illinois tollway construction contracts 101
TRANSCRIPT
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Illinois Tollway Construction Contracts 101
July 12, 2012
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Move Illinois Program
TAKE CARE OF EXISTING SYSTEM NEEDS
ILLINOIS ROUTE 53/120 EXTENSION
JANE ADDAMS MEMORIAL TOLLWAY
(I-90)
ELGIN O’HARE WEST BYPASS
I-294/I-57 INTERCHANGE
ILLIANA EXPRESSWAY
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Tollway Construction Contracts 101
} Webinar purpose } Presenters } Materials covered } Materials not covered } Questions and answers
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How To Do Business with the Tollway
} Getting started with construction contracts } Accessing required documents } Understanding bid process and contract documents } Submitting your bid
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Goods and Services
} Opportunities posted at www.purchase.state.il.us } Illinois Procurement Bulletin (IPB)
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Bid Letting Schedule
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Tollway Contract Process Timeline
Springfield Notice to proceed/construction begins
BID OPENING
Prior to Bid Opening After Bid Opening
Advertisement of Bids Duration: 2-6 weeks
Pre-Bid Meeting
Contract Addenda/Addendum Up to 5 days before bid
Tollway Board Approval Duration: Up to 30 days
Conditional Notice of Award Duration: 2-4 weeks
Procurement Policy Board Duration 4-6 weeks
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Notification of IPB Bid Opportunities
} Email notifications www.purchase.state.il.us
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Tollway Bid Opportunities and Resources
} www.illinoistollway.com/doing-business
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Locating the Documents
Online access–www.illinoistollwayplanroom.com
Accurate Repro 630-428-4433
Ask for “Plan Room”
There is no charge to view some of the source documents, but there is a charge to print contract documents for bidding purposes
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Register to Access Documents
} www.illinoistollwayplanroom.com
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Inside the Plan Room
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Inside the Plan Room
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Pay Items List (P-Pages)
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Prequalification–Registration and Authorization
} Illinois Department of Transportation
} www.dot.state.il.us/const/ prequalapp.html
} 217-782-3413
Prequalification must be maintained each year. The State of Illinois has requirements that must
be met or updated on a regular schedule.
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Multi-project Labor Agreement
} Contractors and subcontractors must be signatory } Bargaining agreements must be filed with Tollway } Wage stipulations require: § Union employees § Pay prevailing union wages
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Diversity and Strategic Development Increasing economic opportunity § Minority-owned
§ Women-owned
§ Disadvantaged businesses
§ Historically under-employed individuals
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Current Diversity Efforts
} Focus Groups } Unbundling efforts § Contracts under $5 million
} Communicate Opportunities § Email alerts
} Community outreach § Plans and specifications to assist
agencies § Networking events
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Recognized DBE Certifications
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Certification Assist Agencies } Alliance of Business Leaders & Entrepreneurs
(ABLE) } Federation of Women Contractors } American Brotherhood of Contractors Business
Development Center } Asian American Institute } Association of Asian Construction Enterprises } Black Contractors United } Chatham Business Association Small Business
Development, Inc. } National Association of Women Business
Owners } Rainbow/PUSH Coalition } Suburban Minority Contractors Association } Uptown Center Hull House } Women Construction Owners & Executives } Women’s Business Development Center
} Chicago Area Gay & Lesbian Chamber of Commerce
} Chicago Minority Supplier Development Council, Inc.
} Chicago Urban League } Cosmopolitan Chamber of Commerce } Federation of Women Contractors } Hispanic American Construction Industry
Association } Illinois Hispanic Chamber of Commerce } Chicago Women in Trades (CWIT) } Coalition for United Community
Labor Force } Englewood Black Chamber of Commerce } South Shore Chamber, Incorporated } United Neighborhood Organization (UNO) } National Organization of Minority
Engineers
www.cityofchicago.org
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Diversity and Strategic Development
} Disadvantaged Business Enterprise (DBE) } Equal Employment Opportunity (EEO) Program } Earned Credit Program (ECP)
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Disadvantaged Business Enterprise (DBE)
The DBE program includes DBE/MBE/WBE
} DBE contract goals } Utilization plans and certifications } Reviews contractors’ DBE payments } Tracks and compiles actual DBE participation data § Form 2114 § Form 0003
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Equal Employment Opportunity Program
Monitoring and Reporting
} Weekly certified payroll reports § Achieve established EEO goals
(19.6 percent minority/6.9 percent female)
} Periodic site visits § Confirm presence of reported workforce
} Referrals § Assistance meeting workforce goals–referrals
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Earned Credit Program
} Rewards initiative } Bid credits
} Diversify and expand the pool of individuals doing business with the Illinois Tollway } [email protected]
Example: Operating Engineer
$39.75 hourly wage
2,080 hours/year
$82,680 yearly wages
50% ECP percentage
$41,340 ECP credit
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Definition and Types of Bonds
} Contract Bonds § Bid Bonds-guarantees bid reliability § Performance Bonds–secure the contractor’s performance § Payment Bonds–secure payment of labor and materials
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Indemnification
} Claims arising from the work under the contract } Expenses incurred in the defense of Tollway claims
or suits
To the fullest extent permitted by law, the Contractor shall indemnify and save harmless the Tollway, its directors, officers, employees, agents and its Consulting Engineer, and the State of Illinois from any and all claims, suits, actions, costs and fees of every nature or description, arising from, growing out of, or connected with the work to be performed under this Contract.
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Scope of Insurances Contractor and Subcontractor* } Commercial General Liability } Business Automobile Liability } Worker’s Compensation Insurance } Excess/Umbrella Liability } Builder’s Risk Insurance } Railroad Insurance (as required) } Other special insurance (as required) * limits of coverage for subcontractors will be determined by contractor
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Minimum Limits of Liability
} Commercial General Liability § Not less than $1 million per occurrence and $2 million annual
general aggregate § Endorsed on a per-project basis § Coverage maintained for two years minimum
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Minimum Limits of Liability
} Commercial General Liability } Business Automobile Liability § Minimum of $1 million combined single limit per occurrence
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Minimum Limits of Liability
} Commercial General Liability } Business Automobile Liability } Worker’s Compensation § Illinois State required statutory limits § $1 million per accident employer’s liability
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Minimum Limits of Liability
} Commercial General Liability } Business Automobile Liability } Worker’s Compensation } Excess/Umbrella Liability § Not less than $25 million per occurrence and in annual
aggregate
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Minimum Limits of Liability
} Commercial General Liability } Business Automobile Liability } Worker’s Compensation } Excess/Umbrella Liability } Builder’s Risk Insurance § Contractor obtains for term of contract § Must meet General Provisions requirements § Policy limit equal to original contract award amount
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Starting the Bid Process
} Understand the bid documents § “Bid what is in the contract”
} Engineering contract documents § Plans (including Standards) § Contract Requirement Book(s) § Tollway specifications § IDOT specifications § Manuals included in contract § Addenda
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Engineering Contract Documents
} Contract plans
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Engineering Contract Documents
Contract Requirements Book “Orange Book”
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Engineering Contract Documents Page A-1 (Project Summary ) Page
Sealed bid date
Pre-bid meeting
Contract start and completion dates
Description of work
How to obtain contract plans, special provisions, and
other contract documents
Contract questions, contract information, and deadline
dates
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Engineering Contract Documents
} Addenda
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Engineering Contract Documents
} Standard drawings
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Engineering Contract Documents
} Specifications
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Hierarchy of Contract Documents
Special Provisions
Plans
Tollway Supplemental Specifications
IDOT Recurring Special Provisions
IDOT Supplemental Specifications
Standard Specifications
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Engineering Contract Documents–Manuals
} Contractor’s Quality Program Manual
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Engineering Contract Documents–Manuals
} Roadway Traffic Control and Communications Manual
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Engineering Contract Documents–Manuals
} Lane Closure Reference Guide
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NPDES Permit ILR40
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Engineering Contract Documents–Manuals
} Erosion and Sediment Control, Landscape Design Criteria
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ESC Manual–Contractor Responsibilities
} Coordinating the Pre-Construction Erosion Sediment Control (ESC) Meeting
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ESC Manual–Contractor Responsibilities
} Coordinating the Pre-Construction Erosion Sediment Control (ESC) Meeting } Providing trained inspectors to conduct the ESC
inspections
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ESC Manual–Contractor Responsibilities
} Coordinating the Pre-Construction Erosion Sediment Control (ESC) Meeting } Providing trained inspectors to conduct the ESC
inspections } Identifying the need for ESC maintenance
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ESC Manual–Contractor Responsibilities
} Coordinating the Pre-Construction Erosion Sediment Control (ESC) Meeting } Providing trained inspectors to conduct the ESC
inspections } Identifying the need for ESC maintenance } Identifying the need for changes in the ESC plan
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ESC Manual–Contractor Responsibilities
} Coordinating the Pre-Construction Erosion Sediment Control (ESC) Meeting } Providing trained inspectors to conduct the ESC
inspections } Identifying the need for ESC maintenance } Identifying the need for changes in the ESC plan } Developing the Storm Water Pollution Prevention Plan
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Contract Warranty/Surety
} Warranty against defective work } All contract work items § Period of one year
} Surety Bond } Contractor Guarantee
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Contractor Warranty
} Special Provision } Contract Bid Pay Item } Maintenance Bond
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Manufacturer’s Warranty
} Warranty on specified systems and materials…for duration period specified
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Review
} Prequalification } Bonding, indemnification, insurance } DBE requirements } Contract documents
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Bid Submittal Requirements
Contractors } Submit Certification/Financial Disclosure forms
(conflicts of interest)
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Bid Submittal Requirements
Contractors } Submit financial and conflicts of interest } Delinquent debt certification
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Bid Submittal Requirements
Contractors } Submit financial and conflicts of interest } Delinquent debt certification } Re-certification for multi-year projects
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Bid Submittal Requirements
Contractors } Submit financial and conflicts of interest } Delinquent debt certification } Re-certification for multi-year projects } Copy of all subcontracts, values exceed $25,000
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Bid Submittal Requirements
Contractors } Submit financial and conflicts of interest } Delinquent debt certification } Re-certification for multi-year projects } Copy of all subcontracts, values exceed $25,000 } Subcontractor Agreement with Subcontractor
Certification Disclosure
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Qualifications of Bidder
s
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Disqualifiers
Two Public Acts § PA 095-971 establishes certain registration requirements and
campaign contribution restrictions for state vendors and bidders
§ PA 096-795 makes significant revisions to the Illinois Procurement Code and places new requirements on vendors and bidder
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Bid Communication Requirements
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Disqualifiers
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} Two public acts § PA 096-795 makes significant revisions to the Illinois
Procurement Code and places new requirements on vendors and bidders
§ PA 095-971 establishes certain registration requirements and campaign contribution restrictions for state vendors and bidders
} Prohibited bidders and contractors } Omission of the following–Disclosures, Board of Elections,
Anticipated Subcontractors
Disqualifiers
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Subcontractor Considerations
} Subcontractor’s must be approved } Contractor’s self-performance must be more than 35% } Subcontractor cannot have delinquent debt } D/M/WBE firm must maintain valid certification
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Preparing a Bid
} Bid process and procedures } What’s included in a bid: § Administration § Contingencies § Safety § All inclusive (Expect no change orders) § Profit
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Pay Items List (P-Pages)
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Bid Question and Answer Opportunities
} Pre-bid meeting
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Bid Question and Answer Opportunities
} Pre-bid meeting } Other opportunities to ask questions
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Bid Question and Answer Opportunities } Pre-bid meeting } Other opportunities to ask questions } Community Resources for responding to bids § African American Contractors Association § Black Contractors United § Chicago Minority Supplier Developer Center § Chicago Urban League § Federation of Women Contractors § Hispanic American Construction Industry Association § Illinois Hispanic Chamber of Commerce § Latin American Chamber of Commerce § Rainbow Push Coalition § Rock Valley College/Procurement Technical Assistance Center § Suburban Minority Contractors Association
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Resources for Responding to Bids } ILLINOIS PTAC AT COLLEGE OF DUPAGE
Lisle, Illinois 630/942-2184
} ILLINOIS PTAC AT NORTH BUSINESS & INDUSTRIAL COUNCIL (NORBIC) Chicago, Illinois 773/594-9292
} ILLINOIS PTAC AT ILLINOIS HISPANIC CHAMBER OF COMMERCE (IHCC) Chicago, Illinois 312/492-9960 Provides services to all Illinois-based businesses and is not limited to Hispanic-owned businesses
} ILLINOIS PTAC AT WOMEN’S BUSINESS DEVELOPMENT CENTER (WBDC) Chicago, Illinois 312/853-3477 Provides services to all Illinois-based businesses and is not limited to women-owned businesses
} ILLINOIS PTAC AT COLLEGE OF LAKE COUNTY Grayslake, Illinois 847/543-2025
} ILLINOIS PTAC AT ROCK VALLEY COLLEGE Rockford, Illinois 815/921-2091
} ILLINOIS PTAC AT HEARTLAND PARTNERSHIP Peoria, Illinois 309-495-5907
} ILLINOIS PTAC AT BLACK HAWK COLLEGE Moline, Illinois 309/797-2806
www.ildceo.net
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Competency of Bidders
} Statement of experience and financial condition
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Competency of Bidders
} Statement of experience and financial condition } Sworn statement identifying key management and
supervisory personnel
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Competency of Bidders
} Statement of experience and financial condition } Sworn statement identifying key management and
supervisory personnel } Proposed subcontracted portions
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Competency of Bidders
} Statement of experience and financial condition } Key management and supervisory personnel } Proposed sublet portions } Value of uncompleted work
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Bidder’s Certificate of Eligibility
} The following conditions apply: } Financial rating: § Equal or exceed–total estimated project value
} Contractor appropriate work ratings § 50 percent minimum–estimated project cost
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Proposal Requirements and Conditions
} Submit on Tollway furnished Proposal Form } Acceptance conditioned on bidder furnishing Contract
Bonds executed by a Surety } Proposal § Individual § Partnership § Corporation § Joint Venture
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Proposal Guaranty
} Mandatory inclusion in proposal } Guaranty in the amount equal to 5 percent of the total
proposal amount } Payable to the order of the Tollway § Bank draft § Cashier’s check § Certified check § Bid Bond
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Contractor
} Contractor § Meet prerequisites § Comply with all requirements § Secure bonding, indemnification and insurance § Prepare all documents
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Subcontractors “Tips”
} Select an area of focus
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Subcontractors “Tips”
} Select an area of focus } Know scope and quote all items
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Subcontractors “Tips”
} Select an area of focus } Know scope and quote all items } Understand DBE paperwork
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Subcontractors “Tips”
} Select an area of focus } Know scope and quote all items } Understand DBE paperwork } Know the schedule
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Subcontractors “Tips”
} Select an area of focus } Know scope and quote all items } Understand DBE paperwork } Know the schedule } Contact the Project Manager with questions
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Subcontractors “Tips”
} Select an area of focus } Know scope and quote all items } Understand DBE paperwork } Know the schedule } Contact the Project Manager with questions } Attend the pre-bid meeting
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Subcontractors “Tips”
} Select an area of focus } Know scope and quote all items } Understand DBE paperwork } Know the schedule } Contact the Project Manager with questions } Attend the pre-bid meeting } Submit final questions
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Subcontractors “Tips”
} Select an area of focus } Know scope and quote all items } Understand DBE paperwork } Know the schedule } Contact the Project Manager with questions } Attend the pre-bid meeting } Submit final questions } Download a plan holders list
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Respond to Bid
} Sealed bids
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Respond to Bid
} Sealed bids } Lowest responsive and responsible bid awarded
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Respond to Bid
} Sealed bids } Lowest responsive and responsible bid awarded } You won the bid… Now what?
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Review
} Prequalification } Bonding, indemnification and insurance } DBE requirements } Contract documents } Final bid submittal } Sample Contract Requirement Book § also known as the “Orange Book”
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Disclaimer } The Illinois Tollway presents this webinar solely as a courtesy to the construction
contractor community. With respect to this presentation, the Tollway states the following: i. it contains only general information from the Tollway and is not directed at any individual
party (or parties), nor with respect to any particular solicitation for service to the Tollway;
ii. it is not intended to be relied upon, other than for general informational purposes, when submitting a response to a formal solicitation;
iii. it is not presented to impart legal advice to any party, and the Tollway recommends that any party consult its own attorney or other advisor(s) prior to submitting a bid;
iv. the laws, regulations and Tollway practices mentioned in this presentation are for informational purposes only, subject to change at any time, and may be interpreted or applied in manners differently than as presented herein; and
v. the Tollway assumes no duty to update any party, and therefore no party should expect to receive same, regarding any change or development in laws, regulations or Tollway practices.
} In addition to the foregoing, the Tollway specifically informs all parties that their participation in this webinar, or review of this presentation, shall have no bearing on or guarantee of award of future business from the Illinois Tollway.”
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THANK YOU THANK YOU
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Helpful Resources } www.illinoistollway.com
} www.dot.state.il.us
} www.cityofchicago.org
} www.aptac-us.org
} www.ildceo.net
Illinois Tollway
Illinois Department of Transportation
City of Chicago
Association of Procurement Technical Assistance Centers
Illinois Department of Commerce and Economic Opportunity