SUBJECT:Contracting for Renovations, Major Repairs, and New Construction

DIRECTIVE NO. 320F DATE: July 30, 2004

SUBJECT:Contracting for Renovations, Major Repairs, and New Construction

REFERENCES:1.Commonwealth of VirginiaConstruction and Professional Services Manual (CPSM)

2.Higher Education Capital Outlay Manual (HECOM)

3.Virginia Public Procurement Act – Code of Virginia Sections 2.2-4300 through 2.2-4377 (VPPA)

4.Facilities Management Directives No. 300 through No. 399, All Relating to Procurement Matters.

PURPOSE: To establish Facilities Management policy, authority and procedures for contracting for both General and Non General Fundconstruction projects described by a definite scope, requiring formal inspection, normally requiring a general contractor, and all Capital Outlay construction projects accomplished by contract.

CANCELLATION:This directive is effective immediately and supersedes and cancels Directive No. 320E. Significant changes from the previous directive are printed in bold face type.

BACKGROUND: Facilities Management administers all contracts for capital outlay or other projects which will permanently alter the University's facilities or grounds. This includes but is not limited to, building renovations, roofs, landscape construction projects, roads, parking lots, utility systems, built-in casework, asbestos removal, general improvements, and new construction as normally described by construction plans and specifications.

DISTRIBUTION LISTREVIEW DATE:

On-Line

DirectorsJuly 2006

Human Resources & Training Officer

Information OfficerOFFICE OR DEPARTMENT

Architect for the UniversityRESPONSIBLE FOR REVIEW

Office ofContract Administration

Facilities Planning and Construction

DIRECTIVE NO. 320F DATE: July 30, 2004

Construction documents are normally developed by or through the Facilities Planning and Construction Department (FP&C) or Work Management. The advertising for bids, award, and administration of these projects are handled only through the Office of Contract Administration.

A separate Directive No. 321 applies to the procurement of non-professional services such as standing contracts, furnish and install contracts, maintenance and repair service contracts, inspection contracts or other non-professional services.

A separate Directive No. 322 applies to the procurement of on demand construction services, commonly referred to as "Make/Buy" that has preselected contractors competitively bid against Facilities Management.

POLICY:

All procurements are governed by the legal requirements of the VPPA and CPSM issued by the Division of Engineering and Building (DEB) or the HECOM of the University of Virginia. All Facilities Management procurements are expected to be conducted in strict conformance with the intent of the law and the formalized procurement procedures which have been established.

The VPPA provides that the principal method of procuring services, supplies, and construction will be competitive bidding. However, the Act does allow alternative methods when they are fully justified. Alternative methods include competitive negotiation, design build, construction management, emergency purchases, and sole source purchases. Competitive negotiation may be used when the contract is not expected to exceed $1,000,000 for building alteration, repair renovation or demolition and a determination is made in advance that competitive bidding is either not practicable or not fiscally advantageous to the public. The basis for the determination to use any of the alternative methods must be documented in writing and may only be approved by the Chief Facilities Officer (CFO) for Non-General Fund projects and design build or construction management for all projects; and by the Division of Engineering and Building for General Fund projects. It is required that such determinations be a part of the official contract record.

PROCEDURES:

1.All procurement for construction, renovations, repairs, and furnish-and-install items will be in accordance with Chapter 10 of the CPSM for General Fund projects or Chapter 10 of HECOM for Non-General Fund projects through competitive bidding unless an exception is granted as detailed below.

2.In an emergency situation, any director or project manager may present to the CFO for approval a properly written justification, in the form of a Determination & Finding (D&F), for declaring the emergency. If justifiable, the CFO will authorize the procurement to proceed on an emergency basis and may set aside the requirement to post a procurement in the electronic Virginia Procurement System (eVA). The approved written determination must be placed in the contract record. University policy recognizes three general categories of "emergency" as reasons to proceed without normal competitive procurement:

a.Protect life and/or property.

b.Prevent substantial economic loss.

c.Prevent interruption of service

Emergency Construction Contracting Clause shown as Attachment No. 1 and the Emergency Conditional Notice to Proceed (ECNTP) shown as Attachment No. 2, shall be the method for contracting for construction for projects designated emergencies.

3.Directors or project managers may initiate a construction project procurement by submitting a complete contract document package to the constructioncontract administrator with the proper approval documents.

4.Contract Administration will coordinate the bid dates and legally advertise the project. Contract Administration will conduct all pre-bid meetings or preproposal meetings, bid receivingsand bid openings and administer the award of the contract.

RESPONSIBILITIES:

1.Directors shall insure that all persons who are responsible for processing construction procurement actions are aware of and follow the mandatory procedures of this policy directive.

2.The Contract Administration Manager is the University’s VCCO. The VCCO is responsible for legal compliance and ensuring proper procedural handling of construction contracting transactions which are processed and administered through the Facilities Planning and Construction Department. Questions concerning the procurement outlined in this directive should be directed to the VCCO. The VCCO will also coordinate procurement planning and provide examples of the justification required for an exception to the normal competitive bidding procedures.

Robert P. Dillman, P.E.

Chief Facilities Officer

Attachments: 1. Emergency Construction Contracting Clause

2. Emergency Conditional Notice To Proceed (ECNTP)

EMERGENCY CONSTRUCTION CONTRACTING CLAUSE

Directive No. 320F

Attachment No. 1

Emergency Construction:

“Emergency” Construction Contracts - In the event of an emergency, designated as such by the Chief Facilities Officer in a Determination and Findings report (D&F), the following emergency contracting procedures may be used.

When it is not possible at the time of the award of a contract to estimate accurately the extent or duration of the work or to anticipate costs with any reasonable degree of confidence, an Emergency Conditional Notice to Proceed (ENTP) will allow a contractor to begin work immediately. This contract type provides for acquiring services on the basis of:

1. Direct labor hours at specified fixed hourly rates including wages, overhead, general and administrative expenses, and profit; and

1. Materials at cost, including, if appropriate, material handling costs as part of the material costs. See General Conditions Section 38 (e) and (f) for guidance in determining allowable costs and costs not allowed.

The not-to-exceed price shall be established and indicated in the D & F and in the Emergency Conditional Notice to Proceed (ECNTP) letter to the Contractor. Any subsequent change to the not-to-exceed price established thusly shall be approved in advance by the Chief Facilities Officer. This ECNTP will be delivered to the contractor and the contractor must sign his agreement to the terms expressed in the ECNTP and return the signed form to the University prior to beginning the work. The work for the emergency project will be started by the issuance of an ECNTP issued by the Contract Administration Manager.

“Emergency” Contracting Clauses - In performing this work, the Contractor shall not make expenditures or incur obligations exceeding the dollar limit of the contract as established in the ECNTP. The University of Virginia shall not be liable for any expenditures or obligations by the contractor over the not-to-exceed dollar limit of the contract.

Mandatory notifications - The Contractor shall provide written notification to the Contract Administration Manager upon expending and/or obligating 50% of the not-to-exceed amount of the Contract as indicated in the ECNTP.

Definition of Terms. A formal contract will be prepared upon agreement of terms by the Contractor and the University as soon as practicable, but in no case longer than ______(______) calendar days after the issuance of the ECNTP and prior to expending and/or obligating 50% of the not-to-exceed amount specified.

Conversion Option - The University reserves the option to convert the terms of the contract to a Guaranteed Maximum Price (GMP) should it be in the best interest of the University to do so.

Insurance Submittals - Before beginning any work, the Contractor will submit Insurance Certificates for the project in the types and amounts required in the standard General Conditions of the Construction Contract (HECO-7) to the Office of Contract Administration.

Notice – The FP&C Project Manager is responsible for ensuring that the contractor is fully knowledgeable of the requirements of this attachment.

EMERGENCY CONDITIONAL NOTICE TO PROCEED

Directive No. 320F

Attachment No. 2

Date______

Contractor:______

______

______

Ref.: Project Title:______

UVA Work Order Number ______

PIMS No.:______

(Emergency Conditional Notice to Proceed)

Dear Sir or Madam:

This is an Emergency Conditional Notice to Proceed with the above-referenced Emergency project. Please sign this document indicating acceptance of the requirements and return it to the issuing office immediately. Standard contract documents will be prepared and will be presented to you for review and approval when the terms are agreed upon, but in no case longer than ______( ) calendar days after the issuance of this ECNTP and prior to your expending and/orobligating 50% of the not-to-exceed contract amount below. The Contractor shall provide written notification to the Contract Administration Manager upon expending or obligating 50% of the not-to exceed amount. The University shall not be liable for any expenditures or obligations by the Contractor over the not-to-exceed amount below.

You are authorized to make expenditures or to incur obligations in the performance of this contract in the total not-to-exceed amount of ______& 00/100ths dollars ( $______.)

The contract shall be a “Fixed Fee Plus Reimbursable Costs” contract where costs are determined on the basis of 1) direct labor hours at specified fixed hourly rates including wages, overhead, general and administrative expenses, and profit, and 2) materials at cost, including, if appropriate, material handling costs as part of materials costs. See General Conditions Section 38 (e) and (f) for allowable costs. The University reserves the option to convert the terms of the contract to a Guaranteed Maximum Price (GMP) should it be in the best interest of the University to do so.

Before beginning any work, the Contractor will submit Insurance Certificates for the project in the types and amount required in the standard General Conditions of the Construction Contract (HECO-7).

The Time for Completion of the contract will be agreed upon by the Owner and the Contractor and written into the standard contract documents.

Acceptance by Contractor:______Date: ______

(Signature)

Printed name and Title:______

Contracting firm:______License No. ______

Date:______

Emergency Conditional Notice to Proceed

Project:______

Page 2

FEIN:______Corporate Seal:______

Telephone:______Fax:______

Verification by VCCO ______Date:______

The following listed enclosures are incorporated into this ECNTP and therefore, become part of the contract.

Enclosures:

Sincerely,

Patricia C. Mathews, VCO, C.P.M., VCCO

Manager, Office of Contract Administration

c:Project Manager

Division Manager

Contract Administrator for Construction

Contract Administration Procurement File

Director Facilities Planning & Construction

Chief Facilities Officer