Title 39

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• Title 39
• UA Projects Under 50,000.

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What has UA been doing on public works projects
under 50,000?

• During the 2006 calendar year, the University of
  Alabama issued purchase orders for approximately
  250 individual projects.
• During the 2006 calendar year, the University of
  Alabama issued purchase orders for the above
  listed projects exceeding 3.7 million dollars
  with the average cost of each project being
  approximately 15,000.00 while utilizing the
  services of over 60 different contractors.

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What has UA been doing on public works projects
under 50,000?

• During the 2007 calendar year, the University of
  Alabama has already issued purchase orders for
  approximately 60 individual projects.
• During the 2007 calendar year, the University of
  Alabama has issued purchase orders in excess of
  6000,000.00, with an average cost of each
  project being approximately 10,000.000.

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Title 39 Public Works LawGeneral Guidelines for
Projects 50,000 and Under

• Definition of Public Works
• The construction, repair, renovation, or
  maintenance of public buildings, structures,
  sewers, waterworks, roads, bridges, docks,
  underpasses, and viaducts as well as ay other
  improvement to be constructed, repaired,
  renovated, or maintained on public property and
  to be paid, in whole or in part, with public
  funds or with financing to be retired with public
  funds in the form of lease payments or otherwise.

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Title 39 Public Works LawGeneral Guidelines for
Projects 50,000 and Under

• Under 50,000 Projects Exempt under Title 39 Bid
  Requirement
• The following are not required for under 50,000
  projects
• Performance Bond
• Payment Bond
• Bid Guarantee
• Formal Advertising of sealed bids
• Very Important No public work as defined in
  Title 39 Public Works law shall be split into
  parts involving sums of 50,000 or less for the
  purpose of evading the requirements of this
  section.

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Title 39 Public Works LawGeneral Guidelines for
Projects 50,000 and Under

• Requirements for Projects 50,000 and under
• Generally, three (3) written quotations will be
  required for each project. Exceptions will be
  considered upon review of special circumstances
  and approved by the Purchasing Manager for
  Facilities.
• To expedite final payment, a notice of final
  completion of the project will be published one
  time in a newspaper of general circulation in the
  county of the contracting agency and a notice of
  final completion will be posted on the Purchasing
  Departments bulletin board for one week the
  contractor is required to verify under oath that
  all bills have been paid in full. Final
  settlement with the contractor may be made at any
  time after the notice has been posted for one
  entire week.

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Title 39 Public Works LawGeneral Guidelines for
Projects 50,000 and Under

• Daily Operating Guidelines
• A published notice of final completion of each
  project as stipulated in Title 39 for under
  50,000 projects is required even when the
  primary contractor has not subcontracted any
  portion of the work.
• The following statement must appear on all
  purchase orders issued for under 50,000 Public
  Work projects
• Pursuant to Title 39, Public Works Law, this
  project is exempt form the sealed bid
  requirements, since it is less than 50,000.

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Quick Reference Guide to Procedures For Title 39
Projects Under 50,000.

• University Department submits a request to
  initiate a project.
• University Facility and Construction
  Administration Departments review the request to
  decide whether the work will be performed
  in-house or contracted with an outside
  contractor.
• If the project is to be assigned to an outside
  contractor, a University Project Manager is
  assigned to the project.
• UA Project Manager develops specifications,
  contacts possible contractors, and conducts a
  site inspections of the project with interested
  contractors to discuss requirements.
• Contractors submit written quotes to the UA
  Project Manager.

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Quick Reference Guide to Procedures For Title 39
Projects Under 50,000.

• UA Project Manager reviews written quotes to the
  UA Project Manager.
• The selected contractors insurance is reviewed
  to ensure compliance with University
  requirements.
• A purchase order is issued to the successful
  contactor.
• At completion of project, contractor submits
  notice of completion of project and invoice for
  payment.
• a legal notice will be placed in the Tuscaloosa
  News by the University for one day, advertising
  the completion of this projects and will be
  posted outside the Purchasing Department for one
  week before final payment is released to the
  contractor.

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Insurance Requirements
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Insurance Requirements (continued)
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• UA Construction Projects Over 50,000
• Title 39

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• I. Advertisement for Bids
• a. Advertise for 3 consecutive weeks in
  Tuscaloosa News
• b. State a description of the project
• c. State that the plans and specifications are on
  file for examination at UA and at specified Plan
  Rooms
• d. State the procedure for obtaining Plans and
  Specifications
• e. State the time and place bid will be opened
• f. Identify if Pre-Qualification is necessary
• i. PQ packets available for GCs and Subs
• ii. Deadline to return the packets
• iii. Notification of those approved as
  Pre-Qualified
• g. Bid notification system sign up after session

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• II. Plans Specs
• a. GCs - can obtain with a deposit that is
  refundable within 10 days after bid opening if in
  good condition
• Subcontractors can obtain for cost of
  reproduction paid to Architect
• III. Requirements for bidding
• a. Must be Pre-Qualified if required
• b. Must have a current Alabama General
  Contractors License and show proof thereof
• c. Must place with their bid 5 of their bid but
  not greater than 10,000 in the form of a
• i. Cashiers check for said amount
• ii. Bid bond for said amount executed by a Surety
  Company duly authorized and qualified to do so in
  Alabama
• d. Bid must be Responsible and Responsive
• i. Responsible if they meet the
  Pre-Qualification procedures and Criteria (job
  specific)
• ii. Responsive submits a bid that complies with
  the terms and conditions of the invitation for
  bids
• e. Awarding Authority (UA) has the right to
  reject any and all bids if it is in the best
  interest of the University

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• IV. Exclusions from bidding must not perform
  any of the Work or subcontract it
• a. Architects
• b. Engineers
• c. Construction Management
• d. Program Management
• Project Management
• V. Insurance Requirements if awarded a project
  (all in bid documents)
• a. Commercial General Liability (CGL)
• b. Automobile Owned/Non-owned
• c. Workers Compensation
• d. Builders Risk or Installation Floater
• e. Owners Contractors Protective Liability
  (OCP)

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• VI. Bonds required if awarded a project
• a. Performance Bonds 100 of the contract price
• Payment Bonds 50 of the contract price
• VII. Payments during the project through
  close-out
• a. Materials UA pays direct to achieve Sales
  Tax savings
• b. GC monthly draws
• i. Once a month during project
• ii. Retainage
• 1. 5 of adjusted contract amount until 50
  complete
• 2. 2.5 from 51 - 100 complete
• c. Closeout of project
• i. Must provide closeout documents agreed on at
  beginning of project (standard closeouts)
• ii. Must advertise in Tuscaloosa News for 4
  consecutive weeks
• iii. After all closeouts received and punchlist
  items are approved by Architect and 4 weeks
  advertising is d one GC may submit final pay
  request for retainage