No capital improvement contract shall be awarded to other than the lowest responsible bidder for projects subject to competitive bid, or to the contractor selected in accordance with Board Policy 730.2 for major capital projects in excess of $5 million. In any contract the following shall be included:
Failure to make any disclosure required by Governor’s Executive order 98-04, or any violation of any rule, regulation, or policy adopted pursuant to that Order, shall be a material breach of terms of this contract. Any regulation, or policy shall be subject to all legal remedies available to the Institution.
Failure to make any disclosure required by Governor Executive Order 98-04, or any violation of any rule, regulation, or policy adopted pursuant to that Order, shall be a material breach of the term of the subcontract. The party who fails to make the required disclosure or who violates the rule, regulation or policy shall be subject to all legal remedies available to the contractor.
(b) The Contractor shall, within ten days of entering into any agreement with a subcontractor, transmit to the Owner a copy of the Contract and Grant Disclosure and Certification Form completed and signed by the subcontractor and a statement containing the dollar amount of the subcontractor.
(c) The terms and conditions regarding the failure to disclose and conditions which constitutes material breach of contract and rights of termination and remedies under the Executive Order 98-04 are hereby incorporated within.
A. Notice to Proceed.
The attached Notice to Proceed form or similar form approved by the Office of the General Counsel shall be used. (Appendix 20)
A Change Order is a written instrument approved by the Owner and design professional stating their agreement upon the following, separately or in any combination thereof:
Change Orders shall be submitted for approval to the Vice President for Finance and Administration after agreement is reached by the owner, design professional, and the contractor as to the change. A Change Order is not effective until approved by the Vice President for Finance and Administration. Emergency change orders may be effective by following the same rules as emergency contracts. The distribution of change orders will be the same as the original contract.
A revised MOF must be submitted where:
Change Order requests by the Contractor shall be submitted in a complete itemized breakdown, acceptable to the Owner and design professional.
Where unit prices are stated in the Contract, the Contractor should submit an itemized breakdown showing each unit price and quantities of any changes in the Contract Amount. The value of all such additions and deductions shall then be computed as set forth in the following paragraphs.
The Contractor shall present an itemized accounting together with appropriate supporting data for the purposes of considering additions or deductions to the Contract Amount. Supporting data shall include but is not limited to the following: (1) Costs of labor, including social security, old age and unemployment
Insurance, fringe benefits required by agreement or custom, and worker’s compensation insurance;
(2) Cost of materials, supplies and equipment, including cost of transportation,
whether incorporated or consumed;
(3) Rental costs of machinery and equipment, exclusive of hand tools, whether
rented from the Contractor or others;
(4) Costs of premiums for all bonds and insurance, permit fees, and sales, use,
and similar taxes related to the Work; and
(5) Additional costs of supervision and field office personnel directly
attributable to the change.
The burden of proof to substantiate costs rests upon the Contractor. Contractor agrees that Owner’s Representative shall have the right, at reasonable times, to inspect and audit the books and records of Contractor to verify the propriety and granting of such cost.
Compute requests for changes whether additions or deductions as follows:
Net Cost of Materials a
State Sales Tax b
Net Placing Cost c
W.C. Insurance Premium and FICA Tax d_______
a+b+c+d
Overhead and Profit, 12% x (a+b+c+d) e
Allowable Bond Premium f________
TOTAL COST a+b+c+d+e+f
above except the Contractor’s share of overhead and profit percentage is seven percent.
compute their work as outlined in the paragraphs above. To the cost of that portion of the work (Change) that is performed by the Subcontractor, the Contractor shall add an Overhead and Profit Change of five percent plus the Allowable Bond Premium.
work as outlined in the paragraphs above, except that the overhead and profit shall be seven percent and the Contractor’s overhead and profit shall be five percent.
All changes in the Work will be paid for and the compensation thus provided shall be
accepted by the Contractor as payment in full for the use of small tools,
superintendent’s services, premium on bond, and all other overhead expenses
incurred in the prosecution of such work.
The Owner shall not be deemed to have agreed to any costs for additional work, to have agreed to additional time for completion, or to have agreed to any other changes in the terms and conditions of the Contract Documents until the Owner, design professional, and Contractor have executed a Change Order. For any increases to the contract amount, scope of work, time for completion or other terms relating to the Change Order, the Contractor shall furnish an amendment to the Bond agreement in which the Surety has agreed to amend the Performance and Payment Bond to reflect such revisions.
Contract Time is the period of time identified in the Contract Documents for Substantial Completion of the Work, including authorized adjustments made as part of Change Orders agreed to by the Owner, Contractor and design professional.
Payment shall be processed within the time allowed and according to Arkansas Code Annotate 19-4-1411 (Appendix 22).
The Contractor may submit periodically, but not more often than once each month, a Request for Payment for work completed. When unit prices are specified in the Contract Documents, the Request for Payment shall be based upon the quantities completed.
Unless otherwise provided in the Contract Documents, payments will be made on account of materials or equipment not incorporated in the Work but delivered and suitably stored at the site, and if approved in advance by the Owner, payments may similarly be made for materials or equipment suitably stored at some other location agreed upon in writing. Payments for materials or equipment stored on or off the site shall be conditioned upon submission by the Contractor of bills of sale or such other procedures satisfactory to the Owner and the design professional to establish the Owner’s title to such materials or equipment or otherwise protect the Owner’s interest including applicable insurance and transportation to the site for those materials and equipment stored off site.
The Contractor shall furnish the design professional or Owner all reasonable facilities and job tickets required for obtaining the necessary information relative to the progress and execution of the Work and the measurement of quantities. Each Request for Payment shall be computed from the work completed on all items listed in the approved schedule of values less 10 percent of the first 50 percent of the adjusted Contract Sum and less previous payments to the Contractor on the Contract.
D. Substantial Completion.
A Certificate of Substantial Completion, establishing the Date of Substantial Completion shall state the responsibilities of the Owner and the Contractor for security, maintenance, heat, utilities, damage to work, and insurance and shall fix the time within which the Contractor shall complete the items listed therein. Warranties required by the Contract Documents shall commence on the Date of Substantial Completion, unless another timeframe is stated in the Certificate of Substantial Completion. The Certificate of Substantial Completion shall not become effective until approved by the Owner. An original AIA Certificate of Substantial Completion document (Appendix 23) or other similar form may be used as the Substantial Completion Certificate.
E. Acceptance and Final Payment.
Upon receipt of written notice the Work is ready for final inspection, the design professional together with the Owner will conduct such inspection and when the design professional determines the work is acceptable to the design professional and Owner, the design professional shall certify his acceptance to the Owner. Final Payment shall be the Contract Sum plus approved Change Order additions less approved Change Order deductions, less previous payments made, and less liquidated damages, if any. The Contractor shall furnish evidence that he has fully paid all debts for labor, materials, and equipment incurred in connection with the Work. The Owner, upon approval by the design professional of all documentation to be provided by the contractor, will accept the Work and release the Contractor, except as to the conditions of the Payment and Performance Bond, any legal rights of the Owner, required guarantees and correction of faulty work after Final Payment, and shall authorize payment of the Contractor’s final Request for Payment. The Contractor must allow sufficient time between the time of completion of the work and approval of the final Request for Payment for the design professional to assemble and check the necessary data.
Acceptance of final payment by the Contractor shall constitute waiver of all claims by the Contractor except those previously made in writing and identified by the Contractor as unsettled at the time of final Request for Payment. Any claims for interest on delinquent payments shall be made pursuant to Arkansas Code Annotated 22-9-205 (Appendix 24).