13-25-728 Article 14 Definitions.pdf

Article 14: Definitions

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ARTICLE 14: DEFINITIONS

Allowance means funds reserved within the Maximum Allowable Construction Cost (MACC) exclusively for the use of a specified component of the work, which, at the time the MACC is negotiated, cannot be defined sufficiently in scope to determine a precise budget amount. Allowances cannot be used by the GC/CM for any use other than specified and use must be authorized in writing by the DES Project Manager.

Alternative public works contracting procedure means the design-build, general contractor/ construction manager, and job order contracting procedures authorized in RCW 39.10.300, 39.10.340, and 39.10.420, respectively.

Business Day means any day on which the Owner/DES is open for regularly conducted business.

Budget Contingencies means contingencies established by a public body outside of the design-build or general contractor/construction manager contract for payment of project costs that are not the responsibility of the design-builder or general contractor/construction manager under the respective contract.

Buyout means the cost of subcontractor bids and all Team Change Memos (TCM) for a particular bid package.

Buyout Savings (potential) means the difference between the negotiated MACC for construction and the buyout, less the risk contingency as identified within the MACC.

Change Order (CO) means changes incorporated into the contract sum and/or contract time as mutually agreed to by an approved Change Order Proposal (COP) or Field Authorization (FA) to the GC/CM’s Total Contract Cost. The authorizing signature allows the GC/CM to invoice for the referenced change upon completion of the changed work.

Change Order Proposal (COP) means a document used to propose a change in scope and/or schedule between the GC/CM and the Owner that adjusts the Total Contract Cost or contract time. The GCCM may not proceed with the work of the change until authorized by the Agency, Project Manager, and the Architect. Authorized COP conditions are limited to:

• change in scope by the Owner

• changes required by local and state building code officials during construction

• unforeseen site conditions

• some types of omissions in the plans and specifications, but not necessarily all types

• design errors not related to constructability and/or coordination

Once the project team agrees to the cost and time, the COP is converted to a Change Order (CO).

Commissioning means the process of achieving, verifying, and documenting the performance of building mechanical and electrical systems through a complete and thorough investigation, to verify proper installation and operation of all components and systems in order to meet the design intent and Owner’s functional and operational needs. The process advances systems from static condition to full dynamic working order, according to the specified requirements. Commissioning requires the participation of the GC/CM, all https://apps.leg.wa.gov/RCW/default.aspx?cite=39.10.300 https://apps.leg.wa.gov/RCW/default.aspx?cite=39.10.300 https://apps.leg.wa.gov/RCW/default.aspx?cite=39.04.340 https://apps.leg.wa.gov/RCW/default.aspx?cite=39.04.420 subcontractors associated with the scope of work to be commissioned, Commissioning Agent, Owner and A/E in a team effort to certify that all equipment, components and systems have been completely and properly installed and put into service.

Commissioning Agent (CxA) means an independent agent under contract to the owner who facilitates the commissioning process on behalf of the owner. The GC/CM is responsible to assist in coordinating the work of the CxA with the various trade contractors.

Constructability Review means the systematic analysis of the project design and/or its elements by an experienced team of construction experts for the purpose of optimizing the ease with which the design can be constructed. It includes, but is not limited to, the analysis of drawings and specifications for clarity, consistency, coordination between disciplines, and between drawings and specifications, and completeness; schedule feasibility; work-site accessibility; conflicts among disciplines; suitability of work divisions;

choice of construction methods, materials and equipment; and procurement procedures as further described. Constructability review begins during schematic design and continues through the end of construction documents.

Cost of the Work (COW) means the Cost of the Work paid to subcontractors or to the GC/CM on competitively awarded self-performing work including Change Orders.

Disadvantaged Business Enterprise means any business entity certified with the office of minority and women's business enterprises under chapter 39.19 RCW. Sometimes referenced as Diverse Business Inclusion.

Engineering and Architectural Services (E&AS) means one of the programs within the

Department of Enterprise Services that provides statewide project management and contracting services for public work projects on state facilities.

Facility Professional Services (FPS) means one of the Divisions within the Department of

Enterprise Services that provides project management and contracting services for all public work projects statewide. E&AS and PPD are FPS programs.

Field Authorization (FA) means a document used to authorize a change in the work allowing the work to proceed immediately to prevent delay in the project. A FA will be converted to a CO or TCM upon approval of cost documentation.

Finalists means firms that have been shortlisted and invited to advance to the interview and

RFFP stages in the GC/CM selection process.

Department of Enterprise Services (DES) means the State of Washington contracting agency for construction of public works for agencies in the State of Washington.

General Contractor/Construction Manager (GC/CM) means a firm with which a public body has selected and negotiated a maximum allowable construction cost to provide services during the design phase and to act a as construction manager and general contractor during the construction phase.

Heavy Civil Construction Project means a civil engineering project, the predominant features of which are infrastructure improvements.

Maximum Allowable Construction Cost (MACC) means the maximum allowable cost of the work to construct the project including a percentage for risk contingency, negotiated https://apps.leg.wa.gov/RCW/default.aspx?cite=39.19 support services, and approved change orders which is fair, reasonable, and within available funds.

Estimated MACC - Prior to design work beginning, the State establishes a projected maximum cost of the work, including a percentage for risk contingency, to accomplish the project scope as set by the State. The estimated MACC is used for the solicitation of the

GC/CM.

Negotiated MACC means the final MACC negotiated and agreed upon between the

Owner and GC/CM after the design is approximately 90% complete and is the basis for the Total Contract Cost (TCC) for the GC/CM. The negotiated MACC includes the full direct costs of the work including a percentage for risk contingency.

Milestone means a principal event specified in the Contract Documents relating to an intermediate completion date or time.

Negotiated Support Services means items a general contractor would normally manage or perform on a construction project including, but not limited to,

• surveying

• hoisting

• safety enforcement

• provision for toilet facilities

• temporary heat

• cleanup

• trash removal

Items provided by the GC/CM as reimbursable cost within the MACC on a direct cost basis without markup; these items are not a biddable part of the work.

Owner means the agency, institution of higher education, board or commission with funding authority.

Percent Fee means the percentage amount to be earned by the GC/CM as overhead and profit.

Planning and Project Delivery (PPD) means one of the programs within the Department of

Enterprise Services that provides planning, project management, and contracting services for public work projects on DES-owned facilities.

Pre-construction Services means the services the GC/CM will provide throughout the design period to include, but not limited to, the following:

• Project management services

• Attend and participate in design meetings

• Design cost estimating

• Continuous value engineering

• Alternative Construction Options for Cost Savings

• Ongoing Constructability review and analysis;

• Interdisciplinary Planning for Sequencing of the work

• Construction logistics

• Construction scheduling

• Bid package development and coordination

Pre-construction Services Fee means the Lump Sum fee amount assigned to the GCCM or negotiated by the PM and the GC/CM to provide the Pre-construction Services for the Project.

Project Manager (PM) means the individual representing the Department of Enterprise

Services (DES) as the A/E’s and GC/CM’s primary point of contact for communications with the Owner.

Project Team means the assigned project representatives for the Owner, the A/E, and the

GC/CM.

Proposers: means the firms submitting a Statement of Qualifications in response to this RFQ.

Any provision in the RFQ or RFP that references Proposers also applies to Finalists.

Public body means any general or special purpose government in the state of Washington, including but not limited to state agencies, institutions of higher education, counties, cities, towns, ports, school districts, and special purpose districts.

Public works project means any work for a public body within the definition of “Public Work” in

RCW 39.04.010.

Risk Contingency means a contingency for use as defined in the contract and established as part of the maximum allowable construction cost for unexpected cost of work items that have not otherwise been included or addressed in the maximum allowable construction cost. A maximum amount of 5% is included in the estimated MACC and the negotiated MACC but not the Design MACC. It is intended to cover cost of changes within the MACC. Owner approval is required prior to expenditure of Risk Contingency. Risk Contingency remaining at the end of the project is considered part of the buyout savings and returns to the Owner by change order.

Specified General Conditions means temporary work, staff, and/or fees performed by or paid by the GC/CM to accomplish the project scope of work as detailed in the Request for Proposal and further defined in MACC negotiations.

Team Change Memo (TCM) means a document used to obtain Owner approval for changes within the MACC. Authorized TCM conditions include, but are not limited to:

• coordination issues

• constructability issues

• scope of work gap not covered in subcontract bid packages

• design errors and omissions when related to constructability and/or coordination issues

Funds for TCM’s are derived from the Risk Contingency, Potential Buyout Savings or other project allowances included in the negotiated MACC.

Total Contract Cost (TCC) means the fixed amount for the detailed specified general conditions work, the negotiated maximum allowable construction cost, and the percent fee on the negotiated maximum allowable construction cost. It is the fixed cost to perform all work required to complete the project.

Total project cost means the cost of the project less financing and land acquisition costs.

https://apps.leg.wa.gov/RCW/default.aspx?cite=39.04.010

Value Engineering means the systematic, multi-disciplinary analysis of a design(s), and/or its elements, by an experienced team of experts for the purpose of maximizing value to the Owner by finding viable alternative solutions that reduce cost, while maintaining or improving quality.

Washington State Sales Tax (WSST) means the State and local sales tax for the county in which the work is being performed. The bid amount does not include WSST. All other taxes imposed by law shall be included in the bid amount. The Owner will include WSST in the progress payments. The GC/CM shall pay the Department of Revenue and shall furnish proof of payment to the Owner upon request.

Washington State Business and Occupation Tax (B&O) State tax imposed by the Department of Revenue for doing business within the state of

Washington. The GC/CM shall include B&O tax within the TCC.