (“contract submittals”) within 10 days of the


date on the notice. These submittals are listed and described in “Requesting Contract Submittals” below.

An example Notice of Intent to Award appears on the following page as Figure 3.

Note: The University has the right to rescind a Notice of Intent to Award.


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Figure 3: Notice of Intent to Award

2

Scheduling a Project Orientation MeetingFor complex or aggressively scheduled projects, the Project Administrator may call for a project orientation meeting between prime Contractors and University Construction Management staff. This meeting can take place after issuance of the Notice of Intent to Award but before Contractors are authorized to begin work. A project orientation meeting provides the University an opportunity to introduce and discuss administrative issues, site rules, and other matters. If a project orientation meeting is scheduled, the Notice of Intent to Award should specify the meeting’s date, time, and location (Figure 3) and include a sample agenda (Figure 4).

Requesting Contract SubmittalsThe Notice of Intent to Award should identify all submittals the Contractor is required to provide. At this point in the process, required submittals include: A valid Certificate of Compliance, issued by the

Ohio Department of Insurance, for the Surety. This certificate demonstrates that the Surety is licensed in Ohio. (If the Surety is not licensed in Ohio, the Certificate of Compliance must be provided for the Ohio Resident Agent who is countersigning the bid guaranty/contract bond.)

A valid Ohio Workers’ Compensation certificate for the Construction Contractor.

A valid Equal Employment Opportunity (EEO) Certificate of Compliance, issued to the Construction Contractor by the Ohio Equal Opportunity Center.

A valid Declaration of Insurance for the Construction Contractor, showing the University as an additional insured. This submittal may be provided on the ACORD form (a standard form insurance companies use for this purpose).

Four copies of a signed Escrow Agreement or one copy of an Escrow Waiver. The Contractor signs the Escrow Agreement to have a portion of its compensation


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deposited in an escrow account. If the Contractor declines the escrow account option, the Contractor signs the Waiver of Escrow.

In addition, if the Contractor is a foreign corporation (i.e., one not incorporated under the laws of Ohio), the following submittal is required: A “Certificate of Good Standing” from the Ohio

Secretary of State. This document provides evidence that the Contractor is authorized to do business in Ohio.



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Figure 4: Sample Agenda for Project Orientation Meeting

Note: The Senior Financial Analyst will review submittals and notify the Project Administrator of any missing submittals. See “Collecting and Checking Contract Submittals”.

Note: Later in the process, the Contractor will be required to provide additional submittals. See “Preparing the Notice to Proceed.”

Note: For the Contractor’s convenience, the Project Administrator should include four copies of the Escrow Agreement and one copy of the Waiver of Escrow, both modified to show the Contractor’s name and/or project information where indicated, when sending the Notice of Intent to Award. Templates for the Escrow Agreement and the Waiver of Escrow can be found at S:\Shareall\Forms\CM escrow.doc and S:\Shareall\Forms\CM escrwaiv.doc, respectively. The Contractor must provide all other submittals.

Meeting to Review SubmittalsContractors must sign and return their submittals within 10 days of the date shown on the Notice of Intent to Award. The Project Administrator may choose to schedule a meeting with a Construction Contractor or Contractors before the submittal deadline. Such a meeting, while not required, can help keep the process moving by giving the parties an opportunity to identify and correct errors before submittals are due. If possible, the Senior Financial Analyst should attend this meeting to help identify any problems with the paperwork. The section “Collecting and Checking Contract Submittals” presents information on what to look for when checking contract submittals.

Extending the Contract Award PeriodBids are valid for 60 days from the bid opening date. If the selected Contractor does not return the signed contracts and the required contract submittals promptly, this 60-day period (“contract award period”) may expire before the contracting process can be completed. If expiration


appears likely, the University must seek the Contractor’s consent to extend the original contract award period.


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To notify the Contractor of a pending expiration, the Project Administrator issues a bid extension letter. The Contractor must sign and return this letter to indicate agreement with the extension. If the Contractor does not agree to extend the award period, the University can take steps to award the contract to the next-lowest responsive and responsible bidder.

About the Bid Extension LetterThe bid extension letter should do all of the following: Identify the number of days by which the award period

will be extended (the Project Administrator should determine an appropriate number of days)

Reference ORC 153.12, which requires that contracting parties mutually consent to any extension of an award period

State that the Contractor’s acceptance of the extension will not change the bid proposal amount

State that the person signing the letter must have the authority to bind the Contractor to the agreement

Note: The bid extension letter should also request the immediate return of any outstanding submittals. An example bid extension letter appears on the following page as Figure 5.

Note: If a contract award period is extended, the Project Administrator will need to include the original bid extension letter and copies in the contract approval package. See “Assembling Contract Documents for Processing” in this chapter.

Checking Expiration DatesAny time a contract award period is extended, the Project Administrator must check the expiration dates of the following items to ensure all are valid through the ending date of the new award period: The Contractor’s Certificate of Compliance from the Ohio

Department of Insurance The Contractor’s EEO Certificate The Contractor’s Declaration of Insurance


The Prevailing Wage Rate Determination obtained from the University’s Office of Contract Compliance before the bid opening


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s:\shareall\forms\cm\extension.docrev. 6/97

Figure 5: Bid Extension Letter

Additional Steps for State-Funded ProjectsFor projects that use State funding, the Senior Financial Analyst can begin preparing the Capital Budget Request (CBR) as soon as the lowest responsive and responsible bidder is identified (and the amount of the accepted bid is known). The CBR officially requests that the State release construction funds for the project. State-funded contracts require additional paperwork and approvals, both within the University and at the State level. The Project Administrator, while not directly responsible for these additional activities, must be aware of their sequence and timing, presented below: 1. The Senior Financial Analyst prepares the CBR to request

release of construction funds. 2. The Director of Capital Projects Reporting reviews the

prepared CBR and submits it to the State for processing and approval.

3. The Ohio Board of Regents reviews the CBR and forwards it to the State Office of Budget and Management (OBM). OBM includes review of the CBR on the agenda for the next meeting of the Controlling Board.

4. The Controlling Board meets to review and approve the CBR. A University Planning representative attends the meeting.

5. The Planning representative notifies the Senior Financial Analyst (by e-mail) that the CBR has been approved.

6. Capital Finance prepares State encumbrances for the contracts and forwards evidence of the encumbrances to the Senior Financial Analyst.

7. The Senior Financial Analyst forwards the contracts and submittals, along with a copy of the encumbrance, to the University’s Office of General Counsel. (By this time, the Contract for Construction has been routed for approval within the University as described in the section “Preparing the Contract Approval Package”.)

8. The Assistant Attorney General or designee approves the contracts and forwards them to Purchasing so that Purchase Orders can be issued.


The process for obtaining release of State funds is depicted on Chart 2 in this document.


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Collecting and Checking Contracts and Submittals

OutcomeThe Project Administrator and the Senior Financial Analyst have confirmed that the Contractor’s signed contracts and submittals comply with University and ORC requirements. The Contractor has corrected any errors and returned the documents, which are then ready for internal processing and approval.

Receiving Contracts and Submittals As contracts and submittals come in from the Contractor (either by mail or during an optional review meeting), the Project Administrator should check them for completeness and accuracy before forwarding them to the Senior Financial Analyst. Although the Senior Financial Analyst will ultimately review all submittals independently to ensure compliance, the Project Administrator can assist in the process and help prevent delays by checking submittals as the Contractor returns them.

Checklist for Contracts and Submittals The table below presents some points to look for on returned contracts and contract submittals. If any document does not comply, the Project Administrator should return it to the Contractor immediately, instructing the Contractor to correct the problem and resubmit the document.

Note: In addition to reviewing the Contractor’s submittals, the Project Administrator must make sure the prevailing wage rates and the bid itself are still valid. Prevailing wage rates include a date through which they are valid. Contractors’ bids are valid for 60 days from the bid date.


Checklist for Contracts and Submittals

Document name Purpose What to Look For

Signed contract Once approved by the University, becomes legal instrument of agreement between the University and the Contractor

Contractor has returned four signed copies

Department of Insurance Certificate of Compliance (for Contractor’s Surety)

Proves the Surety is licensed to work in Ohio

Expiration date is current (certificate has not expired and will not expire before award of the contract)

Ohio Workers’ Compensation Certificate

Demonstrates Contractor’s participation in Ohio Workers’ Compensation program

Certificate number and dates of coverage are shown

EEO Certificate Demonstrates Contractor’s compliance with Equal Employment Opportunity laws

Expiration date is current (certificate has not expired and will not expire before award of the contract)

Declaration of Insurance (ACORD or IP-2 Form)

Demonstrates Contractor is covered under an insurance policy

University of Cincinnati is listed as an additional insured

Expiration date is current (policy has not expired and will not expire before award of the contract)

* Escrow Agreement Contractor chooses to have a portion of its payment deposited in an escrow account.

An authorized representative of the Contractor has signed the last page of the document and provided his/her title

Contractor has returned four signed copies

* Waiver of Escrow Contractor chooses not to have payment escrowed.

An authorized representative of the Contractor has signed and dated the waiver and provided his/her title

† Certificate of Good Standing from Ohio Secretary of State

Demonstrates that a foreign corporation is authorized to do business in Ohio.


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* The Contractor returns either the Escrow Agreement or the Waiver of Escrow, not both. † Submittal required only if the Contractor is a foreign corporation (i.e., not incorporated under the laws of Ohio).

Forwarding Contracts and Submittals After checking the signed contracts and submittals (and working with the Contractor to resolve any errors), the Project Administrator should forward all the documents to the Senior Financial Analyst. The Senior Financial Analyst conducts an additional review of the contracts and submittals. If all documents are in order, the Senior Financial Analyst notifies the Project Administrator, and the University’s internal contract approval process can begin.


Preparing the Contract Approval Package

OutcomeThe construction contract(s) have been routed to the appropriate parties within the University and signed. The next step in the process for awarding construction contracts is to obtain approval of the proposed contract(s) as required by University policy. To do this, the Project Administrator prepares the A-910 Contract Approval Form and assembles the contracts and submittals for approval routing.

Note: Ideally, the State’s process for approving the Capital Budget Request (if the project uses state funding) occurs as the construction contract is being approved within the University. See Chart 2 and the section “Additional Steps for State-Funded Contracts” for more information. Chart 2 on the following page shows the process flow for the remaining steps of awarding construction contracts.


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About the A-910 Contract Approval Form The first two pages of the A-910 Form provide summary information about the contract for those who will approve it. The last page includes blanks for approval signatures.

Completing the A-910 FormFigure 6 shows the A-910 Form. Follow these steps to complete it for a construction contract:

Note: A separate A-910 form is required for each proposed contract. 1A. In the Date of Initiation field, enter the current date. 1. In the Initiating Department field, enter the Project

Administrator’s department within the University Architect Division.

2. Enter the Project Administrator’s name and University telephone number.

3. Under Does this Contract call for UC to pay the other party?, check the box next to yes and enter the account number found on the requisition (RX) for the construction contract.

Note: The Project Administrator prepares a “bidder” RX for each of the anticipated prime contract types (i.e., General, Electrical, HVAC, etc.) before the project is offered for bidding. Interim copies of each RX are returned to the Project Administrator after processing by Capital Finance. University Purchasing will convert the RX to a Purchase Order after the construction contract is approved. See the chapter “Preparing for Construction Bidding” for more information. 4. Under Is this Contract Sponsored?, check the box next to

yes or no, as appropriate. Note: A sponsored contract is one that will be directly funded by

an individual or party other than the University. 5. Under Description of Contract, complete fields A–K as

follows:A. Enter the name of the selected Construction

Contractor.


B. Enter the project name, the University project number, and the type of construction contract (e.g., “electrical”, “general”, etc.).

C. Leave this item blank. D. Check New Agreement.


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1A

1

2 2

3

4

5A

5B

5C

5D

5E

5F

5G

5H

5I

5J

5K

s:shareall/forms/cm/A-910.xls

Figure 6: A-910 Form (page 1)

6

7


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E. Enter the following under Major financial terms: The base bid amount, The total amount of any alternates accepted for

this contract, and The total contract amount (base bid plus all

alternates equals contract total).

Note: The Accountant will use the contract total entered on the A-910 to update the project budget in OASIS. Be sure to include the base bid plus any alternates. F. Enter the number of calendar days allowed for project

completion, as specified in the Contract for Construction.

G. Leave this item blank.H. Leave this item blank; the Accountant will complete. I. Leave this item blank; the Accountant will complete. J. Leave this item blank; the Accountant will complete. K. Check yes and enter the RX number or Purchase

Order number. 6. Under Number of originals to be signed, enter 4. Enter the

Project Administrator’s name, phone number, and mail location in the blanks provided.

7. Complete items 7A–E only if you are submitting a sponsored contract.

8. Under Approvals, the Project Administrator must sign and date the first line as Principal Investigator or Individual Responsible for Agreement.

The next section describes how to assemble the completed A-910 Form, contracts, and submittals for routing and approval steps.


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Assembling Contract Documents for Processing To prepare the contract for internal routing and approval, the Project Administrator assembles the following:

Four original, signed construction contracts (with a copy of the bid extension letter, if applicable, attached to each)

Four Escrow Agreements or one copy of an Escrow Waiver

The completed A-910 Form (with Project Administrator’s signature under Approvals)

The Purchase Requisition (RX) for the contract The original bid extension letter, if applicable

The Project Administrator gives these documents to the Assistant to the Director of Construction Management. The Assistant enters information about the contract into a database that identifies the correct signature routing path. The package is then assembled into a folder with a cover sheet attached to the front for routing. It goes first to Capital Projects Reporting for quality-assurance checking, and then to the individuals whose signatures are required.


Preparing the Notice to Proceed

OutcomeThe Project Administrator has sent the “Notice to Proceed” to each Construction Contractor. Contractors, following the instructions in the notice, have completed and returned additional required submittals within the time allowed.Once a construction contract has been approved (and funds have been released, if the project uses State funding), Purchasing issues a Purchase Order. Purchasing then sends the Purchase Order and executed contract to the Contractor. Purchasing forwards a copy of the Purchase Order to the Senior Financial Analyst, who records the Purchase Order number in OASIS. The Senior Financial Analyst then forwards copies of the Purchase Order and contract to the Project Administrator. Upon receiving the Purchase Order and executed contract copies, the Project Administrator should prepare the Notice to Proceed and send it to the Contractor.

About the Notice to ProceedThe Notice to Proceed tells the Contractor the exact date on which it is authorized to begin work. The notice also reiterates the contract period in consecutive calendar days and specifies the date by which work should be completed. The Notice to Proceed also advises the Contractor of additional submittals the Contractor must complete and return within 10 days of the notice date (see “Requesting Additional Submittals”). An example Notice to Proceed appears on the following page as Figure 7.


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Figure 7: Notice to Proceed

Requesting Additional SubmittalsSubmittals requested with the Notice to Proceed include the following: Contract Cost Breakdown (on State of Ohio Form ADM-

5805); Subcontractor’s Declaration (State of Ohio Input Form

26, a request for information about any subcontractors the prime Contractor intends to use);

Manufacturer’s Declaration (State of Ohio Input Form 27, a request for information about any suppliers the prime Contractor intends to use);

A preliminary schedule of shop drawings and submittals; A statement of the proposed Superintendent’s

qualifications; Evidence that the Contractor has sought authorization

for electronic transfer of payments (i.e., completed EFT application forms from the State and/or University, as applicable);

A schedule of dates on which the Contractor’s employees will be paid (The Contractor is responsible for keeping its wage rates current with State prevailing wages. The schedule of pay dates should be provided to the University’s Office of Contract Compliance); and

A Construction Schedule as described in paragraph 4.3 of the General Conditions (this submittal is required of the Lead Contractor only).

The Project Administrator or support staff member can include Form 26, Form 27, and the University’s electronic funds transfer application (if required) with the Notice to Proceed. Other submittals should be initiated by the Contractor.

Note: The Contractor can refer to paragraphs 7.4 and 7.5 in the “Instructions to Bidders” document, found in the Front-End Specifications, for the list of submittals required at this point.


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Preparing the Notice of Commencement

OutcomeThe Project Administrator has prepared the “Notice of Commencement” documenting the project start date for University records. The notice has been signed by the Director of Construction Management and notarized. Preparing the Notice of Commencement is the final step in awarding construction contracts.

About the Notice of CommencementThe State of Ohio (ORC 1311.252) requires the University to complete the Notice of Commencement. It certifies the date on which project work began, as well as the names of the prime Contractors and their Sureties and Surety Agents. Once prepared, the Notice of Commencement will be signed by the Director of Construction Management and notarized. An example of an executed Notice of Commencement appears on the following two pages as Figure 8. The document can be prepared by the Project Administrator or a support staff member. To complete it, follow these steps: 1A. Enter the name of the Director of Construction

Management. 1. Enter the project name, the location of the project

work site, and the University project number. 2. Enter “Department of Construction Management” and

the department mailing address as shown on Figure 8.

3. Enter the name, address, and construction trade of each Prime Contractor.

4. Enter the name and address of the Surety and the Surety Agent for each prime Contractor.

5. Enter the date of the earliest contract on the project, and the name of the Contractor.

6. Enter the start date for project work.


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7. Enter the name and University address of the Project Administrator.



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1A

1

2

3

4

Figure 8: Notice of Commencement (page 1)


5

6

7

Figure 8: Notice of Commencement (page 2)

8. Submit the Notice of Commencement to the Director of Construction Management. The document will be signed and notarized for project and department files.

The signed Notice of Commencement is kept on file. Copies are transmitted to subcontractors and/or material suppliers only upon request.

Note: The Notice of Commencement is not to be posted at the job site.


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Awarding the Construction Contracts · Web view(By this time, the Contract for Construction has...

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