Question

In course of a bid conference ABC representative asked you the buyer, to provide an attachment you inadvertently did not include in the package. What is the appropriate step you will take?

Subject is Procurement supply and contract pkease answer it quickly

Answer 1

1. Professional Services: To begin the procurement process for professional design services, the Campus Construction Administrator receives a project request with funding information and campus approvals to begin a project. When the construction contract cost for a project is expected to be greater than $500,000 the campus will forward a Project Information Form (PIF) to the UM Director of Facilities Planning and Development. The Director determines whether Board actions are necessary. A copy of the PIF is returned to the Campus Construction Administrator. The procurement and administration of professional services, until a construction contract is awarded, will be managed by the Project Manager.
   1. Consultant Selection
      1. Architect and Engineer Database: The University of Missouri maintains a listing of all consultants interested in providing services to the University of Missouri. UM Facilities Planning & Development maintains this file and distributes it electronically to the campuses. This database will be used as a starting place to determine the most qualified consultants for a project.
      2. Classifications: The University of Missouri uses two procedures for the selection of consultants depending on the size of the project. The dollar sizes of the projects mentioned below are guidelines. The Type II procedure may be used for projects with fees less than $200,000 based on the judgment of the Project Manager.
         (1) Type I: Major Projects: Major Projects include new buildings, major renovations and significant studies. Typically, professional fees on major projects exceed $200,000.
         (2) Type II: Small Projects: Small Projects include various types of consulting and typically have professional fees less than $200,000.
      3. Evaluation Criteria: The University’s procedures for selecting consultants follow the intent of State and Federal guidelines. For each project, the firms will be evaluated based on the following:
         (1) The firm’s qualifications.
         (2) The number of projects the firm has completed that are similar in scope and size.
         (3) The current number of contracts the firm has with the University of Missouri.
         (4) The firm’s past performance.
         (5) The firm’s present work load.
         (6) The firm’s experience with the project.
         (7) The firm’s minority status and minority participation in the design team.
         (8) The firm’s status as a Missouri Firm.
   2. Selection Procedure
      1. Type I: Major Projects:
         (1) The Campus Facilities Administrator defines the project scope and assigns the Project Manager.
         (2) For new buildings or major renovations the Campus Chancellor [or other officer] appoints a project committee. Members of the committee will include appropriate user representatives including faculty, staff and students. The Project Manager will also be appointed to the committee. The Chancellor may appoint a committee chairperson who will be responsible for coordination of user input, concerns, and suggestions. The primary role of the committee is to develop and define the program needs and ensure the design satisfies the program needs.
         (3) The Project Manager prepares a Request for Qualifications (RFQ). The RFQ outlines the project scope and services required.
         (4) The Project Manager will determine the appropriate architect/engineer fee for the project. This maximum fee will be stated in the RFQ.
         (5) The Project Manager uses the Consultant Database and their judgment to develop a list of consultants to receive the RFQ. The Project Manager issues the RFQ to prospective firms.
         (6) After qualifications are received from the consultants, the Project Manager reviews the information and recommends a list of firms to interview to the committee. Only the most qualified consultants are invited to be interviewed.
         (7) The interviews are coordinated by the Project Manager and should include the project committee.
         (8) Based upon the above evaluation criteria, the selection committee ranks the firms and they recommend a finalist. A written evaluation of the firms is placed in the project file. The Project Manager will complete the University of Missouri Consultant Selection Summary Form and place in the project file.
         (9) The Project Manager negotiates the final form of the contract with the selected Architect/Engineer.
         (10) If no architect/engineering firm agrees to the terms of the University contract or fee, the selection criteria and designated fee may be modified and the selection process shall start over.
         (11) After campus approvals, the top ranked firm and successfully negotiated agreement are recommended to the Board of Curators for Project Approval if necessary.
      2. Type II: Small Projects:
         (1) The process follows the same steps as the Type I process. However, an RFQ and committee interviews are not required. The Project Manager will consider no less than three (3) qualified firms.
   3. Professional Services Fees
      1. Process: For Type I projects, professional services fees shall be established before the RFQ is issued according to the Fee Guidelines, see below. For Type II projects, the Project Manager will negotiate fees using reasonable and fair judgments. If the University and the consultant cannot agree, the negotiations will be ended. The Project Manager will justify any fee higher than the maximum listed in the guidelines, and document the extenuating circumstances.
      2. Fee Guidelines: UM Facilities Planning and Development will maintain the fee guidelines and calculation methods.
   4. Agreements
      1. Standard Consultant Agreement:
         (1) For basic design and construction services, a University of Missouri Standard Consultant Agreement (SCA) is used. This agreement is a contract between the Owner (University) and the consulting firm. This agreement is maintained by UM Facilities Planning & Development.
         (2) The agreement contains two major segments: the body of the agreement and the agreement exhibits. The body of the agreement identifies the responsibilities of both the owner and consultant. The exhibits include:
         • the name of the Project Manager
         • the scope of services
         • amount available for construction
         • the project schedule
         • the fee and billing rates
         • other project specific requirements (e.g., Board of Curators presentations or visits, site visits, number of brochures needed, etc.)

         (3) The Project Manager prepares the agreement. The agreement is sent to the Consultant along with a transmittal letter that requests the firm’s representative to: (1) sign the Agreement; (2) send a Certificate of Insurance; (3) direct all correspondence to the Project Manager and (4) return the agreement to the Project Manager. Normally, three signed copies of the agreement are required: one each for the Project Manager, the contracting official’s file, and the consultant.
         (4) After the consultant returns the signed copies of the agreement, the appropriate University official executes the agreement. See BPM 24001 for delegations. For required documents for the UM Contracting Officer to sign the agreement, see the Agreement Processing Checklist. Once the agreement is fully executed and returned to the Consultant, the Consultant may proceed with the project.
         (5) The Project Manager prepares the Consultant Agreement Supplier Diversity Participation Summary Form.

      2. General Consulting Agreement:
         (1) For services requiring no direct design and construction responsibility by the consultant (such as the owner’s design-build technical consultant, programming, master planning, and studies), a General Consulting Agreement will be used. The agreement specifies the scope of services, conditions for employment, agreed upon contract payment, the project completion date, and related contractual information. This agreement is maintained by UM Facilities Planning & Development.
         (2) The Project Manager follows the same procedures as for the SCA above.
   5. Engagement Limitations
      1. Firms providing programming and/or preliminary design on a given project may not be eligible to provide design services for that project when that work is used to establish the project budget.
   6. Payments
      1. General: Consultants may request payments following the criteria established in the agreement. The Consultant is supplied any payment request forms and instructions with the agreement.
      2. Invoice: The Consultant must submit to the Project Manager a request for payment of services performed at any stage of the projects development (e.g., schematic, preliminary design). Invoices must accompany all payment requests submitted by a Consultant detailing the services completed. The payment request shall summarize the total bill to date and the current bill.
      3. Executed Agreement: The Project Manager will review and approve all Consultant payments. No payments should be approved unless an executed agreement is on file.
2. Design Management: The project design process can begin once the consultant agreement is executed. The University's Project Manager (PM) is the Owner’s Representative during the design of the project. All instructions and approvals come to the consultant from the PM. The PM manages the total project budget and requires the consultant to manage the construction budget. The PM will manage internal University approvals and instruct the consultant accordingly.
   1. Meetings and Stakeholders
      1. University projects normally involve many academic, student, and service groups as stakeholders in a project. The PM arranges for and coordinates the consultant’s contact with these groups. Meetings are scheduled by the PM’s office.
      2. Campus Facilities Management organizations provide in-house design & construction related services at each campus. The PM will arrange for and coordinate the consultant’s contact with these groups.
      3. Meeting minutes are kept by the consultant and reviewed by the PM before issue. Meeting minutes should be issued to all participants within five working days.
   2. Design Phases
      1. Programming/Predesign: See Chapter 4 for information regarding Programming and Planning Studies. Program verification may be required prior to beginning the Schematic Design phase, especially if a significant period of time has elapsed between the two phases.
      2. Schematic Design (SD): During Schematic Design, the consultant develops study drawings, documents, and other media that illustrate design concepts for University review. Building code requirements are initially researched and addressed during Schematic Design.
      3. The SD review submittal should include an SD Brochure, including drawings, a project narrative, and a construction cost estimate among other items. Refer to the UM Consultant Procedures and Design Guidelines (CPDG) for a detailed listing of submittal requirements. Project Design may be required to be submitted to the Board of Curators as an Informational Item. Once the SD submittal has been reviewed and approved the design can proceed to the Design Development phase.
      4. Design Development (DD): DD phase work begins with the approved SD documents and develops them in further detail. This phase begins to establish mechanical, electrical, plumbing, structural, and architectural details.
      5. The DD review submittal should include dimensioned drawings and outline specifications. The construction cost estimate should also be updated at this time. Refer to the UM CPDG for a detailed listing of submittal requirements. Once the DD submittal has been reviewed and approved the design can proceed to the Construction Documents phase.
      6. Construction Documents (CD): The CD phase incorporates all design decisions made in previous phases into detailed drawings and specifications to be used in the bidding and construction of the project.
      7. There are generally two CD phase reviews. The first review occurs at approximately 50% completion of the Construction Documents. The final review takes place after the consultant team is complete with the CD package.
   3. Final Review and Approval - The Project Manager shall schedule a Final Document Review Meeting to give stakeholders the opportunity to review and approve the Contract Documents, Drawings and Specifications.
      1. The Project Manager will require the Consultant to provide 100 percent complete Documents (including drawings and specifications) at least one week before a scheduled review meeting. Large projects, as identified by the Project Manager, will require additional review time.
      2. The Consultant is responsible for preparing all portions of the contract documents except those specifically supplied by the University.
      3. In addition to reviewing the Drawings and Specifications, the Project Manager shall review all other Contract Documents for coordination with the Drawings and the Specifications. The Consultant will revise the Contract Documents according to the directions received at the final review meeting.
      4. Once the contract documents are complete, the Project Manager will establish the advertisement date during the final document review meeting. The Project Manager will require the Consultant to produce complete documents before bidding.
      5. Projects requiring Code Review should be submitted to UM Facilities Planning and Development at this time. See Chapter 3 for information regarding Code Submission.
3. Contract Documents: Bidding and Contract Documents may be prepared by the Campus Facilities Administrator or a Consultant, and shall be bound into the Project Manual.
   1. Bidding Documents and Requirements - Bidding Documents and Requirements are used to attract bidders and explain the procedures bidders are to follow in preparing and submitting their bids. They help bidders follow established procedures and submit bids that will not be disqualified because of irregularities. Bidding Requirements address all prospective bidders interested in the project, while the Contract Documents concern the successful bidder who will be signing the contract with the University.
      1. The Advertisement for Bids is a published notice soliciting bids for a construction contract and it is a Contract Document. The Information for Bidders is maintained by UM Facilities Planning and Development.
      2. The Information for Bidders states procedures to be followed and provides data about the project. It covers the preparation and submission of bids, and such details as bonds, bid security, Bidders Statement of Qualifications, award of contract, time of completion, liquidated damages, and any special bidding conditions that apply to the project. The Information for Bidders is maintained by the UM Facilities Planning and Development.
      3. The Bid for Lump Sum Contract (Bid Form) is a document furnished to a bidder to be completed, signed, and submitted as the bidder’s Bid. The Bid Form provides blank spaces to be filled in by the bidder and a place for the bidder’s signature to indicate the bidder agrees to all the provisions in the Form. Data to be filled in by the bidder include: bidder’s name, address, and other bidder information, addenda receipt, base bid, alternates, and unit prices. The Bid Form is maintained by UM Facilities Planning and Development.
      4. The Bidder’s Statement of Qualifications helps the University to determine that a bidder qualifies as a Responsible Bidder. The Information for Bidders sets forth bidder requirements for completing the Bidder’s Statement. The Statement is maintained by the UM Facilities Planning and Development.
      5. The Supplier Diversity compliance evaluation bidding documents helps the University to determine whether a bidder has achieved the Supplier Diversity contracting goal or has made a good faith effort to achieve the goal. The Information for Bidders sets forth bidder requirements for completing these forms. The forms are maintained by the UM Facilities Planning and Development.
   2. Contract Documents - The Contract Documents contain the legally enforceable requirements which become part of the contract when the Construction Contract form and other related contract forms are signed. See Section L, Award of Contract, for procedures to follow in transmitting the appropriate Contract Forms to the successful contractor. The Contract Documents consist of the following:
      • Contract for Construction
      • Contract Conditions
      • Project Technical Specifications and Requirements
      • Drawings
      • Addenda
      • Contractor's Bid (Bid Form)
      • Contractor's Performance and Payment Bonds
      • Notice to Proceed
      • Other exhibits or post-bid adjustments identified in the Contract for Construction
      • Advertisement for Bid
      • Information for Bidders
      • Change Orders (issued after execution of the Cotnract for Construction)
      1. Contract for Construction
         (1) The Contract is the document signed by the University and the Contractor and is the legal instrument binding the parties to the work. It defines the relationships and obligations existing between the University and the Contractor and lists the documents which make up the contract. The form of the Contract is maintained by UM Facilities Planning & Development.
         (2) The contract price is the accepted Base Proposal or Bid submitted by the successful contractor on the Bid Form adjusted by accepted additive alternates. The contract price shall not be adjusted by negotiation.
      2. Contract Conditions - Contract Conditions define the basic rights, responsibilities and relationships of the parties involved in the construction process. Contract conditions are of the following two types:
         (1) General Conditions: General Conditions are general clauses that establish how the project is to be administered. The documents are maintained by UM Facilities Planning & Development.
         (2) Special Conditions: Special Conditions modify or supplement the General Conditions, as needed, to provide for conditions unique to a specific project. They consist of modifications and additions such as those imposed on Federally assisted projects. Project specific contract requirements should be included in the Special Conditions. The document is maintained by UM Facilities Planning & Development.
      3. Project Technical Specifications and Requirements - The Project Technical Specifications and Requirements, or project manual, are usually prepared by the Consultant and reviewed by the University. They consist of various sections organized according to the CSI Division Format, except for Division 1. The format for the project manual shall be as set forth in the Consultant Procedures and Design Guidelines manual.
      4. Drawings - The Drawings are usually prepared by the Consultant and reviewed by the University. They must be specifically enumerated in the Contract Documents.
      5. Addenda - Addenda are documents that clarify, revise, add, or delete portions of the issued Documents. Addenda requirements are maintained by UM Facilities Planning & Development. See section _____ for additional addenda procedures.
      6. Contractor’s Bid - The Contractor’s Bid is the Bid Form completed by the Bidder, signed, and addressed to the Owner. This document includes any required attachments, such as the Contractor’s completed Statement of Qualifications and Bid Bond.
      7. Performance and Payment Bonds
         (1) The University’s performance bond and payment bond requirements and forms are maintained by UM Facilities Planning & Development.
         (2) The Performance Bond and Payment Bond provide a source of funds which can be used to reimburse the University for completing the work or correcting deficiencies in the event the Contractor does not complete the work in accordance with the Contract. The bond also provides a source of compensation for unpaid subcontractors, suppliers, or workers who have furnished goods or services to the project. The amount of both the Performance Bond and the Payment Bond must be at least 100 percent of the Contract Price.
         (3) Bidder Instructions for the Performance Bond and the Payment Bond are in the Information for Proposers or Bidders and in the General Conditions. The bond form is provided to the Contractor by the University.
      8. Notice to Proceed - The Notice to Proceed is issued after the Contractor has submitted all required Bonds, Insurance, and a signed contract.
      9. Other Exhibits
         (1) The Contractor must provide a List of Subcontractors
         (2) Roofing System Manufacturer’s Certification (if applicable)
         (3) Post-bid adjustments (if applicable)
         (4) Certificates of Insurance: The University’s insurance requirements are found in the General Conditions. The contractor must provide the required certificates of insurance.
      10. Advertisement for Bid - The Advertisement for Bid is included in the Contract Documents. See Bidding Documents and Requirements above for additional information.
      11. Information for Bidders - The Information for Bidders is included in the Contract Documents. See Bidding Documents and Requirements above for additional information.
      12. Change Orders - Change Order is the modifications to the Contract made after the Contract is executed.
4. Bidding and Award - Contracts for construction will be advertised so the number of bids or proposals will not be restricted or curtailed and will be open to all persons complying with the terms upon which the bids are requested or solicited. The general advertisement process is described below.
   1. Advertisement - The Project Manager coordinates the Advertisement process. The University’s Advertisement policy is found in ____. The Advertisement describes where Bidders can obtain Bid requirements, drawings and specifications (the Documents), the date, time, and location of the bid opening and pre-bid meeting, and the Supplier Diversity participation goal. Before Advertisement, the Project Manager sends the Consultant:
      1. One copy of the Advertisement.
      2. One copy of the List of Plan Rooms.
      3. One copy of the Information for Bidders and General Conditions.
      4. One copy of the Bidder’s Statement of Qualifications and Supplier Diversity forms.
      5. Prevailing Wage Rates for the county were the work will be performed.
      6. Instruction on how many sets of documents to print, where to send them and when the Consultant must deliver them.
   2. Document Distribution - The Consultant assembles the Documents and the Project Manager instructs the Consultant on whether an electronic plan room will be used for distribution or documents will be distributed manually. One (1) set of Documents will be provided to each of the Plan Rooms listed in the List of Plan Rooms included in the Documents. The Campus may also have sets of Documents sent to the Campus for distribution. The Campus or electronic plan room maintains the list of plan holders.
   3. Addenda
      1. Addenda are written text and/or drawings issued to clarify, revise, add to, or delete information in the original bidding documents or in previous Addenda. Addenda are issued before the opening for bids.
      2. Addenda are Contract Documents. The Project Manager shall approve all addenda items before issuing. If directed by the Project Manager, the Consultant shall prepare and distribute addenda directly to all plan holders.
      3. The Project Manager shall distribute addenda so all plan holders have a copy of the addenda at least 72 hours before the bid opening. This may be done through the electronic plan room or the Project Manager may instruct the Consultant to distribute to all plan holders. The Project Manager should extend the bid date if this requirement cannot be met.
      4. If the Bid Form is revised by addenda, the revised Bid Form shall be issued on a different colored paper to distinguish the revised Bid Form from the original Bid Form.
      5. Besides issuing Addenda to bidders, a copy of the Addenda must be placed in each set of the Documents that has not been issued.
   4. Pre-Bid Meeting - The Project Manager, assisted by the Consultant may hold a Pre -bid Meeting before the Bid Opening. All interested bidders are invited to attend to ask questions about the project requirements, drawings and specifications and to inspect the construction site. All questions requiring interpretations by the Consultant shall be answered by Addendum. The Project Manager shall conduct the meeting in the format shown in the Pre-bid Meeting Notes. The Consultant later issues addenda, if necessary, to clarify or modify any questioned contract items identified at the Pre-bid Meeting that require clarification.
   5. Interest in the Project - To help assure that the University receives the most bids possible (and a minimum of three), the Project Manager will use the following guidelines:
      1. The consultant should be directed to review the local bidding climate before the preparation of Documents. The size and composition of projects should be considered to encourage competitive bidding.
      2. If it appears likely that a conflict among projects will occur in the market, the rescheduling of the due date should be considered if time permits and if the Project Manager expects that rescheduling will result in additional interest in the project.
      3. The consultant should review the plan holders list after the project has been on the market for seven to ten days to confirm adequate interest in the project. The consultant should contact several prospective bidders to assure the University will receive at least three bids.
      4. If there is little interest in the project, the consultant, with the assistance of the Project Manager, should contact potential bidders and determine the cause.
      5. Each campus should maintain a record with the project title, nature of the project and names of all the bidders on each project. This information should then be used as a resource in planning and marketing future projects.
   6. Opening of Bids - The Campus Construction Administrator conducts a public Bid Opening. The Campus Construction Administrator conducts the Bid Opening within strict guidelines outlined in the University of Missouri Bid Opening Procedures.
   7. Protests - Persons or entities may protest the University’s selection of the apparent low bidder. The contract documents do not address the issue of bid protests. However, if a protest is made, it must be resolved to the University’s satisfaction before the contract is awarded. Report any protest to the UM Director of Facilities Planning and Development for resolution. Protests may be made at Opening regarding a bid irregularity. See Bid Opening Procedures for resolving irregularity protests.
   8. Irregularities
      1. The Information for Bidders allows the University to waive informalities in bids. Procedures to follow for irregularities are set forth in Bid Opening Procedures. The Campus Construction Administrator shall refer all irregularities to the UM Director of Facilities Planning & Development for resolution.
      2. Some irregularities in the form or content of a proposal or bid may make it non-responsive. A non-responsive bid materially varies from the form or content requirements of the Bid Documents. Examples of such irregularities include but are not limited to: incomplete submittals, unsigned bids, attachments or related documents, qualifications, discrepancies, submittals on unauthorized forms, late or mishandled bids, or claimed mistakes.
   9. Bid Evaluation for Lowest Best Bid awards
      1. Consultant Evaluation
         (1) After the University has received the bids, the Project Manager shall instruct the Consultant to evaluate the bids and low bid Contractor. Information to evaluate the bidder is contained in the document Bidder’s Statement of Qualifications. The bidder submits this document with its bid.
         (2) If the bids differ substantially from the Consultant’s estimate, the Consultant will provide documentation that explains the differences. Additionally, the Consultant shall also review the bid spread.
         (3) The Project Manager will require the Consultant to make a written determination of the responsiveness and responsibility of the apparent low bidder, and a recommendation whether to award the contract to the apparent low bidder.
      2. University Evaluation
         (1) The Project Manager evaluates the bids received, the Consultant’s Evaluation, the Bidders Statement of Qualifications, any data contained in the University of Missouri Problem File, and any other appropriate data.
         (2) The Project Manager will compare the bids with the project budget as contained in the Project Cost Summary. After the contract award is determined, a final Project Cost Summary is prepared for approval and signature by the Campus Facilities Administrator.
         (3) For Contracts over $500,000, the Project Manager will prepare the Construction Backup Document and it will be submitted to UM Facilities Planning and Development for review.
         (4) The Project Manager shall review the bidders Supplier Diversity participation documentation and recommend to the UM Contracting Officer if a bidder has met the participation goals or made a good faith effort according to the contract documents.
   10. Rejection of Proposals and Bids
       1. Irregularities: Bids with irregularities may be rejected if the UM Director of Facilities Planning and Development decides the irregularity cannot be waived.
       2. Reject All Bids: All bids may be rejected if acceptance of the lowest responsible bid is not in the best interest of the University.
       3. Non-Responsible Bidder: A bid may be rejected if the bidder is determined to be non-responsible. If the Campus does not want to accept a bid based on the responsibility of the contractor, the bid results shall be sent to the UM Director of Facilities Planning and Development with the campus recommendation.
   11. Withdrawal of Bids
       1. A Bid may be withdrawn any time before the scheduled closing time for receipt of bids.
       2. A bid received and not withdrawn before the opening is irrevocable for 60 days or other period established in the Contract Documents.
       3. See the Information for Bidders for additional information.
   12. Award of Contract - All of the following conditions must be met before awarding any construction contract:
       1. The Contractor has been chosen by competitive bidding, and the award is to be made to the lowest responsible bidder submitting a responsive bid.
       2. The contract documents conform to the documents used in the bidding process.
       3. All protests or disputes as to bidding or award of the contract have been resolved.
       4. The scope of work matches the project scope.
       5. Funds are available for the total project cost.
       6. Approval from external agencies funding the project has been obtained in writing.
       7. The contractor has provided proper insurance and bonds.
       8. All necessary Board of Curator approvals have been obtained,if any.
   13. Contract Execution
       1. After the contract award is approved (see BPM 24001), the Campus prepares the Contract transmittal including the Contract form, Bond requirements, Insurance certificates and requirements, list of subcontractor requirements, and roofing certification requirements (if applicable) to the Contractor.
       2. The Campus sends the Contract and accompanying documents by certified mail to the Contractor.
       3. The Contractor must follow the instructions in the General Conditions for properly preparing and returning these documents. The contract period begins when the Contractor receives the unsigned contract. Fifteen calendar days are allotted in the construction schedule for the Contractor to process and return the completed documents.
       4. The Campus receives the signed Contract and accompanying documents from Contractor.
       5. If the contract amount exceeds $500,000, the campus forwards the Contract to the UM Director Facilities Planning & Development, with insurance, Bonds, Construction Backup, and all other required documents. See Contract Processing Form for required documentation. After review, the contract is sent to the UM Contracting Officer for execution. All other contracts are forwarded to the Campus Contracting Officer for execution.
       6. For the UM Contracting Officer, the UM Director Facilities Planning & Development signs the Notice to Proceed and returns all documents back to the Campus for distribution. For all other contracts, the Campus Construction Administrator issues the Notice to Proceed and Contract to the Contractor.
5. Construction
   1. General
      1. Owner’s Representative: The Owner’s Representative, or Construction Project Manager, assumes management of the project after the award of contract.
      2. Pre-construction Meeting: The Owner’s Representative shall arrange a Pre-construction Meeting before each project begins. The meeting provides a forum for the discussion of such items as the routing of communication, the construction schedule, construction documents, roof warranty requirements (if applicable), contractor submittals, use of the premises, special project requirements, and potential change orders.
         The Owner’s Representative introduces project participants, reviews the General Conditions, conducts the meeting in the format of the Preconstruction Meeting Notes, and verbally reviews the examples contained in the Preconstruction Orientation Booklet.
      3. Notice to Proceed: No work is permitted on site until the Notice to Proceed is received by the Contractor, signed, and returned to Owner.
      4. Reports and Communication: The Owner’s Representative coordinates reports and communication among the University, consultant, contractor, and client throughout the construction phase. With few exceptions, all communications and reports regarding the project flow through the Owner’s Representative. The Owner’s Representative shall maintain a record of project actions including phone calls, letters, and memos.
   2. Construction Observation
      1. The Consultant is responsible to make periodic site visits to review the work. The Consultant shall visit the site as required by the Construction Project Manager (CPM) to assure the construction conformance to the drawings and specifications.
      2. Additional Testing and Inspection. If there are specialty items requiring inspection or testing, the University should hire a firm with the expertise required to perform such testing, such as concrete testing, weld testing, etc.
   3. Safety
      1. Contractor’s Responsibilities: The Contractor is solely responsible for the safety of its employees on the job site. As required by the General Conditions, the Contractor must comply with the provisions of the Associated General Contractor’s (AGC) Manual of Accident Prevention in Construction and with the requirements of the Williams-Steiger Occupational Safety and Health Act of 1970 (See Occupational Safety and Health, Volume III, Construction Standards and Interpretations.)
      2. Owner’s Representative Responsibilities: Although the Owner’s Representative does not direct the Contractor regarding safety inside the perimeter of the job site, a potential safety hazard should be pointed out. If a life-threatening situation is observed, the Owner’s Representative may shut down the job and require remedial action by the Contractor. The Owner’s Representative may direct the contractor in removing any potential hazard to students, faculty or staff, to members of the general public or to property.
      3. Contractor’s Job Site Accident Report: If a Contractor’s employee is injured on the job site and requires medical attention, the Contractor is required to submit an Injury Report to the Division of Workmen’s Compensation. The Owner’s Representative requests a copy of the report from the Contractor. It is given to the Campus Facilities Administrator for review and is ultimately placed in the Project File.
   4. Supplier Diversity Participation
      1. The Owner’s Representative will monitor the status of the diverse subcontractors and/or suppliers on the project and notify the UM Director Facilities Planning and Development should the Contractor drop or change an diverse subcontractor or supplier. The Contractor must maintain the supplier diversity percent goal indicated in the awarded contract. If the Contractor must remove any diverse subcontractor or supplier, the Contractor must notify the Owner’s Representative. The Contractor must make a good faith effort to replace the participation with another diverse firm, and satisfactorily explain why the removal was necessary. The UM Director Facilities Planning and Development will review all Contractor requests to remove or change of any diverse firm from the project. The UM Director Facilities Planning and Development will recommend appropriate action to the Contracting Officer including acceptance, or declaring the Contractor ineligible for future University Contracts for no more than 6 months, or finding the Contractor in material breach of the contract.
   5. Change Orders
      1. Policy
         (1) A Change Order is a written agreement executed between the University and the Contractor, after execution of the Contract authorizing a change in the work (any additions, deletions or modifications); contract amount, or contract completion date. Change Orders can be issued at any time during the contract period. The Owner's Representative must provide documentation to support all Change Orders.
         (2) Limitations on Change Orders:
         • (a) Campus Approval:
           • (i) When aggregate project Change Orders do not exceed $100,000 on an original contract under $500,000 and are within the original project scope.
             (ii) When aggregate project Change Orders do not exceed 10 percent of the original contract amount on an original contract over $500,000 or if they are individually less than $250,000; and within the original project scope.

           (b) System Approval:

           • (i) When aggregate project Change Orders exceed $100,000 on an original contract under $500,000.
             (ii) When aggregate project Change Orders exceed 10 percent of the original contract amount on an original contract over $500,000.
             (iii) When a Change Order is individually greater than $250,000.
             (iv) When a Change Order is outside the original project's scope or significantly expands project scope.
             (v) When a Change Order requires significant design modifications. The UM Director of Facilities Planning and Development will also determine if Board of Curator's approval is required. Once the Change Orders exceed 10% of the original contract amount, the Director of Facilities Planning & Development will determine which future Change Orders will require UM approval.

         (3) Field Orders or Letters of Authorization to Proceed may be issued by the CPM for work changes within the scope of work. These orders/authorizations shall be promptly followed up with a formal Change Order.
         (4) Optional Change Orders: An optional change order is not required, or necessary, for the completion of the original contract. Any change for work not covered in, or unrelated to, the original project is optional. Optional Change Orders will not be used unless the University gains no advantage from competitively bidding the work.
         (5) Design Requirements: Design is required when the change alters a diagramed, sketched or drawn detail or arrangement, or when a drawing, sketch or other specific technical input is necessary from the Consultant. Design is typically not required when the change affects specified items, unforeseen conditions, or items of a minor nature which can be noted on an as-built drawing. Additional design fees may be paid for change orders requiring additional design work.

      2. Change Order Procedures:
         (1) Purpose - The Change Order’s usual purpose is to facilitate the completion of work as intended by the original plans and specifications. Deviations from the original project intent must be approved by the Contracting Officer who signed the original contract.
         (2) Types - Change Orders may be of four types:
         • (a) Required (with design)
           (b) Required (without design)
           (c) Optional (with design)
           (d) Optional (without design)

         (3) Amount - The total amount for all project Change Orders should not exceed ten percent (10%) of the original contract.
         (4) Methods of Costing - There are four methods of costing:

         • (a) “Lump sum”, for which support data are submitted, evaluated, negotiated and approved prior to writing the Change Order;
           (b) Time and material, for which work is authorized with the contractor supplying detailed, actual time and material cost information to be signed each day by the CPM and submitted with the payment request after completion of the work;
           (c) Time and material with fixed maximum, which is the same as 2 above, except that a cost limit is negotiated prior to the start of the work; and
           (d) Unit cost, for which an authorization to proceed is given based on the agreed upon unit cost negotiated in the original contract.

           Exhibit IX-7 is an example of the Cost Estimate for Change Order form. It can be used as a worksheet for estimating Change Orders. It can be attached to the Change Order Request (see below) after completion.

           The Consultant is to estimate any Change Order Requests requiring design. Independent estimates are required on all Change Order Requests expected to exceed $50,000. These estimates may be performed by the Consultant or the Construction Project Manager.

         (5) Consultant Support Data - The CPM requests the following support data from the Consultant for all Change Orders requiring design:

         • (a) all design documents required by the contractor for the implementation of the Change Order Request;
           (b) detailed cost estimate (not just approval of the contractor’s estimate).

         (6) Contractor Support Data - The CPM requests the following support data for all Lump Sum Change Orders from the Contractor:

         • (a) labor, a breakdown by item and hours required for each craft with rate (employer’s cost, including fringe benefits);
           (b) materials, a breakdown by item, including quantities and unit costs;
           (c) overhead and profit, markups consistent with the General Conditions; an
           (d) time extension, if applicable. See General Conditions, for a more comprehensive breakdown of contractor support data requirements.

         (7) Initiation of Change Order Request - The Change Order Request Form is originated by the CPM. The CPM may be asked to initiate a Change Order Request by the consultant, client, campus staff or the contractor. A Change Order Request for more than $50,000 must be accompanied by an independent detailed cost estimate prepared by the CM or the Consultant
         (8) Completion of Change Order Request Form - Line-by-line instructions follow for completing the Change Order Request Form. The items in the instructions are numbered in correspondence with the line numbers on Exhibit IX -10, and in the order in which they should be completed. <

         • (a) Contractor: Enter contractor’s company name
           (b) Project Name and Campus: Enter Project Name and Campus
           (c) Architect/Engineer: Enter consultant’s company nam
           (d) University Authorization: Write in the name of the Construction Administrator after receiving verbal approval to proceed
           (e) Description of Change: Enter a detailed description of the change requested and include drawings, if appropriate
           (f) Reason for Change: Write a brief, but specific, explanation of the reason(s) for the change (scope change, design error, site condition change, etc.
           (g) Change Order Request Number: Enter number which is automatically assigned by computerized construction management system and can be found on data entry scree
           (h) Date: Enter date of initiation of the Change Order Request For
           (i) Requested By: Enter name of person who requested the Change Order
           (j) Project Number: Enter Project Number
           (k) Estimated Cost of Change Order: Enter estimated cost if Change Order is Estimated at over $50,00
           (l) Type of Change: Indicate Change Order Type and obtain Project Manager’s initials for those Change Orders classified as requiring design
           (m) Method of Costing: Complete method of costing
           (n) Source of Funds: Enter source of funds
           (o) Time Extension: Enter number of days that original contract will be extended. (Only those changes involving activities on the critical path of the project should result in a time extension.) Enter “NA” for those Change Orders that do not impact the project schedule
           (p) Actual Cost of Change: Enter actual cost of the change, as documented by contractor’s quote
           (q) Construction Project Manager: Sign here signifying receipt, review, approval and attachment of all required submittals (contractor’s quote, consultant’s estimate, source of funding letter, if required, and any other appropriate documentation
           (r) Consultant: Initial for consultant and refer to attached consultant’s letter detailing cost estimate and conveying approval if design change needed
           (s) Architect/Engineer Fee: Enter Fee (if applicable
           (t) Other Charges/Fees: Enter other charges/fees (outside consultant fees, tests, surveys, etc.
           (u) Construction Project Manager Fee: Construction Administrator enters Construction Project Manager fee.
           (v) Administration Fee: Construction Administrator enter administration fee
           (w) Total Cost of Change Order
           (x)  Construction Administrator: Obtain signature indicating review of Change Order Request and supporting documentation
           (y) Campus Facilities Administrator: Obtain signature indicating review of Change Order Request and supporting documentation.

         (9) Processing of Change Order Request/Issuance of Formal Change Order - Upon receipt of the completed Change Order Request Form, the Campus Facilities Administrator initiates and signs a formal Change Order and sends it to the Contractor. The Contractor signs it, returns a copy and keeps the original, which serves as authorization to proceed in writing by the CPM.
         (10) Field Orders or Letters of Authorization to Proceed may be issued by the CPM for work changes within the scope of work. These orders/authorizations shall be promptly followed up with a formal Change Order.

   6. Schedule and Payroll Record
      1. Project Schedule: The Contractor is required to submit a schedule of planned progress on construction work. As the work proceeds, the Owner’s Representative is responsible for tracking project progress. When monthly Contractor payments are processed, a computerized monthly Project Schedule should be generated which compares scheduled progress and actual progress. The Owner’s Representative should use this schedule to encourage the Contractor to conform to the Project Schedule.
      2. Payroll Records
         (1) The Contractor is responsible for paying prevailing wage rates and benefits and keeping supporting payroll records. The Contractor shall submit certified payroll records with each monthly application for payment (see General Conditions).
         (2) Examples of situations requiring payroll inspection include:
         • (a) Resolving questions on payment of proper wage rates.
           (b) Checking support data for time and material change orders.
           (c) Verifying Contractor’s certification that all wage rates and benefits have been paid.

         (3) The Owner’s Representative should contact the Prevailing Wage Coordinator with any questions regarding prevailing wage. Wage rate disputes shall be forwarded to the UM Director of Facilities Planning and Development for resolution.

   7. Payments
      1. Schedule of Values: The Schedule of Values submitted by the Contractor serves as the basis for the Contractor payment process. The Owner’s Representative reviews and approves the Schedule of Values (prepared in accordance with Instructions for Completing the Breakdown of Costs) and works directly with the Contractor in resolving any discrepancies. The approved Schedule of Values is entered into Projex by the contractor.
      2. Contractor Payment Process: After the Schedule of Values data has been approved, the Contractor may request payments.
         (1) The Contractor should be instructed to submit an application for payment into Projex on a monthly basis (see General Conditions).
         (2) The Contractor will be paid in a timely manner after approval (see General Conditions).
   8. Retainage - Each month, the Contractor is paid for 95 percent of the earned value of all completed work (including the associated cost of labor, materials, overhead and profit), less previous monthly payments. If the Contractor falls behind schedule or satisfactory progress isn’t being maintained, the Owner’s Representative may increase the retention to 90 percent of the earned value.
   9. Breach of Contract - The General Conditions outline breach of contract conditions. The Owner’s Representative will issue all correspondence to the Contractor regarding any breach of contract
      1. The first correspondence to the Contractor beginning a contract problem should be sent to the Contractor identifying the problem. The correspondence shall indicate a specific time period for the Contractor to respond. If the Contractor fails to respond, a second letter should be written with copies sent to the Contractor’s bonding company and the UM Director of Facilities Planning and Development.
      2. If the Contractor fails to respond or provide corrective actions, the project may need to be turned over to the bonding company. Correspondence to the bonding company should be copied to the Contractor and to the UM Director of Facilities Planning and Development.
   10. Damage for Delay
       1. Purpose: The University may assess the Contractor Damages for Delay. The General Conditions Article 8.2, inform the Contractor of liability for actual damages due to the delay, and these are included in the Construction Agreement. The Contractor agrees to a reduction in the Contract Price as provided in the Contract Documents. Damages are costs the University measures because the project is not finished within the agreed time. Examples include:
          (1) Loss in revenue from revenue generating facilities such as bookstores, parking structures, or residence halls.
          (2) Increased interest costs on construction financing.
          (3) Loss of research grants.
          (4) Additional administrative costs.
       2. Actual Damages: Actual Damages are specified in the UM General Conditions if no Liquidated Damages are specified. Actual Damages are calculated once the delay is over and all costs have been realized.
       3. Liquidated Damages: Liquidated Damages must be identified on the bid form under schedule requirements. The delay costs are predicted by the University and expressed as a dollar per day charge.
       4. Withhold Payment: The University will retain the right to withhold payments where there is reasonable doubt the contract can be completed within the time specified.
   11. Materials Stored at Site - To provide incentive for the Contractor to purchase long lead items critical to the project completion, items considered to be major items of considerable magnitude, if suitably stored in a Bonded Warehouse (not owned or operated by the Contractor or material supplier) or on the site, will be allowed in the application for payment on the basis of ninety percent (95%) of original invoices.
   12. Administrative Review - Process: All unresolved claims by the Contractor and disputes between the Contractor and the University must follow the process set forth in General Conditions
       1. Claim or dispute submittal by the Contractor to the Owner’s Representative.
       2. The Owner’s Representative may request review of claim or dispute by the Architect. The claim or dispute may be resolved at this step.
       3. If not resolved, recommendation by Architect to Owner’s Representative.
       4. Decision by Owner’s Representative.
       5. Agreement or disagreement by Contractor.
       6. If disagreement, Administrative Review initiated by Campus Contracting Officer or his Designee.
       7. Agreement or disagreement by Contractor.
       8. If disagreement, further Administrative Review by the Contracting Officer via the UM Director of Facilities Planning and Development. This is the end of Administrative Review.
       9. Agreement or disagreement by Contractor.
       10. If disagreement, Contractor may litigate
   13. Project Closeout:
       1. General: Project Completion includes all work completed, including clean-up, punch list items, and work added by contract change order. The University may lose the benefit of the contract provisions with respect to items of work which were deficiently performed or not completed by the Contractor if the Final Certification is sent prematurely. The Preconstruction Meeting Booklet, contains Closeout Procedures.
       2. Partial Acceptance: The University may request Partial Acceptance of an individual piece of equipment, system, or area prior to Final Completion. The punch list for that equipment, system, or area must be performed prior to partial occupancy. The Owner’s Representative will send a Letter of Partial Acceptance to the Contractor detailing the area accepted for use by the University.
       3. Substantial Completion: The University may take possession of the facility before Final Completion. Substantial Completion will include all submittals and work required under the contract, except minor items that will not interfere with the use of the facility.
       4. Final Certification: When the Consultant is satisfied that all items have been completed, the Consultant makes a Final Certification in writing to the Owner’s Representative that the job has been completed according to the plans and specifications as modified by change orders. The date of Final Completion is recorded in the Letter of Certification. The Consultant’s Certification is required prior to processing Contractor’s final payment request.
       5. Final Payment: Final payment is made to the Contractor only after the Contractor fulfills all the above project close-out requirements.