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UNIVERSITY OF WASHINGTON
GENERAL CONTRACTOR/CONSTRUCTION MANAGER CONTRACT
PROJECT:
THIS CONTRACT, made and entered into this DAY OF , 1998, by and between THE BOARD OF REGENTS of the UNIVERSITY OF WASHIGNTON (OWNER), and ("Contractor") hereinafter referred to as Parties, shall be the agreed basis of performing the Work identified herein.
In Consideration of the mutual covenants and agreements of the Parties herein contained, the Contractor agrees to furnish all material, labor, tools, equipment, apparatus, facilities, etc. necessary to perform and complete in an acceptable manner the work called for in the Contract Documents for a fixed fee of $ and a fixed amount for Specified General Conditions work of $ and a MACC of $ for a total GCC of $ including tax and compensation for preconstruction services in accordance with the terms and conditions set forth below.
This contract supercedes and incorporates all terms and conditions of the Agreement for Preconstruction Services.
ARTICLE 1
DEFINITIONS
1.1 Contract Sum. In addition to the definition of Contract Sum set forth in Part 1.01 F of the General Conditions for Washington State Facility Construction, Contract Sum means the Guaranteed Contract Cost.
1.2 Contractor. In addition to the definition of Contractor set forth in Part 1.01 H of the General Terms and Conditions, Contractor means the General Contractor/Construction Manager.
1.3 General Contractor/Construction Manager: General Contractor/Construction Manager or GC/CM means the Contractor that has agreed with the Owner to perform Work pursuant to RCW 39.10.060 and as described in these documents.
1.4 Contract Documents. The Contract Documents consist of this Agreement, any documents attached to this Agreement, the GC/CM General Conditions for Washington State Facility Construction (General Conditions), Modifications and/or Supplemental Conditions to the General Conditions, Division 1, Drawings, Technical Specifications, Addenda issued prior to execution of this Agreement, other documents listed in this Agreement, modifications issued after execution of this Agreement, the RFP document for selection of the GC/CM issued by the Owner and its addenda, and the Contractors written response to the RFP including fee proposal and price for Specified General Conditions Work.
1.5 Construction Work. The term Construction Work shall mean all "Work" performed during the construction phase of the project.
1.6 Architect. As used throughout the Contract Documents, the term Architect or Design Team refers to: .
1.7 GCC. The Guaranteed Contract Cost ("GCC") shall equal: Total compensation for Preconstruction Services + MACC + Fixed Fee + Fixed Amount for Specified General Conditions Work + Washington State Sales Tax on the sum of: the preconstruction work, the MACC, the Contractor's fixed fee and the Fixed Amount for Specified General Conditions.
ARTICLE 2
THE CONTRACT DOCUMENTS
The Contract Documents form the Contract, and are as fully a part of the Contract as if attached to this Agreement or repeated herein. The Contract represents the entire and integrated agreement between the Parties and supersedes prior negotiations, representation or agreements, either written or oral. If anything in the other Contract Documents is inconsistent with this Agreement, this Agreement shall govern. The order of precedence of the documents shall be as stated in Part 1.02 of the General Conditions except that the term "this Agreement" shall replace the term "signed public work contract" in part 1.02.1.
ARTICLE 3
WORK OF THIS CONTRACT
3.1 General. The Contractor shall execute the entire Work described in the Contract Documents, except to the extent specifically indicated in the Contract Documents to be the responsibility of others. The Contractor shall provide Construction Management (CM) services, including but not limited to: assistance in planning and design; life cycle cost engineering; scheduling; cost-estimating; determining constructability; assessing alternative construction options for cost savings including assistance to the Owner with development tasks necessary to support the construction effort. CM services shall be provided throughout the Project, from the preconstruction period through construction and shall be closely coordinated with the Architect and Architect's and Owner's Representatives. The Contractor shall provide full general contracting services for construction of the Project in accordance with the requirements of RCW 39.10.060. The Contractor will work collaboratively and proactively with the Owner and Architect to proceed with the planning, design, and development of the Work in a manner which supports the Owner's efforts to maintain the MACC.
3.2 Work During Preconstruction.
3.2.1 General. The Contractor shall actively participate as a member of the project team with the Owner and the Architect during the design phases prior to construction. The purpose of this consulting responsibility is to provide the expertise necessary to ensure that the MACC and the project schedule are met. During this preconstruction period, the Contractor shall provide a professional project manager or higher level person as required to attend all design meetings and provide or oversee the services the Contractor provides to ensure development of the most functional, constructable and cost effective project. Work to prepare for and conduct MACC Negotiations will not be paid for by the Owner nor will it be a part of work completed under this section.
3.2.2 Work during Schematic Design
3.2.2.1 Upon notification that the Contractor is the low responsive firm, the Contractor shall prepare a construction cost estimate in Uniformat of the Schematic Design Submittal prepared by the Architect. Upon completion of the estimate, the Contractor and the Architect shall reconcile their estimates and present to the Owner one estimate of the construction cost, based upon mutually agreed upon assumptions including the date of commencement of construction and duration of construction.
In the event that the reconciled estimate is higher than the Owner's Construction Budget, and as directed by the Owner, the Contractor shall present to the Owner a list of cost-savings equal or greater than the amount of the estimate overage.
3.2.2.2 Provide comments on construction feasibility, make recommendations for phased construction if appropriate, propose alternative designs or materials and comment on site logistics including the adequacy of access, site utilities and laydown area.
3.2.2.3 Review the Drawings and Specifications for the Final Schematic Design submittal for viable Value Engineering recommendations. Create a Value Engineering tracking system which identifies each VE proposal, provides a cost estimate of the savings to the project if the proposal is accepted, indicates the date by which a decision must be made to incorporate the VE proposal, indicates the current status of the VE proposal and the team member with current action, and the date the proposal was accepted or rejected.
3.2.2.4 Review the record drawings and investigate the existing conditions at the project site to ensure that the construction documents will reflect the actual conditions on site.
3.2.3 Work during Design Development. The Contractor shall provide the following services during the Design Development Phase:
3.2.3.1 In accordance with the Construction Schedule requirements set forth in Section 01310 of the specifications, prepare a detailed milestone schedule for the project from the onset of design development through the completion of construction, commissioning and substantial completion. The schedule shall identify work to be performed by the design team, the Contractor and the Owner. In developing the activities for this schedule the Contractor shall consult with both the Owner and design team to ensure that the responsibility for and duration of these activities are accurate.
3.2.3.2 Attend bi-weekly design review meetings described in more detail in the Project Meetings section of Division One of the specifications. Provide constructability comments and estimating services when requested by the Architect and approved by the Owner to evaluate critical elements of the design as they are formulated.
3.2.3.3 Review the Drawings and Specifications at both the mid Design Development and Final Design Development stages. Provide comments on construction feasibility, identify products or materials with long lead times for procurement, make recommendations for phased construction if appropriate, propose alternative designs or materials and comment on site logistics including the adequacy of access, site utilities and laydown area.
3.2.3.4 Prepare and process the application(s) for all necessary building permits including but not limited to phased permits. Monitor and expedite the permitting process as necessary to ensure that the construction permits are received in a timely fashion.
3.2.3.5 Review the Drawings and Specifications for the Final Design Development submittal for viable Value Engineering recommendations. Create a Value Engineering tracking system which identifies each VE proposal, provides a cost estimate of the savings to the project if the proposal is accepted, indicates the date by which a decision must be made to incorporate the VE proposal, indicates the current status of the VE proposal and the team member with current action, and the date the proposal was accepted or rejected.
3.2.3.6 Identify subcontract bid packages and material procurement packages that could be advertised prior to the completion of construction documents. If the Owner concurs that the project will benefit and if funds are available the Owner may at its option elect to authorize the Contractor to advertise and award subcontracts or material procurements for long lead-time items in advance of completion of construction documents.
3.2.3.7 Prepare a construction cost estimate for the entire Work in CSI format based upon the final design development submission. If the estimate exceeds the MACC, the Contractor shall take whatever actions may be necessary in conjunction with the Architect and the Owner to reduce the cost of the Work to within the MACC.
3.2.4 Work during Construction Documents Phase. The Contractor shall provide the following services during the construction document phase:
3.2.4.1 Prepare procurement documents for long-lead time materials if necessary.
3.2.4.2 Revise the project schedule as required to reflect changes that have occurred during design or to reflect a change or more refined schedule for procurement of materials, subcontract buyout or construction. Provide bi-weekly updates at the design review meetings.
3.2.4.3 Prepare and process the application(s) for all necessary building permits. Monitor and expedite the permitting process as necessary to ensure that the construction permits are received in a timely fashion.
3.2.4.4 Monitor the development of the construction documents. Provide value engineering and constructability reviews of elements of design when requested by the design team and approved by Owner.
3.2.4.5 Prepare construction cost estimates for the entire Work in CSI format based upon both the mid and final construction documents submittals. If the estimate exceeds the MACC, the Contractor shall take whatever actions are necessary in conjunction with the Architect and Owner to reduce the cost of the Work to within the MACC.
3.2.4.6 Complete an interdisciplinary plan check of both the mid and final construction documents submittals. Provide comments to the Architect and Owner. Verify that the comments are incorporated into the contract documents.
3.2.4.7 Verify that the construction documents reflect the existing conditions of site.
3.2.4.8 Attend biweekly design review meetings described in more detail in the Project Meetings section of Division One of the specifications. Provide constructability comments and estimating services by the Architect and approved by the Owner to evaluate critical elements of the design as they are formulated.
3.2.5 Allowance for Preconstruction Services. The University has established an estimated allowance of $ for the work outlined in this section 3.2 WORK DURING PRECONSTRUCTION. Within seven (7) days of notification of its selection for MACC negotiations, the Contractor will be required to submit a plan for the work of this paragraph (Preconstruction Work Plan). The Preconstruction Work Plan shall include a schedule of the activities included in the scope of work for Preconstruction Services and will identify the individuals the Contractor intends to use to accomplish the tasks assigned. If the Plan is not satisfactory the Owner will advise the Contractor of the shortcomings in the Plan and require the Contractor to resubmit the Plan. Failure of the Contractor to submit a Preconstruction Work Plan that is approved by the Owner within fourteen (14) days of its selection for MACC negotiations will render its proposal non-responsive. The Preconstruction Work Plan shall also include the anticipated number of hours needed to complete each activity, the name(s) of the individuals that will be used to complete each task and an hourly rate for each individual. The hourly rates multiplied by the number of hours needed to complete all tasks shall, unless adjusted pursuant to mutual agreement of the Owner and Contractor, constitute the Total Compensation for Preconstruction Services. In the event the Contractor incurs costs in excess of the Total Compensation the Contractor shall pay such costs from its own funds and the Owner shall not be required to pay any part of such excess and the Contractor shall have no claim against the Owner on account thereof. The Contractor will not be entitled to any compensation under this paragraph until a Preconstruction Work Plan, satisfactory to the Owner, is provided and an Agreement for Preconstruction Work is executed. (Sample copy attached).
3.3 Work During Construction.
3.3.1 General. During construction the Contractor shall provide all services required of a general contractor and construction manager. Specific details of the work are provided below but they shall in no way limit the Contractor's overall duty to provide GC/CM services.
3.3.2 The Contractor shall conduct weekly progress meeting(s) and weekly subcontractor meeting(s) and maintain minutes for same. The Contractor shall also be required to attend construction oversight meetings with representatives from the Owner and the Design Team on a monthly basis. The Contractor shall conduct site tours for the Owner and other officials as required.
3.3.3 The Contractor shall be responsible for superintendence, providing ongoing coordination between crafts, job site safety, quality control, settling disputes between subcontractors, negotiating any Change Orders with the subcontractors (Owner expects the Contractor to negotiate with subcontractors but reserves the right to reject any subcontractor proposal), negotiating Change Orders with the Owner, reviewing, coordinating and forwarding submittals and RFIs to the Owner's Representative for action and for responding to all correspondence related to the effort required for any procurement activities that arise from a subcontractor's inability or unwillingness to perform.
3.3.4 The Contractor shall be responsible for general building layout, and for the coordination of layout work provided by separate trades for their own work, to ensure that no conflict exists with the work of other trades. The Contractor shall coordinate the layout of all partitions and door openings, electrical panels, and fixed casework outlines (including knee spaces) on the floor slab prior to mechanical, plumbing, and electrical rough-in work.
3.3.5 The Contractor shall provide sufficient staff of project managers, field engineers, superintendents, engineers, CQC representatives, testing engineers, scheduling engineers, cost engineers, clerical and accounting personnel, etc. to ensure that:
3.3.5.1 Change Orders are submitted to the Owner within 7 calendar days of the receipt by the Contractor of the subcontractors proposal; only changes negotiated between Contractor and subcontractor are acceptable.
3.3.5.2 RFIs are reviewed and forwarded to the Owner's Representative within one day of receipt.
3.3.5.3 Submittals are reviewed for completeness and forwarded to the Owner's Representative within three days of receipt.
3.3.5.4 Replies to correspondence from subcontractor, Owner, and other outside agencies are provided within 7 calendar days.
3.3.5.5 For a minimum of ninety (90) calendar days after Substantial Completion, provide adequate qualified staff that are authorized to act on behalf of their firm to be present to coordinate and insure that any outstanding work items, punchlists, testing and commissioning are completed, at no additional cost to the Owner.
3.3.6 Special inspection required by the appropriate building officials and regulatory agencies will be provided by the Owner per Division 1, Section 01445. The Contractor shall be responsible to ensure that the Owner's inspectors are given notice and are afforded timely and appropriate access to the work to make their inspections.
3.3.7 The Contractor shall perform all work required to make building permit changes and updates. Building Permit changes and updates shall be submitted, reviewed and, if approved, incorporated into the appropriate subcontract package(s) and record drawings.
3.4 Work During Commissioning.
3.4.1 The Owner shall hire an independent Commissioning Agent. The Contractor shall provide the activities of Division One, Section 01450: Test Engineer.
3.4.2 The Contractor shall obtain a Certificate of Occupancy and the required operating permits necessary for the Owner to take a beneficial occupancy of this facility.
ARTICLE 4
RELATIONSHIP OF THE PARTIES
4.1 General. The Contractor accepts the relationship of trust and confidence established by this Agreement and covenants with the Owner to cooperate with Architect through every phase of the Work and utilize the Contractor's best skill, efforts and judgement in furthering the interests of the Owner; to furnish efficient business administration and supervision; to make best efforts to furnish at all times an adequate supply of workers and materials; and to perform the Work in the best way and most expeditious and economical manner consistent with the interests of the Owner. The Owner agrees to exercise best efforts to assist the Contractor to perform the Work in the best way and most expeditious manner by furnishing and approving in a timely way information required by the Contractor and making payments to the Contractor in accordance with the requirements of the Contract Documents. The Contractor recognizes that the Owner has a separate agreement with the Architect to design the Project and to provide certain construction administration services necessary to ensure that the construction conforms to the Drawings and Specifications. The Contractor further recognizes that in order for the Project to be completed on time and within the GCC the Contractor and the Architect and the Owner will have to closely cooperate on a regular basis to revise plans, drawings, specifications, materials, methods, estimates and budgets as necessary to meet the Owner's financial constraints.
4.2 Partnering.
4.2.1 The Owner proposes to utilize the "partnering" concept for this Project. Partnering emphasizes a cooperative approach to problem-solving involving all key parties to the Project: Owner, Architect, Contractor and principal Subcontractors.
4.2.2 Participation in partnering will be voluntary. Upon execution of this Agreement, the Contractor will be given the option to participate in partnering.
4.2.3 If the Contractor decides to participate, two workshops to define partnering relationships will be scheduled not-to-exceed one day each or as mutually agreed. The Owner, Architect and the Contractor will participate in one partnering session during preconstruction as soon as practicable. The Owner, Contractor, and principal Subcontractors when known, shall participate in a second partnering session. Principal Subcontractors should include: electrical, mechanical, drywalling and others as the Contractor and Owner jointly agree is appropriate. The purpose of the workshops shall be:
4.2.3.1 To establish mutual understanding of partnering concepts;
4.2.3.2 To develop the mission statement and goals for the Project for all parties; and;
4.2.3.3 To develop a process so that critical issues can be quickly resolved.
4.2.4 The Owner will be responsible for providing the facilities for the workshop, as well as a facilitator and any workshop materials. The Contractor is requested to pay 1/3 of the costs for the facilitator and facilities not-to-exceed $ . The Contractor is expected to provide Project personnel for the workshop at no additional cost to the Owner.
4.2.5 At the conclusion of each workshop it is anticipated that a definitive working arrangement for partnering will be agreed upon and committed to in writing by the participants. Parties may withdraw from the partnering arrangement upon written notice to the others. Should the partnering arrangement terminate, claims or disputes settled or changes approved during the existence of the partnering arrangement shall not be affected.
ARTICLE 5
DATE OF COMMENCEMENT, TIME OF COMPLETION, LIQUIDATED DAMAGES
5.1 Time is of the Essence. It is understood that time is of the essence in performing the Work, and the Contractor shall provide the necessary equipment, personnel and services to commence on the date this Agreement is executed and be substantially complete within the time periods set out below.
5.2 Date of Commencement. The date of commencement of the Preconstruction Services set forth in 3.2 shall be execution of an Agreement for Preconstruction Work and issuance of a Notice To Proceed for Preconstruction Services. The date of commencement of all other work including the construction work, shall be upon execution of this Agreement and issuance of a notice to proceed specifying the work that is being authorized. Any work performed prior to the issuance of a notice to proceed shall be at the Contractor's sole risk and expense.
5.3 Substantial Completion. All work delineated in the Contract Documents shall be substantially complete within calendar days from the date specified in the Notice to Proceed. Work shall begin on the date stated in the notice(s) to proceed.
5.4 Liquidated Damages. For failure to achieve Substantial Completion of Work by the time specified, Contractor shall pay Owner $ per day in liquidated damages for each and every calendar day from the date when Substantial Completion should have been achieved to the date Substantial Completion is effectively achieved.
5.5 Subject to Funding. If the Owner determines, in its sole discretion, that sufficient funds are not available, then the Owner shall have the right to immediately terminate this contract for its convenience during Preconstruction Services. In the event it does so, it will compensate the Contractor for the value of the preconstruction services it has performed, if any. However, the Contractor shall not be entitled to any compensation, damages, lost profits, or payment of any other kind.
5.6 Incentive [use if schedule or savings incentives apply]
ARTICLE 6
GUARANTEED CONSTRUCTION COST
6.1 Determination. The Guaranteed Construction Cost will be determined through a negotiation of the MACC conducted prior to the execution of this agreement. While the Preconstruction Allowance is part of the GCC, the MACC negotiations are separate from preconstruction work. The Contractor will not be reimbursed for the work related to MACC negotiations.
6.2 Preconstruction Services. The University has established an estimated allowance of $ for preconstruction work as defined in Section 3.2 of this agreement. The money for this work is not included in either the Fixed Fee or the Dollar Amount for Specified General Conditions Work. During the preconstruction work phase of the Project, the Contractor will be paid monthly for its services under first the Agreement for Preconstruction Services and then under the GC/CM Contract, based on actual time and expenses without markup, not-to-exceed the "Total Compensation" agreed to in the Preconstruction Work Plan. Any amount that exceeds the "Total Compensation" agreed to will be at the Contractor's sole cost and expense.
6.3 Maximum Allowance Construction Cost ("MACC")
6.3.1 The MACC is the amount, mutually agreed to between the Owner and Contractor, that is required to complete all Work as described in the Contract Documents. The MACC shall include funds for all costs through the life of the Project, except those required for:
6.3.1.1 Preconstruction work;
6.3.1.2 Contractor's fixed fee;
6.3.1.3 Fixed Amount of Specified General Conditions work;
6.3.1.4 Owner-directed changes;
6.3.1.5 Other changes due to:
1) Design errors;
2) Unforeseen conditions, hidden or omitted;
3) Regulatory requirements at variance with the contract documents.
6.3.1.6 Washington State Sales Tax.
6.3.2 The Owner shall maintain a contingency for Owner-directed changes.
6.3.3 The Contractor shall be responsible for all costs related to subcontractor claims or charges that result from mistakes or omissions in the subcontract buyout, or coordination errors and omissions in the Construction Documents, or interference between subcontractor and the GC/CM or between subcontractors and other subcontractors. The Contractor may utilize the MACC Contingency Account established in Section 6.7.6 to pay for charges that result from mistakes or omissions in the subcontract buyout, or change orders that result from coordination errors and omissions in the Construction Documents. The Contractor's use of the MACC Contingency Account must be approved by the Owner. The Contractor shall provide the Owner with monthly updates of the contingency use.
6.3.4 As part of the MACC negotiations the Contractor shall provide:
6.3.4.1 A complete cost estimate in a format agreed to by the Owner and Architect.
6.3.4.2 A Subcontract Plan satisfactory to the Owner outlining the Subcontract packages and procurement schedule for each package the Contractor intends to prepare to execute the Project including a MWBE Plan. The Subcontractor Plan shall include a statement regarding the work the Contractor intends (if any) to self-perform and an affidavit stipulating that such work is customarily performed by the Contractor.
6.4 Performance and Payment Bond. One month prior to the Notice to Proceed for Construction, the Contractor shall provide the Owner with performance and payment bonds, in a form acceptable to the Owner, for the full GCC.
6.5 Reimbursable Work. Reimbursables refer to expenses incurred by the Contractor which are reimbursed by the Owner. The estimated costs for items identified as "Reimbursables" in the Matrix attached hereto as Attachment No. 1 shall be specifically identified and included in the MACC and identified as "Reimbursables" and will be reimbursed on a direct cost basis. If the actual cost of these items varies from the original estimate in the MACC, the Owner will adjust the MACC by the difference in a single change at the time of Substantial Completion.
6.6 Contractor's Fee and Specified General Conditions.
6.6.1 Contractor's Fee. The Contractor shall submit a number on the Form of Proposal which represents the Contractor's Fixed Fee stated as a percentage of the MACC. The fixed fee shall only be earned on the MACC. The Fixed Fee shall cover the following:
6.6.1.1 All profit of the Contractor for this Project.
6.6.1.2 All regional and home office overhead expenses, including labor and materials, travel, phone, facsimile, postage, and other incidental office expenses attributed to work on this project that is not specifically identified in the Specified General Conditions Work.
6.6.1.3 All expenses of the Contractor, whether direct or through consultants, for participation in and the support of the subcontractor bidding process of the project that are not paid for as Specified General Conditions Work.
6.6.1.4 Other than retail sales tax, the fee shall cover all taxes owed by the Contractor.
6.6.2 Specified General Conditions Work. The Contractor shall submit a number on the Form of Proposal which represents the dollar amount for the "Specified General Conditions Work". The Specified General Conditions Work shall consist of all requirements of the Contract contained in the General Conditions, Modifications and/or Supplemental Conditions to the GC/CM General Conditions, and Division One work items so marked in Contractor's Fee, Specified General Conditions Work, Reimbursables Work Matrix, attached hereto as Attachment No. 1 and incorporated herein by reference as if set forth in full. Any cost that is not specifically identified in the Matrix shall be covered by the amount bid for Specified General Conditions.
6.7 Subcontractor Buyout Procedure.
6.7.1 Prior to subcontract bidding the Contractor shall secure approval of its Subcontractor Plan including a MWBE plan.
6.7.2 Before soliciting bids, the Contractor shall submit and the Owner approve Final Bid Package Estimates for all subcontract bid packages in its approved Subcontract Plan. The sum of all the Final Bid Package Estimates in the Subcontract Plan shall not exceed the MACC.
6.7.3 The Contractor shall bid out the subcontracts in accordance with its approved Subcontract Plan. During Subcontract Buyout, the Contractor may request a change in its Subcontract Plan and the Owner will not unreasonably withhold approval provided the sum of all of the Final Bid Package Estimates in the Subcontract Plan as revised does not exceed the negotiated MACC.
6.7.4 If the low responsive bid for a particular Bid Package is greater than the Final Bid Package Estimate, then the provisions of RCW 39.10.080 shall apply. If the lowest responsive bid does not exceed the Final Bid Package Estimate by $125,000.00 for bid packages below $10 million, and 2% for bid packages with Bid Package Estimates greater than $10 million, then the Contractor may negotiate an adjustment to that bid based upon agreed changes to the subcontract scope to bring the bid within the amount of the Final Bid Package estimate, which, for purposes of this contract, shall be considered to be the Available Funds. All time delays and costs, including design costs associated with the negotiations and scope changes shall be the responsibility of the Contractor.
6.7.5 If the Contractor chooses not to negotiate under the provisions of Paragraph 6.7.4 above or if the low conforming bid exceeds the Final Bid Package by more than the amount permitting negotiations, the Contractor shall award the bid package to the low responsive responsible bidder. Provided unusual circumstances exist Contractor may request and Owner at its sole option may agree to a change in the scope of the work for the bid package. The Contractor may then rebid, but all time delays and costs to rebid shall be the responsibility of the Contractor.
6.7.6 If the Contractor is successful in awarding contracts for all the subcontracts in its approved Subcontract Plan in an amount less than the negotiated MACC, then the Contractor may retain the savings up to an amount not to exceed $ for its use as a MACC Contingency Account to be administered in accordance with the provisions of Section 6.3.3. Any remaining savings shall be utilized to fund alternates as directed by the Owner or shall be returned with fee as bid to the Owner.
6.7.7 If any subcontractor to whom a Bid Package has been awarded is unable to perform for whatever reason, the Contractor shall have the option to rebid or negotiate for the performance of the work or perform the work itself. The Contractor shall bear all risk and/or cost overruns occasioned by a subcontractor's inability to perform.
6.7 Contractor Cost Accounting.
6.8.1 Starting with the award of the first bid package, the Contractor shall provide a monthly report to the Owner for review of expenditures, tracking of subcontractors, and contract changes.
The report shall include at a minimum:
6.8.1.1 FINAL BID PACKAGE ESTIMATE. Once the Final Bid Package Estimate is agreed to, the values in this column do not change.
6.8.1.2 FINAL BID PACKAGE ADJUSTMENTS. To be used to record adjustments in the Final Bid Package Estimate.
6.8.1.3 AVAILABLE FUNDS (REVISED BUDGET). The sum of the Final Bid Package Estimate and Adjustments.
At an appropriate point in the project, with approval of the Owner's Representative, column 1 "Final Bid Package Estimate" need not be printed in each monthly report. This column must, however, be maintained and be available upon the Owner's request.
6.8.1.4 BUDGET ADJUSTMENT. This column shall indicate any change to any budget line item that occurred since the last report.
6.8.1.5 SUBCONTRACT. This column shall reflect the amounts encumbered less change orders.
6.8.1.6 CHANGE ORDER. (two columns). One column shall reflect the value of Team Change Memos paid from the MACC contingency and one column shall reflect the value of change orders paid from the Owner's contingency.
6.8.1.7 REVISED SUBCONTRACT AMOUNT. This column shall reflect the total of Subcontracts and Change Orders.
6.8.1.8 VARIANCE. This column shall reflect the budget less the subcontract, less change orders.
6.8.1.9 EXPENDED TO DATE. This column shall reflect the amount paid to the Contractor from the Owner.
6.8.1.10 EXPENDED PRIOR TO PERIOD. This column shall reflect the amount recorded in the monthly report immediately preceding the current report as EXPENDED TO DATE.
6.8.1.11 EXPENDED THIS PERIOD. This column shall reflect the amount expended to date less the amount reported in all previous periods.
6.8.1.12 PERCENT OF BUDGET. This column shall reflect the amount of the negotiated budget that has been expended and is the amount Expended to Date divided by the sum of Available Funds and Change Orders expressed as a percentage.
6.8.1.13 ANTICIPATED COST TO COMPLETE. This column shall reflect the amount the Contractor believes shall be required to finish the Work.
6.8.1.14 BALANCE. This column shall reflect the difference between the sum of the amount Expended to Date and the Anticipated Cost to Complete and the budget as adjusted.
6.8.2 Any Contractor obligations i.e., claims, shall be accounted for separately.
6.8.3 The monthly report will be reviewed by the Owner and the Contractor at monthly Construction Oversight meetings. Budget adjustments will be reviewed and mutually agreed to at that time.
ARTICLE 7
SUBCONTRACTING
7.1 Other than the Specified General Conditions and Reimbursable work, all work on the Project shall be competitively bid with public bid openings. Subcontract work shall not be issued for bid until the Owner has approved a Subcontractor Plan prepared by the Contractor including its plan for attaining applicable MWBE project goals. The plan must incorporate the requirements contained in Section 5.20 of the GC/CM General Conditions.
7.2 The Contractor may bid on subcontract work which it customarily performs. In the event the Contractor will be bidding on subcontract work the bid opening will be managed by the Owner and notice of the Contractor's intention to bid shall be included in the public solicitation for bids for that bid package. In no event may the value of the subcontract work performed by the Contractor exceed thirty percent of the negotiated maximum allowable construction cost.
7.3 When critical to the successful completion of a subcontractor bid package the Owner and Contractor may determine subcontractor bidding eligibility using the evaluation criteria and process set forth in RCW 39.10.060. Subcontract bid packages shall be awarded to the responsible bidder submitting the low responsive bid. The requirements of RCW 39.30.060 apply to each subcontract bid package. The Contractor shall be responsible for making sure that all of these requirements are complied with.
7.4 The Contractor may organize and solicit bids for the subcontract work in whatever combinations or packages (the "bid packages") it chooses, provided that the Contractor may not use any alternates without approval of the Owner.
7.5 As part of the Specified General Conditions Work the Contractor shall be responsible for all cost associated with the subcontracting process including, but not necessarily limited to:
1. Developing solicitations for Subcontract packages.
2. Site tours.
3. Responding to questions from bidders.
4. Providing bid opening facility.
5. Bidding in accordance with the requirements of sections.
6. Contractor award.
Reproductions of bid sets as required for bidding is a reimbursable expense.
7.6 Solicitations of subcontractors by the Contractor shall be made in accordance with the following procedures:
1. A representative from the Owner will be present at each bid opening to observe the procedure. In the event the Contractor is bidding on a subcontract package, the Owner will conduct the bid opening.
2. Solicitations for bids will be advertised in advance in the Seattle Daily Journal of Commerce.
3. Bidders may obtain the bid results by telephone from the Contractor. All such calls will be referred to the Contractor.
4. The Contractor may evaluate for bidding eligibility per the criteria set forth in RCW 39.10.060. The Contractor shall make sure that the requirements of RCW 39.30.060 are complied with on each subcontract bid package. Responsiveness requirements and bidding procedures will be described in each bid solicitation and, along with subcontractor MWBE joint venture requests, will be reviewed with the Owner prior to each bid opening.
7.7 The Contractor shall require a bid bond from subcontractors who bid work with a bid estimate over $300,000. Those subcontractors shall be required to provide a performance and payment bond for the subcontract amount.
7.8 The Contractor may require a performance and payment bond of any other subcontractor, provided that such requirement is set forth in the subcontract bid documents.
7.9 The Contractor must provide staff to superintend and manage each subcontract package it undertakes that is separate and distinct from the staff involved in the management of this Contract. The Contractor shall be responsible for all costs arising from its failure to coordinate the work that it might self-perform with the work of other subcontractors.
ARTICLE 8
MISCELLANEOUS PROVISIONS
8.1 Builders Risk. Owner will purchase and maintain Builder's Risk property insurance in the amount of the Contract Sum including all Change Orders for the entire Work on a replacement cost basis until Final Acceptance. Contractor shall be responsible for all losses up to the policy deductible amount of $10,000 per occurrence. The policy contains a $1,000,000 per occurrence for transit and offsite storage. A specimen policy is available for inspection. Contractor is not required to obtain Builder's Risk property insurance. All other provisions of the General Conditions Section 2.06, Builder's Risk, remain in effect except that Architects and Engineers (A/E's) and A/E's subconsultants are deleted from paragraph C.
8.2 Matrix. Attached hereto as Attachment No. 1 is a Matrix entitled "Contractor's Fee, Specified General Conditions Work, Reimbursable Work - Matrix". Said Matrix is an essential part of this agreement and any questions regarding it shall be raised during the RFP phase and if not shall be waived by the Contractor.
OWNER
UNIVERSITY OF WASHINGTON
By:
Title:
CONTRACTOR
By:
Title:
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