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Prepare to be a Construction Contractor Doing Business with Department of Enterprise Services for General Contractors and Subcontractors May 22, 2014

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Page 1: Prepare to be a Construction Contractor Doing Business with Department of Enterprise Services for General Contractors and Subcontractors May 22, 2014

Prepare to be a Construction Contractor

Doing Business with Department of Enterprise Servicesfor General Contractors and Subcontractors

May 22, 2014

Page 2: Prepare to be a Construction Contractor Doing Business with Department of Enterprise Services for General Contractors and Subcontractors May 22, 2014

Design and Construction Project Management Energy Performance Contracting We serve a number of major state agencies:

- Community Colleges - 34 campuses- Department of Corrections- Department of Social and Health Services- Department of Veterans Affairs- Washington State Patrol- Department of General Administration- Approximately 20 additional small agencies

Engineering and Architectural Services

Page 3: Prepare to be a Construction Contractor Doing Business with Department of Enterprise Services for General Contractors and Subcontractors May 22, 2014

Workload for the 15-17 Biennium is expected to be:

More than $500 million in work

Approximately 300 projects Capital Budget not yet finalized

Volume of Work

Page 4: Prepare to be a Construction Contractor Doing Business with Department of Enterprise Services for General Contractors and Subcontractors May 22, 2014

Title 39 of the Revised Code of Washington (RCW).

All work is directly or indirectly advertised publicly depending on the size of a project.

Method of contracting depends on the size and nature of the project.

Public Works Laws

Page 5: Prepare to be a Construction Contractor Doing Business with Department of Enterprise Services for General Contractors and Subcontractors May 22, 2014

Design – Bid – Build- Limited Public Works (< $35,000)

- Small Works Roster (< $300,000)

- Advertised General Contractor / Construction

Manager (GC/CM) (> $10 million) Design – Build (> $10 million) Job Order Contracting (< $350,000)

Public Works Contracting

Page 6: Prepare to be a Construction Contractor Doing Business with Department of Enterprise Services for General Contractors and Subcontractors May 22, 2014

Design–Bid–Build

Designer Public Entity

General Contractor

Sub-contractors

Contractor Selection Process Here

Page 7: Prepare to be a Construction Contractor Doing Business with Department of Enterprise Services for General Contractors and Subcontractors May 22, 2014

GC/CM

Designer Public Entity

General Contractor

Sub-contractors

Contractor Selected Early in Design

Subcontractor Selection Process

Page 8: Prepare to be a Construction Contractor Doing Business with Department of Enterprise Services for General Contractors and Subcontractors May 22, 2014

Design - Build

Designer

Public Entity

General Contractor

Sub-contractors

Contractor Selected Early in Design

Subcontractors Selected by GC

D-B Consultant

Page 9: Prepare to be a Construction Contractor Doing Business with Department of Enterprise Services for General Contractors and Subcontractors May 22, 2014

Job Order Contracting

Public Entity

General Contractor/ Designer

Sub-contractors

On-Call Contractor Selected

Designer

Separate Designer Optional

Page 10: Prepare to be a Construction Contractor Doing Business with Department of Enterprise Services for General Contractors and Subcontractors May 22, 2014

View upcoming projects at: http://www.des.wa.gov/services/facilities/Construction/Consultants/Pages/EASUpcomingProjects.aspx

View projects out for bid at: https://fortress.wa.gov/ga/apps/EASBids/BidCalendar.aspx

Projects are also advertised in the Daily Journal of Commerce and in the local newspaper.

Look Ahead

Page 11: Prepare to be a Construction Contractor Doing Business with Department of Enterprise Services for General Contractors and Subcontractors May 22, 2014

Documents are posted at designated plan holder centers. See “Plan Centers” under heading, “Construction: Consultants, Contractors, Project Managers” at: http://www.des.wa.gov/about/FormsPubs/Pages/Forms.aspx#Construction

Paper copies can be obtained from the designer.

Bid Documents

Page 12: Prepare to be a Construction Contractor Doing Business with Department of Enterprise Services for General Contractors and Subcontractors May 22, 2014

Contractors for some projects <$300,000 are bid via the Small Works Roster (SWR)

To get on the SWR, see: http://www.des.wa.gov/services/facilities/Construction/Contractors/Pages/EASSmallWorksRoster.aspx

Small Works Roster

Page 13: Prepare to be a Construction Contractor Doing Business with Department of Enterprise Services for General Contractors and Subcontractors May 22, 2014

DES has four JOC contracts identified to cover certain regions in the state:– Statewide– Northwest Region– Southwest Region– Eastern Region

Job Order Contracts

Page 14: Prepare to be a Construction Contractor Doing Business with Department of Enterprise Services for General Contractors and Subcontractors May 22, 2014

JOC contracts (cont.):

Each JOC has a limit of $4 million per year of work they can perform.

JOC can only perform 10% of the work with the remaining 90% of work subcontracted out.

Job Order Contracts

Page 15: Prepare to be a Construction Contractor Doing Business with Department of Enterprise Services for General Contractors and Subcontractors May 22, 2014

Must carefully follow the Instructions to Bidders in the documents

Bid Bond or Bid Security is required Other details:

- Acknowledge any addenda- List major subcontractors- Sign the bid- Be on time

Bid Openings

Page 16: Prepare to be a Construction Contractor Doing Business with Department of Enterprise Services for General Contractors and Subcontractors May 22, 2014

Bidders must have a current state of Washington contractors license.

Some specialties require special licenses.

Contractor License

Page 17: Prepare to be a Construction Contractor Doing Business with Department of Enterprise Services for General Contractors and Subcontractors May 22, 2014

A 100% Payment and Performance bond is required.

An exception can be made for projects less than $35,000.

The performance bond must be submitted before the state will sign the construction contract.

Performance Bond

Page 18: Prepare to be a Construction Contractor Doing Business with Department of Enterprise Services for General Contractors and Subcontractors May 22, 2014

A minimum level of liability insurance will be specified in the bid documents.

Contractors must submit a certificate of insurance before the state will sign the contract.

Insurance

Page 19: Prepare to be a Construction Contractor Doing Business with Department of Enterprise Services for General Contractors and Subcontractors May 22, 2014

Contractors on public works projects must pay prevailing wages

An “Intent to Pay Prevailing Wage” form must be submitted for all trades prior to invoicing for those trades

At the end of the job, the “Affidavit of Wages Paid” form must be submitted for all trades

Prevailing Wage Requirements

Page 20: Prepare to be a Construction Contractor Doing Business with Department of Enterprise Services for General Contractors and Subcontractors May 22, 2014

For projects >$1,000,000 a level of 15% apprenticeship participation is required.

The requirement is an aggregate for the overall project based on total labor hours.

Exceptions can be granted for some circumstances.

Apprenticeship Requirements

Page 21: Prepare to be a Construction Contractor Doing Business with Department of Enterprise Services for General Contractors and Subcontractors May 22, 2014

Most projects have a 10% MBE and 6% WBE voluntary requirement.

DES requests MWBE data for the general and subcontractors on the third monthly invoice and at project completion.

Diverse Business Enterprises

Page 22: Prepare to be a Construction Contractor Doing Business with Department of Enterprise Services for General Contractors and Subcontractors May 22, 2014

Diverse Business Enterprises (cont.)Executive Order 13-01 Veterans

Transition Support. Each executive cabinet agency shall

set a target of awarding at least 5% of all procurement contracts to certified veteran-owned businesses.

Diverse Business Enterprises

Page 23: Prepare to be a Construction Contractor Doing Business with Department of Enterprise Services for General Contractors and Subcontractors May 22, 2014

Questions?

Contact:

Dwayne Harkness, Assistant Program Manager

360-407-9339

[email protected]&

Nancy Deakins, Assistant Program Manager

360-407-9333

[email protected]

Thank you