SC9.0 DB GMP Agrmt R1-2024 (1).pdf

SC-9.0

Rev. 01/2024

STATE OF COLORADO

OFFICE OF THE STATE ARCHITECT

STATE BUILDINGS PROGRAM

DESIGN/BUILD GUARANTEED MAXIMUM PRICE (GMP) AGREEMENT

(STATE FORM SC-9.0)

STATE AGENCY: Insert Department's or IHE's Full Legal Name

DEPARTMENT ID: XXXX

CONTRACT ID #: Insert CMS Number & Encumbrance Number

PROJECT #: Insert OSC Project Number

PROJECT NAME: Insert Project Name as provided by the State Controller's Office

VENDOR NAME: Insert Contractor's full Legal Name including "Inc.", "LLC" etc.

ATTACHMENT 1: The General Conditions of the Design/Build Guaranteed Maximum Price (GMP)

Agreement (SC-9.1)

Rev. 01/2024 TOC

STATE OF COLORADO

Table of Contents for the entire Agreement is located in THE GENERAL CONDITIONS OF THE DESIGN/BUILD

GUARANTEED MAXIMUM PRICE (GMP) AGREEMENT (SC-9.1)

Table of Contents Page

SIGNATURE PAGE

RECITALS:

1 ARTICLE 1 PERFORMANCE OF THE WORK

1.1 THE WORK

1.2 CONTRACT DOCUMENTS

2 ARTICLE 2 EXHIBITS TO THE AGREEMENT

2.1 EXHIBITS

3 ARTICLE 3 DESIGN/BUILD ENTITY’S SERVICES

3.1 AVAILABLE FUNDS

3.2 CONSULTATION AND VALUE ENGINEERING

3.3 DESIGN AND CONSTRUCTION COSTS

3.4 OTHER PRE-CONSTRUCTION SERVICES

3.5 DESIGN SERVICES

3.6 CONTROL OF THE WORK

3.7 SCHEDULE AND COORDINATION

3.8 AMENDMENTS AND CHANGE ORDERS

3.9 PRINCIPAL REPRESENTATIVE CONSULTANTS

3.10 START UP

4 ARTICLE 4 OWNERSHIP OF DOCUMENT

4.1 INSTRUMENTS OF SERVICE

4.2 AS-BUILT DRAWINGS/RECORD DRAWINGS

5 ARTICLE 5 TIME OF COMMENCEMENT AND COMPLETION

5.1 COMMENCEMENT

5.2 COMPLETION

6 ARTICLE 6 COMPENSATION

6.1 DESIGN BUILD ENTITY’S FEE

6.2 ADJUSTMENTS IN FEE

Rev. 01/2024 TOC

6.3 PAYMENT OF FEE

6.4 GUARANTEED MAXIMUM PRICE

6.5 CONTRACT SUM

6.6 CONDITION PRECEDENT

7 ARTICLE 7 OPTIONAL PROVISIONS AND ELECTIONS

7.1 MODIFICATION OF ARTICLE 2. EXECUTION, CORRELATION, INTENT OF DOCUMENTS,

COMMUNICATION AND COOPERATION

7.3 MODIFICATION OF ARTICLE 45. GUARANTEE INSPECTIONS AFTER COMPLETION

7.4 MODIFICATION 1 OF ARTICLE 27. LABOR AND WAGES

7.5 MODIFICATION 2 OF ARTICLE 27. LABOR AND WAGES

7.6 MODIFICATION OF ARTICLE 39. NON-BINDING DISPUTE RESOLUTION – FACILITATED

NEGOTIATIONS

7.7 MODIFICATION OF ARTICLE 46. TIME OF COMPLETION AND LIQUIDATED DAMAGES

8 ARTICLE 8 NOTICE IDENTIFICATION

EXHIBIT A DESIGN-BUILD ENTITY DESIGNATED SERVICES AND METHOD OF PAYMENT ...................... A

EXHIBIT B DESIGN BUILD ENTITY’S CERTIFICATION ........................................................................... B

EXHIBIT C DESIGN/BUILD ENTITY ’S REQUEST FOR PROPOSAL ........................................................... C

EXHIBIT D DESIGN BUILD ENTITY’S FEE PROPOSAL ............................................................................ D

EXHIBIT E STATE SALES AND USE TAX FORMS .................................................................................... E

EXHIBIT F LIST OF PRE-QUALIFIED SUBCONTRACTORS ....................................................................... F

EXHIBIT G SCHEMATIC DESIGN ESTIMATE SUMMARY AND UPDATED SUMMARIES ........................... G

EXHIBIT J NOTICE TO PROCEED ......................................................................................................... K

EXHIBIT K BUILDING CODE COMPLIANCE POLICY .............................................................................. K

SUPPLEMENTARY GENERAL CONDITIONS: FEDERAL PROVISIONS ....................................................... K

Rev. 01/2024 1

SIGNATURE PAGE

THE PARTIES HERETO HAVE EXECUTED THIS AGREEMENT

Each person signing this Agreement represents and warrants that the signer is duly authorized to execute this Agreement and to bind the Party authorizing such signature.

CONTRACTOR*

INSERT-Legal Name of Contractor

By: Name & Title of Person Signing for Contractor

Date: _________________________

STATE OF COLORADO

Jared S. Polis, Governor

INSERT-Name of Agency or IHE

INSERT-Name & Title of Head of Agency or IHE

By: Name & Title of Person Signing for Agency or IHE

DEPARTMENT OF PERSONNEL & ADMINISTRATION

STATE BUILDINGS PROGRAM State Architect

(or authorized delegate)

By: Name & Title of SBP Delegate

LEGAL REVIEW

Philip J. Weiser, Attorney General

By:_______________________________________________

Assistant Attorney General

In accordance with §24-30-202, C.R.S., this Agreement is not valid until signed and dated below by the State Controller (or an authorized delegate) or the Title of IHE CFO per the Fiscal Rules of the individual Institution of Higher Education

STATE CONTROLLER

Robert Jaros, CPA, MBA, JD

By:___________________________________________

Name of Agency or IHE Delegate-Please delete if contract will be routed to OSC for approval

Effective Date:_____________________

Project Number/Name: Insert OSC Project Number followed by Project Name

Contract ID No.: Insert CMS Number & Encumbrance Number

Rev. 01/2024 2

STATE OF COLORADO

Department ID: Insert Dept. Code Contract ID #: Insert Contract ID Project #: Insert Project #

PARTIES. THIS AGREEMENT is entered into by and between the STATE OF COLORADO, acting by and through the Insert Department's or IHE's Full Legal Name hereinafter referred to as the State or Principal

Representative, and Insert Contractor's full Legal Name including "Inc.", "LLC" etc. having its offices at

Street address, City, State and Zip Codehereinafter referred to as the Design/Build Entity or Contractor.

EFFECTIVE DATE AND NOTICE OF NONLIABILITY. This Agreement shall not be effective or enforceable until it is approved and signed by the State Controller or its designee (hereinafter called the “Effective

Date”), but shall be effective and enforceable thereafter in accordance with its provisions. The State shall not be liable to pay or reimburse Design/Build Entity for any performance hereunder or be bound by any provision hereof prior to the Effective Date.

RECITALS:

WHEREAS, the Principal Representative intends to engage the services of the Design/Build Entity to design and construct the following: Insert Project Name as provided by the State Controller's Office hereinafter called the Project; and

WHEREAS, authority exists in the Law and Funds have been budgeted, appropriated, and otherwise made available, and a sufficient unencumbered balance thereof remains available for payment in Fund Number

Insert Fund Number Here, Account Number Insert Account Number here; and

WHEREAS, the State of Colorado has appropriated and the Principal Representative has been authorized to expend the total sum of Insert dollar value written in words Dollars ($ ) for this Project including all professional services, construction management/general contractor services, construction/improvements, Project contingencies, reimbursables, furnishings, movable equipment, and miscellaneous expenses; and

(WHEREAS, funds are available for only a portion of the services defined herein, as more fully described in the funding Condition Precedent clause in 6.6 hereof; and)

WHEREAS, the Design/Build Entity Fee consists of the Design Build Entity’s Architect/Engineer’s Fee and the Design/Build Entity’s Fee;

WHEREAS, the Principal Representative has established the Fixed Limit of Design & Construction Cost in the amount of Insert dollar value written in words Dollars ($ ); and

WHEREAS, the Design/Build Entity shall establish a Guaranteed Maximum Price (GMP) that is within the

Fixed Limit of Design & Construction Cost as established by the Principal Representative at the completion of the Design Development Phase; and

Rev. 01/2024 3

WHEREAS, in accordance with Article 6 Compensation the Design/Build Entity’s Total Fee and General

Conditions for the Project is Insert dollar value written in words Dollars ($ ); and

WHEREAS, the Design Build Entity’s Architect/Engineer for the project is Insert Architect's full Legal Name including "Inc.", "LLC" etc.; and

WHEREAS, the Design/Build Entity acknowledges the statutory authority and responsibility of the

Principal Representative within the State of Colorado;

WHEREAS, the Design/Build Entity was selected after a determination that its proposal was the most advantageous to the Principal Representative pursuant to a request for proposal issued and awarded on

; and

WHEREAS, the Design/Build Entity and the Principal Representative have finalized the terms of this

Agreement pursuant the Colorado Procurement Code or the applicable procurement code for institutions of higher education.

WITNESSETH, that the Principal Representative and the Design/Build Entity agree as follows:

1 ARTICLE 1 PERFORMANCE OF THE WORK

1.1 THE WORK

1.1.1 The Design/Build Entity will design and construct the Project within the Fixed Limit of Design &

Construction Cost specified, and the Design/Build Entity will furnish all the services, labor and materials to perform all the Work, including design, for the complete and prompt execution of the Project in accordance with the Contract Documents as identified in Section 1.2.

1.1.2 In the performance of the Work under this Agreement, the Design/Build Entity acknowledges that time is critical for Project delivery and that portions of the Work could have their design completed as separate Construction Phase(s) and may be under construction before other portions of the Work are fully designed. It is further recognized that this accelerated approach to construction is defined as “Fast Track Construction” and is a concept that requires maximum cooperation between all parties.

1.1.3 The Principal Representative acknowledges that the Design/Build Entity shall provide Insert number of phases ( ) Construction Phase (s) to accomplish the Work as may be mutually agreed upon. In the event the Principal Representative for any reason within the Principal

Representative’s control, requests more than Insert number of phases ( ) Construction

Phase(s) to be furnished by the Design/Build Entity, the Principal Representative shall make arrangement with Design/Build Entity for the additional Construction Phase(s) desired and shall directly compensate the Design/Build Entity for all justifiable fees and cost associated therewith.

1.1.4 The Design/Build Entity agrees to use best efforts, to cooperate fully with the Principal

Representative in the design and construction aspects of the Work, and to keep within the

Principal Representative's monetary, schedule and quality limitations, as stipulated within this

Agreement.

1.1.5 The organization of the Specifications into division, section, and article, and the arrangement of

Rev. 01/2024 4

Drawings shall not control the Design/Build Entity in dividing the Work among any level of

Subcontractors or in establishing the extent of the Work to be performed by any trade.

1.1.6 The Design/Build Entity understands the relationship of trust and confidence established between it and the Principal Representative and accepts those responsibilities as described in this

Agreement. The Design/Build Entity covenants with the Principal Representative to furnish its best skill and judgment and to cooperate with the Design Build Entity’s Architect/Engineer in furthering the interests of the Principal Representative. The Design/Build Entity agrees to furnish efficient business administration and superintendence and to use its best efforts to complete the

Work in an expeditious and economical manner consistent with the interest of the Principal

Representative.

1.1.7 The Design/Build Entity shall confirm that the Design Build Entity’s Architect/Engineer acknowledges that it is responsible for protecting the Principal Representative’s interests throughout the evolution of design and construction. Therefore, the Design Build Entity’s

Architect/Engineer shall provide the full scope of professional level services related to design performance and construction administration services within the Project in the same manner as it would acting as a 3rd Party entity through a conventional Design/Bid/Build or CM/GC delivery method.

1.2 CONTRACT DOCUMENTS

1.2.1 The Contract Documents are described in Article 1 of the General Conditions of the Design/Build

Guaranteed Maximum Price Agreement (SC-9.1) (the “General Conditions”). The Contract

Documents, including the General Conditions, are essential parts of this Agreement and are fully incorporated herein.

2 ARTICLE 2 EXHIBITS TO THE AGREEMENT.

2.1 EXHIBITS

The following Exhibits are, or will be, attached to this Agreement and are or shall become when approved and accepted, part of the Contract Documents.

1. The General Conditions of the Design/Build GMP Contract (State Form SC-9.1)

2. The Drawings released for Construction (Exhibit I.1);

3. The Specifications released for Construction (Exhibit I.1);

4. Exhibit A, Design/Build GMP Designated Services and Method of Payment;

5. Exhibit B, Design/Build Entity Certification;

6. Exhibit C, Request for proposal (minus blank template forms) dated ;

7. Exhibit D1, Design/Build Entity’s Fee Proposal dated ;

8. Exhibit D2 Design/Build Entity’s Certificates of Insurance;

9. Exhibit D3 Design/Build Entity’s Direct Labor Burden Calculation;

10. Exhibit E, State Sales and Use Tax Forms;

Amendment Exhibits based on Schematic Design Documents

11. Exhibit F, List of Pre-Qualified Subcontractors (when approved by the Principal Representative and prior to bidding);

Rev. 01/2024 5

12. Exhibit G, Schematic Design Estimate Summary and Updated Summaries (when approved by the Principal Representative);

Amendment (incorporating GMP) Exhibits based on Design Development Documents

13. Exhibit H.1, GMP Documents, Drawings and Specifications including Addenda and

Modifications (when approved by the Principal Representative);

14. Exhibit H.2, Schedule of Bid Package Descriptions and Issuance Dates (as applicable);

15. Exhibit H.3, Schedule of Values (prepared at the time of the GMP Amendment);

16. Exhibit H.4, Allowance Schedule (prepared at the time of the GMP Amendment);

17. Exhibit H.5, Detailed Critical Path Method Construction Schedule (prepared at the time of the

GMP Amendment)

Subsequent Amendments (incorporating Bid Packages) Exhibits

18. Exhibit I.1, Drawings, Specifications and Addenda (When approved by the Principal

Representative);

19. Exhibit I.2, Schedule of Values (Consistent with GMP Schedule of Values);

20. Exhibit I.3, Labor Overhead (SBP-6.18) for each Subcontractor to be applied to all change orders and amendments);

21. Exhibit I.4, Allowance Schedule (consistent with GMP Allowance Schedule);

22. Exhibit I.5, Performance Bond (Form SC-6.22);

23. Exhibit I.6, Labor and Material Payment Bond (Form SC-6.221);

24. Exhibit I.7, Insurance Certificates;

25. Exhibit I.8, Detailed Critical Path Method Construction Schedules (when approved by the

Principal Representative);

26. Exhibit I.9, Applicable Prevailing Wage Determinations (If applicable).

27. Exhibit I.10, Apprenticeship Utilization Certifications (SBP6.17) (If applicable).

Miscellaneous Exhibits

28. Exhibit J1, Notice to Proceed to Design Construction Phase (Form SC-8.26) (when issued);

29. Exhibit J, Notice to Proceed to Commence Construction Phase (Form SC-7.26) (when issued);

30. Exhibit K, Building Code Compliance Policy: Coordination of Approved Building Codes, Plan

Reviews, and Building Inspections.

31. Supplementary General Conditions: Federal Provisions (if applicable);

32. SLFRF Federal Funds: Contractor Terms and Conditions - Certification (if applicable); and

33. SLFRF Federal Funds: Contractor Terms and Conditions (if applicable).

3 ARTICLE 3 DESIGN/BUILD ENTITY’S SERVICES

The Design/Build Entity shall perform the following services under this Agreement in each of the phases described below:

PRE-CONSTRUCTION SERVICES

3.1 AVAILABLE FUNDS

3.1.1 The Design/Build Entity acknowledges that the Principal Representative is limited in the sum

Rev. 01/2024 6 available to design and construct the Project. Should funding of a lesser amount be made available for the Project, it is the obligation of the Principal Representative to revise the Project

Scope consistent with the ultimate appropriation.

3.2 CONSULTATION AND VALUE ENGINEERING

3.2.1 The Design/Build Entity shall provide consultation throughout the Design/Preconstruction and

Construction Phases including but not limited to the furnishing of Value Engineering Services to identify cost effective changes in the State's specifications that will result in reducing the Contract

Price without impairing essential functions or characteristics. The objective of Value Engineering is to achieve optimum value for each construction dollar spent and keep the time of completion and cost of the Work within the time and fiscal constraints set forth throughout the Contract

Documents. In cooperation with the Principal Representative, the Design/Build Entity shall:

a) Formulate and evaluate alternative designs, systems, materials, etc;

b) Provide cost estimates of the alternatives to be evaluated. Cost estimates shall include industry standard operating and maintenance costs when appropriate to evaluate life-cycle costs of the alternatives. Cost estimates shall take into consideration all cost impacts related to alternatives including but not limited to design and construction costs. The Design/Build

Entity shall, at a minimum, review the cost estimate at the completion of the Schematic

Design, and Design Development Phases and include an analysis and commentary as to any discrepancies observed in the report referenced in paragraph 3.2.1.4 below;

c) Evaluate the alternatives on the basis of costs, time schedules, availability of labor and materials, construction feasibility, etc;

d) Enable the Design/Build Entity’s Architect/Engineer to prepare written reports at the end of the Schematic Design and Design Development Phases summarizing the Value Engineering activities accomplished and any recommendations developed within each phase;

e) If Estimates of Design & Construction and/or bids received for the Work contained in any Bid

Package cause the anticipated cost of the Work to exceed the then current Estimate of Design

& Construction, the Fixed Limit of Design & Construction Cost, the Guaranteed Maximum

Price or Schedule of Values, the Design/Build Entity shall, at no additional cost to the Principal

Representative unless caused by an increase in the Design/Build Entity 's Work requested by the Principal Representative, provide additional Value Engineering services in conjunction with any and all appropriate items in the Estimate of Design & Construction, the Fixed Limit of Design & Construction Cost, the Guaranteed Maximum Price, and/or the Schedule of

Values for the Work; and

f) Lead a formal Value Engineering workshop as requested by the Principal Representative, at the end of the Schematic Design, Design Development and Construction Documents Phases review and estimating tasks, bringing multidiscipline cost/construction experts to evaluate alternative designs, systems and materials.

3.2.2 The Principal Representative shall participate in the formulation and evaluation of alternatives in the Value Engineering activity, and shall approve Value Engineering alternatives accepted in each design phase.

3.3 DESIGN AND CONSTRUCTION COSTS

3.3.1 It is the desire of the Principal Representative to incorporate as many alternate bid items into the

Project as reasonable, in order to maximize the scope for the Fixed Limit of Design & Construction

Cost. All parties recognize that the availability of costs to perform the Work depend, in part, upon favorable market conditions. With thorough and careful planning, cost estimating and

Rev. 01/2024 7 cooperation, funds may become available for the alternates through the procurement process at less than the Design/Build Entity’s estimated cost therefore. Together with savings through the unexpended portion of the bidding contingency, the Principal Representative may authorize alternates and/or additional scope, all within the Fixed Limit of Design & Construction Cost.

3.3.2 To accomplish the inclusion of alternates and/or increases, the project contingency shall be as follows and included in the GMP:

a) The bidding contingency for all Bid Packages together with the construction of the Work shall be equal to at least two point five percent (2.5%) of the total Guaranteed Maximum Price, all within the Fixed Limit of Construction Cost.

The bidding contingency shall be allocated between the presently Insert number of packages

( ) Bid Packages, equally proportionate to the value associated with each Bid Package.

The Design Build Entity shall notify, in writing, the Principal Representative of the allocation of the bidding contingency for each Bid Package.

b) The construction contingency for the Work shall be equal to at least three percent (3%) of the total Guaranteed Maximum Price, all within the Fixed Limit of Construction Cost.

3.3.3 At the conclusion and award of the Bid Packages, all differences between the Design/Build Entity’s estimated cost of the Work contained within the Bid Packages, exclusive of contingency, versus the actual cost thereof as determined by bidding and award (buyouts) shall be promptly calculated and totaled. If the total of all of the buyouts exceed the Design/Build Entity estimated cost therefore, the bidding contingency identified in paragraph 3.3.2.1 shall be applied by the

Design/Build Entity, after prior written notice to the Principal Representative, to cover any overrun per Bid Package.

3.3.4 After all of the Bid Packages have been bought out, any and all savings achieved through the buyouts of the Bid Packages together with all unexpended sums remaining in the bidding contingencies shall forthwith accrue to the Principal Representative to be applied by the Principal

Representative, in its sole and absolute discretion, to the inclusion of desired alternates into the

Work or to otherwise increase the scope of Work to be performed by the Design/Build Entity, and/or to reduce the Guaranteed Maximum Price.

3.3.5 The construction contingency shall only be used to cover costs for labor, materials, equipment and similar costs for items or Work to be furnished during the construction phase of the Project.

It is not the intent of this Agreement to use the construction contingency for costs incurred during the Pre-Construction phase or bidding phase or for costs to correct any errors, omissions, mistakes or rejected Work caused by Subcontractors. The construction contingency may be used to cover the Design/Build Entity’s costs (i) arising from estimating cost overruns in the costs of Exhibit H.4

Allowance Schedule; (ii) unexpected additional trade coordination costs incurred for Work directly performed by the Design/Build Entity that could not have been reasonably contemplated;

(iii) items required and reasonably inferable from the Contract Documents, or items included within the Contract Documents but missed within the Subcontractor buy-out which the

Design/Build Entity can show were not specifically called out within the estimate or bid documents of the Design/Build Entity or any Subcontractor ; (iv) losses or damages to property related to the Work not covered by insurance provided by the Design/Build Entity, but not including any insurance deductible(s); (v) arising from expediting or acceleration of the Project schedule where such cost is not a basis for an increase in the GMP under Article 6; (vi) Bid Package buyout overrun costs for additional Bid Packages that were not part of anticipated Construction

Phases defined in 1.1.4, but only if bidding procedures contemplated hereunder were followed and the bidding contingency has been exhausted; or (vii) other costs incurred not reasonably to

Rev. 01/2024 8 have been expected that are approved by the Principal Representative in the Principal

Representative’s sole discretion, so long as those costs are not recovered under any insurance policy provided pursuant to this Agreement and so long as the total costs under this Agreement do not exceed the Guaranteed Maximum Price. No expenditure from the construction contingency for any matters or Work activities shall be made without the prior written approval of the Principal Representative, which approval, with the exception of item (vii) above, shall not be unreasonably withheld. Expenditures from the construction contingency shall be made only by Change Order.

Construction contingency shall include all costs associated with a stated scope including, if applicable design fees, Direct Work, Insurance, Bonds, Fee, and General Conditions (if appropriate).

3.3.6 When preparing any estimates of Design & Construction and in development of the Schedule of

Values, such documents shall include, without duplication:

a) All labor, materials, equipment, tools, construction equipment and machinery, water, heat, utilities, transportation, and other facilities and services necessary for the proper execution and completion of the Work, whether temporary or permanent, and whether or not incorporated or to be incorporated in the Work;

b) Any allowance designated by the Principal Representative;

c) Any Principal Representative furnished equipment which has been designed, specified, selected or specifically provided for by the Design Build Entity’s Architect/Engineer;

d) The Design Build Entity’s fee and the cost of work provided by the Design/Build Entity;

e) All bonds, insurance premiums and applicable taxes;

f) Contingencies for bidding, price escalation, and construction;

g) Plumbing and electrical building permits from appropriate entities and any other building permits as directed by the Principal Representative; and

h) Design fees and administrative expenses directly related to the Work. (Refer to the General

Conditions of the Design/Build Guaranteed Maximum Price Agreement (SC-9.1) Article 12.2.3

Schedule of Values.

3.3.7 Estimates of Design & Construction shall include the compensation of the Design Build Entity’s

Architect/Engineer and, the Design Build Entity’s Architect/Engineer mechanical, electrical, plumbing, structural, civil, and any other consultants and subconsultants required in the Request

For Proposal or any other sums due the Design Build Entity’s Architect/Engineer and it’s consultants, but shall not include the costs of land, right of way, financing or other costs, which are the responsibility of the Principal Representative. With prior approval of the Principal

Representative, the Design/Build Entity shall contract with the Design Build Entity’s

Architect/Engineer to perform services in connection with the Project.

3.3.8 The Design/Build Entity, in preparing its Estimates of Design & Construction cost and providing the Guaranteed Maximum Price, shall consult with the Design Build Entity’s Architect/Engineer to determine what materials, equipment, component systems and types of construction are to be included in the Contract Documents, to make reasonable adjustments in the scope of the Work, and to include in the Contract Documents alternate items, as approved by the Principal

Representative in writing, for bid so as to permit the adjustment of the Estimate of Design &

Construction.

3.3.9 The Design/Build Entity shall prepare an Estimate of Design & Construction as soon as major

Project requirements have been identified and update it periodically. For the Schematic Design

Rev. 01/2024 9

Phases, the Design/Build Entity shall prepare a quantity take-off cost estimate based on building systems, assemblies, components, etc., and update periodically. During the Design Development

Phase, the Design/Build Entity shall prepare a final cost estimate in preparation for a Guaranteed

Maximum Price and update periodically. All Estimates of Design & Construction shall include separate defined allowances for bidding and Construction price escalation. During the

Construction Documents Phase, the Design/Build Entity shall continually monitor the cost estimates and develop a cost estimate to help assure that the cost of the Work remains within the applicable portion of the Project Budget, Fixed Limit of Design & Construction Cost and

Guaranteed Maximum Price.

3.3.10 Estimates shall be prepared and shall be based on quantitative takeoffs whenever possible and shall be supported in sufficient depth and organization to be used in preparing budgets based on

Construction Specifications Institute (CSI) Division, funding sources, sub-trades, combinations of sub-trades, building systems, Bid Packages or combinations thereof. Lump sum estimates are not acceptable.

3.3.11 During the preparations of cost estimates, the Design/Build Entity shall notify the Principal

Representative if it appears that the Estimate of Design & Construction will exceed the applicable portion of the Project Budget or Fixed Limit of Design & Construction Cost as may be applicable, satisfactorily demonstrate the accuracy of its estimate in such detail as shall be reasonably required by the Principal Representative, and make reasonable recommendations for corrective action consistent with the Project Budget or Fixed Limit of Design & Construction Cost, as may be applicable. The Design/Build Entity shall submit Estimates of Design & Construction cost to the

Principal Representative for review and acceptance at each design milestone and other times as required by the Principal Representative to analyze various building systems and components.

3.3.12 The Principal Representative shall reasonably cooperate with the Design/Build Entity to keep the

Work within the applicable portions of the Project Budget or Fixed Limit of Design & Construction

Cost, as may be applicable, including but not limited to the giving of appropriate and reasonable consideration to all reasonable recommendations of the Design/Build Entity, approving redesign, only for Principal Representative directed scope changes, deductive alternatives or reductions in

Work, requesting additional Value Engineering, making modifications to the Contract Documents or exercising such other rights or remedies as may be available elsewhere under this Agreement including termination for convenience. However, the Principal Representative shall be under no duty to reduce the Work to accommodate for any projected costs over or beyond the Guaranteed

Maximum Price that is the responsibility of the Design/Build Entity or allow access to the construction contingency to cover costs to correct errors, omissions, mistakes, rejected Work or warranty Work.

3.4 OTHER PRE-CONSTRUCTION SERVICES

3.4.1 The Design/Build Entity shall perform those items designated as Required Services as set forth in the Design/Build Designated Services and Method of Payment schedule designated as Exhibit A.

In addition, and not in limitation, the Design/Build Entity shall also perform the other Pre-

Construction Services designated in this Article 3 together with such other services as are normally and customarily provided by a Design/Build Entity.

3.4.2 The Design/Build Entity shall make recommendations to the Principal Representative regarding the division of Work in the Drawings and Specifications to facilitate the bidding and awarding of subcontracts, allowing for phased construction and funding, if applicable, taking into consideration such factors as time of performance, availability of labor, overlapping trade jurisdictions, provisions for temporary facilities, etc.

3.4.3 The Design/Build Entity shall review Drawings and to (1) eliminate areas of conflict, overlapping

Rev. 01/2024 10 trade jurisdictions, and overlapping in the Work to be performed by the various Subcontractors,

(2) endeavor to confirm that all Work has been included, and (3) allow for phased construction as applicable.

3.4.4 The appropriate representatives of the Principal Representative shall review documents submitted by the Design/Build Entity and shall render decisions pertaining thereto without unreasonable delay.

3.4.5 The Design/Build Entity, including the Design Build Entity’s Architect/Engineer, shall attend all regular meetings with the Principal Representative and such additional meetings as the Principal

Representative may request. All regular meetings shall be scheduled with the Design/Build Entity and approval of the Principal Representative. All additional meetings shall be requested by the

Principal Representative.

3.4.6 As part of the Schematic Design review and estimating tasks, the Design/Build Entity shall develop a preliminary detailed Critical Path Method (CPM) Project Schedule as described in Article 12 of the General Conditions of the Design/Build Guaranteed Maximum Price Agreement (SC-9.1), that is coordinated with the milestone dates specified in Exhibit H.2, the Date of Completion specified in paragraph 5.2.1, the scope of Work described within the Contract Documents, and the Work described within the Schematic Design Documents. The Design/Build Entity shall utilize the

Project Management Software as described in paragraph 3.6.4 to develop and manage the schedule.

3.4.7 The Design/Build Entity shall investigate and recommend materials and equipment that could be purchased by the Principal Representative; consider long lead time procurement and mass purchasing power in making such recommendations; recommend a schedule for such purchases after coordination with the schedule for preparation of Contract Documents; and expedite and coordinate delivery of these purchases to facilitate their delivery by the required dates.

3.4.8 The Design/Build Entity shall prepare necessary bidding information, bidding forms, and pre-qualification criteria for bidders; develop Subcontractor interest in the Project; establish bidding schedules; advertise for bids; and conduct pre-bid conferences to familiarize bidders with the bidding documents and management techniques and with any special systems, materials, or methods. As soon as the Design/Build Entity becomes aware prior to any bid date that less than three (3) pre-qualified Subcontractors plan to bid any portion of any Bid Package or that anticipated bids from previously approved or pre-qualified Subcontractors listed on Exhibit F, are likely to exceed the then current Schedule of Values or Estimate of Design & Construction, the

Design/Build Entity shall promptly so notify the Principal Representative and Principal

Representative shall be entitled to treat the situation as an unforeseeable circumstance pursuant to paragraph 3.4.8.1

3.4.8.1 In the event unforeseeable circumstances necessitate the use of any major trade subcontractors not set forth in Exhibit F, the Construction Manager shall pre-qualify one or more proposed major trade subcontractors to be added to Exhibit F and submit the same to the Principal

Representative for review. The Principal Representative shall inform the Construction Manager in writing of the names of those subcontractors who are acceptable. The Construction Manager expressly recognizes its commitment pursuant to the Contract Documents to complete the

Work within the constraints set forth elsewhere in the Contract Documents and the necessity to use pre-qualified major trade subcontractors. Except as provided in paragraph 3.5.10 or where requested by the Construction Manager and with the prior written approval of the

Principal Representative, proposed additions or substitutions of major trade subcontractors on

Exhibit F because their price is less expensive than any pre-qualified subcontractors shall not constitute an unforeseeable circumstance or otherwise be a basis for any change.

Rev. 01/2024 11

3.4.9 The Design/Build Entity shall receive and open bids when advertised, prepare a bid analysis, conduct pre-award conferences, and notify the Principal Representative concerning which bids shall be accepted. The Principal Representative shall be notified in advance of the time and place of all bid openings and may elect to attend such openings with their representatives. Should the

Design/Build Entity submit a proposal for subcontract Work (Work not included in the

Design/Build Entity’s Construction Phase Fee and/or General Conditions) herein referred to as

“Self Perform Work”, the proposal conditions shall be the same as for all Subcontractor proposals.

These Design/Build Entity proposals for subcontract Work shall be submitted to the Principal

Representative twenty-four (24) hours prior to receipt of other Subcontractor proposals and all opened with the other proposals. A proposal to accept other than a low bid shall be justified in writing by the Design/Build Entity and subject to prior written approval by the Principal

Representative.

3.4.10 The Design/Build Entity shall provide the requirements and assignment of responsibilities for safety precautions and programs as required for the execution of the Work, temporary project facilities and for equipment, materials and services for common use of Subcontractors and verify that all are included in the Contract Documents.

3.4.11 The Design/Build Entity shall provide not later than the first of each month, unless requested otherwise by the Principal Representative, a monthly report utilizing the Project Management

Software described in paragraph 3.6.4 documenting the current status of the project’s schedule, costs, requests for information, submittals, manpower, safety, and other pertinent information.

The report shall include a narrative discussion of the progress achieved, activities anticipated for the next month, and issues that are affecting the rate of progress. Progress photographs should be attached/included. This monthly report shall be provided in Design and Construction Phases of the project. The schedule status shall include the following minimum items:

a) Cost report showing activity dollar value, dollar value of Work in place to-date and dollar value for current period.

b) Cost report showing activity dollar value, dollar value of Work in place to-date, and dollar value for current period summarizing to schedule of values.

c) Resource report showing man-day allocations by specific trade on each activity.

d) Variance report comparing current dates to target dates.

e) Cash flow report showing monthly projections of expenditures.

A narrative schedule report shall document:

a) Description of the actual Work accomplished during the reporting period.

b) Description of any problem areas.

c) Description of current and anticipated delays with recommended corrective actions to mitigate such delays.

d) A list of proposed modifications, additions, deletions, and changes in logic to the approved schedule.

3.4.12 If the Design/Build Entity, any of its sub-consultants, or any of its Subcontractors of any tier participating in the Design Reviews observes that any of the Contract Documents are at variance with applicable laws, statutes, building codes, ordinances, rules or regulations, in any respect the

Design/Build Entity shall promptly notify the Principal Representative in writing, noting the applicable drawing or specification, and recommending an appropriate alternative for correcting the design.

Rev. 01/2024 12

3.5 DESIGN SERVICES

3.5.1 Full scope of Design services shall be performed by qualified architects/engineers and other professionals selected and paid by the Design/Build Entity. The professional obligations of such persons shall be undertaken and performed in the interest of the Design/Build Entity. Nothing contained herein shall create any contractual relationship between Subcontractors, architects/engineers and/or suppliers with the Principal Representative.

3.5.2 Design/Build Entity shall be responsible to the Principal Representative for acts and omissions of the Design/Build Entity's employees, Subcontractors, agents and parties in privity of contract with the Design/Build Entity to perform any portion of the Work, including all design elements of the

Project.

3.5.3 The Design/Build Entity may or may not be licensed as an architect or engineer in the State of

Colorado and is not authorized by law to perform design services. Accordingly, if the Design/Build

Entity is not a licensed architect or engineer, they will not perform design services pursuant to this Agreement, but will furnish and warrant such design services as otherwise herein provided as a consultant or subconsultant. Prior to designating a professional, individual or professional firm to perform any of these services, the Design/Build Entity shall submit the name of the firm if appropriate, together with the name and resume, including education, training and experience of the architect or engineer of record and relevant work of like character and magnitude for the

Project being contemplated, to the Principal Representative, and receive approval in writing therefrom.

3.5.4 The Design Build Entity’s Architect/Engineer shall begin design services upon receiving the Notice

To Proceed to Commence Design Phase (SBP-8.26) and shall make certain to the best of its knowledge, information and belief, that the drawings and specifications prepared by it are in compliance with the Approved Codes as adopted by State Buildings Program (as a minimum standard) as indicated in Exhibit K, Building Code Compliance Policy: Coordination of Approved

Building Codes, Plan Reviews and Building Inspections. Other more restrictive standards as specified by the Principal Representative are as indicated in Exhibit K. Drawings and specifications are to be reviewed by the State’s approved Code Review Agents at the appropriate phases and with the required information as described in Exhibit K.

3.5.5 No design consultant or subconsultant, not already approved by the Principal Representative, shall be engaged to perform Work on the Project wherein a conflict of interest exists, such as being connected with the sale or promotion of equipment or material which may be used on the

Project, provided, however, that in unusual circumstances and with full disclosure to the Principal

Representative of such interest, the Principal Representative may provide a waiver, in writing, in respect to the particular consultant or subconsultant.

3.5.6 The Design/Build Entity shall review with the Principal Representative alternative approaches to design and construction of the improvements. Any alternative approaches must be approved in writing by the Principal Representative prior to implementation by the Design/Build Entity.

3.5.7 The Design/Build Entity shall participate in Project design review sessions at the close of the

Schematic Design Phase, Design Development Phase, and as Construction Documents are finalized for each Bid Package. The Project design review sessions shall be attended by the Design

Build Entity’s Architect/Engineer and representatives of the Principal Representative. The purposes of the Project design review sessions are to (1) assure consistency with the design intent;

(2) confirm complete, coordinated, constructible and cost-effective designs for all disciplines (e.g.

architectural, structural, mechanical); (3) assure that the design documents are code compliant;

(4) endeavor to confirm that all Work has been included and described in sufficient detail to assure complete pricing of Work; and (5) allow for phased construction. The Design Build Entity’s

Rev. 01/2024 13

Architect/Engineer shall collect all design review comments from the various participants, provide reports to the Principal Representative, and confirm that with the issuance of each progress set of design documents all comments have either been incorporated or resolved to the satisfaction of the Principal Representative. A design phase is not considered complete until all comments from the design review have been incorporated and the design consultants and subconsultants have fully coordinated their design documents. At the completion of each design phase, the

Design/Build Entity must confirm that the current status of design remains within the applicable portion of the Project Budget, Fixed Limit of Design and Construction Cost, and Guaranteed

Maximum Price.

3.5.8 SCHEMATIC DESIGN PHASE: The Design/Build Entity and its Design Build Entity’s

Architect/Engineer shall review the design program furnished by the Principal Representative, including the approved Facilities Program Plan, to ascertain the requirements of the Project and shall refine the design program in accordance with Exhibit C Request for Proposal, reviewing and confirming the understandings of these requirements and other design parameters with the

Principal Representative. Based on the mutually agreed upon design program and the Fixed Limit of Design & Construction Cost, the Design/Build Entity shall prepare, for acceptance by the

Principal Representative, Schematic Design Documents consisting of drawings, outline specifications and other documents illustrating the scale and relationship of Project components.

Schematic Design Documents shall be prepared in sufficient detail and number to come to an agreement on the basic design of the Project.

3.5.9 At intervals appropriate to the progress of the Schematic Design Phase, the Design/Build Entity shall provide the Principal Representative with copies of all materials, documents, and studies necessary to permit the Principal Representative to monitor, review, provide input to, and any necessary acceptance of, the Schematic Design Phase in progress and completed components thereof. This reviewing process shall be scheduled in a manner that allows the Principal

Representative adequate time so as to cause no delay to the Project. The Design/Build Entity shall respond in writing to the Principal Representative's comments resulting from this reviewing process.

3.5.10 At the completion of the Schematic Design Phase, the Design/Build Entity shall:

a) Provide ( ) complete sets and (1 pdf) complete set of drawings, outline specifications and construction materials, and such other documents necessary for the Design/Build Entity to prepare an estimate of the cost of construction. Pdf files must be titled to exactly match paper set;

b) Prepare and submit to the Principal Representative a design & construction cost estimate which will serve as a Statement of Probable Cost.

c) Provide Electronic files in an electric media format that conform to the latest requirements of the Principal Representative’s drawing standards.

3.5.11 The Design/Build Entity shall also prepare a written report, accompanied by drawings, setting forth the following as a minimum:

a) Analysis of the structure as it relates to the approved codes as defined in Exhibit K, including responses to the State's Code Review Agent;

b) Recommend site locations and scope of site development;

c) Correlation of spaces with approved State standards;

d) Conceptual drawings of floor plans, elevations, section, and site plan;

Rev. 01/2024 14

e) Conceptual drawings and descriptions of project plumbing, mechanical and electrical systems as necessary;

f) Area computations, gross square footage and net square footage, and volume;

g) Outline of proposed construction materials;

h) Review of time anticipated for the Construction Phase(s);

i) Written description of the bid packaging strategy and related design schedule.

3.5.12 The above Schematic Design data shall be subject to the acceptance in writing by the Principal

Representative, and State Buildings Program.

3.5.13 The Design/Build Entity shall also prepare a written report at the end of the Schematic Design

Phase summarizing the Design/Build Entity’s value engineering activities. If at the completion of the Schematic Design phase the Estimate of Design & Construction cost exceeds the applicable portion of the Project Budget, Fixed Limit of Design & Construction Cost or Guaranteed Maximum

Price, the Design/Build Entity, including the Design Build Entity’s Architect and Engineer shall work together to revise the design in a manner that brings the Project back within the applicable portion of the Project Budget, Fixed Limit of Design & Construction Cost or Guaranteed Maximum

Price at no additional cost to the Principal Representative.

3.5.14 DESIGN DEVELOPMENT PHASE: Based on the written acceptance of the Schematic Design

Documents and any adjustments authorized by the Principal Representative in the design program or the Fixed Limit of Design & Construction Cost, if any, the Design Build Entity shall prepare, for acceptance by the Principal Representative and State Buildings Program the Design

Development Documents consisting of drawings, outline specifications, and other documents to fix and describe the size and character of the entire Project as to architectural, structural, mechanical, and electrical systems, materials, and such other elements as may be appropriate.

The Design Development Documents shall be developed in sequence replicating the proposed

Bidding Packages.

3.5.15 At intervals appropriate to the progress of the Design Development Phase, the Design Build Entity shall provide the Principal Representative with copies of all materials, documents, and studies necessary to permit the Principal Representative to monitor, review, provide input to, and any necessary acceptance of, the Design Development Phase in progress and completed components thereof. This reviewing process shall be scheduled in a manner that allows the Principal

Representative adequate time so as to cause no delay to the Project. The Design/Build Entity shall respond in writing to the Principal Representative’s comments resulting from this reviewing process.

3.5.16 At the completion of the Design Development Phase, the Design Build Entity shall provide:

a) ( ) complete sets and (1 pdf) complete sets of drawings, outline specifications and construction materials, and such other documents necessary for the Design/Build Entity to prepare an estimate of the cost of design & construction cost. PDF files must be titled to exactly match paper set.

b) Provide Electronic files in an electric media format that conform to the latest requirements of

Principal Representative’s drawing standards.

3.5.17 The Design/Build Entity shall prepare a written report and drawings outlining in detail Design

Development Documents from the accepted Schematic Design study. The report, when submitted for acceptance by the Principal Representative shall include as a minimum:

Rev. 01/2024 15

a) Analysis of the structure as it relates to the approved codes defined in Exhibit K, including responses to the State's Code Review Agent;

b) Site development drawings, defining the…