School Business Consulting, Inc. W.H. Byrd, Inc. Thank you to our Sponsors!

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2 School Business Consulting, Inc. W.H. Byrd, Inc. Thank you to our Sponsors!

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6 How to Successfully Hard-Bid a Project Jeff Becker, Director of Facilities & Operations Maiya Yang, General Counsel

7 Competitive Bid v. Competitive Selection COMPETITIVE BID Hard Bid Lowest price bid Price is the determining factor Bid Bidder Non-negotiable contract COMPETITIVE SELECTION Request for proposal/ qualification (RFP/RFQ) Price is one factor Response Respondent Contract negotiable

8 INVOLVED PARTIES 2 Architect INSURERS - General liability - Auto liability - Workers compensation - Professional liability - Builder s risk 1 Consultants/ Attorney School District 3 Prime Contractor Surety - Bid Bond - Payment Bond - Performance Bond - Stop Payment Release Bond 4 Inspector(s)/ Testing Lab Subcontractors /Suppliers

9 Pre-qualification PCC Required if project is State funded Over $1 million District ADA is over 2,500 Prime contractors Mechanical, electrical, & plumbing subcontractors

10 Planning & Preparation District team Consultants/attorney retention Architect selection & contract Plan and specifications preparation Bid and contract documents preparation CEQA analysis Board policies & administrative regulations review District and DSA/local agencies approval of plans

11 Competitive Bid Process Advertisement/posting Bid document issuance Pre-bid walk Bid submission Bid opening & review Contract award & execution

12 Bid Documents v. Contract Documents Bid Documents Notice Inviting Bids Instructions to Bidders Bid Forms Bid Proposal (alternates?) Bid Bond Non-Collusion Affidavit Subcontractor Designation Iran Contracting Act Certification Job References DVBE Good Faith Worksheets (if state funds used or will be used) Plans & Specifications Addenda Contract Documents Bid Documents Contract Documents signed & completed Agreement General Conditions Special Conditions (if any) Payment Bond Performance Bond Fingerprinting Certification Escrow Agreement Change Orders

13 Advertisement PCC One time per week for two consecutive weeks Newspaper of general circulation Builders Exchange Trade focused publications Send directly to contractors Place on website

14 Advertisement PCC Notice Inviting Bids How to get a bid packet Pre-bid job walk date, time, & place Submittal date, time, & place Basis for Contract award

15 Bid Packet Project Description Instructions to Bidders Bid Form, Bid Bond Form Non-collusion Affidavit Designation of Subcontractors Iran Contracting Act Certification References Plans and Specifications

16 Pre-bid Job Walk Mandatory or non-mandatory? Sign-in sheet Familiarize bidders with project and contract documents Notify bidders of specific project requirements Identify and gauge interest Answer questions

17 Addenda Must be issued no less than 72 hours prior to bid opening Usually issued by the architect

18 Bid Opening Summary Tabulation of all bids At opening check for: Non-collusion Affidavit Bid Form Bid Bond, cash, cashiers check, certified check Must be returned to unsuccessful bidders within 60 days Subcontractor Designation Form References DVBE documents if state funded

19 Bid Opening Immediately after opening verify: Contractor s License (general and subs) DIR registration References DVBE/Good Faith Effort (state funded only)

20 Protests Check Board Policies on procedure Procedure in bid documents Communication with Bidders and District Board

21 Award of Contract Board Meeting Letter of Award Send contract documents for execution Letters to unsuccessful bidders Return Bid Bond

22 Contracting Complete Agreement Verify insurance Performance Bond Payment Bond Fingerprinting Escrow (optional)

23 Other Issues Notice to Proceed Pre-construction meeting Preliminary Notices Notice of Completion

24 Tips to Avoid Litigation Assemble a good team Retain and use qualified consultants Keep good records Have legally sound bid and contract documents Read them Comply with them

25 USEFUL WEBSITES - CALIFORNIA California Architects Board Contractors State License Board Secretary of State Business Search (Corporate v. DBA) Department of Industrial Relations DIR Contractor Registration Insurance Commissioner

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27 California Uniform Public Construction Cost Accounting Act (CUPCCAA) Presented by Jamie Perry District Financial Services Fresno County Office of Education Special thank you to Guiselle Carreon, San Diego COE and CASBO for sharing materials for this presentation

28 What is CUPCCAA? CUPCCAA Act is legislation enacted in 1983 to help promote uniformity of the cost accounting standards and bidding procedures on construction work performed or contracted by public entities in the state. PCC Section The Act is a voluntary program that is available to all public entities in the State but it only applies to those public agencies that have opted in to the provisions set forth by the Act. The entirety of the Act is found at Sections Source: 28

29 Key Provisions of CUPCCAA The Act allows for public project work to be performed as follows: $45,000 or less to be performed by the public agency s force account, by negotiated contract, or by purchase order. Section 22032(a). $175,000 or less can use the informal bidding procedures set forth in the Act. Section 22032(b). More than $175,000 shall use formal bidding procedures to let the contract. Section 22032(c). Source: 29

30 Benefits of CUPCCAA Increased force account limit Informal bidding for projects that are $175,000 or less which do not require advertising. Reduces the number of formal bids. Expedited contracting for small projects. Source: 30

31 How Does a District Become Subject to the Act? Opt In: The Governing Board must elect by resolution to become subject to the Act; and File a copy of the resolution with the State Controller's Office. Section Opt Out: A district may withdraw from the Act by filing a resolution of the agency s election to withdraw with the SCO. 31

32 How Does a District Become Subject to the Act? Can a District Selectively Adhere to the Act? No, per CUPCCAA Cost Accounting Policies and Procedures Manual (CUPCCAA Manual), ( p. 3) Sample Documents: Sample documents, including a resolution electing to become subject to the Act, is in the CUPCCAA Manual. 32

33 How Do I Know if My District is Subject to the Act? There is a list on the SCO s website: The following Fresno County districts are shown as subject to the Act as of 4/5/2016: Burrel Union Elementary Central Unified Clovis Unified Fresno COE Kerman Unified Laton Unified Sanger Unified Washington Unified Caruthers Unified Clay Joint Union Elementary Firebaugh-Las Deltas Unified Fresno Unified Kings Canyon Unified Parlier Unified Sierra Unified 33

34 What is Force Account? Force Account refers to work performed on public projects using internal resources, including but not limited to labor, equipment, materials, supplies, and subcontracts of the public agency. Project costs for force account work include the following: Direct Costs: Labor including all benefit costs Equipment charged on an hourly rate including depreciation, insurance, maintenance/repair, fuel and oil, tires and grease, etc. Cost of materials and supplies with a total unit value of $25 or more including discounts, tax, and shipping. 34

35 What is Force Account? (Cont d.) Indirect Costs: Other labor including inspection, clerical, and supervision. Other expenses including utilities, telephone, temp. fencing, etc. Overhead Costs: Either the agency s actual calculated overhead rate or 30% of direct costs. 35

36 CUPCCAA Contracts Are Still Public Works Contracts Contractor Must Pay Prevailing Wages (Ed. Code 17424) Payment Bond Required (Civil Code 9550) Get a performance bond too! Fingerprinting (Ed. Code 45125, et seq.) Field Act Compliance Required - Construction is subject to all State approvals, as set forth in Education Code sections through (Ed. Code 17421) 36

37 CUPCCAA Contracts Are Still Public Works Contracts (Cont d.) Change Orders The Act is silent on change orders. The Act is part of the Public Contract Code therefore, if the Act is silent on a particular matter, the rest of the Public Contract Code would apply. (FAQ 21) How does a public agency process change orders when the standard code conflicts with the Act? For contracts below $45,000, the total cost of the contract may not exceed $45,000. For informal contracts, under the Act, the limit is $175,000. If the public agency is a school district, there may be additional limits and it is recommended the agency consult with their legal counsel for interpretation of change order limits. (FAQ 26) Bottom Line: Consult your attorney! 37

38 Implementation of CUPCCAA Governing Board approves resolution to become subject to CUPCCAA procedures District files resolution with State Controller Entire District becomes subject to the Act Board enacts informal bidding regulations under PCC

39 Implementation of CUPCCAA (Cont d.) PCC Each public agency that elects to become subject to the uniform construction accounting procedures set forth in Article 2 (commencing with Section 22010) shall enact an informal bidding ordinance to govern the selection of contractors to perform public projects pursuant to subdivision (b) of Section The ordinance shall include all of the following: (a) Notice to contractors shall be provided in accordance with either paragraph (1) or (2), or both. (1) The public agency shall maintain a list of qualified contractors, identified according to categories of work. Minimum criteria for development and maintenance of the contractors list shall be determined by the commission. All contractors on the list for the category of work being bid shall be mailed, faxed, or ed a notice inviting informal bids unless the product or service is proprietary. All mailing of notices to contractors pursuant to this subdivision shall be completed not less than 10 calendar days before bids are due. (2) The public agency may elect to mail, fax, or a notice inviting informal bids to all construction trade journals specified in Section

40 Implementation of CUPCCAA (Cont d.) From Section 1.04 of the CUPCCAA Manual: - In the event an agency elects to provide notice by mailing notices to all contractors on the list established by the agency for the work being bid, the agency shall utilize the following procedure to establish and maintain the list of registered contractors outlined in Section (a). 1. During November each year, each Public Agency which has elected to become subject to the Uniform Public Construction Cost Accounting Act and intends to utilize the notice provisions outlined in section (a) shall establish a new or update its existing list of registered contractors - See the CUPCCAA Manual for the detailed procedures, if you really want to do it this way! 40

41 Procedures for Informal Bidding Procedures for informal bidding (PCC 22034): - District mails notice inviting bids at least 10 days before bids due to: All contractors on list for category of work; or Specified trade journals (see subsections of CUPCCAA Manual); or Both Notice should describe project in general terms with information for how to obtain detailed information and time and place for submission of bids. 41

42 Procedures for Informal Bidding (Cont d.) Governing Board may delegate authority to award informal contracts to specific staff members (e.g., to Superintendent). If all bids received exceed $175,000, Governing Board may pass a resolution by a four-fifths majority awarding contract at $187,500 or less to lowest responsible bidder if it determines District s cost estimate was reasonable. 42

43 What Trade Journals Should I Notify? Check the Manual! 43

44 Procedures for Formal Bidding Public projects of more than $175,000 shall be let to contract by formal bidding procedures, including: Detailed architectural plans, voluminous bid and contract documents, Newspaper advertising for 14 days before bid opening Notice in trade journals 15 days before bid opening 44

45 Emergency Contracts For the purposes of the Public Contract Code, emergency is defined at Section 1102 as a sudden, unexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential public services. The Act sets forth in Section 22035(a) how a governing body would proceed in the case of emergency repairs or replacements. This section states, In cases of emergency when repair or replacements are necessary, the governing body may proceed at once to replace or repair any public facility without adopting plans, specifications, strain sheets, or working details, or giving notice for bids to let contracts. The work may be done by day labor under the direction of the governing body, by contractor, or by a combination of the two. Section et seq. provides the emergency contract procedures to be followed in these cases. 45

46 Accounting Procedures Under CUPCCAA Detailed accounting procedures for staff time, materials, supplies, etc., must be followed. This component is not covered in this presentation. The Commission has determined that compliance with the California Schools Accounting Manual meets the requirements of the Act. The Commission feels that all cost elements -- personnel, materials, supplies and subcontracts, equipment and overhead -- associated with a project must be recorded and reported at the project level 46

47 The Entire District Would be Subject to CUPCCAA The entire District would be subject to CUPCCAA, including repairs and maintenance. Therefore, the District would be required to informally bid for repairs and maintenance within the "donut hole" from $45,001 to $87,800 (the current bid limit for repairs and maintenance) Many Districts opt to exclude repairs and maintenance in its CUPCCAA resolution. If the District excludes repairs and maintenance, the bid limit for formal contracts for repairs and maintenance would remain at $87,800 for school districts rather than $175,000. (PCC ) 47

48 Repairs and Maintenance If the construction activity is a repair to or maintenance on an existing facility, then the project is subject to the 2016 repair bid limit of $87,800. In other words, the $87,800 bid limit applies to, Repairs, including maintenance as defined in Section 20115, that are not a public project as defined in subdivision (c) of Section (PCC 20111(a)(3) But what are the statutory meanings of repair and maintenance? 48

49 What is a Public Project? Public Project per PCC 22002(c) These are not Repairs or Maintenance (1) Construction, reconstruction, erection, alteration, renovation, improvement, demolition, and repair work involving any publicly owned, leased, or operated facility. (2) Painting or repainting of any publicly owned, leased, or operated facility. 49

50 What is Maintenance? Maintenance (per PCC 22002(d)) (1) Routine, recurring, and usual work for the preservation or protection of any publicly owned or publicly operated facility for its intended purposes. (2) Minor repainting. (3) Resurfacing of streets and highways at less than one inch. (4) Landscape maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants, and servicing of irrigation and sprinkler systems. 50

51 What is a Repair? Cases Interpreting What is a Repair The word repair in its ordinary sense relates to the preservation of property in its original condition, and does not carry the connotation that a new thing should be made or a distinct entity created. (2) Minor repainting. (Whalen v. Ruiz (1953) 40 Cal.2d 294, , 253 P.2d 457.) To repair means to mend an old thing, not to make a new thing; to restore to a sound state something which has become partially dilapidated, not to create something which has no existence. ( Id., 40 Cal.2d at p. 300, 253 P.2d 457.) 51

52 Repairs & Maintenance: Factors to Consider What could be recurring projects that preserve or protect school facilities in the District is a factual determination. The facility needs to be currently in existence. The work needs to be routine, recurring, and usual. The need for the work must be based on keeping the facility in functioning and useful order or to preserve it for future use. 52

53 Next Steps Familiarize yourself with the CUPCCAA Website (especially the FAQs and Manual). Consult the school district representatives on the CUPCCAA Commission, other school districts that are already subject to the Act, and your legal counsel. Decide if this program will enhance your district s ability to provide quality facilities to support outstanding education programs for students! 53

54 Resources: SCO CUPCCAA Website: CUPCCAA Commission Members (Representing Schools) Guiselle Carreon (858) Commissioner: Small School (ADA<25,000) Commercial Warrants & AP Manager San Diego County Office of Education Nathaniel Holt (909) ext Commissioner: Large Schools (ADA>25,000) Director of Purchasing and Contracts Pomona Unified School District 54

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57 Construction Manager Multiple Prime Doug Reitz Project Manager Mark Wilson Construction Don Ulrich, Ed.D. Assistant Superintendent, Facility Services Clovis Unified School District

58 Is CM Multiple Prime Right for Your project? Can you accept risks of LLB delivery? Is the project suited for formal bid? Complexity Time sensitive Need for pre-construction services Size of project

59 CM Multiple Prime Factors It is a collaborative delivery method allowing the district to select the CM through a competitive RFP process The district can rebid one or more primes while you accept others to get started on the project Include pre-construction services into your agreements with the CM

60 CM Multiple Prime Factors The district will be managing 10 or more individual contracts, 1 for each prime contractor Complex bidding process for business office and board agenda preparation More work hours for accounting and construction office managing payments & change orders Need to allow time for re-bids of 1 or more prime contractor

61 Contractual Relationships Owner Architect CM Primes

62 Selecting Your Team Select Delivery Method Select Designer and CM Design and Preconstruction Bidding Construction

63 CM Multi Prime Process Gaps Contractual relationship between primes Charges between primes Schedule durations Coordination Scope gaps

64 CM Multi Prime Process Gaps Additional Paperwork for the District Contracts Billings Payment Change Orders DIR / Certified Payroll Monitoring Builders Risk Insurance

65 Solutions to the Gaps Engage your CM to process information Contracts Billings Charges between primes Schedule durations Coordination Scope gaps Change Orders DIR / Certified Payroll Monitoring But Not!!!! Payment Builders Risk Insurance

66 Drilling Down to Best Practices CM Selection Preconstruction Bidding Construction

67 CM Selection Experience With the team With the project type With preconstruction services As a general contractor Coordinating subcontractors Respected by subcontractors

68 Preconstruction Constructability review Site investigation and coordination Creating a project schedule Creating bid package scopes

69 Bidding Advertising Bidder interest Responding to questions with Architect Pre bid project walks Award and contingency recommendations Re-bid recommendations

70 Construction Drive the project Contract, insurance, and bond return Schedule and coordination Billings Submittals, RFI s, and Changes Issue resolution

71 Finding the Balance Hard Bid Lease- Lease Back CM Multi- Prime

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