Pursuant to Arkansas Code Annotated §19-4-1415 (Appendix 30) and Board Policy 730.2 (Appendix 2), the Board of Trustees of the University of Arkansas has the authority to approve and administer contracts (contractor, construction manager, architect or engineer) for major capital projects. A major capital project is one which exceeds $5,000,000, excluding the cost of land, to be paid from public funds or at least 80% of the estimated cost of the proposed project, excluding the cost of land to be paid by private funds. This type of alternative delivery method shall be referred to “guaranteed maximum price,” or “GMP.” Institutions may utilize “guaranteed maximum price” status for projects, which include but are not limited to the following criteria: Project timeline requires “fast tracking;” traditional design-bid-build process is less fiscally advantageous than using the guaranteed maximum price process, or GMP is more practical for project needs. The steps of the GMP process are listed below (Some of these steps may be combined, especially in regard to the Board Meeting and approvals):
- Guaranteed Maximum Price Project Proposal
- Prior to utilization of the guaranteed maximum price process, the institution must submit a project proposal for a major capital project to the UA System Office as set forth in
- . The
- is to include the project concept description, an estimate of project costs and identification of potential funding sources, and the authority to select the appropriate project delivery method, which in this case would be “guaranteed maximum price.” In addition to the requirements, the proposal may request authority to begin the process to select a general contractor and/or construction manager for the project. The President may either authorize the selection process to begin or defer the action to the next meeting of the Board of Trustees, regular or special, or the Buildings and Grounds Committee, regular or special. Once the President authorizes the search, copies of the authorization letter(s) will be sent to the Chancellor of the requesting campus.
- Campus Selection Committee
- Once the UA System President authorizes the institution to being the search for a general contractor and/or a construction manager, the Chancellor of the campus will form a committee or committees to recommend selection of the design professionals and the general contractor and/or construction manager. This committee must have at least three (3) members.
- The selection committee(s) will identify, through means deemed appropriate, licensed contractors that they believe demonstrate qualifications to assure the design and completion of the project in an expeditious manner while adhering to high standards of design and construction quality.
- At a minimum, the appropriate campus official must advertise a request for proposals (RFP) in a public newspaper of statewide distribution for three (3) consecutive days and allow a minimum of ten (10) working days for general contractors, and construction managers to send letters or resumes in response to the advertisement.
- Following the date established in the notice for interested contractors and/or construction managers to send letters, resumes, and other information with respect to their qualifications and interest in the project, the selection committee will review submissions and select a maximum of five (5) applicants for interviews.
- After the initial interviews, the selection committee will select not more than three (3) applicants for general contractor and/or construction management services for final interviews. Final interviews will be held at the time and date designated by the selection committee.
- In recommending selection of a general contractor, or construction manager, the selection committee will establish criteria, which will include, but is not limited to:
- The experience of the professional(s) in similar projects;
- The record of professional(s) in timely completion of projects with high quality workmanship;
- Other similar matters to determine that the professional(s) will complete the project within the time, budget and the specifications set.
- After the selection committee has its list of finalists and recommendation for selection of a general contractor and/or construction manager, they will present them to the Chancellor or Vice President of Agriculture, who will then present the list to the President.
- Submission of Selection Committee Recommendations by President to the Board of Trustees
- After review of the selection committee’s list of finalists and recommendation for selection of a general contractor and/or construction manager, the President will submit the recommendations to the Buildings and Grounds Committee of the Board of Trustees; the submission shall be the professional(s) that are determined to be in the best interest of the University for design and construction of the project.
- Board Approval
- The Buildings and Grounds Committee of the Board of Trustees shall review the recommendation of the Campus Selection Committee submitted by the President and, unless the Board of Trustees has delegated such decision to the Buildings and Grounds Committee, will submit its recommendation to the Board of professional(s) which is determined to be in the best interest of the University for design and construction of the project.
- The Board of Trustees, or the Buildings and Grounds Committee if authority has been delegated to it, will make the final decision and authorize contracts to be negotiated and awarded to the contractor and/or construction manager selected.
- The Vice President for Finance and Administration or his or her designee shall be authorized to negotiate the terms of the contracts for professional services. There shall be separate contracts for design and construction services.
- Method of Finance
Before the Board of Trustees acting for and on the behalf of the institution enters into any contracts with the general contractor and/or construction manager for the project, pursuant to Arkansas Code Annotated 19-4-1407 (Appendix 5), a Method of Finance (Appendix 6) must be submitted to the System Office for review, signature, and forwarding per the process explained in section II: Project Funding of these capital construction policies and procedures. No contract shall be executed, nor must any affirmative action, including construction, be taken on the project until an MOF has been signed by DFA.
- A.C.A §19-4-1415 Project Transmittal Forms
- Once the General Contractor and/or Construction Manager have been selected, the Method of Finance has been review by the Arkansas Legislative Council (ALC), and the contracts have been negotiated, an initial §19-14-15 Project Transmittal Form must be submitted for ALC review Initial A.C.A §19-4-1415 Project Transmittal Form (Appendix 31).
- Once all contract change orders and certificate(s) of substantial completion have been executed, and the project is closed out, a Final Summary of All Contract Amendments (Appendix 32) must be submitted to the UA System office for review. Once the summary of all contract amendments is reviewed, the UA System office will then submit ADHE, who will then submit to the Arkansas Legislative Council as an informational report to fulfill the requirements of Arkansas Annotated Code §19-4-1415.
- Design Professional and General Contractor and/or Construction Manager Requirements
All project Architects and Engineers must be properly licensed in accordance with the Arkansas State Board of Architects and the Arkansas State Board of Engineers. The General Contractor and/or Construction Manager must be properly licensed by the Arkansas Contractors Licensing Board. All subcontractors must be properly licensed by the Arkansas Contractors Licensing Board.
*To ensure the most accurate and up-to-date information, please check for Arkansas Code changes by searching the code section on this free Arkansas Code Search: http://www.lexisnexis.com/hottopics/arcode/Default.asp