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Washington State Model Design and Construction Management Manual - Design Using Consultants

Washington State Model Design and Construction Management Manual

Design Using Consultants

Updated: February 2002

Introduction
Acknowledgments
Reference Sources
Reference Documents, City/County Codes, Models
Links Beyond MRSC
Frequently Asked Questions (FAQs)
Design Contracts
Design-Build Contracts

Introduction

Agencies use design consultants for a number of reasons, the most common being a conscious desire to minimize full-time staffing and to acquire expertise not found in-house. Services acquired can range all the way from project conception through construction closeout, although the norm is to use consultants for environmental studies and preliminary and final design, and then to have agency staff handle construction administration, inspection and closeout. Regardless of the range of consultant services requested, agency staff must be professionally competent to conduct and manage all aspects of a project. Use of a consultant does not relieve the agency of its responsibility to ensure that public funds are expended carefully, in accordance with accepted design standards and applicable laws and statutes.

For many germane reasons, acquisition of almost all goods and services by a public agency is a competitive process based on price, whether it be the lowest bid or lowest demonstrated life cycle cost. Consultant selection is competitive also, except that competition is based on qualifications, rather than price. This principle is recognized by federal law and Washington State statutes. The quality of design, and of contract documents based on that design, will have a profound impact on construction bids, the costs of construction administration and inspection and, certainly, on long term costs of operation and maintenance. For obvious reasons, then, an agency will want to contract with the consultant most qualified to provide the particular design services required for the project at hand. This does not mean that costs of design and other services are not a factor in consultant contract negotiations, but that the initial selection of a consultant is to be based on qualifications rather than price.

"Design contract" is used in this chapter to delineate consultant contracts in which the end product is a set of contract documents that the agency then uses to advertise, bid, award and then contract with the lowest responsible bidder for construction of the project. This contrasts with the "design-build contract" in which the consultant is only part of a team which proposes to design and construct the project or facility as one package.

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Acknowledgments

The following MRSC staff and APWA members reviewed and/or edited this chapter. Their assistance is gratefully acknowledged.

A special thanks to Terri Sanders, MRSC Information Services Technician, for all her work in posting this gargantuan effort on the Web site.

Thanks are also due Roy Peterson, former MRSC Public Works Consultant and principal author of Contracting for Professional Services in Washington, as much of that publication has been incorporated into this chapter.

Reference Sources

Reference Documents, City/County Codes, Model Documents

The documents listed below are in Adobe Acrobat format. ()

"Selecting the Right Consultant," by David Hattan and Nazir Lalani, Public Works, February, 1997
"Planning, Care Necessary When Choosing a Water Project Engineer," by Diana Knott, On Tap, November, 1992 (Also see NDWC homepage)
"Choosing the Right Consultant for your Wastewater Project," Pipeline, Winter, 1997 (Also see NDWC homepage)
The Consultant Selection Process," handout from Joint APA/PIBC Conference, 1997
"Quality Preparation - RFPs - Bring Quality Results," by Peter-Jon Rudquist, the Municipality, April, 1995

City and County Code or Policy Excerpts

Sample and/or Model Documents

The documents listed below are in Adobe Acrobat format. ()

Independent Estimate for Consulting Services from Local Agency Guidelines, January, 1997
City of Port Angeles Public Works Department Policy PW-403
Forms from Contracting for Professional Services in Washington State:
Forms from Selection and Use of Engineers, Architects and Professional Consultants: Guidelines for Public Agencies:
City of Redmond Performance Evaluation - Consultant Services

For sample RFQs, RFPs, consultant roster advertisements and for sample consultant agreements, you may search and browse online documents or contact the MRSC Library, or John Carpita, MRSC Public Works Consultant.

Links Beyond MRSC

American Consulting Engineers Council (ACEC)
American Institute of Architects (AIA)
American Public Works Association (APWA)
American Society of Landscape Architects (ASLA )
Design-Build Institute of America (DBIA)
National Society of Professional Engineers (NSPE)
Small Cities - The newsletter for municipal decision makers in small, growing cities
Highways & Local Programs (WSDOT)

Frequently Asked Questions (FAQs)

Under Construction

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Design Contracts

Procedures

Architectural and engineering services, particularly design services, are to be acquired under the authority and procedures outlined in chapter 39.80 RCW . These professional services include architectural design, engineering studies and design, land surveying, landscape architecture and structural design. RCW 39.80.020(5) provides:

"Architectural and engineering services" or "professional services" means professional services rendered by any person, other than an employee of the agency, contracting to perform activities within the scope of the general definition of professional practice in RCW chapters 18.08, 18.43, or 18.96.

It should be noted that chapter 39.80 RCW only directly applies to engineers, land surveyors, architects and landscape architects, as referenced above. Acquisition of other professional services may be governed by other statutes or WACs, but most likely can be obtained through direct negotiation with any firm or individual. On the other hand, an agency may wish to use the same procedures for selection of other professional consultants as well.

Goals of any set of consultant selection procedures are:

To obtain the best professional services at a reasonable cost;
To establish an open, documented procedure for selection of professional services;
To avoid potential conflicts of interest, or the appearance of favoritism in the selection;
To permit all qualified professionals to have an opportunity to be considered.

Selection of a consultant occurs in these basic steps:

Request for Qualifications (RFQ)

Request for Proposals (RFP)

Interviews

Selection of Finalist

Negotiation of Contract

Usually, use of the full-blown process outlined above and detailed below for very small projects is overkill. For very small projects, the process could be as simple as selecting 1-3 qualified firms from the Agency's consultant roster, choosing the most qualified firm from this list, soliciting a proposal from that firm and then negotiating a contract. Written policies correlating the complexity of the selection process with anticipated fees should be adopted.

Several of the Selected MRSC Library Holdings and Reference Documents describe the selection process in considerable detail and with reference to some specific category (water, wastewater, solid waste and transportation) of consultant need. Comments under each subsequent heading in this document are additional thoughts and clarifications or are intended to emphasize certain points. Certainly, there is no attempt to duplicate all of the information in other documents. Many cities and counties have established procedures or policies for consultant selection. Some of these are included in City and County Code or Policy Excerpts.

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Request for Qualifications

A request for qualifications (RFQ) can be either project specific or a general annual request used to establish a consultant roster. Annual rosters are discussed below. For most major projects and for projects requiring distinctive expertise, an agency will want to publish an RFQ specific to that project. RFQs should include:

title and short project description
type of services requested - planning, EIS, design, construction inspection, construction management, etc.
time frame for beginning and completion of services to be provided
submission details - deadline, format, number of pages and copies
project budget and sources of funding
name of the agency representative
selection procedure and criteria
list of previous planning, EIS or design studies applicable to the project and their location and/or availability
as an option, set the time and date for a project briefing on-site or in agency offices

Interaction with consultants during the RFQ solicitation phase of the procedures is a thorny issue. Some agencies keep all contacts with consultants who respond to the RFQ request on a strictly professional level. Clarifications to all but the most basic questions are in writing and provided to all consultants responding to the RFQ request. An on-site project briefing to answer questions from several consultants at the same time is sometimes the only contact allowed.

Other agencies allow unlimited contact between the Agency's project managers and consultants, on the premise that such interaction allows the project manager to make a better judgment on the firm's qualifications. These interactions are often more candid and detailed than would happen in a project briefing. Confidentiality must be respected. Some agencies limit the interaction to the lead consultant of a bonafide team, to lessen the time required.

One set of all previous planning, EIS or design studies applicable to the project should be made available for review to all consultants in one location under the city's control. If these documents can be reviewed at another location or are available for distribution, that fact should be noted as well.

As a minimum, advertisement of the RFQ in the agency’s official newspaper is required and will be entirely sufficient for smaller projects where expertise is available locally. Some governmental units have designated newspapers such as Seattle’s Daily Journal of Commerce as the official newspaper for the purposes of advertising capital project contracts, whether for consultant services or construction contracts. For very large and/or complex projects, the agency may wish to advertise in several such newspapers and in the Engineering News Record. The RFQ can be mailed to firms listed on the agency’s established consultant roster. However, the agency should be very careful to send it to all firms who identify the services to be provided on their roster submittals. The mailing list should be retained in the project file.

How much time should consultants be given to respond after an RFQ is advertised? Two weeks may be sufficient time for smaller projects. Three to four weeks or longer may be needed for larger projects.

Limiting the number of total pages in an RFQ response to a specific number and, further, specifying the content of those pages will facilitate the evaluation process. Be sure to ask for as many full color, original copies as you will need for all staff and evaluation committee members so that you do not have to make copies yourselves. Contracting for Professional Services in Washington State, and City of Port Angeles Public Works Department Policy PW-403 contain sample formats for RFQ and RFP submittals. The reference document entitled Some Consultant Information Helpful in Evaluation Professional Qualifications lists additional items an agency may wish to include.

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Roster

Many Washington cities and counties have established a consultant roster, updated annually, for use in selecting firms based on qualifications for projects of varying degrees of complexity and scope. The solicitation for the consultant roster is, of necessity, more general than a project-specific RFQ, but an agency may wish to require much the same information. Limiting the number of pages in a roster and specifying the content of those pages will facilitate the evaluation process. A city-supplied form that requires each firm to categorize specific types of projects that the firm is qualified to perform will help to identify qualified firms more readily when the need arises.

RCW 39.80.030 simply states that an agency may use either a project-specific RFQ or a general announcement of its projected requirements for any category or type of professional services. Each agency should have its own guidelines, written or unwritten, for when to select from the consultant roster and when to use a project specific RFQ. In Port Angeles, for example, that decision is made by the project manager, City Engineer and Public Works Director.

Evaluation

Once a pool of qualified consultants has been identified through either a project-specific RFQ or from the consultant roster, an evaluation committee should review all submittals. This committee can be very small (1-3 agency staff members) for smaller projects or very large (8-10 members), with representation from other city or county agencies, special interest groups, the legislative body and funding agencies.

As consultants always ask for the evaluation criteria, process and evaluation committee makeup, this information should be provided in the RFQ if known at the time of advertisement. Copies of both the RFQ and the consultant’s response should be furnished to each committee member at least a week ahead of thedeadline for return of written evaluations and/or the date of the committee meeting. Committee members should know in advance how many finalists the project manager would like to ‘short list’ for RFPs and interviews.

Many of the Reference Documents and Sample and/or Model Documents have examples of evaluation criteria, weighted or unweighted evaluation forms and other information that can be used. For smaller projects, there may only be one or two firms that the committee recommends. If so, the agency may simply select one of these firms and negotiate a contract. An Independent Estimate for Consulting Services is essential in this case. For larger projects, the committee's recommendation should be for 3-5 finalists, who would then prepare a proposal and be interviewed by the committee. The list of finalists for interview should include only consultants which the city feels are qualified and which the city would be prepared to retain.

Both short-listed firms and those not to be considered further for the project at hand should be notified promptly of the agency's action. The finalists, of course, need parameters for the proposal submittal and the interview schedule. If agency policy allows, the other firms may wish to review their submittal and composite ranking, but only for the whole committee, with the project manager. Individual committee member rating sheets should never be released or discussed.

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Request for Proposals and Interviews

Requests for proposals (RFPs) should include parameters for both the proposal and an interview process. Proposals should be limited to a fixed number of pages and should avoid undue duplication of material in the RFQ submittal. The proposal should provide the consultant's tentative scope of services, schedule, project management approach, project-specific organization chart, subconsultant list and means of satisfying any minority and women owned business requirements. Copies for all interview committee members should be provided at least a week in advance of the scheduled interviews.

Interviews should be scheduled such that all committee members can attend all interviews. Unless the proejct is unusually large or complex, about 60 minutes for each interview should be adequate. The schedule should allow for a 15-20 minute break between interviews to allow the committee to record their thoughts and evaluations while fresh. An hour at the end of all interview sessions should be set aside for committee deliberations and selection of a recommended finalist. A typical interview schedule is:

Sample interview questions are contained in Reference Documents and Sample and/or Model Documents or in some of the Selected MRSC Library Holdings

Set aside a room with adequate space for the committee and the finalists to make their presentation and to respond to the committee questions. Consultants should be free to visit the room beforehand and ascertain availability of electrical outlets, etc., for audiovisual equipment.

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Selection of Finalist

The interview committee should use a review criteria rating form, as was previously done. However, the rating criteria might be modified to reflect more closely the desires of the city or county, after reviewing the initial submittals. Often, the experience of the actual individuals that will be working on the project and relating to the city or county staff has a stronger bearing on the project implementation, than the experience of the organization being considered. Since the finalists are all qualified firms, any one of which the city or county would be satisfied with, the importance of the individual consultant team members is stronger in this final evaluation.

An example of revised rating criteria is as follows:

Criteria/Points

The selection committee may wish to ask additional questions after the presentation by the consultants. For example:

At the conclusion of the last interview, the committee members should convene to review their notes and criteria points. The candidate with the highest rating should be "deemed to be the most highly qualified" and recommended for negotiation of a contract. The other candidates should be so advised. Concurrence with the committee's recommendation by the chief administrative officer of the city or county, or possibly the legislative body, may be required by agency policies. The selection committee's recommendation should include the reasons that the particular firm was selected, including expertise and particular strengths. Because competition is usually keen, it is important to retain evaluation sheets, notes, and other documents, in a safe secure place, to support the ranking procedure and selection, until the final contract has been executed and the project commenced.

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Negotiation of Contract

When a public agency selects a firm to perform architectural or engineering services, price and cost may be considered only after the most qualified firm has been selected, at which time the law provides for negotiation of a "fair and reasonable price." (RCW 39.80.50; AGO 1988 No. 4)

RCW 39.80.050(1) provides:

"The agency shall negotiate a contract with the most qualified firm for architectural and engineering services at a price which the agency determines is fair and reasonable to the agency. In making its determination, the agency shall take into account the scope, complexity, and professional nature thereof."

RCW 39.80.050(2) adds:

"If the agency is unable to negotiate a satisfactory contract with the firm selected at a price the agency determines to be fair and reasonable, negotiations with that firm shall be formally terminated and the agency shall select other firms in accordance with RCW 39.80.040 and continue in accordance with this section until an agreement is reached or the process is terminated."

The first order of business in contract negotiations is to finalize the scope of services. Don't be bashful about using ideas from other consultant presentations in defining the scope of services desired. The selected professional firm, based upon its experience on similar projects, will have additional work to do on refining its version of the scope of services. Once the scope of services is well-defined and agreed to, negotiations to determine a fair and reasonable price begin.

There are several methods used to compensate professional firms for their services:

Methods, or combination of methods, to be used depends upon the nature, scope, and complexity of services required by the agency, upon city or county policies and upon grant funding agency requirements. The first three methods are based upon the consultant's actual costs to perform the services required. Usually, a ceiling is set on the total contract amount. The last two methods set a maximum, not to be exceeded, contract price.

Salary Cost Times a Multiplier Plus Direct Non-salary Expenses

In this frequently used method, charges for professional services are based mainly on staff salary. Salary cost is defined as direct salaries plus fringe benefits such as sick leave, vacation, holiday pay, unemployment taxes, social security, workmans compensation insurance, etc.. Contracts generally establish a fixed multiplier on direct salaries to calculate salary costs. While the city or county may review the multiplier used to reach salary cost, it generally must accept a multiplier that is calculated correctly. The consultant must furnish the agency with direct salaries for all employees proposed for the project, as well as when these salaries might increase.

However, the multiplier to be applied to salary cost that compensates the consultant for overhead expenses, contingencies and profit is a variable negotiable value. Allowable direct expenses should be defined during the negotiations. These expenses might include the cost of a local project office, telephone, shipping; computer rental time, reproduction and printing and any special project costs that can be identified.

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Per Diem

The per diem method compensates the consultant for a day's work on the project. This method might be applicable to studies and investigations where there is no well defined scope of services. This basis ofcompensation is also used to compensate professionals for expert witness services, specific consultations or presentations, and work of a short-term nature, such as completion and presentation of grant applications. In addition to the per diem rate, the consultant is normally reimbursed for travel and subsistence while away from the firm's office.

Cost Plus Fixed Fee

Under this method, a consultant is reimbursed for the costs of accomplishing the scope of service plus a fixed fee to cover profit. The cost of service includes the salary costs and overhead previously discussed, and all non-salary direct expenses. The fixed fee amount varies with the size of the project, complexity of the project and scope of services to be provided. The fixed fee should not be related to the project construction cost but rather to the complexity of the work and the risk to the consultant should unforeseen difficulties or regulations arise that would affect the services to be provided. This method permits the professional to proceed with a project where it is difficult to project the full scope of services that might be required.

Lump Sum

The lump sum method is often used to compensate consultants for investigations and studies, or for basic design services, such as street or sidewalk replacement or repair, where the scope and complexity are clearly defined. A lump sum agreement should state the exact service to be provided within a specific time frame, and when payment is to be made. Normally, a lump sum is paid in installments as the work proceeds Occasionally, a consultant may allow a delay in payment until project financing is assured.

Percentage of Construction Cost

Although common in the 1940s through the 1960s, this method of payment is now infrequently used because the relationship between consultant costs and project construction costs may vary greatly. This method is based upon engineering experience over a long period of time to establish approximate correlations between engineering costs and construction costs for certain types of engineering projects. These correlations resulted in various curves which were widely used. However, the complexity of today's engineering projects is so different than those projects used to develop these correlation curves that the curves now only can provide a very rough guide, based upon past experience, to consultant compensation.

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Other Contract Issues

In addition to the scope of services and compensation method, there are other contract issues and some rather mundane details to be considered. A standard, agency-wide format for consultant contracts where the scope of services, compensation methods, etc. are drop-in exhibits is very desirable. In any case, required formats and non-negotiable contract items should be discussed early in the negotiations to permit time for each party to understand the desired format and the suggested wording in each section. For contracts involving federal or state grants or loans, many contractual provisions are mandated by federal or state laws and policies.

Basic Contract Elements

Minimum elements of a contract include:

Effective Date of Contract

In the negotiation and final execution of a consultant contract, several parties must sign and date the contract. Often the official start date is different than the effective date of the contract. Rather than confuse the issue of contract date, designate an effective date of the contract - usually the date the contract is signed by the chief executive officer - in the initial paragraph, such as:

This Contract for professional services made this _______ day of _______, 199___ by and between

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Official Start Date

Occasionally, due to funding agency criteria, or other delays, the consultant may not be able to commence work at the time the contract is signed. In this situation, the contract should include an official start date, such as:

Whereas, Exhibit ____, attached to and made a part of this contract, projects a schedule of work activities, the official start of the Consultant'S duties shall be the _______ day of ________, 199___.

An optional start date might be established as say, 15 days after the effective date of the contract, or upon receipt of Notice To Proceed. Issuance of a Notice To Proceed is an effective way to establish the official start date.

Specific Services to be Provided by the Consultant

Describe in detail the services to be provided, or refer to an attached exhibit listing the detailed services being contracted for, such as:

Whereas, the City/County desires to construct the (name of project) and desires the Consultant to furnish (report/design/construction inspection) services consisting of _________ and as defined further in attached Exhibit A.

Specific Responsibilities and Services to be Provided by the City/County

If the City/County agreed to provide any services, permits, or data to the consultant, those services should be listed in the contract or referred to as an attached exhibit to the contract.

Schedule of Work

A contract should include a schedule of work to be performed, with established milestone dates and completion dates for both the benefit of the City/County and the consultant. Rather than have the consultant or the City/County be critical of the other party for supposed lack of performance, a well-defined schedule of work shows that the consultant is or is not performing as scheduled.

A calendar bar chart of scheduled duties is usually adequate to establish milestone and completion dates. However, a critical path schedule may be necessary on complex projects to assure that both the City/County and the consultant meet their schedule of performance and approval dates. Milestones must be clearly defined, as must as verifiable key events and any products or designs that might need approval before proceeding further. If milestones are well defined, both the City/County and the consultant understand if the work is on schedule. The schedule, with its milestones, can be another exhibit attached to the contract.

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Listing of Consultant's Key Personnel

Often the names of the key personnel are made part of the contract, with the provision that the consultant may not substitute key personnel without written permission of the City/County. If the City/County conducted oral interviews and met the key personnel in the selection and negotiation process, it assessed personal qualifications and has the right to expect those personnel will remain on the project subject to mutually agreed upon substitutions.

Listing of Subcontractors or Affiliated Consultants

The contract, for the protection of the City/County, should provide that the consultant may not substitute or add subcontractors without the written approval of the City/County. The experience and qualifications of any new subcontractors should be reviewed by the City/County prior to approval.

Payment Procedures

The method of payment, developed during negotiations, should be clearly stated and should include:

Retainage, if Any

Retainage provides the City/County with a margin of protection in the event the project does not come to a successful completion, or if there are errors or omissions in the final product which need to be corrected. Although required by state statutes for construction contracts, it is not commonly applied to consultantcontracts, since reimbursement is for services already rendered.

Wage Increases

On long-term projects, covering several years, the contract might include a provision for an increase in wages of the consultant's staff. Contracts based upon either the "salary cost times a multiplier plus direct non-salary expenses" or "cost plus a fixed fee" adjust for wage increases, but the City/County and the consultant might negotiate a ceiling on these increases during the life of the contract.

Provisions for Changes in Scope of Consultant Services

Although not anticipated, the contract should permit changes in the scope of services requested from the consultant, to either add additional duties or delete unneeded duties. For example, the contract might provide:

or:

The City/County may from time to time require changes or modifications in the Scope of Work to be performed hereunder. Such changes, including any decrease or increase in the amount of compensation therefore which are mutually agreed upon by the City/County and the Consultant shall be incorporated in written amendments to this contract.

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Suspension of Work

Should unanticipated problems arise, provision should be made to suspend all or portions of the work program. For example:

The City/County may suspend, in writing, all or a portion of the work under this Contract in the event that unforeseen circumstances beyond the control of the City/County make progress of the work program impossible. The Consultant may request that the work be suspended by notifying the City/County, in writing, of circumstances which interfere with the progress of the work program. The time for completion shall be extended by the same number of days the work is suspended. In the event that the suspension period exceeds (120) days the terms of this Contract may be renegotiated at the request of either party. Both parties are granted the option to terminate the suspended portion of the work program specified herein if renegotiated contract terms cannot be agreed upon.

Dispute Resolution

All contracts should include clauses for dispute resolution. Because court litigation is generally the most expensive and time consuming option, inclusion of specific clauses concerning mediation or arbitration, or a hybrid of those two forms, is advisable. The options include:

Arbitration (Binding) - An arbitration is more adversarial. Each party to the contract presents their arguments to a trained and experienced arbitrator, who then makes a decision. The contract can contain language that the decision of an arbitrator is binding and not appealable to any court of law.

Med-Arb - Mediation and arbitration are sometimes combined in a hybrid process known as "med-arb". In a med-arb process, the parties first try to mediate the dispute, and then, if mediation is unsuccessful, agree to arbitrate.

Sample mediation and arbitration clauses are available from regional and national organizations which specialize in mediation and arbitration. City/County attorneys should also be able to provide sample contract clauses, along with advice concerning the advantages of the various dispute resolution alternatives. All such clauses should be as specific as possible and should include provisions:

It is also advisable to include a clause indicating that parties to the contract shall make their best efforts to resolve disputes quickly among themselves before seeking a more formal option, such as mediation or arbitration.

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Termination of Contract

The right of either party to terminate the contract, prior to completion, should be clearly stated. A termination clause frequently provides that either party may terminate the contract by providing appropriate notification of a stated time period to the other. Payment procedures upon termination should be clearly specified and understood by both parties. For example:

The City/County may terminate all or a portion of the work program in this Contract for its convenience. Either the City/County or the Consultant may terminate the work in the event that the other party fails to perform in accordance with the provisions of this Contract. Termination of this Contract is accomplished by providing (20) days written notice to the other party. In the event of termination, the Consultant shall perform such additional work as necessary for the orderly closing of the work program, as jointly agreed upon by both parties. The Consultant shall be compensated on the basis of the work performed prior to the date of termination, plus the work required for an orderly closure of the project.

Insurance to be Provided by Consultant

There are two specific types of insurance to consider: errors and omissions and liability insurance.

Errors and omission insurance provides protection to the City/County and the consultant should the consultant make an error in the work product. One of the considerations that a City/County must make when determining to contract for professional services is the importance of errors and omission insurance coverage. In some cases, it may not be a very important factor, and the City/County may award a contractto a firm that does not have such coverage or has it in a total amount less than desired by the City/County. In other instances, the City/County may want to limit its consideration to firms that are able to obtain such coverage and in the limits desired by the City/County. Some funding agencies, particularly WSDOT, limit their cost participation to paying for insurance coverage below a certain limit. If the City/County wants more coverage, it must pay for it. This is a policy decision to be made for each project.

Liability insurance protects the consultant and the City/County from claims arising from injury to individuals and/or property damages resulting from consultant's contract performance.

For example:

The Consultant shall maintain during the life of this Contract the following minimum insurance:

(The dollar amounts should reflect the level of exposure based upon the experience of the City/County. The amounts should be established by the risk manager or other qualified individual.)

Prior to execution of this Contract the Consultant shall file with the City/County evidence of the insurance coverage, and shall maintain said insurance in force for the life of this Contract.

Ownership of Contract Work Products

The ownership of design plans and specifications, reports, or other work products should be agreed upon during the negotiation process, so that all parties understand who will own and retain them. Customarily, the consultant retains an ownership interest in the plans and specifications because his professional seal and reputation are part of the work product and the work product is usually site specific. The City/County will retain copies (both paper and electronic) for information and future reference in connection with the completed project.

For example:

It is understood that all computer generated plans and drawings, specifications, computer programs, technical reports, operating manuals, or other "Subject Data" furnished by the Consultant pursuant to this Contract are instruments of his services with respect to the project, and are not represented to be suitable for use on any other project. Any reuse by theCity/County or any other party without specific written approval by the Consultant, will be at the risk of the party using the "Subject Data", without liability or legal exposure to the Consultant. Any such approval will entitle the Consultant to further compensation at rates to be agreed upon between the Consultant and the party requesting approval.

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Contract Monitoring

So, you’ve successfully negotiated the contract at a fair price to both the consultant and your agency, and the contracts are signed, sealed and delivered, in triplicate no less. Now you can sit back and enjoy that double mocha. Nothing to do now but wait until the consultant brings his 50 sets of contract documents into your office in about 120 calendar days. Life is good.

Wake up and smell the mocha! Monitoring contract performance is more than simply reviewing the consultant’s monthly status reports and processing progress payments. Get involved! After all, its your project that the consultant is working on.

Monthly status reports are essential, but verify for yourself that the tasks/products are in fact completed to the degree shown in the reports. Visit the consultant's office almost as often as they come to visit you. Get to know the designers and technicians working on the project almost as well as you will know the project manager.
Practice partnering. Become a City/County-consultant team. Develop camaraderie, but always buy your own lunch.
Be available, reasonably so, for consultant contacts. If you're on vacation, provide backups. Return telephone calls promptly. Don't assert your power by making them wait. The consultant contract is a team effort, after all.
Provide any material that the City/County is to furnish sooner than expected under the contract. Review interim submittals as promptly as you can yourself. If others in your agency or within your unit of local government must also review, try a joint review meeting for all concerned. If that doesn't work, then be politely tenacious in getting their comments.
Be the first to know about any performance problems or potential delays. Let the consultant know immediately that such problems or delays are unacceptable if they are in fact the consultant's fault. Be firm but fair.
Public hearings and other information gathering meetings should be truly a joint effort between City/County staff and the consultant. Maximize use of the consultant's presentation skills while leaving an overall impression that the agency itself is in full control of the project.
Keep your supervisors and elected officials informed as to progress or the lack thereof and any contract issues that they may have to take action on well before the drop dead date for such actions.
As much as is practical, arrange for timely payment of monthly progress payments.
Celebrate completion of the contract with appropriate kudos.
Evaluate the consultant's performance. A sample consultant evaluation form is included.

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Design-Build Contracts

Under Construction