Award
Awarding of Contract
Description:
Award of Construction agreements: Campus to submit package and report costs relative to budget. Print out a report from the California Contractors State License Board (CSLB) online contractor license database. This will verify that contractor has current license with no restrictions from contracting, and also provides contractor's legal name; check if contractor name per CSLB matches name on prequalification letter and on the agreement forms, contractors may use DBAs. If contractor uses a DBA, all docs should reflect full name, i.e. "A. Teichert & Son, Inc. dba Teichert Construction."
Joint Venture (JV): Be aware the names of all JVs should also be checked against the license, these firms are prequalified individually, using their individual licenses, not as a JV. The CSU Prequalification Administrator may not be aware of the JV at the time of prequalification. Business and Professions Code, section 7029.1, requires the license of the JV to be in place at the time of award. For example, "McCarthy Building Companies, Inc." and "Clark Construction Group California LP" have prequalified individually and possess a JV license in the name of "Clark/McCarthy A Joint Venture".
Debarment (DIR): Access following Department of Industrial Relations (DIR) website to confirm that the low bidder is not on the DLSE list of debarred contractors.
Approval: Construction Administrator submits the package to the approving authority, per the campus management plan, for review and approval. If package is complete and acceptable, the approving authority signs the Approval to Award memo in the place indicated on the form.
Notice of Intent to Accept Bid / Proposal Letter: Contract/Construction Administrator shall use the Notice of Intent to Award Bid Letter.
Notice of Intent to Award Bid / Proposal Letter: This letter, signed by the approving authority transmits to the Contractor for signature the Contract Documents, which include: agreement form (Phase 1, Phase 2, or Construction Award), performance & payment bonds (not required for a Phase 1 Design agreement), certification, and the payee data record (STD204). When Contractor returns all counterparts of the contract docs, Construction Administrator reviews them as follows:
- all counterparts are signed by the Contractor and that the Contractor supplied the license and tax ID number, which is also on the STD 204 form to be returned with the contract;
- that the certification form is appropriately filled out with the contractor indicating its business type and attaches requisite documentation authorizing signer to execute the contract;
- ensure insurance coverage is correct;
- ensure bonds are completely and correctly executed for each of the contract counterparts, and that sureties are admitted sureties in California (go to www.insurance.ca.gov, select company profiles, and search and print out a company profile for the surety), and
- check that insurers AM Best rating is no less than A:VII, by accessing AM Best's website (www.ambest.com) and search/print out a copy of Best's Rating. Once Construction Administrator is satisfied that all contract documents are in order, s/he then routes them internally for all appropriate signatures, including Accounting, and then forwards the agreement package (Contract Documents and Agreement Certification form) to Office of General Counsel for signature. Counsel may also wish to review the contract specifications.
References:
Forms & Templates:
CSU Builders Risk Insurance Program (BRIP)
Description:
The CSU Builders Risk Insurance Program does not apply to JOC or minor capital outlay projects.
*CSU Construction Project Seismic Fund: Per Public Contract Code section 7105(a) "Construction contracts of public agencies shall not require the contractor to be responsible for the cost of repairing or restoring damage to the work, which damage is determined to have been proximately caused by an act of God, in excess of 5 percent of the contracted amount, provided, that the work damaged is built in accordance with accepted and applicable building standards and the plans and specifications of the awarding authority."
Public Contract Code 7105(b)(2) "Acts of God" shall include only the following occurrences or conditions and effects: earthquakes in excess of a magnitude 3.5 on the Richter Scale and tidal waves." Refer to Contract General Conditions, under Insurance Requirements.
References:
Forms & Templates:
CSU Owner-Controlled Insurance Program (OCIP)
Description:
The CSU Owner-Controlled Insurance Program does not apply to JOC or minor capital outlay projects.
References:
Forms & Templates: