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Awarding the

Construction Contracts
A Guide for Project Administration
Contents
Introduction to Contract Award............................................4
Attending the Bid Opening....................................................6
Reviewing Bids and Recommending an Award..................7
Who Reviews the Bids?...........................................................7
Evaluating the Bids.................................................................7
Identifying the Lowest Bidder..............................................8
Assessing Bidder Responsiveness.......................................8
Assessing Bidder Responsibleness......................................9
Notifying a Rejected Low Bidder........................................10
Arriving at an Award Recommendation.............................12
Completing the Construction Award Recommendation Form 12
Gaining Concurrence from Purchasing..............................15
Notifying the Successful Bidder.........................................16
About the Notice of Intent to Award......................................16
Scheduling a Project Orientation Meeting.........................18
Requesting Contract Submittals........................................18
Additional Steps for State-Funded Projects...........................23
Collecting and Checking Contracts and Submittals........24
Receiving Contracts and Submittals.....................................24
Checklist for Contracts and Submittals.................................24
Forwarding Contracts and Submittals...................................26
Preparing the Contract Approval Package.......................27
About the A-910 Contract Approval Form.............................29
Completing the A-910 Form..................................................29
Assembling Contract Documents for Processing...................34
Preparing the Notice to Proceed........................................35
About the Notice to Proceed.................................................35
Requesting Additional Submittals.........................................37
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Preparing the Notice of Commencement..........................38


About the Notice of Commencement....................................38

Figures
1

Notice to Rejected Bidder

Construction Award Recommendation Form

Notice of Intent to Award

Sample Agenda for Project Orientation Meeting

Bid Extension Letter

A-910 Form

Notice to Proceed

Notice of Commencement

Charts

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Process Flow for Contract Award, Steps 13

Process Flow for Contract Award, Steps 47

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Changes to Awarding the Construction Contracts


Revision 2, June 2002
Changes made as part of this revision appear with a

Page

in the margin.

Description/Reason

13

Text change: It is no longer necessary to enter the


fund number on the Construction Award
Recommendation Form. This step was deleted from
the instructions.

17

Figure change: The Notice of Intent to Award was


updated to show optional information about the
project orientation meeting.

18

Text change: Information was added about the Project


Administrators option of scheduling a project
orientation meeting.

19

Figure change: A new figure, Sample Agenda for


Project Orientation Meeting, was added.

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Introduction to Contract
Award
To award construction contracts, Project Administration
works closely with the Senior Financial Analyst and
University Purchasing. During the Contract Award phase,
Project Administration will:
1. Attend the bid opening conducted by University
Purchasing. At this meeting, bids are opened, read
aloud, and recorded.
2. Analyze the bids and make an award
recommendation. Working together, Construction
Management personnel and the Senior Financial Analyst
analyze the bids for price, completeness, and
compliance with the Ohio Revised Code (ORC). They then
develop an award recommendation for Purchasing. If
Purchasing agrees with the award recommendation, a
Purchasing representative signs the form.
3. Notify the successful bidder(s). Once Purchasing
and Construction Management agree on the award
recommendation, the Project Administrator sends the
Notice of Intent to Award to each successful bidder
(Construction Contractor). Within 10 days of the notice
date, the Contractor must sign and return four Contracts
for Construction; four escrow agreements or one copy of
an escrow waiver (depending on whether the Contractor
chooses to have a portion of its pay escrowed); and all
other required contract submittals.
If the project uses State funds, the Senior Financial
Analyst prepares the Capital Budget Request (CBR) for
release of State funds at this time, and the CBR is
submitted to the State for approval.
4. Collect and check contracts and submittals. The
Project Administrator may either review the submittals
as the Contractor returns them by mail, or call for a
meeting with the Contractor to review the documents.
In either case, the Project Administrator must examine
all submittals and work with the Contractor to ensure
that deficiencies are corrected. The Project
Administrator then provides the contracts and submittals
to the Senior Financial Analyst, who checks them to
ensure compliance with ORC and University
requirements.
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5. Prepare the contract package, including the A-910


form, contracts, and appropriate submittals, for
internal approval.
6. Send each Contractor a Notice to Proceed. This
notice advises the Contractor of the date on which it can
begin project work.
7. Prepare the Notice of Commencement for
University records.
Chart 1 on the following page shows the process flow for
the first three steps of awarding construction contracts.

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1. Attend bid
opening

2. Analyze bids to
develop
Construction
Management's
Award
Recommendation

Recommend
lowest bidder?

Yes

No

Yes

Submit Award
Recommendation
to Purchasing

Financial Analyst
justifies
recommendation
to Purchasing

Purchasing sends
rejection letter to
lowest bidder

Decision
reversed?

Yes

Bidder protest?

No

Identify
next-lowest bidder
and repeat
analysis until a
responsive and
responsible bidder
is found

University hears
bidder's appeal
(if protest filed
within 5 days)

No
Do bidder's
bid documents
need
corrections?

No

Yes

Yes

No

bids and readvertise the project.

Purchasing
reviews Award
Recommendation

Do
Purchasing
and Construction
Management
agree?

Purchasing works
with bidder to
ensure corrections

* The University can also reject all

3. Send
Notice of
Intent to Award
to each selected
contractor, listing
needed Contract
submittals

Purchasing signs
Award
Recommendation

Optional: Meet
with Contractor(s)
to review
submittals

Chart 1: Process Flow for Contract Award, Steps 13

Purchasing and
Construction
Management
discuss and
reach consensus

Attending the Bid Opening


Outcome

All bids have been opened, read aloud, and recorded.


University Purchasing has provided a record of all bidders
and bid amounts (the Bid Tabulation) to the Project
Administrator.
After the deadline for submitting construction bids has
passed, University Purchasing conducts the bid opening.
The Project Administrator and Associate Architect, if
applicable, attend.
Sealed envelopes containing each companys completed
bid documents are opened. Bids are read aloud and
recorded by a representative of Purchasing. After the
meeting, Purchasing prepares the Bid Tabulation
spreadsheet, an official record of all bidder names and bid
amounts. Purchasing forwards a copy of the Bid Tabulation
to the Project Administrator along with copies of each
companys bid documents.
The bid opening is a public meeting, and the received bids
constitute a public record. However, although the bid
opening will reveal the lowest bidder(s), the decision to
award a contract is not made until Construction
Management and Purchasing have reviewed all bids and
agreed on an award recommendation.

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Reviewing Bids and


Recommending an Award
Outcome

The Project Administrator and others have reviewed the


bids and developed a recommendation for the contract
award(s). The Senior Financial Analyst has completed the
Construction Award Recommendation Form and submitted it
to Purchasing for review and concurrence.

Who Reviews the Bids?


The Project Administrator takes part in reviewing bids and
developing appropriate recommendations for the contract
award(s). This effort also requires the involvement of other
individuals, including:

The Senior Financial Analyst;

The Associate Architect, if applicable; and

The Owner/Client, if appropriate based on the project.

After determining which bidder to recommend, the Project


Administrator notifies the Senior Financial Analyst of the
recommendation. The Senior Financial Analyst reviews the
bid documents and, if he or she agrees with the Project
Administrators recommendation, prepares and signs the
Award Recommendation form. The Award Recommendation
form is then forwarded to Purchasing for review and
concurrence.
Input from the Owner/Client can be desirable, especially if
the bids include alternate items that the Owner/Client must
decide whether to accept or reject.
The above individuals (the bid review team) work
together to arrive at an appropriate award
recommendation.

Evaluating the Bids


Depending on the project, the bid review team may be
considering all or a combination of the following bid types:

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Aggregate bids (a single bid is offered for all construction


contracts),

Combined bids (a bid is offered for two or more of the


construction contracts), or

Separate bids for each construction trade.

The goal of bid evaluation is to identify the lowest


responsive and responsible bidder and recommend that
bidder for the contract award. While in most cases the
lowest bidder will get the contract, Ohio law provides that
the lowest bid can be rejected if the award would not be in
the best interest of the University. Bids that are
nonresponsive or nonresponsible are not considered to
be in the Universitys best interest.
To evaluate bids, the team should begin by identifying the
lowest bidder. Next, the low bidders qualifications
(responsiveness and responsibleness) should be
evaluated as described below.

Identifying the Lowest Bidder


To determine which bid is lowest, the bid review team
should first decide whether to accept any or all alternate
items included with the bids. The Owner/Client should be
involved in decisions regarding alternates.
For each bidder, the total of all accepted alternates is added
to the base bid to determine the total bid amount. If no
alternates are accepted, the base alone is the total bid
amount.
Once the lowest bidder is identified, the teams next task is
to determine whether the lowest bidder is both responsive
and responsible, as described below.

Assessing Bidder Responsiveness


Responsive bidders are those whose bids address and
comply with all substantive requirements of the contract
documents.
To be considered responsive, a bidder must include all of
the following required bid documents, completed and
properly signed, in its Bid Envelope:
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Note:

The Bid Form,

The Bid Guaranty and Contract Bond Form, and

The Power of Attorney of the agent signing for the


Contractors Surety (the person or entity providing the
Contractors bid guaranty or bond).

Bidders must submit the Responsibleness of Bidder Form


either with the Bid Envelope or, if separately, within 72
hours of the UC Senior Financial Analysts request.
Otherwise, the bid will be rejected. See the chapter
Preparing for Construction Bidding for more information
about the Responsibleness of Bidder Form.
A bidder could be considered nonresponsive for any of the
following reasons:

Any of the bid documents are missing the required


signatures.

The bid guaranty amount shown on the Bid Guaranty


and Contract Bond Form is insufficient (i.e., the amount
shown is not the full amount of the firms base bid plus
alternates). However, leaving the bid guaranty amount
blank is permissible.

The contract bond is executed by a Surety not licensed


in Ohio, and the form is not countersigned by an Ohio
Resident Agent as required by the ORC.

The bidder proposes to use a material or piece of


equipment other than the standards specified in the
contract documents, and the proposed substitution has
not been approved as an equal (as described in the
Front-End Specifications).

All blanks are not completed on the Bid Form.

The Bid Form does not make clear whether bids for
alternates are additions to or deductions from the base
bid.

The bidder neglects to acknowledge receipt of addenda


on its Bid Form.

Assessing Bidder Responsibleness


Responsible bidders are those who have demonstrated
satisfactory performance on previous contracts; who
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comply with all applicable laws, including Equal


Employment Opportunity (EEO) and wage laws; who
possess appropriate licenses and certifications; and who
provide satisfactory answers to the questions on the
Responsibleness of Bidders form.
A bidder could be considered nonresponsible for any of
the following reasons:

The bidder promises it will acquire a needed certification


in the event it is awarded the contract, but the bidder
does not actually possess the certification at the time it
submits the bid.

The bidder has demonstrated unsatisfactory


performance on a previous University project.

The office of the Ohio Attorney General has provided


information to the University about the bidders past
non-compliance with EEO, wage, or other applicable
laws.

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The bidders experience, financial condition, legal status,


management capabilities, facilities, and/or ability to
perform the contract, as outlined in the Responsibleness
of Bidder form, are not satisfactory to the University.

The bidders principal place of business is located


outside the tri-state area (southeastern Indiana, northern
Kentucky, and Ohio), and the state where the business is
located grants preference to contractors headquartered
in that state when awarding contracts. (This is a
provision of Ohio law [ORC 153.012].)

The bidder has an unsatisfactory safety record.

Notifying a Rejected Low Bidder


If the bid review team determines that the lowest bidder is
nonresponsive and/or nonresponsible and should not be
awarded a contract, Ohio law requires the University to
notify the bidder by certified mail. Purchasing prepares and
sends this rejection letter.
Purchasing requires justification any time the lowest bidder
is not being recommended. The Senior Financial Analyst
provides this justification to Purchasing via e-mail as soon
as the bid review team reaches its decision. This e-mail
message must present all the reasons the lowest bidder
was judged nonresponsive and/or nonresponsible.
An example notice sent by Purchasing to a rejected low
bidder appears on the following page as Figure 1.

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Figure 1: Notice to Rejected Bidder


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Bidders Right to Appeal


A lowest bidder whose bid is not accepted has the right to
appeal the Universitys decision. The rejected bidder must
submit its protest in writing within 5 days of the Universitys
rejection notice. The University will conduct a hearing, and
the bidder will have an opportunity to present its objections.
The contract award (for an appealed contract only) must be
delayed until the University has heard and considered any
appeals from rejected bidders whose protests were filed
within the time allowed.

Arriving at an Award
Recommendation
If the bid review team determines that the lowest bidder is
both responsive and responsible, the team should
recommend awarding the contract to that bidder. At that
point, the team can complete the Construction Award
Recommendation Form (see instructions below).
If the lowest bid is rejected because the bidder is
nonresponsive and/or nonresponsible, the Senior Financial
Analyst notifies Purchasing immediately so the rejection
letter can be sent. The team can consider the next-lowest
bid and evaluate that bidder as described above; however,
any appeals from rejected bidders must be heard before
another bidder is considered.
The University also has the right to reject all bids and readvertise the project. The bid review team might choose
this option if, for example, the first responsive and
responsible bid is priced too high.

Note:

In the event two equally qualified bidders submit the same


low-bid amount, the University has the right to choose a
bidder by tossing a coin. Both bidders can be present for
this determination.

Completing the Construction


Award Recommendation Form
After determining which bidder to recommend, Senior
Financial Analyst prepares the Construction Award
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Recommendation Form, showing the recommended


bidder(s).
The Senior Financial Analyst signs this document to
formalize the recommendation. It is then forwarded to
Purchasing for review and concurrence.

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The Construction Award Recommendation Form appears on


the following page as Figure 2. To complete it, follow these
steps:
1. Enter the complete project name.
2. Enter the University project number.
3. Enter the quotation number.

Note:

The quotation number is issued by Purchasing; it can be


found on the Price Inquiry Package. A single quotation
number is assigned to the bid package as a whole.
4. Enter the date bids were opened.
5. Enter the Project Administrators name.
6. Do one of the following:

If the bid review team is recommending acceptance of


separate bids for each construction contract, enter
the trade for each construction contract in the TRADE
column; or
If the bid review team is recommending acceptance of
an aggregate bid for all contracts, enter Aggregate Bid
in the TRADE column.

7. Do one of the following:

For a recommendation of separate bids, enter each


bidders name next to its trade in the LOWEST
RESPONSIVE/ RESPONSIBLE BIDDER column; or
For a recommendation of an aggregate bid, enter the
bidders name next to the words Aggregate Bid in the
LOWEST RESPONSIVE/RESPONSIBLE BIDDER column.

8. If any alternates are being accepted, enter a brief


description of each alternate next to the corresponding
bidder in the ALTERNATES SELECTED column. (If no
alternates are being accepted, enter N/A.)
9. If any of the bids being recommended contain minor
deficiencies in paperwork, enter the vendors name and
a brief description of the problem in the blanks provided.
(If no irregularities were identified, enter N/A.)

Note:

Purchasing works with the bidder to ensure that all errors in


bid documents are corrected and the documents returned
to the University in a timely fashion. Purchasing and Legal

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also have the final determination on whether an error is


significant enough to cause rejection of the bid.
The Senior Financial Analyst must sign the recommendation
before it is forwarded to Purchasing for concurrence.

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UNIVERSITY OF CINCINNATI
DIVISION OF THE UNIVERSITY ARCHITECT
CONSTRUCTION AWARD RECOMMENDATION FORM

Project Name:

Project No:

Quotation No:

Bid Opening:
Project Responsibility:

Construction Management is recommending the award of the following contract(s) for the above referenced
project to the lowest responsive bidder(s):

TRADE

ALTERNATES
SELECTED

LOWEST RESPONSIVE/RESPONSIBLE BIDDER

Bid irregularities/items which need correction prior to issuing a Notice of Intent to Award Letter:

VENDOR

DESCRIPTION OF IRREGULARITY/ISSUE

Recommended By:

Phone: 556-3157
Kimberly Miller

Senior Financial Analyst signature

Date:

Concurrence By:

Purchasing signature

Date:

s:\shareall\forms\cm\Construction_Award Recommendation Form.xls

Revised 9/26/01

Figure 2: Construction Award Recommendation Form


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Gaining Concurrence from


Purchasing
Purchasing conducts its own review of bids after the bid
opening. Before signing its approval of Construction
Managements recommendation, Purchasing must be
satisfied that all the recommended contracts are in the
Universitys best interest.
In rare cases, Construction Management and Purchasing do
not agree on an award recommendation. If this happens,
the parties must meet and discuss the difference of opinion
until a consensus is reached.

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Notifying the
Successful Bidder
Outcome The Project Administrator has sent the Notice of Intent to
Award to each successful bidder. Following the
instructions in this notice, bidders have prepared and
returned all required contract submittals to the University
within the allotted time frame.
If the project uses state funding, the Senior Financial
Analyst has prepared a Capital Budget Request (CBR) for
the release of construction funds.
Once Purchasing and Construction Management agree on
an award recommendation (and any errors in the bidders
paperwork have been corrected), the bidder can be notified.
The Project Administrator sends each successful bidder a
Notice of Intent to Award.

About the Notice of Intent to


Award
The Notice of Intent to Award does not authorize the bidder
(Construction Contractor) to begin work. Work cannot begin
until a contract has been properly approved and a Purchase
Order issued by Purchasing.
Instead, the Notice of Intent to Award advises the
Contractor that the University plans to award it a
construction contract. The award is contingent on
University approval and the Contractors timely return of
the following documents:

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Four copies of the proposed Contract for Construction


(also referred to as the Form of Contract), which the
Contractor must sign and return to the University within
10 days of the date shown on the Notice of Intent to
Award. (The Project Administrator or a support staff
member should include these contracts with the notice.)

Four copies of an escrow agreement or one copy of a


waiver of escrow (depending on whether the Contractor
chooses to have a portion of its pay deposited in an
escrow account).

Additional documents the Contractor must forward to the


University (contract submittals) within 10 days of the
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date on the notice. These submittals are listed and


described in Requesting Contract Submittals below.
An example Notice of Intent to Award appears on the
following page as Figure 3.

Note:

The University has the right to rescind a Notice of Intent to


Award.

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Figure 3: Notice of Intent to Award


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Scheduling a Project Orientation


Meeting
For complex or aggressively scheduled projects, the Project
Administrator may call for a project orientation meeting
between prime Contractors and University Construction
Management staff. This meeting can take place after
issuance of the Notice of Intent to Award but before
Contractors are authorized to begin work.
A project orientation meeting provides the University an
opportunity to introduce and discuss administrative issues,
site rules, and other matters.
If a project orientation meeting is scheduled, the Notice of
Intent to Award should specify the meetings date, time,
and location (Figure 3) and include a sample agenda (Figure
4).

Requesting Contract Submittals


The Notice of Intent to Award should identify all submittals
the Contractor is required to provide. At this point in the
process, required submittals include:

A valid Certificate of Compliance, issued by the


Ohio Department of Insurance, for the Surety. This
certificate demonstrates that the Surety is licensed in
Ohio. (If the Surety is not licensed in Ohio, the
Certificate of Compliance must be provided for the Ohio
Resident Agent who is countersigning the bid
guaranty/contract bond.)

A valid Ohio Workers Compensation certificate for


the Construction Contractor.

A valid Equal Employment Opportunity (EEO)


Certificate of Compliance, issued to the Construction
Contractor by the Ohio Equal Opportunity Center.

A valid Declaration of Insurance for the Construction


Contractor, showing the University as an additional
insured. This submittal may be provided on the ACORD
form (a standard form insurance companies use for this
purpose).

Four copies of a signed Escrow Agreement or one


copy of an Escrow Waiver. The Contractor signs the

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Escrow Agreement to have a portion of its compensation


deposited in an escrow account. If the Contractor
declines the escrow account option, the Contractor signs
the Waiver of Escrow.
In addition, if the Contractor is a foreign corporation (i.e.,
one not incorporated under the laws of Ohio), the following
submittal is required:

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A Certificate of Good Standing from the Ohio


Secretary of State. This document provides evidence
that the Contractor is authorized to do business in Ohio.

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PROJECT ORIENTATION MEETING


AGENDA
1.

Introductions & Project Status


-UC team members and roles
-Prime Contractors project team

2.

Contract related Submittals


- Status by prime

3.

Communication Procedures

4.

Site Safety Program


- Site Safety Representative, OSHA 30 hour classes available
- Orientation and hardhat stickers

5.

Project Management Software


- Constructware overview
- Primary uses
- Users and training

6.

Project Schedule
- Schedule data that is required and how it will be implemented
- Update procedure

7.

Pay Request Process

8.

Project Submittals (Not a call for)


- Procedure
- Submittal priorities

9.

Project Security and Rules


- Vehicle ingress/egress
- Fencing and gates; guardhouses
- Deliveries: notification, limitations
- Parking

10.

Permits/Inspections (Not a call for)


- Permits required

11.

Construction Notifications
- Utility shutdowns
- Excavation (digging permit)

12.

Miscellaneous
- Drawings and specifications (incl. electronic CAD files)

13.

Questions

NOTE: Contractors are not authorized to make any commitments or do


any work on this project until a Notice to Proceed is received.
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Figure 4: Sample Agenda for Project Orientation Meeting


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Note:

The Senior Financial Analyst will review submittals and


notify the Project Administrator of any missing submittals.
See Collecting and Checking Contract Submittals.

Note:

Later in the process, the Contractor will be required to


provide additional submittals. See Preparing the Notice to
Proceed.

Note:

For the Contractors convenience, the Project Administrator


should include four copies of the Escrow Agreement and
one copy of the Waiver of Escrow, both modified to show
the Contractors name and/or project information where
indicated, when sending the Notice of Intent to Award.
Templates for the Escrow Agreement and the Waiver of
Escrow can be found at S:\Shareall\Forms\CM escrow.doc
and S:\Shareall\Forms\CM escrwaiv.doc, respectively. The
Contractor must provide all other submittals.

Meeting to Review Submittals


Contractors must sign and return their submittals within 10
days of the date shown on the Notice of Intent to Award.
The Project Administrator may choose to schedule a
meeting with a Construction Contractor or Contractors
before the submittal deadline. Such a meeting, while not
required, can help keep the process moving by giving the
parties an opportunity to identify and correct errors before
submittals are due. If possible, the Senior Financial Analyst
should attend this meeting to help identify any problems
with the paperwork.
The section Collecting and Checking Contract Submittals
presents information on what to look for when checking
contract submittals.

Extending the Contract Award Period


Bids are valid for 60 days from the bid opening date. If the
selected Contractor does not return the signed contracts
and the required contract submittals promptly, this 60-day
period (contract award period) may expire before the
contracting process can be completed. If expiration

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appears likely, the University must seek the Contractors


consent to extend the original contract award period.

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To notify the Contractor of a pending expiration, the Project


Administrator issues a bid extension letter. The Contractor
must sign and return this letter to indicate agreement with
the extension. If the Contractor does not agree to extend
the award period, the University can take steps to award
the contract to the next-lowest responsive and responsible
bidder.
About the Bid Extension Letter
The bid extension letter should do all of the following:

Note:

Identify the number of days by which the award period


will be extended (the Project Administrator should
determine an appropriate number of days)

Reference ORC 153.12, which requires that contracting


parties mutually consent to any extension of an award
period

State that the Contractors acceptance of the extension


will not change the bid proposal amount

State that the person signing the letter must have the
authority to bind the Contractor to the agreement

The bid extension letter should also request the immediate


return of any outstanding submittals.
An example bid extension letter appears on the following
page as
Figure 5.

Note:

If a contract award period is extended, the Project


Administrator will need to include the original bid extension
letter and copies in the contract approval package. See
Assembling Contract Documents for Processing in this
chapter.
Checking Expiration Dates
Any time a contract award period is extended, the Project
Administrator must check the expiration dates of the
following items to ensure all are valid through the ending
date of the new award period:

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The Contractors Certificate of Compliance from the Ohio


Department of Insurance

The Contractors EEO Certificate


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The Contractors Declaration of Insurance

The Prevailing Wage Rate Determination obtained from


the Universitys Office of Contract Compliance before the
bid opening

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s:\shareall\forms\cm\extension.doc
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Figure 5: Bid Extension Letter


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Additional Steps for State-Funded


Projects
For projects that use State funding, the Senior Financial
Analyst can begin preparing the Capital Budget Request
(CBR) as soon as the lowest responsive and responsible
bidder is identified (and the amount of the accepted bid is
known). The CBR officially requests that the State release
construction funds for the project.
State-funded contracts require additional paperwork and
approvals, both within the University and at the State level.
The Project Administrator, while not directly responsible for
these additional activities, must be aware of their sequence
and timing, presented below:
1. The Senior Financial Analyst prepares the CBR to request
release of construction funds.
2. The Director of Capital Projects Reporting reviews the
prepared CBR and submits it to the State for processing
and approval.
3. The Ohio Board of Regents reviews the CBR and forwards
it to the State Office of Budget and Management (OBM).
OBM includes review of the CBR on the agenda for the
next meeting of the Controlling Board.
4. The Controlling Board meets to review and approve the
CBR. A University Planning representative attends the
meeting.
5. The Planning representative notifies the Senior Financial
Analyst (by e-mail) that the CBR has been approved.
6. Capital Finance prepares State encumbrances for the
contracts and forwards evidence of the encumbrances to
the Senior Financial Analyst.
7. The Senior Financial Analyst forwards the contracts and
submittals, along with a copy of the encumbrance, to the
Universitys Office of General Counsel. (By this time, the
Contract for Construction has been routed for approval
within the University as described in the section
Preparing the Contract Approval Package.)
8. The Assistant Attorney General or designee approves the
contracts and forwards them to Purchasing so that
Purchase Orders can be issued.
The process for obtaining release of State funds is depicted
on Chart 2 in this document.
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Awarding the Construction Contracts

Awarding the Construction Contracts

Revised June 2002


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Collecting and Checking


Contracts and Submittals
Outcome The Project Administrator and the Senior Financial Analyst
have confirmed that the Contractors signed contracts and
submittals comply with University and ORC requirements.
The Contractor has corrected any errors and returned the
documents, which are then ready for internal processing
and approval.

Receiving Contracts and Submittals


As contracts and submittals come in from the Contractor
(either by mail or during an optional review meeting), the
Project Administrator should check them for completeness
and accuracy before forwarding them to the Senior
Financial Analyst.
Although the Senior Financial Analyst will ultimately review
all submittals independently to ensure compliance, the
Project Administrator can assist in the process and help
prevent delays by checking submittals as the Contractor
returns them.

Checklist for Contracts and


Submittals
The table below presents some points to look for on
returned contracts and contract submittals. If any
document does not comply, the Project Administrator
should return it to the Contractor immediately, instructing
the Contractor to correct the problem and resubmit the
document.

Note:

Page 36

In addition to reviewing the Contractors submittals, the


Project Administrator must make sure the prevailing wage
rates and the bid itself are still valid. Prevailing wage rates
include a date through which they are valid. Contractors
bids are valid for 60 days from the bid date.

Revised June 2002

Awarding the Construction Contracts

Checklist for Contracts and Submittals


Document name

Purpose

What to Look For

Signed contract

Once approved by the University,


becomes legal instrument of
agreement between the University
and the Contractor

Contractor has returned four


signed copies

Department of
Insurance Certificate
of Compliance (for
Contractors Surety)

Proves the Surety is licensed to


work in Ohio

Expiration date is current


(certificate has not expired
and will not expire before
award of the contract)

Ohio Workers
Compensation
Certificate

Demonstrates Contractors
participation in Ohio Workers
Compensation program

Certificate number and dates


of coverage are shown

EEO Certificate

Demonstrates Contractors
compliance with Equal
Employment Opportunity laws

Expiration date is current


(certificate has not expired
and will not expire before
award of the contract)

Declaration of
Insurance (ACORD or
IP-2 Form)

Demonstrates Contractor is
covered under an insurance policy

University of Cincinnati is
listed as an additional insured
Expiration date is current
(policy has not expired and
will not expire before award
of the contract)

* Escrow Agreement

Contractor chooses to have a


portion of its payment deposited in
an escrow account.

An authorized representative
of the Contractor has signed
the last page of the document
and provided his/her title
Contractor has returned four
signed copies

* Waiver of Escrow

Contractor chooses not to have


payment escrowed.

An authorized representative
of the Contractor has signed
and dated the waiver and
provided his/her title

Demonstrates that a foreign


corporation is authorized to do
business in Ohio.

Certificate of Good
Standing from Ohio
Secretary of State

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* The Contractor returns either the Escrow Agreement or the Waiver of Escrow, not both.

Submittal required only if the Contractor is a foreign corporation (i.e., not incorporated under the laws of Ohio).

Forwarding Contracts and


Submittals
After checking the signed contracts and submittals (and
working with the Contractor to resolve any errors), the
Project Administrator should forward all the documents to
the Senior Financial Analyst.
The Senior Financial Analyst conducts an additional review
of the contracts and submittals. If all documents are in
order, the Senior Financial Analyst notifies the Project
Administrator, and the Universitys internal contract
approval process can begin.

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Awarding the Construction Contracts

Preparing the Contract


Approval Package
Outcome The construction contract(s) have been routed to the
appropriate parties within the University and signed.
The next step in the process for awarding construction
contracts is to obtain approval of the proposed contract(s)
as required by University policy. To do this, the Project
Administrator prepares the A-910 Contract Approval Form
and assembles the contracts and submittals for approval
routing.

Note:

Ideally, the States process for approving the Capital Budget


Request (if the project uses state funding) occurs as the
construction contract is being approved within the
University. See Chart 2 and the section Additional Steps for
State-Funded Contracts for more information.
Chart 2 on the following page shows the process flow for
the remaining steps of awarding construction contracts.

Awarding the Construction Contracts

Revised June 2002


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Awarding the Construction Contracts

No
Does
project use
state funds?

4. Collect and
check contracts
and submittals

Yes or No

Corrections
needed?

Contractor
corrects and
resubmits
documents

Yes

Forward submittals
to Senior Financial
Analyst for review
and approval

Recheck
submittals

Yes
Senior Financial
Analyst prepares
Capital Request for
release of state
funds

Complete
A-910
Contract Approval
Form

Director of Capital
Projects Reporting
reviews
Capital Request
and submits to
state

Assemble and route


contracts and
submittals
for approval

Controlling Board
approves Capital
Request (UC
Planning rep
attends meeting)

Financial Analyst
forwards contracts,
submittals, and
encumbrance to
University Office of
General Counsel

Planning rep
notifies Senior
Financial Analyst of
Capital Request
approval

Office of General
Counsel approves
contract and
forwards to
Purchasing

Capital Finance
prepares State
Contract
Encumbrance(s)

Purchasing issues
PCs and executed
contracts to
Contractor

5 . Prepare
Contract Approval
Package

Accountant
updates OASIS;
forwards PCs and
contracts to
Project
Administrator

6.

Gray shading and dashed lines denote steps for


state-funded projects only. If the project uses
state funding, this process is occurring as
Project Administration completes steps 4 and 5.

Issue
Notice
to Proceed
to Contractor

7. Prepare
Notice of
Commencement
for internal
signatures; file
until requested

Chart 2: Process Flow for Contract Award, Steps 47


Chart 2: Process Flow for Contract Award, Steps 57

About the A-910 Contract Approval


Form
The first two pages of the A-910 Form provide summary
information about the contract for those who will approve it.
The last page includes blanks for approval signatures.

Completing the A-910 Form


Figure 6 shows the A-910 Form. Follow these steps to
complete it for a construction contract:

Note:

A separate A-910 form is required for each proposed


contract.
1A. In the Date of Initiation field, enter the current date.
1. In the Initiating Department field, enter the Project
Administrators department within the University
Architect Division.
2. Enter the Project Administrators name and University
telephone number.
3. Under Does this Contract call for UC to pay the other party?,
check the box next to yes and enter the account number
found on the requisition (RX) for the construction
contract.

Note:

The Project Administrator prepares a bidder RX for each


of the anticipated prime contract types (i.e., General,
Electrical, HVAC, etc.) before the project is offered for
bidding. Interim copies of each RX are returned to the
Project Administrator after processing by Capital Finance.
University Purchasing will convert the RX to a Purchase
Order after the construction contract is approved. See the
chapter Preparing for Construction Bidding for more
information.
4. Under Is this Contract Sponsored?, check the box next to
yes or no, as appropriate.

Note:

A sponsored contract is one that will be directly funded by


an individual or party other than the University.
5. Under Description of Contract, complete fields AK as
follows:
A. Enter the name of the selected Construction
Contractor.

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Awarding the Construction Contracts

B. Enter the project name, the University project


number, and the type of construction contract (e.g.,
electrical, general, etc.).
C. Leave this item blank.
D. Check New Agreement.

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Revised June 2002

Page 43
Page 43

1A
1
2

2
3
4

5A
5B

5C

5D

5E
5F

5G
5H
5I
5J
5K

s:shareall/forms/cm/A-910.xls

Figure 6: A-910 Form (page 1)


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Page 45
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Figure 6: A-910 Form (page 2)


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Awarding the Construction Contracts

Figure Revised
6: A-910
Form
Awarding the Construction Contracts
June
2002 (page

3)

Page 47
Page 47

E. Enter the following under Major financial terms:

Note:

The base bid amount,

The total amount of any alternates accepted for


this contract, and

The total contract amount (base bid plus all


alternates equals contract total).

The Accountant will use the contract total entered on the


A-910 to update the project budget in OASIS. Be sure to
include the base bid plus any alternates.
F. Enter the number of calendar days allowed for project
completion, as specified in the Contract for
Construction.
G. Leave this item blank.
H. Leave this item blank; the Accountant will complete.
I. Leave this item blank; the Accountant will complete.
J. Leave this item blank; the Accountant will complete.
K. Check yes and enter the RX number or Purchase Order
number.
6. Under Number of originals to be signed, enter 4. Enter the
Project Administrators name, phone number, and mail
location in the blanks provided.
7. Complete items 7AE only if you are submitting a
sponsored contract.
8. Under Approvals, the Project Administrator must sign and
date the first line as Principal Investigator or Individual
Responsible for Agreement.
The next section describes how to assemble the completed
A-910 Form, contracts, and submittals for routing and
approval steps.

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Awarding the Construction Contracts

Assembling Contract Documents


for Processing
To prepare the contract for internal routing and approval,
the Project Administrator assembles the following:

Four original, signed construction contracts (with a copy


of the bid extension letter, if applicable, attached to
each)

Four Escrow Agreements or one copy of an Escrow


Waiver

The completed A-910 Form (with Project Administrators


signature under Approvals)

The Purchase Requisition (RX) for the contract

The original bid extension letter, if applicable

The Project Administrator gives these documents to the


Assistant to the Director of Construction Management. The
Assistant enters information about the contract into a
database that identifies the correct signature routing path.
The package is then assembled into a folder with a cover
sheet attached to the front for routing. It goes first to
Capital Projects Reporting for quality-assurance checking,
and then to the individuals whose signatures are required.

Awarding the Construction Contracts

Revised June 2002

Page 49
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Preparing the Notice to


Proceed
Outcome The Project Administrator has sent the Notice to Proceed
to each Construction Contractor. Contractors, following the
instructions in the notice, have completed and returned
additional required submittals within the time allowed.
Once a construction contract has been approved (and funds
have been released, if the project uses State funding),
Purchasing issues a Purchase Order. Purchasing then sends
the Purchase Order and executed contract to the
Contractor.
Purchasing forwards a copy of the Purchase Order to the
Senior Financial Analyst, who records the Purchase Order
number in OASIS. The Senior Financial Analyst then
forwards copies of the Purchase Order and contract to the
Project Administrator.
Upon receiving the Purchase Order and executed contract
copies, the Project Administrator should prepare the Notice
to Proceed and send it to the Contractor.

About the Notice to Proceed


The Notice to Proceed tells the Contractor the exact date on
which it is authorized to begin work. The notice also
reiterates the contract period in consecutive calendar days
and specifies the date by which work should be completed.
The Notice to Proceed also advises the Contractor of
additional submittals the Contractor must complete and
return within 10 days of the notice date (see Requesting
Additional Submittals).
An example Notice to Proceed appears on the following
page as Figure 7.

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Page 51
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Figure 7: Notice to Proceed


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Requesting Additional Submittals


Submittals requested with the Notice to Proceed include the
following:

Contract Cost Breakdown (on State of Ohio Form ADM5805);

Subcontractors Declaration (State of Ohio Input Form


26, a request for information about any subcontractors
the prime Contractor intends to use);

Manufacturers Declaration (State of Ohio Input Form 27,


a request for information about any suppliers the prime
Contractor intends to use);

A preliminary schedule of shop drawings and submittals;

A statement of the proposed Superintendents


qualifications;

Evidence that the Contractor has sought authorization


for electronic transfer of payments (i.e., completed EFT
application forms from the State and/or University, as
applicable);

A schedule of dates on which the Contractors


employees will be paid (The Contractor is responsible
for keeping its wage rates current with State prevailing
wages. The schedule of pay dates should be provided to
the Universitys Office of Contract Compliance); and

A Construction Schedule as described in paragraph 4.3


of the General Conditions (this submittal is required of
the Lead Contractor only).

The Project Administrator or support staff member can


include Form 26, Form 27, and the Universitys electronic
funds transfer application (if required) with the Notice to
Proceed. Other submittals should be initiated by the
Contractor.

Note:

The Contractor can refer to paragraphs 7.4 and 7.5 in the


Instructions to Bidders document, found in the Front-End
Specifications, for the list of submittals required at this
point.

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Preparing the
Notice of Commencement
Outcome The Project Administrator has prepared the Notice of
Commencement documenting the project start date for
University records. The notice has been signed by the
Director of Construction Management and notarized.
Preparing the Notice of Commencement is the final step in
awarding construction contracts.

About the Notice of


Commencement
The State of Ohio (ORC 1311.252) requires the University to
complete the Notice of Commencement. It certifies the
date on which project work began, as well as the names of
the prime Contractors and their Sureties and Surety Agents.
Once prepared, the Notice of Commencement will be signed
by the Director of Construction Management and notarized.
An example of an executed Notice of Commencement
appears on the following two pages as Figure 8. The
document can be prepared by the Project Administrator or a
support staff member. To complete it, follow these steps:
1A. Enter the name of the Director of Construction
Management.
1.

Enter the project name, the location of the project


work site, and the University project number.

2.

Enter Department of Construction Management and


the department mailing address as shown on Figure 8.

3.

Enter the name, address, and construction trade of


each Prime Contractor.

4.

Enter the name and address of the Surety and the


Surety Agent for each prime Contractor.

5.

Enter the date of the earliest contract on the project,


and the name of the Contractor.

6.

Enter the start date for project work.

7.

Enter the name and University address of the Project


Administrator.

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1A

Figure 8: Notice of Commencement (page 1)


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5
6

Figure 8: Notice of Commencement (page 2)


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Awarding the Construction Contracts

8.

Submit the Notice of Commencement to the Director


of Construction Management. The document will be
signed and notarized for project and department files.

The signed Notice of Commencement is kept on file. Copies


are transmitted to subcontractors and/or material suppliers
only upon request.

Note:

The Notice of Commencement is not to be posted at the job


site.

Awarding the Construction Contracts

Revised June 2002

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