Awarding the
Construction Contracts
A Guide for Project Administration
Contents
Introduction to Contract Award .......................................................................4
Attending the Bid Opening ................................................................................6
Reviewing Bids and Recommending an Award ...............................................7
Who Reviews the Bids?....................................................................................7
Evaluating the Bids...........................................................................................7
Identifying the Lowest Bidder .....................................................................8
Assessing Bidder Responsiveness ...............................................................8
Assessing Bidder Responsibleness ..............................................................9
Notifying a Rejected Low Bidder ..............................................................10
Arriving at an Award Recommendation ....................................................12
Completing the Construction Award Recommendation Form .......................12
Gaining Concurrence from Purchasing ......................................................15
Notifying the Successful Bidder .......................................................................16
About the Notice of Intent to Award ..............................................................16
Scheduling a Project Orientation Meeting .................................................18
Requesting Contract Submittals .................................................................18
Additional Steps for State-Funded Projects ...................................................23
Collecting and Checking Contracts and Submittals......................................24
Receiving Contracts and Submittals ...............................................................24
Checklist for Contracts and Submittals ..........................................................24
Forwarding Contracts and Submittals ............................................................26
Preparing the Contract Approval Package ....................................................27
About the A-910 Contract Approval Form ....................................................29
Completing the A-910 Form ..........................................................................29
Assembling Contract Documents for Processing ...........................................34
Preparing the Notice to Proceed ......................................................................35
About the Notice to Proceed...........................................................................35
Requesting Additional Submittals ..................................................................37
Preparing the Notice of Commencement ........................................................38
About the Notice of Commencement .............................................................38
Figures
Awarding the Construction Contracts
Revised June 2002
Page 1
1
Notice to Rejected Bidder
2
Construction Award Recommendation Form
3
Notice of Intent to Award
4
Sample Agenda for Project Orientation Meeting
5
Bid Extension Letter
6
A-910 Form
7
Notice to Proceed
8
Notice of Commencement
Charts
Page 2
1
Process Flow for Contract Award, Steps 1–3
2
Process Flow for Contract Award, Steps 4–7
Revised June 2002
Awarding the Construction Contracts
Changes to Awarding the Construction Contracts
Revision 2, June 2002
Changes made as part of this revision appear with a
Page
2
in the margin.
Description/Reason
13
Text change: It is no longer necessary to enter the fund number on
the Construction Award Recommendation Form. This step was
deleted from the instructions.
17
Figure change: The Notice of Intent to Award was updated to show
optional information about the project orientation meeting.
18
Text change: Information was added about the Project
Administrator’s option of scheduling a project orientation meeting.
19
Figure change: A new figure, “Sample Agenda for Project
Orientation Meeting”, was added.
Awarding the Construction Contracts
Revised June 2002
Page 3
Introduction to Contract Award
To award construction contracts, Project Administration works closely with
the Senior Financial Analyst and University Purchasing. During the
Contract Award phase, Project Administration will:
1. Attend the bid opening conducted by University Purchasing. At
this meeting, bids are opened, read aloud, and recorded.
2. Analyze the bids and make an award recommendation. Working
together, Construction Management personnel and the Senior Financial
Analyst analyze the bids for price, completeness, and compliance with
the Ohio Revised Code (ORC). They then develop an award
recommendation for Purchasing. If Purchasing agrees with the award
recommendation, a Purchasing representative signs the form.
3. Notify the successful bidder(s). Once Purchasing and Construction
Management agree on the award recommendation, the Project
Administrator sends the “Notice of Intent to Award” to each successful
bidder (Construction Contractor). Within 10 days of the notice date,
the Contractor must sign and return four Contracts for Construction;
four escrow agreements or one copy of an escrow waiver (depending on
whether the Contractor chooses to have a portion of its pay escrowed);
and all other required contract submittals.
If the project uses State funds, the Senior Financial Analyst prepares
the Capital Budget Request (CBR) for release of State funds at this
time, and the CBR is submitted to the State for approval.
4. Collect and check contracts and submittals. The Project
Administrator may either review the submittals as the Contractor
returns them by mail, or call for a meeting with the Contractor to
review the documents. In either case, the Project Administrator must
examine all submittals and work with the Contractor to ensure that
deficiencies are corrected. The Project Administrator then provides the
contracts and submittals to the Senior Financial Analyst, who checks
them to ensure compliance with ORC and University requirements.
5. Prepare the contract package, including the A-910 form, contracts,
and appropriate submittals, for internal approval.
6. Send each Contractor a “Notice to Proceed”. This notice advises the
Contractor of the date on which it can begin project work.
7. Prepare the “Notice of Commencement” for University records.
Chart 1 on the following page shows the process flow for the first three
steps of awarding construction contracts.
Page 4
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Awarding the Construction Contracts
1. Attend bid
opening
2. Analyze bids to
develop
Construction
Management's
Aw ard
Recom m e ndation
Recommend
low est bidder?
Yes
No
Yes
Submit Aw ard
Recommendation
to Purchasing
Financial Analyst
justif ies
recommendation
to Purchasing
Purchasing sends
rejection letter to
low est bidder
Bidder protest?
Decision
reversed?
Yes
No
Identif y
next-low est bidder
and repeat
analysis until a
responsive and
responsible bidder
is f ound *
University hears
bidder's appeal
(if protest f iled
w ithin 5 days)
No
Do
Purchasing
and Construction
Management
agree?
Yes
Do bidder's
bid documents
need
corrections?
No
* The University can also reject all
3. Send Notice of
Inte nt to Aw ard
to each selected
contractor, listing
needed Contract
submittals
Yes
Purchasing w orks
w ith bidder to
ensure corrections
bids and readvertise the project.
Purchasing
review s Aw ard
Recommendation
Purchasing signs
Aw ard
Recommendation
Optional: Meet
w ith Contractor(s)
to review
submittals
Chart 1: Process Flow for Contract Award, Steps 1–3
No
Purchasing and
Construction
Management
discuss and
reach consensus
Attending the Bid Opening
Outcome
All bids have been opened, read aloud, and recorded. University
Purchasing has provided a record of all bidders and bid amounts (the “Bid
Tabulation”) to the Project Administrator.
After the deadline for submitting construction bids has passed, University
Purchasing conducts the bid opening. The Project Administrator and
Associate Architect, if applicable, attend.
Sealed envelopes containing each company’s completed bid documents are
opened. Bids are read aloud and recorded by a representative of
Purchasing. After the meeting, Purchasing prepares the Bid Tabulation
spreadsheet, an official record of all bidder names and bid amounts.
Purchasing forwards a copy of the Bid Tabulation to the Project
Administrator along with copies of each company’s bid documents.
The bid opening is a public meeting, and the received bids constitute a
public record. However, although the bid opening will reveal the lowest
bidder(s), the decision to award a contract is not made until Construction
Management and Purchasing have reviewed all bids and agreed on an
award recommendation.
Reviewing Bids and
Recommending an Award
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Awarding the Construction Contracts
Outcome The Project Administrator and others have reviewed the bids and developed
a recommendation for the contract award(s). The Senior Financial Analyst
has completed the Construction Award Recommendation Form and
submitted it to Purchasing for review and concurrence.
Who Reviews the Bids?
The Project Administrator takes part in reviewing bids and developing
appropriate recommendations for the contract award(s). This effort also
requires the involvement of other individuals, including:

The Senior Financial Analyst;

The Associate Architect, if applicable; and

The Owner/Client, if appropriate based on the project.
After determining which bidder to recommend, the Project Administrator
notifies the Senior Financial Analyst of the recommendation. The Senior
Financial Analyst reviews the bid documents and, if he or she agrees with
the Project Administrator’s recommendation, prepares and signs the Award
Recommendation form. The Award Recommendation form is then
forwarded to Purchasing for review and concurrence.
Input from the Owner/Client can be desirable, especially if the bids include
alternate items that the Owner/Client must decide whether to accept or
reject.
The above individuals (the “bid review team”) work together to arrive at an
appropriate award recommendation.
Evaluating the Bids
Depending on the project, the bid review team may be considering all or a
combination of the following bid types:

Aggregate bids (a single bid is offered for all construction contracts),

Combined bids (a bid is offered for two or more of the construction
contracts), or

Separate bids for each construction trade.
The goal of bid evaluation is to identify the lowest responsive and
responsible bidder and recommend that bidder for the contract award.
While in most cases the lowest bidder will get the contract, Ohio law
provides that the lowest bid can be rejected if the award would not be in the
best interest of the University. Bids that are “nonresponsive” or
“nonresponsible” are not considered to be in the University’s best interest.
Awarding the Construction Contracts
Revised June 2002
Page 7
To evaluate bids, the team should begin by identifying the lowest bidder.
Next, the low bidder’s qualifications (“responsiveness” and
“responsibleness”) should be evaluated as described below.
Identifying the Lowest Bidder
To determine which bid is lowest, the bid review team should first decide
whether to accept any or all alternate items included with the bids. The
Owner/Client should be involved in decisions regarding alternates.
For each bidder, the total of all accepted alternates is added to the base bid
to determine the total bid amount. If no alternates are accepted, the base
alone is the total bid amount.
Once the lowest bidder is identified, the team’s next task is to determine
whether the lowest bidder is both responsive and responsible, as described
below.
Assessing Bidder Responsiveness
Responsive bidders are those whose bids address and comply with all
substantive requirements of the contract documents.
To be considered responsive, a bidder must include all of the following
required bid documents, completed and properly signed, in its Bid
Envelope:
Note:

The Bid Form,

The Bid Guaranty and Contract Bond Form, and

The Power of Attorney of the agent signing for the Contractor’s Surety
(the person or entity providing the Contractor’s bid guaranty or bond).
Bidders must submit the Responsibleness of Bidder Form either with the
Bid Envelope or, if separately, within 72 hours of the UC Senior Financial
Analyst’s request. Otherwise, the bid will be rejected. See the chapter
“Preparing for Construction Bidding” for more information about the
Responsibleness of Bidder Form.
A bidder could be considered “nonresponsive” for any of the following
reasons:
Page 8

Any of the bid documents are missing the required signatures.

The bid guaranty amount shown on the Bid Guaranty and Contract
Bond Form is insufficient (i.e., the amount shown is not the full amount
of the firm’s base bid plus alternates). However, leaving the bid
guaranty amount blank is permissible.
Revised June 2002
Awarding the Construction Contracts

The contract bond is executed by a Surety not licensed in Ohio, and the
form is not countersigned by an Ohio Resident Agent as required by the
ORC.

The bidder proposes to use a material or piece of equipment other than
the standards specified in the contract documents, and the proposed
substitution has not been approved as an equal (as described in the
Front-End Specifications).

All blanks are not completed on the Bid Form.

The Bid Form does not make clear whether bids for alternates are
additions to or deductions from the base bid.

The bidder neglects to acknowledge receipt of addenda on its Bid
Form.
Assessing Bidder Responsibleness
Responsible bidders are those who have demonstrated satisfactory
performance on previous contracts; who comply with all applicable laws,
including Equal Employment Opportunity (EEO) and wage laws; who
possess appropriate licenses and certifications; and who provide
satisfactory answers to the questions on the Responsibleness of Bidders
form.
A bidder could be considered “nonresponsible” for any of the following
reasons:

The bidder promises it will acquire a needed certification in the event it
is awarded the contract, but the bidder does not actually possess the
certification at the time it submits the bid.

The bidder has demonstrated unsatisfactory performance on a previous
University project.

The office of the Ohio Attorney General has provided information to
the University about the bidder’s past non-compliance with EEO, wage,
or other applicable laws.
Awarding the Construction Contracts
Revised June 2002
Page 9

The bidder’s experience, financial condition, legal status, management
capabilities, facilities, and/or ability to perform the contract, as outlined
in the Responsibleness of Bidder form, are not satisfactory to the
University.

The bidder’s principal place of business is located outside the tri-state
area (southeastern Indiana, northern Kentucky, and Ohio), and the state
where the business is located grants preference to contractors
headquartered in that state when awarding contracts. (This is a
provision of Ohio law [ORC 153.012].)

The bidder has an unsatisfactory safety record.
Notifying a Rejected Low Bidder
If the bid review team determines that the lowest bidder is nonresponsive
and/or nonresponsible and should not be awarded a contract, Ohio law
requires the University to notify the bidder by certified mail. Purchasing
prepares and sends this rejection letter.
Purchasing requires justification any time the lowest bidder is not being
recommended. The Senior Financial Analyst provides this justification to
Purchasing via e-mail as soon as the bid review team reaches its decision.
This e-mail message must present all the reasons the lowest bidder was
judged nonresponsive and/or nonresponsible.
An example notice sent by Purchasing to a rejected low bidder appears on
the following page as Figure 1.
Page 10
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Awarding the Construction Contracts
Figure 1: Notice to Rejected Bidder
Awarding the Construction Contracts
Revised June 2002
Page 11
Bidder’s Right to Appeal
A lowest bidder whose bid is not accepted has the right to appeal the
University’s decision. The rejected bidder must submit its protest in
writing within 5 days of the University’s rejection notice. The University
will conduct a hearing, and the bidder will have an opportunity to present
its objections.
The contract award (for an appealed contract only) must be delayed until
the University has heard and considered any appeals from rejected bidders
whose protests were filed within the time allowed.
Arriving at an Award Recommendation
If the bid review team determines that the lowest bidder is both responsive
and responsible, the team should recommend awarding the contract to that
bidder. At that point, the team can complete the Construction Award
Recommendation Form (see instructions below).
If the lowest bid is rejected because the bidder is nonresponsive and/or
nonresponsible, the Senior Financial Analyst notifies Purchasing
immediately so the rejection letter can be sent. The team can consider the
next-lowest bid and evaluate that bidder as described above; however, any
appeals from rejected bidders must be heard before another bidder is
considered.
The University also has the right to reject all bids and re-advertise the
project. The bid review team might choose this option if, for example, the
first responsive and responsible bid is priced too high.
Note:
In the event two equally qualified bidders submit the same low-bid amount,
the University has the right to choose a bidder by tossing a coin. Both
bidders can be present for this determination.
Completing the Construction
Award Recommendation Form
After determining which bidder to recommend, Senior Financial Analyst
prepares the Construction Award Recommendation Form, showing the
recommended bidder(s).
The Senior Financial Analyst signs this document to formalize the
recommendation. It is then forwarded to Purchasing for review and
concurrence.
Page 12
Revised June 2002
Awarding the Construction Contracts
The Construction Award Recommendation Form appears on the following
page as Figure 2. To complete it, follow these steps:
1. Enter the complete project name.
2. Enter the University project number.
3. Enter the quotation number.
Note:
The quotation number is issued by Purchasing; it can be found on the Price
Inquiry Package. A single quotation number is assigned to the bid package
as a whole.
4. Enter the date bids were opened.
5. Enter the Project Administrator’s name.
6. Do one of the following:


If the bid review team is recommending acceptance of separate bids
for each construction contract, enter the trade for each construction
contract in the TRADE column; or
If the bid review team is recommending acceptance of an aggregate
bid for all contracts, enter Aggregate Bid in the TRADE column.
7. Do one of the following:


For a recommendation of separate bids, enter each bidder’s name
next to its trade in the LOWEST RESPONSIVE/
RESPONSIBLE BIDDER column; or
For a recommendation of an aggregate bid, enter the bidder’s name
next to the words Aggregate Bid in the LOWEST
RESPONSIVE/RESPONSIBLE BIDDER column.
8. If any alternates are being accepted, enter a brief description of each
alternate next to the corresponding bidder in the ALTERNATES
SELECTED column. (If no alternates are being accepted, enter N/A.)
9. If any of the bids being recommended contain minor deficiencies in
paperwork, enter the vendor’s name and a brief description of the
problem in the blanks provided. (If no irregularities were identified,
enter N/A.)
Note:
Purchasing works with the bidder to ensure that all errors in bid documents
are corrected and the documents returned to the University in a timely
fashion. Purchasing and Legal also have the final determination on
whether an error is significant enough to cause rejection of the bid.
The Senior Financial Analyst must sign the recommendation before it is
forwarded to Purchasing for concurrence.
Awarding the Construction Contracts
Revised June 2002
Page 13
2
UNIVERSITY OF CINCINNATI
DIVISION OF THE UNIVERSITY ARCHITECT
CONSTRUCTION AWARD RECOMMENDATION FORM
1
Project Name:
2
Project No:
3
Quotation No:
4
Bid Opening:
Project Responsibility:
5
Construction Management is recommending the award of the following contract(s) for the above referenced
project to the lowest responsive bidder(s):
TRADE
ALTERNATES
SELECTED
LOWEST RESPONSIVE/RESPONSIBLE BIDDER
7
6
8
Bid irregularities/items which need correction prior to issuing a Notice of Intent to Award Letter:
9
VENDOR
9
DESCRIPTION OF IRREGULARITY/ISSUE
Recommended By:
Phone: 556-3157
Kimberly Miller
Senior Financial Analyst signature
Date:
Concurrence By:
Purchasing signature
Date:
s:\shareall\forms\cm\Construction_Award Recommendation Form.xls
Revised 9/26/01
Figure 2: Construction Award Recommendation Form
Page 14
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Awarding the Construction Contracts
Gaining Concurrence from Purchasing
Purchasing conducts its own review of bids after the bid opening. Before
signing its approval of Construction Management’s recommendation,
Purchasing must be satisfied that all the recommended contracts are in the
University’s best interest.
In rare cases, Construction Management and Purchasing do not agree on an
award recommendation. If this happens, the parties must meet and discuss
the difference of opinion until a consensus is reached.
Awarding the Construction Contracts
Revised June 2002
Page 15
Notifying the
Successful Bidder
Outcome
The Project Administrator has sent the “Notice of Intent to Award” to each
successful bidder. Following the instructions in this notice, bidders have
prepared and returned all required contract submittals to the University
within the allotted time frame.
If the project uses state funding, the Senior Financial Analyst has prepared
a Capital Budget Request (CBR) for the release of construction funds.
Once Purchasing and Construction Management agree on an award
recommendation (and any errors in the bidder’s paperwork have been
corrected), the bidder can be notified. The Project Administrator sends
each successful bidder a Notice of Intent to Award.
About the Notice of Intent to Award
The Notice of Intent to Award does not authorize the bidder (Construction
Contractor) to begin work. Work cannot begin until a contract has been
properly approved and a Purchase Order issued by Purchasing.
Instead, the Notice of Intent to Award advises the Contractor that the
University plans to award it a construction contract. The award is
contingent on University approval and the Contractor’s timely return of the
following documents:

Four copies of the proposed Contract for Construction (also referred to
as the “Form of Contract”), which the Contractor must sign and return
to the University within 10 days of the date shown on the Notice of
Intent to Award. (The Project Administrator or a support staff member
should include these contracts with the notice.)

Four copies of an escrow agreement or one copy of a waiver of escrow
(depending on whether the Contractor chooses to have a portion of its
pay deposited in an escrow account).

Additional documents the Contractor must forward to the University
(“contract submittals”) within 10 days of the date on the notice. These
submittals are listed and described in “Requesting Contract Submittals”
below.
An example Notice of Intent to Award appears on the following page as
Figure 3.
Note:
Page 16
The University has the right to rescind a Notice of Intent to Award.
Revised June 2002
Awarding the Construction Contracts
2
Figure 3: Notice of Intent to Award
Awarding the Construction Contracts
Revised June 2002
Page 17
Scheduling a Project Orientation Meeting
For complex or aggressively scheduled projects, the Project Administrator
may call for a project orientation meeting between prime Contractors and
University Construction Management staff. This meeting can take place
after issuance of the Notice of Intent to Award but before Contractors are
authorized to begin work.
A project orientation meeting provides the University an opportunity to
introduce and discuss administrative issues, site rules, and other matters.
If a project orientation meeting is scheduled, the Notice of Intent to Award
should specify the meeting’s date, time, and location (Figure 3) and include
a sample agenda (Figure 4).
Requesting Contract Submittals
The Notice of Intent to Award should identify all submittals the Contractor
is required to provide. At this point in the process, required submittals
include:

A valid Certificate of Compliance, issued by the Ohio Department
of Insurance, for the Surety. This certificate demonstrates that the
Surety is licensed in Ohio. (If the Surety is not licensed in Ohio, the
Certificate of Compliance must be provided for the Ohio Resident
Agent who is countersigning the bid guaranty/contract bond.)

A valid Ohio Workers’ Compensation certificate for the
Construction Contractor.

A valid Equal Employment Opportunity (EEO) Certificate of
Compliance, issued to the Construction Contractor by the Ohio Equal
Opportunity Center.

A valid Declaration of Insurance for the Construction Contractor,
showing the University as an additional insured. This submittal may be
provided on the ACORD form (a standard form insurance companies
use for this purpose).

Four copies of a signed Escrow Agreement or one copy of an
Escrow Waiver. The Contractor signs the Escrow Agreement to have
a portion of its compensation deposited in an escrow account. If the
Contractor declines the escrow account option, the Contractor signs the
Waiver of Escrow.
In addition, if the Contractor is a foreign corporation (i.e., one not
incorporated under the laws of Ohio), the following submittal is required:

Page 18
A “Certificate of Good Standing” from the Ohio Secretary of State.
This document provides evidence that the Contractor is authorized to
do business in Ohio.
Revised June 2002
Awarding the Construction Contracts
2
PROJECT ORIENTATION MEETING
AGENDA
1.
Introductions & Project Status
-UC team members and roles
-Prime Contractors project team
2.
Contract related Submittals
- Status by prime
3.
Communication Procedures
4.
Site Safety Program
- Site Safety Representative, OSHA 30 hour classes available
- Orientation and hardhat stickers
5.
Project Management Software
- Constructware overview
- Primary uses
- Users and training
6.
Project Schedule
- Schedule data that is required and how it will be implemented
- Update procedure
7.
Pay Request Process
8.
Project Submittals (Not a call for)
- Procedure
- Submittal priorities
9.
Project Security and Rules
- Vehicle ingress/egress
- Fencing and gates; guardhouses
- Deliveries: notification, limitations
- Parking
10.
Permits/Inspections (Not a call for)
- Permits required
11.
Construction Notifications
- Utility shutdowns
- Excavation (digging permit)
12.
Miscellaneous
- Drawings and specifications (incl. electronic CAD files)
13.
Questions
2
NOTE: Contractors are not authorized to make any commitments or do
6/2002
any work on this project until a “Notice to Proceed” is received.
Figure 4: Sample Agenda for Project Orientation Meeting
Awarding the Construction Contracts
Revised June 2002
Page 19
Note:
The Senior Financial Analyst will review submittals and notify the Project
Administrator of any missing submittals. See “Collecting and Checking
Contract Submittals”.
Note:
Later in the process, the Contractor will be required to provide additional
submittals. See “Preparing the Notice to Proceed.”
Note:
For the Contractor’s convenience, the Project Administrator should include
four copies of the Escrow Agreement and one copy of the Waiver of
Escrow, both modified to show the Contractor’s name and/or project
information where indicated, when sending the Notice of Intent to Award.
Templates for the Escrow Agreement and the Waiver of Escrow can be
found at S:\Shareall\Forms\CM escrow.doc and S:\Shareall\Forms\CM
escrwaiv.doc, respectively. The Contractor must provide all other
submittals.
Meeting to Review Submittals
Contractors must sign and return their submittals within 10 days of the date
shown on the Notice of Intent to Award.
The Project Administrator may choose to schedule a meeting with a
Construction Contractor or Contractors before the submittal deadline. Such
a meeting, while not required, can help keep the process moving by giving
the parties an opportunity to identify and correct errors before submittals
are due. If possible, the Senior Financial Analyst should attend this
meeting to help identify any problems with the paperwork.
The section “Collecting and Checking Contract Submittals” presents
information on what to look for when checking contract submittals.
Extending the Contract Award Period
Bids are valid for 60 days from the bid opening date. If the selected
Contractor does not return the signed contracts and the required contract
submittals promptly, this 60-day period (“contract award period”) may
expire before the contracting process can be completed. If expiration
appears likely, the University must seek the Contractor’s consent to extend
the original contract award period.
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Awarding the Construction Contracts
To notify the Contractor of a pending expiration, the Project Administrator
issues a bid extension letter. The Contractor must sign and return this letter
to indicate agreement with the extension. If the Contractor does not agree
to extend the award period, the University can take steps to award the
contract to the next-lowest responsive and responsible bidder.
About the Bid Extension Letter
The bid extension letter should do all of the following:
Note:

Identify the number of days by which the award period will be
extended (the Project Administrator should determine an appropriate
number of days)

Reference ORC 153.12, which requires that contracting parties
mutually consent to any extension of an award period

State that the Contractor’s acceptance of the extension will not change
the bid proposal amount

State that the person signing the letter must have the authority to bind
the Contractor to the agreement
The bid extension letter should also request the immediate return of any
outstanding submittals.
An example bid extension letter appears on the following page as
Figure 5.
Note:
If a contract award period is extended, the Project Administrator will need
to include the original bid extension letter and copies in the contract
approval package. See “Assembling Contract Documents for Processing”
in this chapter.
Checking Expiration Dates
Any time a contract award period is extended, the Project Administrator
must check the expiration dates of the following items to ensure all are
valid through the ending date of the new award period:

The Contractor’s Certificate of Compliance from the Ohio Department
of Insurance

The Contractor’s EEO Certificate

The Contractor’s Declaration of Insurance

The Prevailing Wage Rate Determination obtained from the
University’s Office of Contract Compliance before the bid opening
Awarding the Construction Contracts
Revised June 2002
Page 21
s:\shareall\forms\cm\extension.doc
rev. 6/97
Figure 5: Bid Extension Letter
Page 22
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Awarding the Construction Contracts
Additional Steps for State-Funded
Projects
For projects that use State funding, the Senior Financial Analyst can begin
preparing the Capital Budget Request (CBR) as soon as the lowest
responsive and responsible bidder is identified (and the amount of the
accepted bid is known). The CBR officially requests that the State release
construction funds for the project.
State-funded contracts require additional paperwork and approvals, both
within the University and at the State level. The Project Administrator,
while not directly responsible for these additional activities, must be aware
of their sequence and timing, presented below:
1. The Senior Financial Analyst prepares the CBR to request release of
construction funds.
2. The Director of Capital Projects Reporting reviews the prepared CBR
and submits it to the State for processing and approval.
3. The Ohio Board of Regents reviews the CBR and forwards it to the
State Office of Budget and Management (OBM). OBM includes
review of the CBR on the agenda for the next meeting of the
Controlling Board.
4. The Controlling Board meets to review and approve the CBR. A
University Planning representative attends the meeting.
5. The Planning representative notifies the Senior Financial Analyst (by email) that the CBR has been approved.
6. Capital Finance prepares State encumbrances for the contracts and
forwards evidence of the encumbrances to the Senior Financial Analyst.
7. The Senior Financial Analyst forwards the contracts and submittals,
along with a copy of the encumbrance, to the University’s Office of
General Counsel. (By this time, the Contract for Construction has been
routed for approval within the University as described in the section
“Preparing the Contract Approval Package”.)
8. The Assistant Attorney General or designee approves the contracts and
forwards them to Purchasing so that Purchase Orders can be issued.
The process for obtaining release of State funds is depicted on Chart 2 in
this document.
Awarding the Construction Contracts
Revised June 2002
Page 23
Collecting and Checking
Contracts and Submittals
Outcome
The Project Administrator and the Senior Financial Analyst have confirmed
that the Contractor’s signed contracts and submittals comply with
University and ORC requirements. The Contractor has corrected any errors
and returned the documents, which are then ready for internal processing
and approval.
Receiving Contracts and Submittals
As contracts and submittals come in from the Contractor (either by mail or
during an optional review meeting), the Project Administrator should check
them for completeness and accuracy before forwarding them to the Senior
Financial Analyst.
Although the Senior Financial Analyst will ultimately review all submittals
independently to ensure compliance, the Project Administrator can assist in
the process and help prevent delays by checking submittals as the
Contractor returns them.
Checklist for Contracts and Submittals
The table below presents some points to look for on returned contracts and
contract submittals. If any document does not comply, the Project
Administrator should return it to the Contractor immediately, instructing
the Contractor to correct the problem and resubmit the document.
Note:
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In addition to reviewing the Contractor’s submittals, the Project
Administrator must make sure the prevailing wage rates and the bid itself
are still valid. Prevailing wage rates include a date through which they are
valid. Contractors’ bids are valid for 60 days from the bid date.
Revised June 2002
Awarding the Construction Contracts
Checklist for Contracts and Submittals
Document name
Purpose
What to Look For
Signed contract
Once approved by the University,
becomes legal instrument of
agreement between the University
and the Contractor
 Contractor has returned four
signed copies
Department of
Insurance Certificate
of Compliance (for
Contractor’s Surety)
Proves the Surety is licensed to
work in Ohio
 Expiration date is current
(certificate has not expired
and will not expire before
award of the contract)
Ohio Workers’
Compensation
Certificate
Demonstrates Contractor’s
participation in Ohio Workers’
Compensation program
 Certificate number and dates
of coverage are shown
EEO Certificate
Demonstrates Contractor’s
compliance with Equal
Employment Opportunity laws
 Expiration date is current
(certificate has not expired
and will not expire before
award of the contract)
Declaration of
Insurance (ACORD or
IP-2 Form)
Demonstrates Contractor is
covered under an insurance policy
 University of Cincinnati is
listed as an additional insured
 Expiration date is current
(policy has not expired and
will not expire before award
of the contract)
* Escrow Agreement
Contractor chooses to have a
portion of its payment deposited in
an escrow account.
 An authorized representative
of the Contractor has signed
the last page of the document
and provided his/her title
 Contractor has returned four
signed copies
* Waiver of Escrow
Contractor chooses not to have
payment escrowed.
 An authorized representative
of the Contractor has signed
and dated the waiver and
provided his/her title
†
Demonstrates that a foreign
corporation is authorized to do
business in Ohio.
Certificate of Good
Standing from Ohio
Secretary of State
* The Contractor returns either the Escrow Agreement or the Waiver of Escrow, not both.
†
Submittal required only if the Contractor is a foreign corporation (i.e., not incorporated under the laws of Ohio).
Awarding the Construction Contracts
Revised June 2002
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Forwarding Contracts and Submittals
After checking the signed contracts and submittals (and working with the
Contractor to resolve any errors), the Project Administrator should forward
all the documents to the Senior Financial Analyst.
The Senior Financial Analyst conducts an additional review of the
contracts and submittals. If all documents are in order, the Senior Financial
Analyst notifies the Project Administrator, and the University’s internal
contract approval process can begin.
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Revised June 2002
Awarding the Construction Contracts
Preparing the Contract
Approval Package
Outcome
The construction contract(s) have been routed to the appropriate parties
within the University and signed.
The next step in the process for awarding construction contracts is to obtain
approval of the proposed contract(s) as required by University policy. To
do this, the Project Administrator prepares the A-910 Contract Approval
Form and assembles the contracts and submittals for approval routing.
Note:
Ideally, the State’s process for approving the Capital Budget Request (if the
project uses state funding) occurs as the construction contract is being
approved within the University. See Chart 2 and the section “Additional
Steps for State-Funded Contracts” for more information.
Chart 2 on the following page shows the process flow for the remaining
steps of awarding construction contracts.
Awarding the Construction Contracts
Revised June 2002
Page 27
No
Does
project use
state f unds?
Yes or No
4. Collect and
check contracts
and submittals
Corrections
needed?
Yes
Contractor
corrects and
resubmits
documents
Recheck
submittals
Forw ard submittals
to Senior Financial
Analyst f or review
and approval
Yes
Senior Financial
Analyst prepares
Capital Request f or
release of state
f unds
Complete A-910
Contract Approval
Form
Director of Capital
Projects Reporting
review s
Capital Request
and submits to
state
Assemble and route
contracts and
submittals
f or approval
Controlling Board
approves Capital
Request (UC
Planning rep
attends meeting)
Financial Analyst
f orw ards contracts,
submittals, and
encumbrance to
University Of f ice of
General Counsel
Planning rep
notif ies Senior
Financial Analyst of
Capital Request
approval
Of f ice of General
Counsel approves
contract and
f orw ards to
Purchasing
Capital Finance
prepares State
Contract
Encumbrance(s)
Purchasing issues
PCs and executed
contracts to
Contractor
5. Prepare
Contract Approval
Package
Accountant
updates OASIS;
f orw ards PCs and
contracts to
Project
Administrator
6. Issue Notice
to Procee d
to Contractor
Gray shading and dashed lines denote steps for
state-funded projects only. If the project uses
state funding, this process is occurring as
Project Administration completes steps 4 and 5.
Chart 2: Process Flow for Contract Award, Steps 4–7
7. Prepare
Notice of
Com m e nce m ent
f or internal
signatures; f ile
until requested
About the A-910 Contract Approval Form
The first two pages of the A-910 Form provide summary information about
the contract for those who will approve it. The last page includes blanks
for approval signatures.
Completing the A-910 Form
Figure 6 shows the A-910 Form. Follow these steps to complete it for a
construction contract:
Note:
A separate A-910 form is required for each proposed contract.
1A. In the Date of Initiation field, enter the current date.
Note:
1.
In the Initiating Department field, enter the Project Administrator’s
department within the University Architect Division.
2.
Enter the Project Administrator’s name and University telephone
number.
3.
Under Does this Contract call for UC to pay the other party?,
check the box next to yes and enter the account number found on the
requisition (RX) for the construction contract.
The Project Administrator prepares a “bidder” RX for each of the
anticipated prime contract types (i.e., General, Electrical, HVAC, etc.)
before the project is offered for bidding. Interim copies of each RX are
returned to the Project Administrator after processing by Capital Finance.
University Purchasing will convert the RX to a Purchase Order after the
construction contract is approved. See the chapter “Preparing for
Construction Bidding” for more information.
4.
Note:
Under Is this Contract Sponsored?, check the box next to yes or
no, as appropriate.
A sponsored contract is one that will be directly funded by an individual or
party other than the University.
5.
Under Description of Contract, complete fields A–K as follows:
A. Enter the name of the selected Construction Contractor.
B. Enter the project name, the University project number, and the type
of construction contract (e.g., “electrical”, “general”, etc.).
C. Leave this item blank.
D. Check New Agreement.
Awarding the Construction Contracts
Revised June 2002
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1A
1
2
2
3
4
5A
5B
5C
5D
5E
5F
5G
5H
5I
5J
5K
s:shareall/forms/cm/A-910.xls
Figure 6: A-910 Form (page 1)
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Revised June 2002
Awarding the Construction Contracts
6
7
Figure 6: A-910 Form (page 2)
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8
Figure 6: A-910 Form (page 3)
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Revised June 2002
Awarding the Construction Contracts
E. Enter the following under Major financial terms:
Note:

The base bid amount,

The total amount of any alternates accepted for this contract,
and

The total contract amount (base bid plus all alternates equals
contract total).
The Accountant will use the contract total entered on the A-910 to
update the project budget in OASIS. Be sure to include the base bid
plus any alternates.
F. Enter the number of calendar days allowed for project completion,
as specified in the Contract for Construction.
G. Leave this item blank.
H. Leave this item blank; the Accountant will complete.
I. Leave this item blank; the Accountant will complete.
J. Leave this item blank; the Accountant will complete.
K. Check yes and enter the RX number or Purchase Order number.
6. Under Number of originals to be signed, enter 4. Enter the Project
Administrator’s name, phone number, and mail location in the blanks
provided.
7. Complete items 7A–E only if you are submitting a sponsored contract.
8. Under Approvals, the Project Administrator must sign and date the
first line as Principal Investigator or Individual Responsible for
Agreement.
The next section describes how to assemble the completed A-910 Form,
contracts, and submittals for routing and approval steps.
Awarding the Construction Contracts
Revised June 2002
Page 33
Assembling Contract Documents
for Processing
To prepare the contract for internal routing and approval, the Project
Administrator assembles the following:

Four original, signed construction contracts (with a copy of the bid
extension letter, if applicable, attached to each)

Four Escrow Agreements or one copy of an Escrow Waiver

The completed A-910 Form (with Project Administrator’s signature
under Approvals)

The Purchase Requisition (RX) for the contract

The original bid extension letter, if applicable
The Project Administrator gives these documents to the Assistant to the
Director of Construction Management. The Assistant enters information
about the contract into a database that identifies the correct signature
routing path. The package is then assembled into a folder with a cover
sheet attached to the front for routing. It goes first to Capital Projects
Reporting for quality-assurance checking, and then to the individuals
whose signatures are required.
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Revised June 2002
Awarding the Construction Contracts
Preparing the Notice to
Proceed
Outcome
The Project Administrator has sent the “Notice to Proceed” to each
Construction Contractor. Contractors, following the instructions in the
notice, have completed and returned additional required submittals within
the time allowed.
Once a construction contract has been approved (and funds have been
released, if the project uses State funding), Purchasing issues a Purchase
Order. Purchasing then sends the Purchase Order and executed contract to
the Contractor.
Purchasing forwards a copy of the Purchase Order to the Senior Financial
Analyst, who records the Purchase Order number in OASIS. The Senior
Financial Analyst then forwards copies of the Purchase Order and contract
to the Project Administrator.
Upon receiving the Purchase Order and executed contract copies, the
Project Administrator should prepare the Notice to Proceed and send it to
the Contractor.
About the Notice to Proceed
The Notice to Proceed tells the Contractor the exact date on which it is
authorized to begin work. The notice also reiterates the contract period in
consecutive calendar days and specifies the date by which work should be
completed.
The Notice to Proceed also advises the Contractor of additional submittals
the Contractor must complete and return within 10 days of the notice date
(see “Requesting Additional Submittals”).
An example Notice to Proceed appears on the following page as Figure 7.
Awarding the Construction Contracts
Revised June 2002
Page 35
Figure 7: Notice to Proceed
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Revised June 2002
Awarding the Construction Contracts
Requesting Additional Submittals
Submittals requested with the Notice to Proceed include the following:

Contract Cost Breakdown (on State of Ohio Form ADM-5805);

Subcontractor’s Declaration (State of Ohio Input Form 26, a request for
information about any subcontractors the prime Contractor intends to
use);

Manufacturer’s Declaration (State of Ohio Input Form 27, a request for
information about any suppliers the prime Contractor intends to use);

A preliminary schedule of shop drawings and submittals;

A statement of the proposed Superintendent’s qualifications;

Evidence that the Contractor has sought authorization for electronic
transfer of payments (i.e., completed EFT application forms from the
State and/or University, as applicable);

A schedule of dates on which the Contractor’s employees will be paid
(The Contractor is responsible for keeping its wage rates current with
State prevailing wages. The schedule of pay dates should be provided
to the University’s Office of Contract Compliance); and

A Construction Schedule as described in paragraph 4.3 of the General
Conditions (this submittal is required of the Lead Contractor only).
The Project Administrator or support staff member can include Form 26,
Form 27, and the University’s electronic funds transfer application (if
required) with the Notice to Proceed. Other submittals should be initiated
by the Contractor.
Note:
The Contractor can refer to paragraphs 7.4 and 7.5 in the “Instructions to
Bidders” document, found in the Front-End Specifications, for the list of
submittals required at this point.
Awarding the Construction Contracts
Revised June 2002
Page 37
Preparing the
Notice of Commencement
Outcome
The Project Administrator has prepared the “Notice of Commencement”
documenting the project start date for University records. The notice has
been signed by the Director of Construction Management and notarized.
Preparing the Notice of Commencement is the final step in awarding
construction contracts.
About the Notice of Commencement
The State of Ohio (ORC 1311.252) requires the University to complete the
Notice of Commencement. It certifies the date on which project work
began, as well as the names of the prime Contractors and their Sureties and
Surety Agents.
Once prepared, the Notice of Commencement will be signed by the
Director of Construction Management and notarized.
An example of an executed Notice of Commencement appears on the
following two pages as Figure 8. The document can be prepared by the
Project Administrator or a support staff member. To complete it, follow
these steps:
Page 38
1A.
Enter the name of the Director of Construction Management.
1.
Enter the project name, the location of the project work site, and the
University project number.
2.
Enter “Department of Construction Management” and the
department mailing address as shown on Figure 8.
3.
Enter the name, address, and construction trade of each Prime
Contractor.
4.
Enter the name and address of the Surety and the Surety Agent for
each prime Contractor.
5.
Enter the date of the earliest contract on the project, and the name
of the Contractor.
6.
Enter the start date for project work.
7.
Enter the name and University address of the Project Administrator.
Revised June 2002
Awarding the Construction Contracts
1A
1
2
3
4
Figure 8: Notice of Commencement (page 1)
Awarding the Construction Contracts
Revised June 2002
Page 39
5
6
7
Figure 8: Notice of Commencement (page 2)
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Revised June 2002
Awarding the Construction Contracts
8.
Submit the Notice of Commencement to the Director of
Construction Management. The document will be signed and
notarized for project and department files.
The signed Notice of Commencement is kept on file. Copies are
transmitted to subcontractors and/or material suppliers only upon request.
Note:
The Notice of Commencement is not to be posted at the job site.
Awarding the Construction Contracts
Revised June 2002
Page 41