FAR Part 36 Flashcards
Construction and Architect Engineer Contracts
Part 36
Construction and Architect Engineer Contracts
Part 36 Construction and Architect Engineer Contracts
Overview of FAR Part 36 - Construction and Architect-Engineer Contracts
Purpose: Establishes policies and procedures for construction and architect-engineer (A-E) contracts (FAR 36.000).
Key Sections:
36.1 General
36.2 Special Aspects of Contracting for Construction
36.3 Two-Phase Design-Build Selection Procedures
36.5 Contract Clauses
36.6 Architect-Engineer Services
36.7 Standard and Optional Forms for Contracting for Construction, Architect- Engineer Services, and Dismantling, Demolition, or Removal of Improvements
Part 36 Construction and Architect Engineer Contracts
Subpart 36.1 - General
Purpose: Provides general policies and procedures for construction
and A-E contracts (FAR 36.101).
Key Features:
Defines the scope and application of construction and A-E contracting policies
(FAR 36.102).
Establishes requirements for using government-furnished property in construction contracts (FAR 36.103).
Part 36 Construction and Architect Engineer Contracts
Subpart 36.2 - Special Aspects of Contracting for Construction
Purpose: Addresses unique aspects of construction contracting (FAR
36.201).
Key Features:
Guidelines for the preparation of contract specifications and drawings (FAR
36.202).
Requirements for site investigations and conditions affecting the work (FAR 36.203).
Part 36 Construction and Architect Engineer Contracts
Subpart 36.3 - Two-Phase Design-Build Selection Procedures
Purpose: Establishes procedures for two-phase design-build selection
(FAR 36.301).
Key Features:
Phase One: Evaluation of technical approach and qualifications (FAR 36.302).
Phase Two: Evaluation of detailed technical and price proposals (FAR 36.303).
Part 36 Construction and Architect Engineer Contracts
Subpart 36.5 - Contract Clauses
Purpose: Lists specific contract clauses for construction and A-E
contracts (FAR 36.501).
Key Features:
Mandatory and optional clauses for construction contracts (FAR 36.502).
Clauses addressing safety, inspection, and changes (FAR 36.503).
Part 36 Construction and Architect Engineer Contracts
Subpart 36.6 - Architect-Engineer Services and
Subpart 36.7 - Standard and Optional Forms
Purpose: Provides policies for procuring A-E services and outlines standard forms (FAR 36.601, FAR 36.701).
Key Features:
Procedures for selecting A-E contractors (FAR 36.602).
Standard forms for contracting and administrative processes (FAR 36.702).
Contracting Methods for Construction and A&E Contracts
Contracting officers shall acquire construction using sealed bid procedures for construction contracts performed in the United States fi the conditions in
6.401(a) apply.
Contracting officers shall acquire architect-engineer services by negotiation, and select sources in
accordance with applicable law, Subpart 36.6, and agency regulations.
Disclosure of the Magnitude of Work
Advance notices and solicitations shall state the magnitude of the requirement ni terms of physical characteristics and estimated price range.
In no event shall the statement of magnitude disclose the government’s estimate.
Disclosure of the Magnitude of Work
The estimated price should be described in terms of one of the following price ranges:
Less than $25,000
Between $25,000 and $100,000
Between $100,000 and $250,000
Between $250,000 and $500,000
Between $500,000 and $1,000,000
Between $1,000,000 and $5,000,000
Between $5,000,000 and $10,000,000
More than $10,000,000
Contract Types for Construction Work
Generally, firm-fixed-price contracts shall be used to acquire construction.
They may be priced:
* On a lump-sum basis
* Alump sum is paid for the total work or defined parts of the work
* On a unit-price basis
* Aunit price is paid for a specified quantity of work units
* Using a combination of these two methods
Fixed-price contracts with economic price adjustment may be used if:
* Such a provision is customary ni contracts for the
type of work being acquired, or
* When omission of an adjustment provision would
preclude a significant number of firms from
submitting offers or would result in offerors including unwarranted contingencies in proposed prices.
Two-Phase Design-Build
Design
* Defining the construction requirement
(including the functional relationships and technical systems to be used, such as architectural, environmental, structural,
electrical, mechanical, and fire protection), producing the technical specifications and drawings, and preparing the construction cost estimate
Design-bid-build
* The traditional delivery method where design and construction are sequential and contracted for separately with two contracts and two contractors
Design-build
* The combination of design and construction ni a single contract with one contractor
This type of partnership can reduce time, yield better construction cost estimates and therefore save money, provide stronger guarantees, and allocate additional project risk to the private sector.
Differing site conditions
Subsurface or latent physical conditions at the site which differ materially from those indicated in this contract; or
Unknown physical conditions at the site, of an unusual nature, which differ materially from those ordinarily encountered and generally recognized as inherent in work of the character provided
for in the contract
fI differing site conditions cause an increase or decrease in the contractor’s cost, or the time required for performance, an equitable adjustment shall be made and the contract modified in writing
Liquidated Damages
Liquidated damages are:
* Compensation to the government for probable damages
Liquidated damages are not:
* Punitive
* Negative performance incentives
The rate must be a reasonable forecast of just compensation
for the harm caused by late delivery or untimely contract performance
Use liquidated damages clauses only when:
* The time of delivery or timely performance is so important that the government may reasonably expect to suffer
damage fi the delivery or performance is delinquent, and
* The extent or amount of such damage would be difficult or impossible to estimate accurately or prove
Architect-engineer services
Services which include professional services of an architectural or engineering nature that are required to be performed or approved by a person licensed,
registered, or certified to provide such services
Associated with research, planning, development, design, construction, alteration, and repair of real property; and other related professional services, such as studies and surveys
Source Selection for A&E Contracts
An architect-engineer evaluation board is established, composed of people who, collectively, have experience in architecture, engineering, construction, and government and related acquisition matters.
Members shall be appointed from among highly qualified professional employees of the agency or other agencies, and private practitioners of architecture, engineering, or related professions.
The selection authority (designated by Head of Agency) shall review the recommendations of the evaluation board and shall, with the advice of appropriate technical and staff representatives, make the final selection
Al firms on the final selection list are considered “selected firms” with
which the contracting officer may negotiate in accordance with FAR Subpart 36.606.
Forms
SF 1442
Solicit and award construction contracts over SAT
OF 347
For construction contracts below the SAT
SF 252
For fixed-price AE services in the U.S.
Contracting officers shall acquire construction using
sealed bid procedures for construction contracts performed in the United States if the conditions in 6.401(a) apply.
Contracting officers shall acquire architect-engineer services by negotiation.
B. SPECIAL ASPECTS OF CONTRACTING FOR
CONSTRUCTION (FAR 36.2)
An independent government estimate of construction costs shall
be prepared and furnished to the contracting officer for each proposed contract and contract modification anticipated to exceed the simplified acquisition threshold.
Advance notices and solicitations shall state the magnitude of the requirement in terms of physical characteristics and estimated price range.
In no event shall the statement of magnitude disclose the government’s estimate.
B. SPECIAL ASPECTS OF CONTRACTING FOR
CONSTRUCTION (FAR 36.2)
In general, no contract for the construction of a project shall
be awarded to the firm that designed the project or its subsidiaries or affiliates.
Also, it is generally prohibited to have cost-reimbursement contracts operating concurrently with fixed-price contracts on the same site.
Agencies are required to implement high-performance sustainable building principles for design, construction, renovation, repair, commissioning, operation and maintenance, management, and demolition of federal buildings.
