Public Contracts & Claims

Question 1

What is public procurement?

Answer 1

Public procurement refers to the process by which public entities such as governments and non-profit organizations purchase goods and services from the private sector.

Question 2

What is the purpose of codes and regulations in regard to public procurement?

Answer 2

Codes and regulations establish policies for when the government purchases from non-governmental sources

Question 3

What is the intention of the codes and regulations for public procurement?

Answer 3

• The intent is to obtain high-quality goods and services at a reasonable cost.
• To provide a fair and impartial process and seek competition to the maximum feasible degree
• to establish open and efficient procurement procedures and retain broad flexibility
• to set clear rules for evaluation and award design specifications reflecting the agency’s need to foster free information exchange

Question 4

What are some codes or organizations that provide legal framework for vertical construction (e.g. general building assembly)?

Answer 4

• Department of General services (DGS)
• DGS General conditions
• Construction and Professional Services Manual (CPSM)

Question 5

What are some codes or organizations that provide legal framework for horizontal construction (e.g. bridges, roads, and highways)

Answer 5

• Department of transportation
• Road and bridge specifications

Question 6

What is public procurement?

Answer 6

Public procurement refers to the process by which public entities, such as governments and non-profit organizations purchase goods and services from the privates sector.

Question 7

How are professional services procured under public contracts?

Answer 7

Professional services must be procured by competitive negotiation

Question 8

How is construction procured under public contracts?

Answer 8

Construction must be procured by competitive sealed bidding (with limited exceptions)

Question 9

What is the process for public contract procurement?

Answer 9

1) Invitation to bid: Request for proposal
2) Bid: Proposal
3) Agency Review & Negotiation
4) Contract Award

Question 10

How does the invitation to bid work for a public contract?

Answer 10

The Agency designs the invitation for bid/request for bid (IFB/RFB) to align with its specific needs and solicits contractors to respond.
The agency also answers questions about the bid/proposal.

Question 11

What happens during the bid/proposal phase of public contract procurement?

Answer 11

Potential contractors respond to the IFB or RFP in compliance with the specifications.

Question 12

What happens during the bid/proposal phase of public contract procurement?

Answer 12

The agency reviews the bids/proposals.
*in competitive negotiation, the agency negotiates with the top proposals.

Question 13

What happens during the contract award phase of public contract procurement?

Answer 13

The contract award is the close of the public contract procurement when the agency announces the contract award.

Question 14

What is construction management?

Answer 14

Construction management is when a contractor is hired to coordinate and administer contracts for construction services for an owner/agency.

Question 15

How is construction management procured under a public contract?

Answer 15

Construction management is procured by competitive negotiation guided by an evaluation committee.

Question 16

What tools are used to procure a construction manager?

Answer 16

• Request for Qualification (RFQ)
• Request for Proposal (RFP)

Question 17

How does a request for qualification (RFQ) work for public contracts?

Answer 17

• the agency solicits qualifications under a RFQ to evaluate potential CM’s and
• a committee evaluates the RFQ responses & selects top offers to respond to an RFP

Question 18

How does a request for proposal (RFP) work for public contracts?

Answer 18

• the committee ranks the proposals according to some criteria to create a short list of offers
• the committee negotiates with the highest ranking proposals and makes recommendations to the Agency
• the agency awards the contract to the offeror determined to provide the “best value”

Question 19

What are pre-construction services provided in a public contract?

Answer 19

Pre-construction includes assisting with developing plans, specifications, and project approach within a budget.

Question 20

What construction services are provided in a public contract?

Answer 20

Construction services are only entered into if the Agency and the CM agree, upon completion of the drawings, to a guaranteed maximum price and approved budget. The CM is “at risk” to complete the project scope on time and within the GMP.

Question 21

In regard to public contracts, what are some types of claims?

Answer 21

• change orders and scope changes
• delays and time extensions
• acceleration and overtime claims
• differing site conditions
• payment disputes and claims for additional compensation
• termination claims
• defective design or specifications force major and unforeseen envents

Question 22

What is the claims process in public contracts?

Answer 22

1) notice of intent
2) claim
3) damages
4) settlement or appeal

Question 23

When is a notice of intent to file a claim filed?

Answer 23

at the time of the occurrence or beginning of the work upon which the claim is based

Question 24

What is involved in an the actual filing of the claim?

Answer 24

submission of the claim, analysis of the claim, and entitlement

Question 25

What is required in the claims filing processes

Answer 25

proof of damages (e.g. receipts, schedule impact analysis)

Question 26

What happens at the settlement or appeal step in filing a claim?

Answer 26

The claim is resolved or a suit will be filed

Question 27

What is the statue of limitation for filing an intent to file a claim?

Answer 27

“written notice of the contractors intention to file such a claim must be given to the owner within fourteen days of the time of the occurrence or beginning of the work upon which the claim is based.