Oklahoma Administrative Code › Title 260 - Office of Management and Enterprise Services › Chapter 65 - Construction and Properties › Subchapter 17 - Construction Management Procedures and Requirements › Section 260:65-17-9 - Fee negotiation and contracts

Current through Vol. 41, No. 20, July 1, 2024
(a) In accordance
				with the qualifications-based ranking of firms to perform construction
				management services in 260:65-21, the Department shall request a fee proposal
				from the highest ranking firm.
(b)
				Upon receipt of the written fee proposal, the Department shall hold fee
				negotiations in a manner consistent with the selection criteria.
(1) The Department shall negotiate a contract
				with the highest qualified firm at compensation determined in writing to be
				fair and reasonable.
(2) In
				establishing the construction management fee, the Department shall take into
				account the estimated value of the services to be rendered and the scope,
				complexity and professional nature of the services
(3) In the event the Department is unable to
				negotiate a satisfactory contract with the firm considered to be the most
				qualified, at a price determined to be fair and reasonable, negotiations with
				that firm shall be formally terminated. The Department shall then undertake
				negotiations with the second most qualified firm, beginning with a formal
				request for a fee proposal from that business. Failing accord with the second
				most qualified business, the Department shall formally terminate negotiations
				with that firm. This process shall continue, with proposals received from and
				negotiations held with the next most highly qualified firm, until such time as
				a contract is signed with a qualified firm or the procurement process is
				terminated and a new request for qualifications is initiated.
(4) In general, pre-construction services are
				required on all types of construction management contracts. The fee for these
				services should be negotiated as a lump sum amount and should be based on the
				scope and duration of services.
(5)
				For Construction Management/At-Risk (CMAR), there are essentially two phases of
				the contract.
(A) Phase One commences
				following completion of fee negotiations for pre-construction services.
				Pre-construction services include all activities by the construction manager up
				to the point at which the design is far enough along for the construction
				manager to establish a Guaranteed Maximum Price (GMP), this should be at 95%
				completion of drawings and specifications. The point in time when the GMP can
				be established will vary from one type of project to another. Included in the
				GMP quoted by the construction manager are the construction manager's fees for
				administering the construction contract (project fee) and the fee to cover the
				General Conditions for construction.
(B) Approval of the GMP advances the project
				from Phase One of construction management services to Phase Two. This is
				accomplished through issuance by the Department of the executed GMP Amendment
				Exhibit, which shall also serve as the Notice to Proceed.
(i) Accompanying the GMP Amendment Exhibit,
				the Construction Manager/At-Risk will be required to furnish 100% performance,
				payment and defect bonds, in an amount equal to the GMP. Worker's Compensation,
				All Risk, Property and General Liability insurance shall be required.
(ii) Non approval of the GMP allows the
				Department to terminate the services of the construction manager or to
				renegotiate, as required.
(6) When individual work packages are bid as
				a lump sum, the CM's contract for that portion of the work converts from a GMP
				to a lump sum. Once all work packages have been bid, the construction manager's
				contract becomes all lump sum.
(7)
				In the event that the GMP is exceeded after all bids are received from
				subcontractor trades, the construction manager and the Department must
				determine whether individual work packages need to be revised and then rebid in
				order to reduce cost. As an alternative, the Department may allow an adjustment
				to the GMP in order to allow the construction manager to award all work
				packages.
(8) In administering the
				construction contract, the construction manager will adhere to Oklahoma public
				bidding laws in advertising and award of various work packages for a project.
				The estimated value of a work package will be published with the advertisement
				to bid.
(9) Because the
				construction manager is "at risk" for the total contract amount, they are
				permitted to self-perform portions of the work, provided that they
				competitively bid the work as a lump sum (each work package) under the same
				terms and conditions as the other bidders. If the construction manager decides
				to bid a work package, they must declare this intent during the pre-bid meeting
				held by the Department.
(10) In the
				award of subcontracts, the construction manager will award to the lowest
				responsible bidder. To be considered a "responsible bidder" the offeror must
				meet the minimum pre-qualification requirements, if any, that may be defined in
				the contract bid documents. An offeror shall meet the minimum pre-qualification
				requirements and complete the qualifications form that will be included as part
				of the bid package.
(11)
				Procurement of project components costing less than the statutory amount
				established in 61 O.S., Section 103 may be accomplished by receipt of written
				bids pursuant to 61 O.S., Section 103. The Department may approve and direct
				the Construction Manager to prepare written bid solicitation for such items and
				furnish to at least three known suppliers. The solicitation shall clearly state
				the requirements for products delivery and installation, if applicable, and
				shall require the written quotes to be returned to the Department or the
				Department's agent by a specified date and time.