Construction Administrator prepares an Approval to Award Contract package: Campus to submit package (components listed below) and report bid savings, even though bid savings are retained by campus. Print out a report from the California Contractors State License Board (CSLB) online contractor license database
(https://www2.cslb.ca.gov/OnlineServices/CheckLicenseII/checklicense.aspx). This will verify that contractor has current license with no restrictions from contracting, and also provides contractor"s legal name; check if contractor name per CSLB matches name on prequalification letter and on the agreement forms, as many contractors use DBAs (doing business as). If contractor uses a DBA, all docs should reflect full name, i.e. "A. Teichert & Son, Inc. dba Teichert Construction."
Joint Venture (JV): Be aware the names of all JVs should also be checked against the license, as these firms are prequalified individually, using their individual licenses, not as a JV. The CSU Prequalification Program Administrator may not be aware of the JV at the time of prequalification. Business and Professions Code, section 7029.1, requires the license of the JV to be in place at the time of award. For example, "McCarthy Building Companies, Inc." and "Clark Construction Group California LP" have prequalified individually and possess a JV license in the name of "Clark/McCarthy A Joint Venture".
Debarment (DIR): Access following DIR website to confirm that the low bidder is not on the DLSE list of debarred contractors (http://www.dir.ca.gov/dlse/debar.html).
Approval: Construction Administrator submits the package to the authorized approving authority (per campus mgmt plan) for review and approval. If package is complete and acceptable, the approving authority signs the Approival to Award memo in the place indicated on the form.
Notice of Intent to Accept Bid Letter: There is no policy in public works that the Contract/Construction Administrator must issue a five-day Notice of Intent to Accept Bid to the bidders. Contract/Construction Administrator shall use the following Notice of Intent to Award Bid Letter.
Notice of Intent to Award Bid Letter (Award Letter): this letter, signed by the authorized approving authority transmits to the Contractor for signature the Contract Documents, which include: agreement form, performance bond, payment bond, certification, and the payee data record (STD204). When Contractor returns all counterparts of the contract docs, Construction Administrator reviews them as follows:
Approval to Award Package: cover memo with approval signature block, bid abstract, statement of finances, CPDC 2-7 and 2-7.5, agreement certification, contractor license and DIR registration verification, DLSE debarments.
Notice of Intent to Award Letter: letter signed by approved authority transmitting contract documents (2 pg agreement, payment bond, certification, payee data record) to contractor for signature.
CSURMA, CPDC and Alliant established the BRIP for all major capital outlay projects, and this program includes builders risk insurance and self insurance for earthquake coverage. A builder"s risk policy is not a liability policy; it is a policy covering property, i.e. structures and building materials. Contractors bid the project without this coverage, and are responsible for the deductibles. Maximum coverage is $50,000,000 per occurrence, in excess of the deductibles.
Enrollment: Campuses must enroll their projects to obtain builder risk insurance coverage by submitting an application contained in the Construction Insurance database on the MetaBIM website (https://calstate.metabim.com/dash/caps/brip/Default.htm). The optimum time to enroll the project into the BRIP database is when Construction Administrator/Campus advertises the project. Once Notice to Proceed is issued, Construction Administrator must update the database online and upload the NTP.
Approval of Enrollment: Chancellor"s Office Construction Management staff will review and approve all enrollments.
CPDC Invoicing of Premiums: CPDC will invoice all projects for the initial BRIP premium, taxes and fees, and the seismic fund (self insurance program*) at the end of the quarter in which the project is enrolled. For projects with a construction cost greater than or equal to $5,000,000 upon enrollment, CPDC will invoice the final premium amount due after the project is complete and the coverage has been closed. Projects with a construction cost of less than $5,000,000 will not be invoiced a second time when the coverage has been closed.
Updates: The Construction Administrator is responsible to update the project during construction to adjust the completion date as necessary and the contract amount and construction cost. Refer to the document, "BRIP Information and Procedures", for more information (available at http://www.calstate.edu/cpdc/CM/BRIP.shtml).
Builders Risk Application: The following project classifications will require special approval by the insurance carrier. For these projects, campuses shall submit the Builders Risk Application to Alliant:
Examples of structural alterations include: work such as moving or removal of load bearing walls or supports; the installation of new stairwells or elevator shafts within a building; the construction of additional stories on top of an existing structure; foundation work/underpinning; or the restoration of buildings; or structures damaged by fire, windstorm, collapse, or other work of similar nature.
Public Contract Code, section 7105 Contract General Conditions, Article 4.06-c
CSURMA, CPDC and Alliant established the OCIP, which is required for all major capital outlay projects with a construction cost of $10 million or more, and this program includes the following coverages: workers compensation, employers liability, commercial general liability, professional liability, and contractors pollution liability.
Application and Enrollment: Campuses must enroll their projects to obtain OCIP coverage by submitting a CSU OCIP Project Identification Sheet (application) to Alliant, which may be found on the OCIP website (http://www.calstate.edu/cpdc/CM/OCIP.shtml). The optimum time to submit the project for enrollment into the OCIP is when bidding of the prime contractor or prime contracting team occurs, as CSU must include certain OCIP documents into the bidding documents (Bid, RFQ, RFP).
Contract General Conditions, Article 4.06-b.
BRIP Procedure, Oct. 2016 (download from BRIP website above) Builders Risk Application