Standard Operating Procedure
I.
Title: Use of Purchase Orders for Small Construction Projects
II.
Purpose: Provide guidelines on the use of purchase orders for construction projects that
are under $25,000.00 when other project delivery methods are unavailable, i.e., Job Order
Contracts, TIPs, BuyBoard, or other pre-qualified procurement methods and to ensure
vendor adherence to UTA requirements on wage rates, safety, insurance, and trade
licensure (Exhibit A). It is preferred by Business and Financial Services that the selected
vendor agree to a one-time, lump sum payment.
III.
Actions (Chronological Order)
Construction Projects Up To & Including $4,999.00
1. PMCS Project Manager identifies vendor to provide services and sends the attached
Exhibit A of requirements to vendor.
2. Vendor submits proposal to PMCS Project Manager along with copy of Insurance
Certificate evidencing adequate coverage as stated in Exhibit A.
3. PMCS Project Manager accepts proposal and submits vendor proposal, insurance
certificate, and sufficiently-detailed scope of work to Business and Financial
Services, Procurement and Warehousing.
4. Procurement and Warehousing issues Purchase Order that includes verification of
vendor’s acceptance of Exhibit A requirements.
Construction Projects $5,000.00 Up To & Including $24,999.00
1. PMCS Project Manager submits sufficiently-detailed scope of work to Business
and Financial Services, Procurement and Warehousing.
2. Procurement and Warehousing submits Request for Qualifications to at least three
(3) acceptable vendors that includes Exhibit A requirements and notice of vendor’s
acceptance of a one-time, lump sum payment.
3. Procurement and Warehousing receives bids and insurance certificate from vendors
and verifies adequate insurance coverage.
4. Procurement and Warehousing issues Purchase Order to vendor with lowest bid
that includes verification of vendor’s acceptance of Exhibit A requirements.
IV.
References - Exhibit A – University of Texas at Austin Building Construction
Purchase Order Requirements
Revision Date : August 2015
Page 1
EXHIBIT A
University of Texas at Austin Building Construction Purchase Order
Requirements
Article 1. Wage Rates
1.1
1.2
1.3
1.4
Wage Rates. Contractor shall not pay less than the wage scale of the various classes of labor as shown
on the prevailing wage schedule provided. The specified wage rates are minimum rates only. Owner is
not bound to pay any claims for additional compensation made by any Contractor because the Contractor
pays wages in excess of the applicable minimum rate contained in the Contract. The prevailing wage
schedule is not a representation that qualified labor adequate to perform the Work is available locally at
the prevailing wage rates.
Wage Rate Determination. The prevailing wage schedule is determined by Owner in compliance with
Tex. Gov’t Code, Chapter 2258. Should Contractor at any time become aware that a particular skill or
trade not reflected on Owner’s prevailing wage schedule will be or is being employed in the Work,
whether by Contractor or by Subcontractor, Contractor shall promptly inform ODR of the proposed wage
to be paid for the skill along with a justification for same and ODR shall promptly concur with or reject
the proposed wage and classification. Contractor is responsible for determining the most appropriate
wage for a particular skill in relation to similar skills or trades identified on the prevailing wage schedule.
In no case, shall any worker be paid less than the wage indicated for laborers.
Penalty for Violation. Contractor, and any Subcontractor, will pay to the State a penalty of sixty dollars
($60.00) for each worker employed for each day, or portion thereof, that the worker is paid less than the
wage rates stipulated in the prevailing wage schedule.
The following wage rates are to be used for all projects at The University of Texas
at Austin located in Travis County, Texas.
PREVAILING WAGE DETERMINATION
TRAVIS COUNTY/AUSTIN AREA
The University of Texas System
Office of Facilities Planning and Construction
DATE: December 31, 2014
CONSTRUCTION TYPE: BUILDING
AREA: TRAVIS COUNTY, AUSTIN AREA
BUILDING CONSTRUCTION TRADE
CLASSIFICATION
Carpenter
Concrete Finisher
Drywall/Ceiling Installer
Electrician
Elevator Mechanic
Fire Proofing Installer
Flooring Installer
Glazier
Revision Date : August 2015
PREVAILING
WAGE RATE
$16.00
$14.00
$14.00
$17.96
$30.65
$14.00
$14.75
$16.00
Page 2
Heavy Equip Operator
Iron Worker
Laborer
Light Equip Operator / Driver
Mason/Bricklayer
Painter
Pipefitter
Piping/Ductwork Insulator
Plumber
Roofer
Sheetmetal Worker
Sprinkler Fitter
Tile Setter
Waterproofer
$14.39
$17.00
$12.00
$13.38
$21.00
$13.13
$19.63
$16.25
$19.63
$14.00
$19.50
$15.04
$18.00
$14.00
1. Wages shown are for entry level, minimum wages for each classification
and do not include fringe benefits.
2. Unlisted classifications needed for work not included within the scope
of the classifications listed may not be added after award. The job
classifications are not inclusive of all possible trades on the construction
project.
1.5
It is the responsibility of the Contractor to classify the worker in accordance with the
published classifications, and demonstrate that workers are paid commensurate with
determined rates.
1.6
All other projects administered by and for The University of Texas at Austin, but
located outside of Travis County, shall use the corresponding “Davis Bacon” Wage
Rates.”
Revision Date : August 2015
Page 3
Article 2.
2.1
Insurance Requirements
Insurance Requirements. Contractor shall carry insurance in the types and amounts indicated in
this Article for the duration of the Contract. Failure to maintain insurance coverage, as required, is
grounds for suspension of Work for cause.
2.1.1
Workers’ Compensation. Insurance with limits as required by the Texas Workers’
Compensation Act and Employer’s Liability Insurance with limits of not less than:
$1,000,000.00 each accident
$1,000,000.00 disease each employee; and
$1,000,000.00 disease policy limit
Policies must include (a) Other States Endorsement to include TEXAS if business is domiciled
outside the State of Texas, and (b) a waiver of all rights of subrogation in favor of Owner.
2.1.2
Commercial General Liability Insurance. including premises, operations, independent
contractor’s liability, products and completed operations and contractual liability, covering, but
not limited to, the liability assumed under the indemnification provisions of this Contract, fully
insuring Contractor’s (or Subcontractor’s) liability for bodily injury (including death) and
property damage with a minimum limit of:
$500,000.00 per occurrence
$500,000.00 general aggregate
$500,000.00 products and completed operations aggregate; and
Coverage shall be on an “occurrence” basis.
Article 3.
3.1
3.2
Article 4.
Construction Safety
OSHA Standards. It is the duty and responsibility of Contractor and all of its Subcontractors to be
familiar with, enforce and comply with all requirements of Public Law No. 91-596, 29 U.S.C. § 651 et.
seq., the Occupational Safety and Health Act of 1970, (OSHA) and all amendments thereto.
Injuries. In the event of an incident or accident involving outside medical care for an individual on or
near the Work, Contractor shall notify ODR and other parties as may be directed promptly, but no later
than twenty-four (24) hours after Contractor learns that an event required medical care.
Licensing of Trades. Contractor shall comply with all applicable provisions of State law related
to license requirements for skilled tradesmen, Contractors, suppliers and or laborers, as necessary to
accomplish the Work. In the event Contractor, or one of its Subcontractors, loses its license during the
term of performance of the Contract, Contractor shall promptly hire or contract with a licensed provider
of the service at no additional cost to Owner.
End of Exhibit A
Revision Date : August 2015
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