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Chapter 10: Master Construction Agreement (JOC) Project Delivery Method

This Chapter outlines the procedures for design and construction procurement using the Master Construction project delivery method. This delivery method may be used on projects where the construction cost is below $1 Million.

  1. Professional Services
    To begin the procurement process for professional design services, the Campus Construction Administrator receives a project request with funding information and campus approvals to begin a project. When the construction contract cost for a project is expected to be greater than $500,000 the campus will forward a Project Information Form (PIF) to the UM Director of Facilities Planning and Development. The Director determines whether Board actions are necessary. A copy of the PIF is returned to the Campus Construction Administrator. The procurement and administration of professional services, until a construction contract is awarded, will be managed by the Project Manager.
    1. Consultant Selection
      1. Architect and Engineer Database:
        The University of Missouri maintains a listing of all consultants interested in providing services to the University of Missouri. UM Facilities Planning & Development maintains this file and distributes it electronically to the campuses. This database will be used as a starting place to determine the most qualified consultants for a project.
      2. Classification:
        The University of Missouri uses two procedures for the selection of consultants depending on the size of the project. The dollar sizes of the projects mentioned below are guidelines. The Type II procedure may be used for projects with fees less than $200,000 based on the judgment of the Project Manager. Type II selection is usually used for projects utilizing the JOC contracting method.
          (1)Type I: Major Projects: Major Projects include new buildings, major renovations and significant studies. Typically, professional fees on Major projects exceed $200,000.
          (2)Type II: Small Projects: Small Projects include various types of consulting and typically have professional fees less than $200,000.
      3. Evaluation Criteria:
        The University’s procedures for selecting consultants follow the intent of State and Federal guidelines. For each project, the firms will be evaluated based on the following
          (1)The firm’s qualifications.
          (2) The number of projects the firm has completed that are similar in scope and size.
          (3)The current number of contracts the firm has with the University of Missouri.
          (4) The firm’s past performance.
          (5) The firm’s present work load.
          (6) The firm’s experience with the project. (7) The firm’s minority status and minority participation in the design team.
          (8) The firm’s status as a Missouri Firm.
    2. Selection Procedure
      1. Type I: Major Projects
          (1) The Campus Facilities Administrator defines the project scope and assigns the Project Manager.
          (2) For new buildings or major renovations the Campus Chancellor [or other officer] appoints a project committee. Members of the committee will include appropriate user representatives including faculty, staff and students. The Project Manager will also be appointed to the committee. The Chancellor may appoint a committee chairperson who will be responsible for coordination of user input, concerns, and suggestions. The primary role of the committee is to develop and define the program needs and ensure the design satisfies the program needs.
          (3) The Project Manager prepares a Request for Qualifications (RFQ). The RFQ outlines the project scope and services required.
          (4) The Project Manager will determine the appropriate architect/engineer fee for the project. This maximum fee will be stated in the RFQ.
          (5) The Project Manager uses the Consultant Database and their judgment to develop a list of consultants to receive the RFQ. The Project Manager issues the RFQ to prospective firms.
          (6) After qualifications are received from the consultants, the Project Manager reviews the information and recommends a list of firms to interview to the committee. Only the most qualified consultants are invited to be interviewed.
          (7) The interviews are coordinated by the Project Manager and should include the project committee.
          (8) Based upon the above evaluation criteria, the selection committee ranks the firms and they recommend a finalist. A written evaluation of the firms is placed in the project file. The Project Manager will complete the University of Missouri Consultant Selection Summary Form and place in the project file.
          (9) The Project Manager negotiates the final form of the contract with the selected Architect/Engineer.
          (10) If no Architect/Engineering firm agrees to the terms of the University contract or fee, the selection criteria and designated fee may be modified and the selection process shall start over.
          (11) After campus approvals, the top ranked firm and successfully negotiated agreement are recommended to the Board of Curators for Project Approval if necessary.
      2. Type II: Small Projects:
          (1) The process follows the same steps as the Type I process. However, an RFQ and committee interviews are not required. The Project Manager will consider no less than three (3) qualified firms.
    3. Professional Services Fees
      1. Process: For Type I projects, professional services fees shall be established before the RFQ is issued according to the Fee Guidelines, see below. For Type II projects, the Project Manager will negotiate fees using reasonable and fair judgments. If the University and the consultant cannot agree, the negotiations will be ended. The Project Manager will justify any fee higher than the maximum listed in the guidelines, and document the extenuating circumstances.
      2. Fee Guidelines: UM Facilities Planning and Development will maintain the fee guidelines and calculation methods.
    4. Agreement
      1. Standard Consultant Agreement:
        (1) For basic design and construction services, a University of Missouri Standard Consultant Agreement is used. This agreement is a contract between the Owner (University) and the Consulting firm. This agreement is maintained by UM Facilities Planning & Development.
        (2) The agreement contains two major segments: the body of the agreement and the agreement exhibits. The body of the agreement identifies the responsibilities of both the Owner and Consultant. The exhibits include:
          (a) the name of the Project Manager
          (b) the scope of services
          (c)amount available for construction
          (d) the project schedule
          (e) the fee and billing rate
          (f) other project specific requirements (e.g., Board of Curators presentations or visits, site visits, number of brochures needed, etc.
        (3) The Project Manager prepares the agreement. The agreement is sent to the Consultant along with a transmittal letter that requests the firm’s representative to: (1) sign the Agreement; (2) send a Certificate of Insurance; (3) direct all correspondence to the Project Manager and (4) return the agreement to the Project Manager. Normally, three signed copies of the agreement are required: one each for FPD, the campus contracting official’s file, and the Consultant.
        (4) After the Consultant returns the signed copies of the agreement, the appropriate University official executes the agreement. See BPM 109 for delegations. For required documents for the UM Contracting Officer to sign the agreement, see the Agreement Processing Checklist. Once the agreement is fully executed and returned to the Consultant, the Consultant may proceed with the project.
        (5) The Project Manager prepares the Consultant Agreement M/WBE Participation Summary Form
      2. General Consulting Agreement:
        (1) For services requiring no direct design and construction responsibility by the Consultant (such as the owner’s design-build technical consultant, programming, master planning, and studies), a General Consulting Agreement will be used. The agreement specifies the scope of services, conditions for employment, agreed upon contract payment, the project completion date, and related contractual information. This agreement is maintained by UM Facilities Planning & Development.
        (2) The Project Manager follows the same procedures as for the SCA above.
    5. Payment
      1. General: Consultants may request payments following the criteria established in the agreement. The Consultant is supplied any payment request forms and instructions with the agreement.
      2. Invoice: The Consultant must submit to the Project Manager a request for payment of services performed at any stage of the projects development (e.g., schematic, preliminary design). Invoices must accompany all payment requests submitted by a Consultant detailing the services completed. The payment request shall summarize the total bill to date and the current bill.
      3. Executed Agreement: The Project Manager will review and approve all Consultant payments. No payments should be approved unless an executed agreement is on file.
  2. Design Management
    The project design process can begin once the consultant agreement is executed. The University's Project Manager (PM) is the Owner’s Representative during the design of the project. All instructions and approvals come to the Consultant from the PM. The PM manages the total project budget and requires the Consultant to manage the construction budget. The PM will manage internal University approvals and instruct the Consultant accordingly.
    1. Meetings and Stakeholders
      1. University projects normally involve many academic, student, and service groups as stakeholders in a project. The PM arranges for and coordinates the Consultant’s contact with these groups. Meetings are scheduled by the PM’s office.
      2. Campus Facilities Management organizations provide in-house design & construction related services at each campus. The PM will arrange for and coordinate the Consultant’s contact with these groups.
      3. Meeting minutes are kept by the Consultant and reviewed by the PM before issue. Meeting minutes should be issued to all participants within five working days.
    2. Design Phases
      1. Programming/Predesign: See Chapter 4 for information regarding Programming and Planning Studies. Program verification may be required prior to beginning the Schematic Design phase, especially if a significant period of time has elapsed between the two phases.
      2. Schematic Design (SD): During Schematic Design, the Consultant develops study drawings, documents, and other media that illustrate design concepts for University review. Building code requirements are initially researched and addressed during Schematic Design.
      3. The SD review submittal should include an SD Brochure, including drawings, a project narrative, and a construction cost estimate among other items. Refer to the UM CPDG for a detailed listing of submittal requirements. Once the SD submittal has been reviewed and approved the design can proceed to the Design Development phase.
      4. Design Development (DD): DD phase work begins with the approved SD documents and develops them in further detail. This phase begins to establish mechanical, electrical, plumbing, structural, and architectural details.
      5. The DD review submittal should include dimensioned drawings and outline specifications. The construction cost estimate should also be updated at this time. Refer to the UM CPDG for a detailed listing of submittal requirements. Once the DD submittal has been reviewed and approved the design can proceed to the Construction Documents phase.
      6. Construction Documents (CD): The CD phase incorporates all design decisions made in previous phases into detailed drawings and specifications to be used in obtaining a proposal from the JOC contractor. The drawings and specifications do not have to be as detailed as a project being competitively bid, but they must have enough information for the JOC to give a detailed proposal.
    3. Final Review and Approval
      The Project Manager shall schedule a Final Document Review Meeting to give stakeholders the opportunity to review and approve the Drawings and Specifications.
      1. The Project Manager will require the Consultant to provide 100 percent complete Documents (including drawings and specifications) at least one week before a scheduled review meeting.
      2. The Consultant is responsible for preparing all portions of the contract documents except those specifically supplied by the University.
      3. In addition to reviewing the Drawings and Specifications, the Project Manager shall review all other Contract Documents for coordination with the Drawings and the Specifications. The Consultant will revise the Contract Documents according to the directions received at the final review meeting.
      4. Projects requiring Code Review should be submitted to UM FPD at this time. See Chapter 3 for information regarding Code Submission.
  3. Contract Documents
    1. The Contract Documents contain the legally enforceable requirements which become part of the contract when the Request for Job Order Proposal forms is signed.
      The Contract Documents consist of the following:
      1. Request for Job Order Proposal Form
      2. Contract Conditions (Special Conditions may or may not be included depending on the project)
      3. Project Technical Specifications and Requirements
      4. Drawings
      5. Contractor’s Performance and Payment Bonds
      6. Addenda
      7. Change Orders (issued after execution of the Contract for Construction)
    2. Request for Job Order Proposal
      1. The Request for Job Order Proposal Form has three sections.
        (1) The first section is the Request for Job Order Proposal and is completed by the Facilities Contract Manager.
      2. The second section is the Job Order Proposal is completed by the JOC Contractor. It provides the JOC contact info and is signed by the JOC Contractor’s authorized representative. The Contractor submits the form back to the University with all required attachments, such as the Scope of Work, Price Proposal with UPB Breakdown and Start and Completion Dates and or proposed project duration days.
      3. The third section is the Job Order Authorization. The Owner completes this section with the not to exceed amount, completion date, liquidated damages if applicable and the Owner’s Authorized Signature. The form is then signed by the contractor’s representative and this date becomes the notice to proceed date. The contractor submits the payment and performance bonds at this time.
    3. Project Technical Specifications and Requirements
      The Project Technical Specifications and Requirements, or project manual, are usually prepared by the Consultant and reviewed by the University. They consist of various sections organized according to the CSI Division Format, except for Division 1. The format for the project manual shall be as set forth in the Consultant Procedures and Design Guidelines manual.
    4. Drawing
      The Drawings are usually prepared by the Consultant and reviewed by the University. They must be specifically enumerated in the Contract Documents.
    5. Addenda
      Addenda are documents that clarify, revise, add, or delete portions of the issued Documents. Addenda requirements are maintained by UM Facilities Planning & Development.
    6. Other Exhibits
      1. The Contractor must provide a List of Subcontractors
      2. Roofing System Manufacturer’s Certification (if applicable)
      3. Post-bid adjustments (if applicable)
      4. Certificates of Insurance: The University’s insurance requirements are found in the General Conditions. The Contractor must provide the required certificates of insurance.
    7. Performance and Payment Bonds
      1. The University’s performance bond and payment bond requirements and forms are maintained by UM Facilities Planning & Development, and an example can be found in the Consultant’s Procedures and Design Guidelines.
      2. The Performance Bond and Payment Bond provide a source of funds which can be used to reimburse the University for completing the work or correcting deficiencies in the event the Contractor does not complete the work in accordance with the Contract. The bond also provides a source of compensation for unpaid subcontractors, suppliers, or workers who have furnished goods or services to the project. The amount of both the Performance Bond and the Payment Bond must be at least 100 percent of the Contract Price.
    8. Change Orders
      Change Orders are modifications to the Contract made after the Contract is executed.
  4. Pricing and Award
    The contract documents are given to the JOC Contractor to price along with the Request for Job Order Proposal form. No advertising is required by the University.
    1. Addenda
      1. Addenda are written text and/or drawings issued to clarify, revise, add to, or delete information in the original bidding documents or in previous Addenda. Addenda are issued before the opening for bids.
      2. Addenda are Contract Documents. The Project Manager shall approve all addenda items before issuing.
    2. Pre-Proposal Meeting
      The Project Manager, assisted by the Consultant may hold a Pre -proposal Meeting and walk through if requested by the JOC Contractor. All questions requiring interpretations by the Consultant shall be answered by Addendum
    3. Receipt of the Proposal
      1. The JOC Contractor submits the Request for Job Order Proposal form with the second section completed along with his scope of work, price proposal with UPB Breakdown, and the start and completion dates or calendar day duration period
      2. University Evaluation and Documentation
        (1) The Project Manager and Consultant evaluate the proposal received.
        (2) The Project Manager will compare the proposal with the project budget as contained in the Project Cost Summary. After the proposal is approved, a final Project Cost Summary is prepared for approval by the department and signature approval by the Campus Facilities Administrator.
        (3) Any Job Order Authorizations over $500,000 require submittal of Construction Backup Document and it will be submitted to UM Facilities Planning and Development for review prior to award. The Request for Job Order Proposal is signed and approved by UMFP&D prior to award of Job Order Authorization.
        (4) JOC Project Information Form, may be started for quarterly reporting. The information required for the quarterly report to the BOC is: Project Name, Project Number, JOC Contract Amount, Estimated Time Savings, Total Time Savings, Design $$ Savings, Internal $ Savings, and a list of the subcontractors.
    4. Job Order Authorization
      1. All of the following conditions must be met before awarding any Job Order Authorization:
        (1) The scope of work matches the project scope.
        (2) Funds are available for the total project cost.
        (3) Approval from external agencies funding the project has been obtained in writing.
        (4) The Contractor has provided proper insurance and bonds.
        (5) All necessary Board of Curator approvals have been obtained, if any.
      2. The Campus Contracting Officer completes and signs the third section, Job Order Authorization, of the Request for Job Order Proposal Form. If the proposal is over $500,000, the form along with the Construction Backup Document is forwarded to the UM Contracting Officer for signature.
      3. After the Job Order Authorization is signed it is forwarded to the JOC Contractor for signature and a request to submit the required Bonds, Insurance certificates, subcontractor list, and roofing certification requirements (if applicable).
  5. Construction
    1. General
      1. Owner’s Representative: The Owner’s Representative, or Construction Project Manager, assumes management of the project after the award of contract.
      2. Pre-construction Meeting: The Owner’s Representative shall arrange a Pre-construction Meeting before each project begins. The meeting provides a forum for the discussion of such items as the routing of communication, the construction schedule, construction documents, roof warranty requirements (if applicable), Contractor submittals, use of the premises, special project requirements, and potential change orders.
        The Owner’s Representative introduces project participants, reviews the General and Special Conditions, conducts the meeting in the format of the Preconstruction Meeting Notes, and verbally reviews the examples contained in the Preconstruction Orientation Booklet
      3. Notice to Proceed: No work is permitted on site until the Notice to Proceed is received by the Contractor, signed, and returned to Owner.
      4. Reports and Communication: The Owner’s Representative coordinates reports and communication among the University, consultant, contractor, and client throughout the construction phase. With few exceptions, all communications and reports regarding the project flow through the Owner’s Representative. The Owner’s Representative shall maintain a record of project actions including phone calls, letters, and memos.
    2. Construction Observation
      1. The Consultant is responsible to make periodic site visits to review the work. The Consultant shall visit the site as required by the Construction Project Manager to assure the construction conformance to the drawings and specifications.
      2. Additional Testing and Inspection. If there are specialty items requiring inspection or testing, the University should hire a firm with the expertise required to perform such testing, such as concrete testing, weld testing, etc.
    3. Safety
      1. Contractor’s Responsibilities: The Contractor is solely responsible for the safety of its employees on the job site. As required by the General Conditions, the Contractor must comply with the provisions of the Associated General Contractor’s (AGC) Manual of Accident Prevention in Construction and with the requirements of the Williams-Steiger Occupational Safety and Health Act of 1970 (See Occupational Safety and Health, Volume III, Construction Standards and Interpretations).
      2. Owner’s Representative Responsibilities: Although the Owner’s Representative does not direct the Contractor regarding safety inside the perimeter of the job site, a potential safety hazard should be pointed out. If a life-threatening situation is observed, the Owner’s Representative may shut down the job and require remedial action by the Contractor. The Owner’s Representative may direct the Contractor in removing any potential hazard to students, faculty or staff, to members of the general public or to property.
      3. Contractor’s Job Site Accident Report: If a Contractor’s employee is injured on the job site and requires medical attention, the Contractor is required to submit an Injury Report to the Division of Workmen’s Compensation. The Owner’s Representative requests a copy of the report from the Contractor. It is given to the Campus Facilities Administrator for review and is ultimately placed in the Project File.
    4. M/WBE Participation
      1. The Owner’s Representative will monitor the status of the M/WBE subcontractors or suppliers on the project and notify the UM Director Facilities Planning and Development should the Contractor drop or change an M/WBE subcontractor or supplier. The Contractor must maintain the M/WBE percent goal indicated in the awarded contract. If the Contractor must remove any M/WBE subcontractor or supplier, the contractor must notify the Owner’s Representative. The Contractor must make a good faith effort to replace the participation with another M/WBE, and satisfactorily explain why the removal was necessary. The UM Director Facilities Planning and Development will review all contractor requests to remove or change of any M/WBE from the project. The UM Director Facilities Planning and Development will recommend appropriate action to the Contracting Officer including acceptance, or declaring the Contractor ineligible for future University contracts for no more than 6 months, or finding the contractor in material breach of the contract.
    5. Change Orders
      1. Policy
        (1) A Change Order is a written agreement executed between the University and the Contractor, after execution of the Contract authorizing a change in the work (any additions, deletions or modifications); contract amount, or contract completion date. Change Orders can be issued at any time during the contract period. The Owner's Representative must provide documentation to support all Change Orders.
        (2) Limitations on Change Orders
          (a) Campus Approval:
          (i) When aggregate project Change Orders do not exceed $100,000 on an original contract under $500,000 and are within the original project scope.
          (ii) When aggregate project Change Orders do not exceed 10 percent of the original contract amount on an original contract over $500,000 or if they are individually less than $250,000; and within the original project scope.
      2. System Approval:
        (1) When aggregate project Change Orders exceed $100,000 on an original contract under $500,000.
      3. When aggregate project Change Orders exceed 10 percent of the original contract amount on an original contract over $500,000.
      4. When a Change Order is individually greater than $250,000.
      5. When a Change Order is outside the original project's scope or significantly expands project scope.
      6. When a Change Order requires significant design modifications.

        The UM Director of Facilities Planning and Development will also determine if Board of Curator's approval is required. Once the Change Orders exceed 10% of the original contract amount, the Director of Facilities Planning & Development will determine which future Change Orders will require UM approval.
      7. Field Orders or Letters of Authorization to Proceed may be issued by the CPM for work changes within the scope of work. These orders/authorizations shall be promptly followed up with a formal Change Order.
      8. Optional Change Orders: An optional Change Order is not required, or necessary, for the completion of the original contract. Any change for work not covered in, or unrelated to, the original project is optional. Optional Change Orders will not be used unless the University gains no advantage from competitively bidding the work.
      9. Design Requirements: Design is required when the change alters a diagramed, sketched or drawn detail or arrangement, or when a drawing, sketch or other specific technical input is necessary from the Consultant. Design is typically not required when the change affects specified items, unforeseen conditions, or items of a minor nature which can be noted on an as-built drawing. Additional design fees may be paid for change orders requiring additional design work
    6. Change Order Procedures
      1. Purpose
        The Change Order’s usual purpose is to facilitate the completion of work as intended by the original plans and specifications. Deviations from the original project intent must be approved by the Contracting Officer who signed the original contract.
      2. Types
        Change Orders may be of four types:
        (1) Required (with design)
        (2)Required (without design)
        (3) Optional (with design)
        (4) Optional (without design)
      3. Amount
        The total amount for all project Change Orders should not exeed ten percent (10%) of the orginal contract.
      4. Methods of Costing
        There are four methods of costing:
        (1) “Lump sum”, for which support data are submitted, evaluated, negotiated and approved prior to writing the Change Order;
        (2) Time and material, for which work is authorized with the contractor supplying detailed, actual time and material cost information to be signed each day by the CPM and submitted with the payment request after completion of the work;
        (3) Time and material with fixed maximum, which is the same as 2 above, except that a cost limit is negotiated prior to the start of the work; and
        (4) Unit cost, for which an authorization to proceed is given based on the agreed upon unit cost negotiated in the original contract.

        Exhibit IX-7 is an example of the Cost Estimate for Change Order form. It can be used as a worksheet for estimating Change Orders. It can be attached to the Change Order Request (see below) after completion.

        The Consultant is to estimate any Change Order Requests requiring design. Independent estimates are required on all Change Order Requests expected to exceed $50,000. These estimates may be performed by the Consultant or the Construction Project Manager.
      5. Consultant Support Data
        The CPM requests the following support data from the Consultant for all Change Orders requiring design:
        (1) All design documents required by the contractor for the implementation of the Change Order Request;
        (2) A detailed cost estimate (not just approval of the Contractor’s estimate).
      6. Contractor Support Data
        The CPM requests the following support data for all Lump Sum Change Orders from the Contractor
        (1) Labor, a breakdown by item and hours required for each craft with rate (employer’s cost, including fringe benefits);
        (2) Materials, a breakdown by item, including quantities and unit costs;
        (3) Overhead and profit, markups consistent with the General Conditions; and
        (4) Time extension, if applicable. See General Conditions, for a more comprehensive breakdown of Contractor support data requirements
      7. Initiation of Change Order Request
        The Change Order Request Form is originated by the CPM. The CPM may be asked to initiate a Change Order Request by the consultant, client, campus staff or the contractor. A Change Order Request for more than $50,000 must be accompanied by an independent detailed cost estimate prepared by the CM or the Consultant
      8. Completion of Change Order Request Form
        Line-by-line instructions follow for completing the Change Order Request Form. The items in the instructions are numbered in correspondence with the line numbers on Exhibit IX -10, and in the order in which they should be completed.
        (1) Contractor: Enter Contractor’s company name.<
        (2) Project Name and Campus: Enter Project Name and Campus.
        (3) Architect/Engineer: Enter Consultant’s company name.
        (4) University Authorization: Write in the name of the Construction Administrator after receiving verbal approval to proceed.
        (5) Description of Change: Enter a detailed description of the change requested and include drawings, if appropriate.
        (6) Reason for Change: Write a brief, but specific, explanation of the reason(s) for the change (scope change, design error, site condition change, etc.)
        (7) Change Order Request Number: Enter number which is automatically assigned by computerized construction management system and can be found on data entry screen.
        (8) Date: Enter date of initiation of the Change Order Request Form.
        (9) Requested By: Enter name of person who requested the Change Order.
        (10) Project Number: Enter Project Number.
        (11) Estimated Cost of Change Order: Enter estimated cost if Change Order is Estimated at over $50,000.
        (12) Type of Change: Indicate Change Order Type and obtain Project Manager’s initials for those Change Orders classified as requiring design.
        (13) Method of Costing: Complete method of costing.
        (14) Source of Funds: Enter source of funds.
        (15) Time Extension: Enter number of days that original contract will be extended. (Only those changes involving activities on the critical path of the project should result in a time extension.) Enter “NA” for those Change Orders that do not impact the project schedule.
        (16) Actual Cost of Change: Enter actual cost of the change, as documented by contractor’s quote.
        (17) Construction Project Manager: Sign here signifying receipt, review, approval and attachment of all required submittals (contractor’s quote, consultant’s estimate, source of funding letter, if required, and any other appropriate documentation).
        (18) Consultant: Initial for Consultant and refer to attached Consultant’s letter detailing cost estimate and conveying approval if design change needed.
        (19) Architect/Engineer Fee: Enter Fee (if applicable)
      9. (20) Other Charges/Fees: Enter other charges/fees (outside consultant fees, tests, surveys, etc.)
        (21) Construction Project Manager Fee: Construction Administrator enters Construction Project Manager fee.
        (22) Administration Fee: Construction Administrator enter administration fee.
        (23) Total Cost of Change Order:
        (24) Construction Administrator: Obtain signature indicating review of Change Order Request and supporting documentation.
        (25) Campus Facilities Administrator: Obtain signature indicating review of Change Order Request and supporting documentation
      10. Processing of Change Order Request/Issuance of Formal Change Order.
        Upon receipt of the completed Change Order Request Form, the Campus Facilities Administrator initiates and signs a formal Change Order and sends it to the Contractor. The Contractor signs it, returns a copy and keeps the original, which serves as authorization to proceed in writing by the CPM.

        Field Orders or Letters of Authorization to Proceed may be issued by the CPM for work changes within the scope of work. These orders/authorizations shall be promptly followed up with a formal Change Order.

    7. Schedule and Payroll Records
      1. Project Schedule: The Contractor is required to submit a schedule of planned progress on construction work. As the work proceeds, the Owner’s Representative is responsible for tracking project progress. When monthly Contractor payments are processed, a computerized monthly Project Schedule should be generated which compares scheduled progress and actual progress. The Owner’s Representative should use this schedule to encourage the Contractor to conform to the Project Schedule.
      2. Payroll Records
        (1) The Contractor is responsible for paying prevailing wage rates and benefits and keeping supporting payroll records. The Contractor shall submit certified payroll records with each monthly application for payment (see General Conditions).
        (2) Examples of situations requiring payroll inspection include:
          (a) Resolving questions on payment of proper wage rates.
          (b) Checking support data for time and material change orders.
          (c) Verifying Contractor’s certification that all wage rates and benefits have been paid.
        (3) The Owner’s Representative should contact the Prevailing Wage Coordinator with any questions regarding prevailing wage. Wage rate disputes shall be forwarded to the UM Director of Facilities Planning and Development for resolution.
    8. Payments
      1. Schedule of Values: The Schedule of Values submitted by the Contractor serves as the basis for the Contractor payment process. The Owner’s Representative reviews and approves the Schedule of Values (prepared in accordance with Instructions for Completing the Breakdown of Costs) and works directly with the Contractor in resolving any discrepancies. The approved Schedule of Values is entered into Projex by the contractor.
      2. Contractor Payment Process: After the Schedule of Values data has been approved, the Contractor may request payments.
        (1) The Contractor should be instructed to submit an application for payment into Projex on a monthly basis (see General Conditions).
        (2) The Contractor will be paid in a timely manner after approval (see General Conditions).
    9. Retainage

      Each month, the Contractor is paid for 95 percent of the earned value of all completed work (including the associated cost of labor, materials, overhead and profit), less previous monthly payments. If the Contractor falls behind schedule or satisfactory progress isn’t being maintained, the Owner’s Representative may increase the retention and pay 90 percent of the earned value.

    10. Breach of Contract

      The General Conditions outline breach of contract conditions. The Owner’s Representative will issue all correspondence to the Contractor regarding any breach of contract.
      1. The first correspondence to the Contractor beginning a contract problem should be sent to the Contractor identifying the problem. The correspondence shall indicate a specific time period for the Contractor to respond. If the Contractor fails to respond, a second letter should be written with copies sent to the Contractor’s bonding company and the UM Director of Facilities Planning and Development.
      2. If the Contractor fails to respond or provide corrective actions, the project may need to be turned over to the bonding company. Correspondence to the bonding company should be copied to the Contractor and to the UM Director of Facilities Planning and Development.
    11. Damage for Delay
      1. Purpose: The University may assess the Contractor Damages for Delay. The General Conditions Article 8.2, inform the Contractor of liability for actual damages due to the delay, and these are included in the Construction Agreement. The Contractor agrees to a reduction in the Contract Price as provided in the Contract Documents. Damages are costs the University measures because the project is not finished within the agreed time. Examples include:
        (1) Loss in revenue from revenue generating facilities such as bookstores, parking structures, or residence halls.
        (2) Increased interest costs on construction financing.
        (3) Loss of research grants.
        (4) Additional administrative costs.
      2. Actual Damages: Actual Damages are specified in the UM General Conditions if no Liquidated Damages are specified. Actual Damages are calculated once the delay is over and all costs have been realized.
      3. Liquidated Damages: Liquidated Damages must be identified on the bid form under schedule requirements. The delay costs are predicted by the University and expressed as a dollar per day charge.
      4. Withhold Payment: The University will retain the right to withhold payments where there is reasonable doubt the contract can be completed within the time specified.
    12. Materials Stored at Site
      To provide incentive for the Contractor to purchase long lead items critical to the project completion, items considered to be major items of considerable magnitude, if suitably stored in a Bonded Warehouse (not owned or operated by the Contractor or material supplier) or on the site, will be allowed in the application for payment on the basis of ninety percent (95%) of original invoices.
    13. Administrative Review
      Process: All unresolved claims by the Contractor and disputes between the Contractor and the University must follow the process set forth in General Conditions. The process in the above articles consists of:
      1. Claim or dispute submittal by the Contractor to the Owner’s Representative.
      2. The Owner’s Representative may request review of claim or dispute by the Architect. The claim or dispute may be resolved at this step.
      3. If not resolved, recommendation by Architect to Owner’s Representative.
      4. Decision by Owner’s Representative.
      5. Agreement or disagreement by Contractor.
      6. If disagreement, Administrative Review initiated by Campus Facilities Administrator.
      7. Agreement or disagreement by Contractor.
      8. If disagreement, further Administrative Review by the Contracting Officer via the UM Director of Facilities Planning and Development. This is the end of Administrative Review.
      9. Agreement or disagreement by Contractor.
      10. If disagreement, Contractor may litigate.
    14. Project Closeout
      1. General: Project Completion includes all work completed, including clean-up, punch list items, and work added by contract change order. The University may lose the benefit of the contract provisions with respect to items of work which were deficiently performed or not completed by the Contractor if the Final Certification is sent prematurely. Preconstruction Meeting Booklet, contains Closeout Procedures.
      2. Partial Acceptance: The University may request Partial Acceptance of an individual piece of equipment, system, or area prior to Final Completion. The punch list for that equipment, system, or area must be performed prior to partial occupancy. The Owner’s Representative will send a Letter of Partial Acceptance to the Contractor detailing the area accepted for use by the University.
      3. Substantial Completion: The University may take possession of the facility before Final Completion. Substantial Completion will include all submittals and work required under the contract, except minor items that will not interfere with the use of the facility.
      4. Final Certification: When the Consultant is satisfied that all items have been completed, the Consultant makes a Final Certification in writing to the Owner’s Representative that the job has been completed according to the plans and specifications as modified by change orders. The date of Final Completion is recorded in the Letter of Certification. The Consultant’s Certification is required prior to processing Contractor’s final payment request.
      5. Final Payment: Final payment is made to the Contractor only after the Contractor fulfills all the above project close-out requirements.