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

Workload for the Biennium is expected to be:  More than $500 million in work  Approximately 300 projects  Capital Budget not yet finalized Volume of Work

 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

 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

Design–Bid–Build DesignerPublic Entity General Contractor Sub-contractors Contractor Selection Process Here

GC/CM DesignerPublic Entity General Contractor Sub-contractors Contractor Selected Early in Design Subcontractor Selection Process

Design - Build Designer Public Entity General Contractor Sub-contractors Contractor Selected Early in Design Subcontractors Selected by GC D-B Consultant

Job Order Contracting Public Entity General Contractor/ Designer Sub-contractors On-Call Contractor Selected Designer Separate Designer Optional

 View upcoming projects at: onstruction/Consultants/Pages/EASUpco mingProjects.aspx  View projects out for bid at: idCalendar.aspx idCalendar.aspx  Projects are also advertised in the Daily Journal of Commerce and in the local newspaper. Look Ahead

 Documents are posted at designated plan holder centers. See “Plan Centers” under heading, “Construction: Consultants, Contractors, Project Managers” at: Pages/Forms.aspx#Construction  Paper copies can be obtained from the designer. Bid Documents

 Contractors for some projects <$300,000 are bid via the Small Works Roster (SWR)  To get on the SWR, see: onstruction/Contractors/Pages/EASSmall WorksRoster.aspx Small Works Roster

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

 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

 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

 Bidders must have a current state of Washington contractors license.  Some specialties require special licenses. Contractor License

 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

 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

 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

 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

 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

Diverse Business Enterprises (cont.)  Executive Order 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

Questions? Contact: Dwayne Harkness, Assistant Program Manager & Nancy Deakins, Assistant Program Manager Thank you