CPR, Hourly Labor Rate Worksheets: Prior to the first change order, campus shall request and receive the first two weeks of certified payroll (CPR) and the Labor Rate Worksheets for all trades from the Contractor and all subcontractors. The Labor Rate Worksheets must be checked for accuracy against the CPR. Additional certified payroll may be requested as necessary. This information is required to document the Contractor’s and subcontractors’ trades billable rates. Also note Section H - for Certified Payroll Information
Subcontractor Directory: CA shall require the Contractor to submit a Subcontractor Directory with each pay request. This will: assist in identifying whether a listed subcontractor is a subsidiary of the Contractor or whether the subcontractor is owned or partially owned by the Contractor to help safeguard against abuse of change order mark-ups; assure that all contractors are registered with the DIR; and guard against improper subcontractor substitutions.
Change Order: The Contractor shall use the Contractor Change Order Request Summary Worksheet and require its subcontractors to use the Subcontractor Change Order Request Summary for all change order requests. When the proposed need for a change is first known by the design professional, s/he shall prepare a change proposal, which is the conceptual approval form for the scope and cost, including A/E fees, and should be prepared for each change as early as possible in order to reserve funds for the proposed change.
The CA shall determine whether or not to proceed with the proposed change. No extra services are to be incurred by the design professional prior to approval. The change proposal helps eliminate unnecessary cost proposal requests to the Contractor and to control additional construction and design costs. All change proposals submitted by the contractor shall be: reviewed and processed in a timely way; checked for scope, and associated costs against approved labor rate worksheets; checked for conformance to the mark-ups as specified in the General Conditions. Contractor payments are the highest project priority.
Bid allowances are typically included in base bids or GMP proposals as estimates for work that will be completed under the base construction contract, but the exact costs or scope are indeterminate at the time of bid, or the scope has not yet been competitively bid at the time of the GMP proposal. These amounts are later adjusted to actual costs, once the work is bid to trade contractors or completed. The Trustees shall approve the scope and value for each allowance.
Allowances should be specifically included and separately listed on the bid / GMP proposal form, on the schedule of values, and referenced and defined in Division One specifications (in section 01 21 00).
A contractor may request a substitution of a subcontractor under the Subletting and Subcontracting Fair Practices Act, PCC 4100 et seq. There are nine types of subcontractor substitutions that a contractor may request under the Act. Upon receipt of Contractor's written request for substitution, citing one or more reasons listed in 4107(a), CA shall adhere to the following procedure:
Protest of substitution: If a protest is received from the subcontractor to be substituted, CA shall expeditiously call and schedule a substitution hearing. If either or both the prime contractor and subcontractor give notice that they intend to bring their attorney, then University Counsel must also attend. It is CSU's obligation to schedule a timely hearing. If the only time when all parties are available is unreasonable or too far in the future, then CA will issue a hearing notice by certified mail. In this notice CA shall give the two principal participants five working day notice (plus mailing time) of the hearing, at the time and place specified; failure to attend will waive their rights. Contact CPDC CM or University Counsel for more information on the substitution hearing as this is a formal process to which CSU staff must adhere.
Inadvertent clerical error: Under PCC 4107(a)5 and 4107.5, if the prime contractor made an inadvertent clerical error in the subcontractor list submitted with his bid, s/he has two working days after the time of the bid opening to give written notice to the CSU, the listed subcontractor and the intended subcontractor. The listed subcontractor has six working days from the time of the bid opening to submit to the awarding authority and the prime contractor its written objection. If a protest is received, CA shall timely call and hold a substitution hearing.
Other basis for substitution: PCC section 4107, failing or refusing to meet the prime contractor's bond requirements, or refusal to execute a contract. This statute requires the prime contractor to advertise its subcontractor bond requirements. Failure to do so shall preclude the prime contractor from substituting for not meeting bond requirements. Note Contract General Conditions, Article 4.04.
Subcontractor Directory: CA is required to police the use of subcontractors using the Subcontractor Directory. CGC requires Contractor to submit the Subcontractor Directory with the contract award package to the Trustees, and with each payment request that follows. CA shall compare the Subcontractor Directory with the original Expanded List of Subcontractors. If any listed firms have been substituted without approval in accordance with PCC Section 4107(a), penalties are applicable per PCC Section 4110, and SUAM Sections 9821, 9823. The listed subcontractor must perform the scope of work for which it was listed. Contractor may use another subcontractor for new scope added via change order. For GMP proposals when all trades may not have been bid at time of award, subcontractors are subject to PCC 4100 rights once they have been bid and listed on the subcontractor directory.
Penalty: The penalty for violating the provisions of the Subletting and Subcontracting Fair Practices Act is identified in PCC Section 4110. If a ten percent penalty is assessed, the monies remain in the project funds. If the violation is egregious, then this may be used as a basis of disqualification in future prequalification.