Common use of Optional Service Clause in Contracts

Optional Service. The Design/Build Contractor is responsible for preparing and updating all procurement and construction cost estimates and, in addition, shall provide and employ an independent specialized construction cost estimation firm to prepare additional corresponding procurement and construction cost estimates. The Design/Build Contractor shall be required to reconcile the two independent cost estimates at each design schedule milestones. The Design/Build Contractor shall distribute all cost estimates to the Project Team throughout the duration of the Project. Provide Estimated Construction Cost (ECC) reports at the required stages of completion of the schematic design, design development, and construction document stages of the Project. The Estimated Construction Cost reports for the design development and construction document stages shall be detailed estimates derived from cost quantity surveys based on unit prices for labor, materials, overhead and profit, organized in Construction Specifications Institute Division 1-16 format for each portion of the Work. Provide continuous cost consultation services throughout the duration of the Project, including identification and tracking of decisions that affect the scope or quality of the Project and providing ongoing updates of their cost and budget impact. Advise the Project Team immediately if the Design/Build Contractor has reason to believe that the most current ECC will exceed the Construction Cost Limitation (CCL) or not meet Schedule requirements and recommend reasonable strategies for bringing the Project in line with the CCL and the Schedule. Design/Build Contractor shall promptly identify all variances between estimated costs and actual costs during the Construction Phase, and shall promptly report such variances to the Project Team along with recommendations for action, but in any event no more than two (2) business days after acquiring such information. Should any ECC exceed or fall significantly below the approved CCL, the Owner and Design/Build Contractor shall negotiate changes to the Project requirements or the CCL as required. Coordination of Design and Construction Contract Documents Review all Drawings, Specifications, and other Construction Documents as they are developed by the Project Architect during the schematic design, design development, and construction document design stages of the Project. Consult with Owner and Project Architect on the selection of materials, equipment, component systems, and types of construction used on the Project. Advise Owner on site use, construction feasibility, availability of labor and materials, procurement time requirements, and construction coordination. Advise Owner of any error, inconsistency or omission discovered in the Drawings, Specifications, and other Construction Documents. Advise Owner on reasonable adjustments in the Project scope, quality or other options for keeping the Project cost within the CCL. Review the Construction Documents for compliance with all applicable laws, rules and regulations and with University of Texas System requirements. Construction Planning and Bid Package Strategy Identify equipment or material requiring extended delivery times and advise Owner on expedited procurement of those items. Advise Owner on the preparation of performance specifications and requests for technical proposals for the procurement and installation of systems and components and for the procurement of long lead items. If requested by Owner, and subject to Owner’s prior approval, issue requests for technical proposals to qualified sources and receive proposals and assist in their evaluation. Make recommendations to the Project Team regarding organization of the Construction Documents to facilitate the bidding and awarding of construction subcontracts in a manner that promotes the interests of the Project and the Owner. These recommendations may include, but are not limited to, phased or staged construction or multiple separate contracts. The recommendations shall take into consideration such factors as time of performance, type and scope of work, availability of labor and materials, overlapping trade jurisdictions, provisions for temporary facilities, comparisons of factory and on-site production costs, shipping costs, code restrictions, the Owner’s goals for HUB contractor participation, and other constraints. Review the Construction Documents with the Project Team to eliminate areas of conflict and overlap in the work to be performed by the various Subcontractors or Owner’s separate contractors. Develop a bid/proposal package strategy in coordination with the Project Architect that addresses the entire scope of Work for each phase and stage of the Project. In developing the bid/proposal package strategy, the Design/Build Contractor shall identify all bid/proposal packages on which the Design/Build Contractor intends to submit a self-performance bid/proposal. The bid/proposal package strategy shall be reviewed with the Owner on a regular basis and revised throughout the buyout of the Project so as to best promote the interests of the Project and the Owner. Assist the Owner, Owner’s other consultants, and the Owner’s separate contractors in obtaining all applicable risk management, code, and regulatory agency reviews and approvals for the Project including, without limitation, the Texas Higher Education Coordinating Board, the Texas Department of Licensing and Regulation, the State Fire Marshal, the local fire department, and the Owner’s insurance provider. Refine, implement and monitor required HUB Subcontracting Plans to promote equal employment opportunity in the provision of goods and services to the Owner for the Project. Advise Owner of any tests to be performed, and assist Owner in selecting testing laboratories and consultants, without assuming direct responsibility for the work of such laboratories and consultants. Design/Build Contractor shall review the Construction Documents to ensure that they contain adequate provision for all temporary facilities necessary for performance of the Work, and provisions for all of the job site facilities necessary to manage, inspect, and supervise construction of the Work. Provide an analysis of the types and quantities of labor required for the Project and review the appropriate categories of labor required for critical phases or Stages. Make recommendations that minimize adverse effects of labor shortages. Furniture, Fixtures and Equipment. Consult with and make recommendations to the Owner on the acquisition schedule for fixtures, furniture and equipment, and coordinate with the Owner as may be required to meet the Schedule. Obtaining Bids/Proposals for the Work Design/Build Contractor shall publicly advertise and solicit competitive lump sum bids/proposals from trade contractors or subcontractors for the performance of all major elements of the work other than the minor work that may be included in General Conditions. Criteria for determining the bid/proposal that provides the best value to the Owner shall be established by the Project Team and included in the request for bids/proposals. The Design/Build Contractor shall notify the Owner in advance in writing of the date it will receive the bids/proposals. Schedule and conduct pre-bid conferences with interested bidders/proposers, subcontractors, material suppliers, and equipment suppliers, and record minutes of the conferences. Design/Build Contractor and Owner shall review all trade contractor or Subcontractor bids/proposals in a manner that does not disclose the contents of any bid/proposal to persons outside of the Project Team during the selection process. Based on the selection criteria included in the request for proposals, Design/Build Contractor shall recommend to the Owner the bid/proposal that provides the best value for the Project. Upon Owner’s concurrence in the recommendation, Design/Build Contractor may negotiate the terms of the subcontract with the apparent best value bidder/proposer. All subcontracts must be on a lump sum basis unless other payment terms are approved in writing and in advance by the Associate Director for Project Management, Office of Facilities Planning and Construction. Upon Owner’s concurrence in the final terms of the subcontract, Design/Build Contractor shall enter into a written subcontract for the subcontract work and provide a copy to the Owner. All bids/proposals shall be publicly available after award of the subcontract or within seven (7) days after the date of final selection, whichever is later. If Design/Build Contractor reviews, evaluates, and recommends to Owner a bid/proposal from a trade contractor or subcontractor, but Owner requires another bid/proposal to be accepted, Owner shall compensate Design/Build Contractor by a change in price, time, or Guaranteed Maximum Price for any additional cost and risk that Design/Build Contractor incurs because of Owner’s requirement that the other bid/proposal be accepted. Design/Build may seek to self-perform portions of the Work identified for self-performance in the bid/proposal strategy. The Design/Build Contractor must submit a bid/proposal for the self-performance work in the same manner as all other trade contractors or Subcontractors. The Owner will determine whether the Design/Build Contractor’s bid/proposal provides the best value for Owner, which determination is final. Design/Build Contractor must perform approved self-performance work in accordance with the same terms and conditions as its other Subcontractors. For payment purposes, the Design/Build Contractor shall account for self-performance work in the same manner as it does all other subcontract costs. Design/Build Contractor shall identify every Subcontractor it intends to use on the Project, including Subcontractors used for self-performed work, to the Owner in writing at least ten (10) days before entering into any subcontract. Design/Build Contractor shall not use any Subcontractor to which Owner has a reasonable objection. Design/Build Contractor shall not be required to subcontract with any Subcontractor to which it has reasonable objection. Following Owner acceptance of a Subcontractor, that Subcontractor shall not be changed without Owner’s written consent, which shall not be unreasonably withheld. If a selected trade contractor or subcontractor fails to execute a subcontract after being selected in accordance with this section or defaults in the performance of its work, the Design/Build Contractor may, in consultation with the Owner and without further advertising, fulfill the subcontract requirements itself or select a replacement trade contractor or subcontractor to do so.

Appears in 4 contracts

Samples: Agreement, Agreement, Agreement

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Optional Service. The Design/Build Contractor is responsible for preparing and updating all procurement and construction cost estimates and, in addition, shall provide and employ an independent specialized construction cost estimation firm to prepare additional corresponding procurement and construction cost estimates. The Design/Build Contractor shall be required to reconcile the two independent cost estimates at each design schedule milestones. The Design/Build Contractor shall distribute all cost estimates to the Project Team throughout the duration of the Project. Provide Estimated Construction Cost (ECC) reports at the required stages of completion of the schematic design, design development, and construction document stages of the Project. The Estimated Construction Cost reports for the design development and construction document stages shall be detailed estimates derived from cost quantity surveys based on unit prices for labor, materials, overhead and profit, organized in Construction Specifications Institute Division 1-16 format for each portion of the Work. Provide continuous cost consultation services throughout the duration of the Project, including identification and tracking of decisions that affect the scope or quality of the Project and providing ongoing updates of their cost and budget impact. Advise the Project Team immediately if the Design/Build Contractor has reason to believe that the most current ECC will exceed the Construction Cost Limitation (CCL) or not meet Schedule requirements and recommend reasonable strategies for bringing the Project in line with the CCL and the Schedule. Design/Build Contractor shall promptly identify all variances between estimated costs and actual costs during the Construction Phase, and shall promptly report such variances to the Project Team along with recommendations for action, but in any event no more than two (2) business days after acquiring such information. Should any ECC exceed or fall significantly below the approved CCL, the Owner and Design/Build Contractor shall negotiate changes to the Project requirements or the CCL as required. Coordination of Design and Construction Contract Documents Review all Drawings, Specifications, and other Construction Documents as they are developed by the Project Architect during the schematic design, design development, and construction document design stages of the Project. Consult with Owner and Project Architect on the selection of materials, equipment, component systems, and types of construction used on the Project. Advise Owner on site use, construction feasibility, availability of labor and materials, procurement time requirements, and construction coordination. Advise Owner of any error, inconsistency or omission discovered in the Drawings, Specifications, and other Construction Documents. Advise Owner on reasonable adjustments in the Project scope, quality or other options for keeping the Project cost within the CCL. Review the Construction Documents for compliance with all applicable laws, rules and regulations and with University of Texas System requirements. Construction Planning and Bid Package Strategy Identify equipment or material requiring extended delivery times and advise Owner on expedited procurement of those items. Advise Owner on the preparation of performance specifications and requests for technical proposals for the procurement and installation of systems and components and for the procurement of long lead items. If requested by Owner, and subject to Owner’s prior approval, issue requests for technical proposals to qualified sources and receive proposals and assist in their evaluation. Make recommendations to the Project Team regarding organization of the Construction Documents to facilitate the bidding and awarding of construction subcontracts in a manner that promotes the interests of the Project and the Owner. These recommendations may include, but are not limited to, phased or staged construction or multiple separate contracts. The recommendations shall take into consideration such factors as time of performance, type and scope of work, availability of labor and materials, overlapping trade jurisdictions, provisions for temporary facilities, comparisons of factory and on-site production costs, shipping costs, code restrictions, the Owner’s goals for HUB contractor participation, and other constraints. Review the Construction Documents with the Project Team to eliminate areas of conflict and overlap in the work to be performed by the various Subcontractors or Owner’s separate contractors. Develop a bid/proposal package strategy in coordination with the Project Architect that addresses the entire scope of Work for each phase and stage of the Project. In developing the bid/proposal package strategy, the Design/Build Contractor shall identify all bid/proposal packages on which the Design/Build Contractor intends to submit a self-performance bid/proposal. The bid/proposal package strategy shall be reviewed with the Owner on a regular basis and revised throughout the buyout of the Project so as to best promote the interests of the Project and the Owner. Assist the Owner, Owner’s other consultants, and the Owner’s separate contractors in obtaining all applicable risk management, code, and regulatory agency reviews and approvals for the Project including, without limitation, the Texas Higher Education Coordinating Board, the Texas Department of Licensing and Regulation, the State Fire Marshal, the local fire department, and the Owner’s insurance provider. Refine, implement and monitor required HUB Subcontracting Plans to promote equal employment opportunity in the provision of goods and services to the Owner for the Project. Advise Owner of any tests to be performed, and assist Owner in selecting testing laboratories and consultants, without assuming direct responsibility for the work of such laboratories and consultants. Design/Build Contractor shall review the Construction Documents to ensure that they contain adequate provision for all temporary facilities necessary for performance of the Work, and provisions for all of the job site facilities necessary to manage, inspect, and supervise construction of the Work. Provide an analysis of the types and quantities of labor required for the Project and review the appropriate categories of labor required for critical phases or Stages. Make recommendations that minimize adverse effects of labor shortages. Furniture, Fixtures and Equipment. Consult with and make recommendations to the Owner on the acquisition schedule for fixtures, furniture and equipment, and coordinate with the Owner as may be required to meet the Schedule. Obtaining Bids/Proposals for the Work Design/Build Contractor shall publicly advertise and solicit competitive lump sum bids/proposals from trade contractors or subcontractors for the performance of all major elements of the work other than the minor work that may be included in General Conditions. Criteria for determining the bid/proposal that provides the best value to the Owner shall be established by the Project Team and included in the request for bids/proposals. The Design/Build Contractor shall notify the Owner in advance in writing of the date it will receive the bids/proposals. Schedule and conduct pre-bid conferences with interested bidders/proposers, subcontractors, material suppliers, and equipment suppliers, and record minutes of the conferences. Design/Build Contractor and Owner shall review all trade contractor or Subcontractor bids/proposals in a manner that does not disclose the contents of any bid/proposal to persons outside of the Project Team during the selection process. Based on the selection criteria included in the request for proposals, Design/Build Contractor shall recommend to the Owner the bid/proposal that provides the best value for the Project. Upon Owner’s concurrence in the recommendation, Design/Build Contractor may negotiate the terms of the subcontract with the apparent best value bidder/proposer. All subcontracts must be on a lump sum basis unless other payment terms are approved in writing and in advance by the Associate Director for Project Management, Office of Facilities Planning and ConstructionCapital Projects. Upon Owner’s concurrence in the final terms of the subcontract, Design/Build Contractor shall enter into a written subcontract for the subcontract work and provide a copy to the Owner. All bids/proposals shall be publicly available after award of the subcontract or within seven (7) days after the date of final selection, whichever is later. If Design/Build Contractor reviews, evaluates, and recommends to Owner a bid/proposal from a trade contractor or subcontractor, but Owner requires another bid/proposal to be accepted, Owner shall compensate Design/Build Contractor by a change in price, time, or Guaranteed Maximum Price for any additional cost and risk that Design/Build Contractor incurs because of Owner’s requirement that the other bid/proposal be accepted. Design/Build may seek to self-perform portions of the Work identified for self-performance in the bid/proposal strategy. The Design/Build Contractor must submit a bid/proposal for the self-performance work in the same manner as all other trade contractors or Subcontractors. The Owner will determine whether the Design/Build Contractor’s bid/proposal provides the best value for Owner, which determination is final. Design/Build Contractor must perform approved self-performance work in accordance with the same terms and conditions as its other Subcontractors. For payment purposes, the Design/Build Contractor shall account for self-performance work in the same manner as it does all other subcontract costs. Design/Build Contractor shall identify every Subcontractor it intends to use on the Project, including Subcontractors used for self-performed work, to the Owner in writing at least ten (10) days before entering into any subcontract. Design/Build Contractor shall not use any Subcontractor to which Owner has a reasonable objection. Design/Build Contractor shall not be required to subcontract with any Subcontractor to which it has reasonable objection. Following Owner acceptance of a Subcontractor, that Subcontractor shall not be changed without Owner’s written consent, which shall not be unreasonably withheld. If a selected trade contractor or subcontractor fails to execute a subcontract after being selected in accordance with this section or defaults in the performance of its work, the Design/Build Contractor may, in consultation with the Owner and without further advertising, fulfill the subcontract requirements itself or select a replacement trade contractor or subcontractor to do so.

Appears in 1 contract

Samples: Agreement

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