Self-Support:

​​​D. Award

Awarding Phase 1 Contract

Description: Awarding of the Phase 1 agreement:  The campus will review the Fee Proposal package and print out a report from the California Contractors State License Board (CSLB) online contractor license database.

This will verify that Contractor has a current license and also provides contractor's legal name. Check to be sure the Contractor's name on the CSLB matches the name on the prequalification letter and on the agreement forms; Contractors may use DBAs. If the Contractor uses a DBA, all documents should reflect the full name (i.e., "A. Teichert & Son, Inc. dba Teichert Construction").

Approval: The Construction Administrator submits the package to the approving authority, as per the campus management plan, for review and approval. If the package is complete and acceptable, the approving authority signs the Approval to Award memo where indicated on the form.

Notice of Intent to Accept Phase 1 Proposal Letter: Contract/Construction Administrator shall use the Notice of Intent to Award Letter for the Phase 1 agreement.

References:

None

Forms & Templates:

None

Awarding Phase 2 Contracts

Description: Award of Construction Management Phase 2 (GMP) agreement: The campus will review the GMP package and report costs relative to budget.

Approval: The Construction Administrator submits the package to the approving authority, as per the campus management plan, for review and approval. 

If the package is complete and acceptable, the approving authority signs the Approval to Award memo (for approval of the GMP) where indicated on the form.

Notice of Intent to Accept GMP Letter: The Contract/Construction Administrator shall use the Notice of Intent to Award Letter. This letter, signed by the approving authority, transmits to the Contractor for signature the Contract Documents, which include: 

When the Construction Manager returns all counterparts of the contract documents, the Construction Administrator reviews the following:

  1. That all counterparts are signed by the Construction Manager, and that the Construction Manager supplied the license and tax ID number, which is also on the STD 204 form to be returned with the contract;
  2. That the certification form is appropriately filled out with the Contractor indicating its business type and has attached the requisite documentation authorizing signer to execute the contract
  3. Ensures insurance coverage is correct
  4. Ensures 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.)
  5. Check that the insurers' AM Best rating is no less than A:VII; you can find this by accessing the AM Best website and searching and printing a copy of Best's Rating. Once the 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 the CSU Office of General Counsel (OGC) for signature. OGC may also wish to review the contract specifications.

References:

Forms & Templates:

Exhibit A - Scope of Work
Exhibit B - Fee and Payment Schedule
Exhibit C - Service Provider Hourly Rate Schedule

  • Phase 2, two-page agreement, payment bond, performance bond, certification, and payee data record form 

CSU Builders' Risk Insurance Program (BRIP)

Description: CSURMA, CPDC and Alliant established the BRIP for all major capital outlay projects. This program includes builders' risk insurance and self-insurance for earthquake coverage. 

A builder's risk policy is not a liability policy; it is a policy covering property, i.e., structures and building materials. Contractors bid the project without this coverage and are responsible for the deductibles. 

Maximum coverage is $50,000,000 per occurrence, in excess of the deductibles.

Enrollment: Campuses must enroll their projects to obtain builders' risk insurance coverage by submitting an application contained in the Construction Insurance database on the MetaBIM website​. 

The optimum time to enroll the project in the BRIP database is when the Construction Administrator/campus advertises the project. Once Notice to Proceed (NTP) is issued, the Construction Administrator must update the database online and upload the NTP.

Approval of Enrollment: Chancellor's Office Construction Services staff will review and approve all enrollments.

CPDC Invoicing of Premiums: CPDC will invoice all projects for the initial BRIP premium, taxes and fees and the seismic fund (self-insurance program) at the end of the quarter in which the project is enrolled. For projects with a construction cost greater than or equal to $5,000,000 upon enrollment, CPDC will invoice the final premium amount due after the project is complete and the coverage has been closed. Projects with a construction cost of less than $5,000,000 will not be invoiced a second time when the coverage has been closed.

Updates: The Construction Administrator is responsible for updating the project during construction to adjust the completion date as necessary and the contract amount and construction cost. Please refer to BRIP Information and Procedures for more information.

Builders' Risk Application: The campus shall enroll the project in BRIP concurrent with the award of the phase 2 contract. The following project classifications will require special approval by the insurance carrier. For these projects, campuses shall submit the Builders' Risk Application to Alliant:

  1. Any project greater than $100,000,000
  2. Wood-framed or hybrid construction projects with awards greater than $10,000,000
  3. Joisted masonry construction projects with awards of $25,000,000 or more
  4. Structural renovation projects
  5. All other construction

Examples of structural alterations include: 

  • work such as moving or removal of load-bearing walls or supports
  • installation of new stairwells or elevator shafts within a building
  • construction of additional stories on top of an existing structure
  • foundation work/underpinning
  • restoration of buildings
  • restorating of structures damaged by fire, windstorm, collapse or other damage of a similar nature

CSU Construction Project Seismic Fund: As 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." 

CPDC established the Seismic Fund to cover the five (5) percent of the contracted amount in the event of earthquake or tidal wave. When a campus enrolls a project into the BRIP online, they will see the amount allotted for the Seismic Fund (each project contributes 0.1% of the Construction Cost to the Seismic Fund). CPDC will collect this contribution with the initial BRIP premium invoice.


References:

CSU Owner-Controlled Insurance Program (OCIP)

Description: CSURMA, CPDC and Alliant established the OCIP, which is required for all major capital outlay projects with a construction cost of $10 million or more. This program includes the following coverages: workers' compensation, employer's liability, commercial general liability, professional liability and contractor's pollution liability.

Enrollment: To enroll in OCIP, the campuses shall: 

  • Contact Alliant prior to bidding, or the RFQ/RFP process, in order to assure that all appropriate documentation is included in the bid packages
  • Invite Alliant to the pre-bid or pre-proposal meeting to explain their participation to the bidders/proposers
  • Enroll their projects in the OCIP program well before the start of construction by submitting a CSU OCIP Project Identification Sheet to Alliant, which may be found on the OCIP website. 

The campus shall then complete final project enrollment in OCIP concurrent with the award of the phase 2 contract

The Construction Manager and all subcontractors are required to bid project net of their insurance costs for the insurance coverages provided under the OCIP. For more information, please reference the Contract General Conditions for Construction Manager at Risk Guaranteed Maximum Price Projects, Article 4.07-b.


Reference:

Form & Template:

  • CSU OCIP Project Identification Sheet