5-25-728 Article 06 ElementsOfTotalContractCost.pdf

Article 06: Elements of the Total Contract Cost

R51322

ARTICLE 06: ELEMENTS OF THE TOTAL CONTRACT COST

6.1 The Total Contract Cost

The Total Contract Cost (TCC) for construction is composed of the GC/CM fee, bid Specified General Conditions cost, and the negotiated Maximum Allowable Construction Cost (MACC).

Upon reaching agreement on the scope of work and negotiated MACC and before executing the contract for construction, the GC/CM shall provide a performance and payment bond in the full amount of the TCC plus Washington State sales tax.

The GC/CM firm is obligated to complete the project within the negotiated TCC. If the GC/CM firm fails to control costs within the TCC, the amount in excess of the TCC will be paid by the GC/CM at its expense with no additional compensation by the Owner. If construction is completed for less than the MACC, any savings shall accrue to the owner.

6.2 GC/CM Fee

The GC/CM fee is based on the percent of the MACC as established in the GC/CM Final Price Proposal. It is a lump sum element of the TCC. The GC/CM fee includes all expenses of the GC/CM, whether direct or through sub-consultants, for participation in and support of the construction of the project. The fee includes but is not limited to the following.

A. Home or regional, general overhead office expenses of the GC/CM firm during the preconstruction and the construction process, as well as all general home office staff time assigned to this project. Staff wages and benefits including costs by the GC/CM for taxes, including all B&O taxes for the cost of the work, contributions, assessments, and benefits required by law or collective bargaining agreements. For personnel not covered by such agreements, customary benefits such as sick leave, medical and health benefits, holidays, vacations, and pensions, are considered provided within wages and salaries paid.

B. All office support of the GC/CM firm for this project including direct costs, indirect costs, company overhead, and so forth

C. Wages and salaries of the GC/CM firm's supervisory or administrative personnel engaged at factories, workshops, or on the road, in expediting the production or transportation of materials or equipment required for the Work

D. Legal Expenses incurred in the administration of the contract and subcontracts

E. All travel expenses

F. All reproduction, phone, and facsimile, charges, postage, and so forth. The owner will provide four (4) sets of Architectural/Engineering drawings at the end of each design phase, all other Architectural/ Engineering drawings needed by the GC/CM firm, up to actual bid documents, to provide contract services shall be at their cost.

The Owner pays initial bid document reproductions done at time of bid. In an effort to reduce paper usage, the GC/CM will be encouraged to utilize available electronic technology for bidder access.

G. Costs due to the fault or negligence of the GC/CM firm or representatives, subcontractors, anyone directly or indirectly employed by any of them, or for whose acts any of them can be liable, including -- but not limited to -- costs for the correction of damaged, defective, or non-conforming work

H. Work, disposal and replacement of materials and equipment incorrectly ordered or supplied and repairing or replacing damaged property not forming part of the Work.

I. Bonds and insurance as described in Article 3.5 are included in the Fee amount (not including builders risk insurance).

J. All profit (and loss) of the GC/CM firm for this project

The GC/CM Fee Percentage will not be changed unless the MACC is adjusted by more than 15% due to Owner requested and approved changes in the scope of work. If the MACC is changed by more than 15% due to Owner requested and approved changes in the scope of work, the Owner and the GC/CM shall renegotiate the percent Fee.

6.3 MACC

The MACC means the maximum allowable construction cost of the work to construct the project including specific general conditions, negotiated support services, a percentage for risk contingency, and approved change orders.

Cost of the Work:

The Cost of the Work includes costs paid to subcontractors or to the GC/CM on competitively awarded self-performing work, and shall include, but is not limited to, the following:

A. Costs of labor, materials and equipment incorporated in the construction which is not

Specified General Conditions work items. Labor rates shall be in accordance with the prevailing wages determined by the Department of Labor and Industries that are in effect at the time of the sub-contract bid.

B. Costs, including transportation, of materials and equipment incorporated in the completed construction.

C. Costs of materials described in the preceding paragraph in excess of those actually installed but required to provide reasonable allowance for waste and for spoilage.

Unused excess materials shall be handed over to the owner at the completion of the work or, at the owner's option, shall be sold by GC/CM. Amounts realized from such sales shall be credited to the owner as a deduction from the cost of the work.

D. Incidental items to include, but not limited to, temporary heat and lighting for construction, weather protection for construction, tool trailers and office space for subcontractors, specialty permits and fees, and erosion control and permits necessary to obtain a fully functional facility.

Field Office and Site Management

Office Space: For the duration of the project (i.e., from at least one week prior to the scheduled start of construction, to two weeks after final completion and acceptance) the GC/CM will be expected to provide offices and workspace for its own staff.

Office Equipment and Supplies: The GC/CM shall provide all field office equipment and supplies for its own use, including computers, printers, a facsimile machine, phones, portable radios and other communications equipment, postage, paper, duplication machine, chairs, desks.

Temporary Sanitation: GC/CM shall provide designated toilet rooms for the use of its own employees, all subcontractors and their employees, and all visitors to the site. The GC/CM contractor shall be responsible for the janitorial maintenance and upkeep of these facilities throughout the duration of the project.

Temporary Power and Utilities: Power is available at the site. The GC/CM may connect to such utility, but all cost for connections and metering shall be borne by the GC/CM. Consumption shall be included in negotiated support services.

Temporary Water: Water is available at the site. The GC/CM may connect to such utility, but all cost for connections and metering shall be borne by the GC/CM. The GC/CM shall provide temporary potable water for all its own workers, subcontractors and their employees and visitors to the site. The connection shall be included in Specified General Conditions, consumption as a Negotiated Support Service.

Communications: The GC/CM shall provide telephones for its own office use as well as cell phones and pagers for field supervisors. Internet or Wi-Fi capability shall be provided by the GC/CM.

Safety: The GC/CM shall provide ample first aid supplies and fire extinguishers for use of its own employees, all other workers on the site, and any other people needing attention.

Tool, material, and equipment storage: The GC/CM shall provide ample secured storage for its own tools and equipment.

Vehicles and construction tools: The GC/CM shall provide all vehicles, equipment, equipment operators, and construction tools needed by the GC/CM and its employees.

The GC/CM shall provide for the full cost of the operation, replacement, and/or repair of the above, as required.

Job site construction waste management program and removal of debris from the site:

GC/CM shall provide, administer, and document a construction waste management program in accordance with Department of Enterprise Services’ Construction Waste Management Guide.

Parking: The GC/CM shall arrange for parking or transportation to the site from an off-site parking facility (if required) for its employees, subcontractors, and subcontractor employees, or pay for parking in college parking lots if space permits. Under no circumstances shall any owner’s access to handicapped parking be blocked or restricted as a result of GC/CM employee, subcontractor or subcontractor employee or scheduled deliveries without alternative arrangements made for handicapped parking.

Survey, Building Lines, Testing, Quality Control

Survey: The A/E will establish a site benchmark and provide site corners, the location of on-site improvements, and off-site access and utilities. The GC/CM shall hire a registered surveyor to establish survey markers and site controls, as required as part of the general conditions work.

Testing other than Code required: The Owner shall pay for separate special inspections and testing as required by the International Building Code. Such testing will be coordinated by the GC/CM. All other testing or special inspections shall be the responsibility of the GC/CM.

Contractor Documentation during construction: The GC/CM shall provide full documentation to the Owner of all work, including, but not limited to: weekly minutes of all team progress meetings during construction, inspection reports, a comprehensive monthly project report with progress photos, and punch-list reports as needed, updates to schedule, budgets, as-built drawings and related items.

Monthly reports shall be twenty pages maximum and include:

• Executive summary

• Progress photographs with aerial site photographs as requested by Owner

• Critical issues and risk analysis

• Schedule analysis

• Cost control report

• Diverse Business Inclusion Plan and apprentice status

• Status of construction

• Status of LEED documentation, as applicable

Negotiated Support Services

An allowance for negotiated support services work will be established within the MACC during MACC negotiations. These are items of work a general contractor would normally manage or perform on a construction project including, but not limited to hoisting, safety enforcement, provisions for toilet facilities, temporary heat, cleanup and trash removal. The GC/CM shall provide a detailed schedule of NSS items at the time the negotiated MACC is established. The NSS spend, based on this schedule, shall be included in the monthly cost control report. As a cost reimbursable allowance, expenses will include necessary backup to support NSS expenses. NSS will be subject to audit either monthly or quarterly, and the conclusion of the project.

General building permits and associated building inspection fees of the authorities having jurisdiction (AHJ) will be a direct reimbursement without markup to the GC/CM if the Owner does not make arrangements to pay directly to the AHJ. Sub-contractor permits and inspections fees shall be part of the sub-contractors’ responsibilities.

Risk Contingency

The risk contingency shall be used to pay for project issues that are within the control of the GC/CM such as subcontractor coordination, insufficient coordination of the design drawings, or unanticipated general conditions expenses. Risk contingency may only be used, with written Owner agreement, to correct defective, damaged, or nonconforming work, and damages to materials or equipment when it cannot be determined which subcontractor caused the loss of the work. It may also be used for issues beyond the GC/CM’s control such as lost time or increases in bid contracts which are necessary to complete the project for a fully functional facility. The GCCM must give the Owner notice when applying to use the risk contingency funds. The Owner’s approval shall not be unreasonably withheld. This contingency is not available for owner directed design or scope changes. At the conclusion of the project, unused risk contingency will revert to the owner by change order. Fee on the unused risk contingency will remain with the contractor.

Buyout Savings

Buyout Savings occur when amount bid on individual bid packages results in a savings to a project. During the bidding period, buyout savings or potential buyout savings may be used to balance bid packages resulting from higher costs than estimated. Reference Article 3, Section F for additional buyout savings information.

Allowances

Allowances are defined as monies reserved within the MACC for exclusive use for a specified component of the work, which, at the time the MACC is established, cannot be defined sufficiently in scope to determine a precise budget amount. Without prior written approval of the PM, allowances cannot be used by the GC/CM for any use other than specified.

Should the cost of the specified work within the allowance be less than the allowance, then the MACC shall be reduced by change order for the difference. Use of allowances requires prior written approval of the PM. At the completion of the affected bid package work, any remaining allowance money reverts to the owner by change order.

6.4 Specified General Conditions

The project description and the design and construction schedule are defined in the RFQ.

Time of completion will be required as defined in the RFQ. The GC/CM shall provide general conditions work through final completion and acceptance. Final Specified General Conditions will be bid at the same time the fee is bid. The GC/CM must provide specified general conditions work to take the project to completion, even if it exceeds the schedule, if such delay is the responsibility of the GC/CM or its subcontractors. Specified General Conditions work must also include all supervisory labor necessary to coordinate and perform transition into warranty phase and all warranty work. Include a warranty tracking system that lists warranty items from the time they are identified until they are resolved. A tracking report shall be available to the owner upon request.

Special requirements shall be coordinated with the public, outside regulatory agencies, and other state agencies.

For the duration of the project, the GC/CM shall provide the full complement of the field staff designated in the written response to the RFP and maintain a communication structure that assures thoroughness and continuity in the management of GC/CM services.

Tasks shall include, but are not limited to,

• Scheduling and sequencing of the work

• Submittals

• Coordination drawings

• Building information modeling, including clash detection

• Responding to requests for information

All costs incurred in providing this staff shall be part of the general conditions work (i.e., salary, benefits, bonuses, housing, travel, per diem, etc.). The Owner must approve any substitution of staff. Substitution shall be with people of comparable experience and ability.

Unless otherwise agreed in writing by the Owner, the GC/CM guarantees that the GC/CM project manager or the designated representative will attend and participate in all preconstruction services meetings as scheduled and conduct all construction meetings on at least a weekly basis for the duration of the project.

The GC/CM shall manage and document apprenticeship requirements including recruitment and reporting, to assure maximum apprentice participation levels are achieved.

They shall also actively recruit and support Diverse Business involvement in the Work.

During construction, the GC/CM shall provide site supervision and support for the following:

• Ongoing coordination between crafts

• Construction schedule

• Job-site safety

• Quality control program

• Disputes between subcontractors

• Negotiation of change orders with the owner

• Review, revise and forward submittals and requests for information (RFI’s) to the architect/engineer and owner’s representative for action

• Provide protection of Owner’s adjacent space and minimize disruption to occupied portions of adjacent buildings

• Site security, including watchmen and guards if required

The GC/CM shall provide site safety supervision sufficient to comply with all WISHA, OSHA, and other regulatory safety requirements.

The GC/CM shall provide for sufficient and appropriately skilled staff and support to implement the quality control program described below. In addition, the project manager or superintendent shall be available to perform weekly site inspections with the owner and A/E for the duration of the project.

The GC/CM shall provide professional advice to the design team during preconstruction to ensure that sustainable building principles are incorporated into the design. The GC/CM shall participate and facilitate the collection of pertinent data and record keeping required during construction to meet the LEED requirement.

6.5 Washington State Sales Tax (WSST) and Business & Occupation Tax (B&O)

WSST is applied to the amount of work in place. WSST is to be paid to the Washington State Department of Revenue by the GC/CM. WSST is not included in the TCC and will be applied to each invoice at the current rate at the time the invoice is submitted.

B&O is 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.