PROFESSIONAL PROCUREMENT & ADMINISTRATION

1. PROFESSIONAL CONTRACTS

The design of a project is either performed by the University or by a Design Professional. If by the Design Professional, design is performed either under

• a Specific Contract for Professional Services or

• an Open Ended Contract for Professional Services

a. Specific Contract for Professional Services. Currently, for the design of a specific project, the University performs all the procedures for the procurement of a Design Professional, including advertisement, review of proposals, selection of the Design Professional, negotiations with the Design Professional, and execution of the contract

b. Open Ended Contract for Professional Services. Design Professionals holding Open End Contracts are either procured by the Chancellor’s Office or the University.

• Centrally Held Open End Agreements. Currently, the Chancellor’s Office provides a limited number and type of Professional Services under Open End Agreements. These Agreements have been utilized by the Universities for certain projects. Individual Work Orders are written against these Agreements by the Office of the Chancellor or by the University under the supervision of the Construction Support Office.

• University Held Open End Agreements. Predominantly, the Universities individually procure their own Design Professionals under Open End Agreements for various types of architectural and engineering services.

• Term of the Agreement. Currently, Open End Agreements consists of 2 initial years, with 2 options for renewal of 2 years each, for a maximum of 6 years.

• Agreement Limits. Current limits placed on Open End Agreements for Professional Services are as follows:

Compensation Limit $475,000 Per Year Individual Work Limit $100,000 Per Project

Limits are exceeded as approved and amended by the Chancellor’s Office.

The above contract forms and their limits are those that are currently used by the System. The System regularly reviews the procurement of Professionals in order to improve the efficiency of procurement by the Universities within Act 57 requirements, whether specific procurement by an individual University, regional procurement by several Universities, or central procurement by the Chancellor’s Office. The System is expected to develop additional types of specific, regional, and central procurements.

Issued April 2003

_____________________________________________________________________________________________

Engineering / Architectural Instructions for Facilities Projects Chapter 2.4 Chapter 2 – The Process Of Construction Contract Procurement Page 6 of 35 Chapter 2.4 – The Design Phase

2. PROFESSIONAL’S SCOPE OF WORK

The Scope of Work for design services is developed and contracted for as follows:

• After a Design Professional has been appropriately selected, the University will issue a Request for Proposal that includes a Scope of Work. The University may note any exceptions to the EA Manual.

• The Design Professional will develop a Fee Proposal for the Scope of Work developed by the University. The Fee Proposal may include clearly noted revisions to the Scope of Work that should first be discussed with the University.

The Fee Proposal should not exceed the expectancies of the Scope of Work.

• The University and the Design Professional will negotiate and determine the final Fee Proposal for a negotiated Scope of Work that is to be included in the Contract Agreement or Individual Work Order.

During the process of the work, both the Design Professional and the University must be aware of and keep in mind the negotiated Scope of Work that was agreed upon and included in the Agreement.

In discussing and requesting any services during the process of the work, the University should determine if the services are part of the negotiated Scope of Work or if services could be considered to be additional work.

Any additional work approved by the University and performed by the Design Professional must be included in an appropriately executed Amendment to the Contract Agreement or Individual Work Order.

3. PROFESSIONAL’S SCHEDULE

a. Design Professional’s Adherence to Schedule

The Design Professional is expected to adhere to the Time Schedule that was agreed to and included in the Professional’s Agreement with the University. The Agreement includes remedies for a Design Professional’s failure to adhere to the schedule, if the failure is the fault of the Design Professional. Those remedies, as stipulated in the Professional’s Agreement, may include:

• amending the schedule and directing the Professional to expeditiously proceed with the design of the Project, in which case the System may hold the Professional responsible for any costs attributable to the delay

• termination of the Agreement for default of the Professional, in accordance with the provisions of the General Conditions of the Agreement.

The Design Professional’s ability or inability to meet the Time Schedule should be reflected in the University’s written review of the Design Professional’s performance.

b. University’s Performance Under The Agreement

The University should be aware of aspects of the University’s work that may affect the Professional’s performance, such as, length of time required to review design submissions. If the University exceeds any prescribed time limits for review, there must be sufficient and documented justification, otherwise, the University could become part of the cause of delays in completion of the design.

_____________________________________________________________________________________________

Engineering / Architectural Instructions for Facilities Projects Chapter 2.4 Chapter 2 – The Process Of Construction Contract Procurement Page 7 of 35 Chapter 2.4 – The Design Phase

4. PROFESSIONAL’S FEE & MULTIPLE BASE BIDS

When using Multiple Base Bid Formats, whether Additive, Deductive, or Matrix forms, and when using Alternate Items, the basis for the Architect’s Fee must be considered with respect to providing a fair and reasonable fee for the preparation of all the necessary designs, whether they are selected for construction or not.

In order to prepare Bid Documents that clearly represent the Project and the intent of all base Bids to the Bidders, the Design Professional may need to produce additional designs, specifications, and drawings to show all Base Bid variations.

The Professional’s Design Fee negotiated for a Project should be based on the total design value to include all Base Bids, whether the Base Bid forms include Additives, Deductives, Matrices, or Alternates.

The University should recognize that if a Project is awarded that is not the largest Scope Of Work that has been designed by the Design Professional and desired by the University, then the Design Professional’s Fee will be a larger percentage of construction than if the desired Project was obtained. See example below:

Example: The Design Professional provides Deductive Base Bid Designs that result in the following bids and award:

Base Bid 1 = $600,000 Largest Scope of Work Base Bid 2 = $550,000

Base Bid 3 = $500,000 Least Scope of Work Awarded Project If the Design Professional’s Fee is $50,000, the fee should not be solely evaluated as a percentage of Base Bid 3 (10% of Awarded Project), but could be evaluated as percentage of the Base Bid 1 (8.3% of Awarded Project). In evaluating any fee, remember that the Design Professional was required to design multiple Base Bids (multiple Scopes of Work), not just the awarded Base Bid.

Issued April 2003

_____________________________________________________________________________________________

Engineering / Architectural Instructions for Facilities Projects Chapter 2.4 Chapter 2 – The Process Of Construction Contract Procurement Page 8 of 35 Chapter 2.4 – The Design Phase

This Page Blank

_____________________________________________________________________________________________

Engineering / Architectural Instructions for Facilities Projects Chapter 2.4 Chapter 2 – The Process Of Construction Contract Procurement Page 9 of 35 Chapter 2.4 – The Design Phase