Project Performance Report: When requested by CPDC, campus shall submit a Project Performance Report at completion of the project. Submit the Capital Project Management Checklist, completed per the Project Performance Report Instructions.
Project Audit: Audit and Advisory Services (A&AS) may conduct a project audit on the project, and CPDC/Campus will be notified when the project is selected for audit. Campus is encouraged to open their project files, and be responsive to auditor's questions. A&AS will issue a preliminary audit report to the campus, and request review and submittal of Management Responses. A final audit report will be presented to the Board of Trustees, and filed on A&AS website.
SUAM Section 9836
Claims for disputed work, contract time delay, and assessment of liquidated damages are common at the completion of a construction project. The Construction Administrator should conduct a final review and negotiation session for a Contractor's claim(s) at the completion of the project in an attempt to resolve any hard costs associated with changed work and to address the merits of a contractor's claim(s). Time overrun should be addressed, and any merits for time extension may be negotiated with final claims. This process leads to minimizing the cost of contract closeout and avoids the possibility of excessive costs, if the recommendations of a Contractor's Claims Review Board are rejected and litigation is started. The closeout claims negotiation process follows:
Claims Review Board: If a contractor’s claim occurs and was not resolved through negotiations between the contract administrator and the contractor, then an official hearing may be scheduled following the completion of all work and acceptance of the project. The hearing is scheduled after completion so that only one such hearing will be held for a given project. The hearing shall be relatively formal and structured but without legal counsel. The results will be in writing and transmitted formally by the campus vice president of administration, or the assistant vice chancellor of CPDC if CPDC administered the project.
CPDC has two written procedures for administering a Contractor’s Claims Review Board hearing. Part I describes the process for filing a claim and describes the Claims Review Board process and may be shared with the contractor. Part II is an internal document that describes the duties of the Board participants, and should not be shared with the contractor. It is important to have three members on the Board who have a good working knowledge of construction and the CSU contract general conditions. It is also important to have a neutral board who has not been involved with the project or decisions leading to the claim(s). This may be difficult for a campus-administered project without relying on CPDC or other campuses to compose a neutral board. Written claims review board procedures have been prepared for campus or CPDC application. They propose composing a board with CPDC professional staff and campus staff, as necessary, to result in an appropriately composed, neutral board. Refer to Appendix D for Claims Review Board Procedures, Parts I and II (contract general conditions Articles 5.02 and 7.01).
SUAM Section 9833-9833.04
Guarantee Quality & Performance, Form 702.19
Guarantee: Each public works contract awarded by the Trustees has a guarantee period of one year, during which time the performance bond is in force. Certain individual items of work or equipment have longer guarantee periods. During the guarantee period, the campus is responsible to police the facility for malfunctions, and notify contractor of all items judged to be contractor's responsibility, and is issued in writing a 'Notice to Perform'. Refer to SUAM 9840-9842 for more information.
Warranty Item: Though the letter of the contract requires notification of warranty items to come from the Trustees to the Contractor, the Construction Administrator is usually the most knowledgeable to communicate warranty items to the Contractor. The letter can come from the Director/AVP or Vice President if emphasis is needed, and should quote the relevant section of Contract General Conditions (Article 8) and be copied to the bonding company (only when deemed necessary and approved by General Counsel). The Contractor has ten days to perform, otherwise the Trustees may call in the bonding company, or have the campus perform the work and back-charge the Contractor.
Latent Defect: The Construction Administrator shall contact the contractor in the event of discovery of a latent defect on a project, and make arrangements for the contractor to repair the problem, pursuant to Article 8.06 of the Contract General Conditions.