Supplementary General Conditions to Contract General Conditions for Design-Build Major Projects

[Note to Campuses: This document contains amendments to the Contract General Conditions that should be reviewed for inclusion into your project document. Remember to delete this note and the provisions that do not apply.]

● Article 32.02-a, License and Public Works Registration, subsection (2), Public Works Registration with Department of Industrial Relations, first paragraph, delete and replace with the following: (2) Public Works Registration with Department of Industrial Relations The Trustees will only issue public works bids and award public works contracts to currently registered contractors and subcontractors on the Trustees’ public works projects. All proposers and subcontractors of all tiers must register to bid public works projects with the Department of Industrial Relations (DIR), and obtain and maintain current registration numbers (Labor Code section 1725.5). Note: DIR will assess a penalty on any public works contractor who allows its registration to lapse. DIR will also assess a penalty on any proposesr who subcontracts to any contractor who is not registered with the DIR for each day the subcontractor is not registered. For more information review the DIR public works registration requirements at http://www.dir.ca.gov/Public-Works/PublicWorks.html.

●Article 32.05-b, Listing of Subcontractors, delete and replace with the following: b. Listing of Subcontractors. The Proposer shall solicit a minimum of three qualified trade contractor/subcontractors in a manner most appropriate to obtain competitive bidding. Identify in the subcontractor solicitation the construction budget for that trade, and clearly state the amount of bonds required by the subcontractors, and whether Design-Builder or the subcontractor will be responsible for the cost of the bonds. As soon as each subcontractor is selected, Proposer shall submit it to the Trustees by adding it to and resubmitting the List of Trade Contractors for Design-Build and Collaborative Design-Build Projects form, Form 701.04DB.CDB, on which Proposer shall list the subcontractor’s name, California Contractors State License Board-issued contractor license number, California Department of Industrial Relations Public Works Registration number, the location of the place of business, and the portion of Work to be done by each subcontractor performing in excess of one-half of one percent of the Work (Public Contract Code section 4100 et seq. and section 10708). For each alternative Proposer shall also list any subcontractor not included in the base contract Work subcontractor listing. Once the subcontractor is listed, the subcontractor shall have the rights provided in the Subletting and Subcontracting Fair Practices Act (Public Contract Code section 4100 et seq.). (1) Non-small Business Proposers Claiming the Small Business Preference. If a Non-small Business Proposer claims the small business preference, the Proposer shall list all subcontractors certified as California small businesses, and the total of these subcontracts shall be at least 25% of the total development price, including awarded alternatives. (2) Disabled Veteran Business Enterprises (DVBE) Participation Requirement. Proposer is required to achieve three percent DVBE participation on this Contract and may qualify for the DVBE incentive if Proposer proposes sufficient additional DVBE participation in this Contract. Trustees will calculate the DVBE incentive as follows: the Proposer’s DVBE incentive percentage times the highest technical score. Proposer is required to achieve at least its proposed level of participation at Contract Completion. Proposer shall list on the List of Trade Contractors for Design-Build and Collaborative Design-Build Projects form, the DVBEs participating in the Proposal and the dollar amount of participation by each DVBE. The total of the DVBE participation amounts that Proposer provides on the List of Trade Contractors for Design-Build and Collaborative Design-Build Projects form shall equal at least Proposer’s proposed percentage of DVBE participation. For each alternative, Proposer shall list any DVBE participating in work to be performed on the alternative. If the Trustees grant the DVBE Bid Incentive, then the total amount of DVBE participation shall equal at least the incentive percentage of the total bid price, including awarded alternatives. At Contract Completion, Proposer’s actual DVBE participation percentages shall be compared to the percentages proposed at bid. Proposer’s failure to achieve the proposed percentages may subject Proposer to penalties (as described in Article 32.12, DVBE Participation Requirement and Incentive), and/or may cause the Trustees to question the Proposer’s responsibility in future Trustees’ bids.

November, 2017 Supplementary General Conditions to Contract General Conditions for Design-Build Major Projects

(3) List of Subcontractors for Design-Build and Collaborative Design-Build Projects form. The successful Proposer shall indicate on this form the dollar amount of each small business (if the Proposer claimed the non-small business bid preference) and each DVBE participating in its proposal. (4) Subcontractor Directory After award of the contract, the successful Proposer shall provide and maintain current information requested on the Subcontractor Directory for all tiers of subcontractors working on the Project, and shall submit the Subcontractor Directory with its signed Contract and with all payment requests. All tiers of subcontractors working on the project shall register with the DIR in accordance with Article 32.02-a(2), Public Works Registration with Department of Industrial Relations.

●Article 32.10, Small Business Five Percent Proposal Advantage, delete first paragraph and replace with the following: The Trustees are granting a bid preference of five percent to all California certified small businesses and non-small businesses. The calculation of the preference is five percent of the highest technical proposal score. If a certified Small Business is the highest scoring proposer, the Trustees will not calculate the five percent proposal advantage. a. Preference for Small Businesses. In accordance with Government Code section 14835 et seq., and California Code of Regulations, Title 2, section 1896 et seq., the Trustees shall give a small business bid advantage of five percent of the highest technical proposal score to contracting firms that have been certified as a “Small Business” by the Office of Small Business & DVBE Services, in the Procurement Division of the Department of General Services. To receive the five percent advantage, certified small businesses shall: (1) Submit with the proposal a completed “Request for Small Business Five Percent Preference Certification” form, (2) Be certified Small Business upon verification in accordance with section 1896.2, having applied for certification no later than 5:00 PM on proposal due date, (3) Submit a timely and responsive proposal, (4) Be determined to be a responsible Proposer. b. Preference for Non-small Businesses. (1) Preference. The application of the five percent small business bidding preference is also extended to any non-small business that commits to subcontracting at least 25% of its net proposal price to California certified small businesses and/or microbusinesses. The small business bid advantage is five percent of the highest technical proposal score. To receive this preference the non-small business must satisfy the following criteria: (a) Indicate in its proposal its commitment to subcontract at least 25% of its net proposal amount with one or more small businesses [submit the “Request for Small Business Bidding Preference” form], (b) Submit a timely and responsive proposal, (c) Be determined to be a responsible Proposer, and (d) Submit the California certified small businesses on the List of Trade Contractors for Design-Build and Collaborative Design-Build Projects form and specify the dollar amount of each small business subcontractor’s bid thereon. (2) Penalty. The Trustees will impose a penalty to any non-small business who receives the small business preference and does not contract 25% of its net bid price to California certified small businesses and/or micro businesses. The penalty will be no more than two times the amount of the bid preference received. For example, if Design-Builder received a bid preference of $49,000, and does not contract 25% of its net bid price with certified small businesses and/or micro businesses, then the Trustees will assess an amount to be forfeited by Design-Builder of $98,000. c. Trustees’ Reporting of Small Business Participation. Responsive to direction from the State Legislature, the Trustees are seeking to report increased statewide participation of certified small businesses in contract awards. To this end, the successful Proposer shall inform the Trustees of any contractual arrangements with subcontractors, consultants or suppliers that are certified small businesses.

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●Article 32.12, Disabled Veteran Business Enterprise Participation Requirement and Incentive, subsection g, Incentive, and subsection h, Prime Contractor’s DVBE Subcontracting Report (DVBE Subcontracting Report, delete and replace with the following: g. Incentive In accordance with Government Code section 14838(f), and Military and Veterans Code sections 999.5(a) and 999.5(d), the Trustees are granting a bid incentive for bid evaluation purposes only to Proposers that exceed the three percent DVBE participation requirement. The level of DVBE incentive will correlate to the level of participation; that is, the more DVBE participation proposed, the higher the incentive. The bid incentives are as follows: DVBE Incentive Participation 3.00% to 3.99% None 4.00% to 4.99% 1% 5.00% to 5.99% 2% 6% or more 3% The DVBE incentive is calculated as a percentage of the highest technical proposal score. If the highest scored proposer is a California certified small business, for bid evaluation purposes only, the only proposers eligible for the DVBE incentive will be California certified small businesses. h. Prime Contractor’s DVBE Subcontracting Report (1) Design-Builder shall submit the Prime Contractor’s DVBE Subcontracting Report to the Trustees within 60 days of receipt of the final (retention) payment. (2) In submitting the DVBE Subcontracting Report, Design-Builder certifies the following information provided in the report is true and correct: (a) the total amount Design-Builder received from the Trustees under the Contract, (b) the name, address, and DVBE number for the DVBE(s) that participated in the performance of the Contract, (c) the total contracted amount for each DVBE, (d) the total payment amounts made to the DVBEs; and (e) the actual percentage of DVBE participation that was achieved for this Contract. A person or entity that knowingly provides false information shall be subject to a civil penalty for each violation in accordance with Military and Veterans Code section 999.5(d).

●Article 35.02-b, Nondiscrimination, subsection (2), delete and replace with the following: (2) Design-Builder shall comply with the provisions of the Fair Employment and Housing Act (Government Code section 12900 et seq.), the regulations promulgated thereunder (California Code of Regulations, Title 2, Division 4.1, Chapter 5, section 11000 et seq.) and the provisions of Government Code, Article 9.5, Chapter 1, Part 1, Division 3, Title 2, sections 11135-11139.8.

●Article 35.06, Insurance Requirements Campus must instruct the Design-Builder whether the OCIP provisions apply to the Project. Use one of the following three statements and delete the others: This Project shall be enrolled in the Trustees’ Owner Controlled Insurance program, for which the provisions found in Article 35.06-b shall apply. OR This Project shall be enrolled in the Trustees’ Owner Controlled Insurance program (OCIP), for which the provisions found in Article 35.06-b shall apply. The following portions of Work in the Project are not included in OCIP: [Campus shall contact Alliant for guidance on this listing of excluded Work and for direction on cost tracking and enrollment]. OR This Project shall not be enrolled in the Trustees’ Owner Controlled Insurance program. Design-Builder shall disregard the provisions of Article 35.06-b.

●Article 35.06-c, Trustees’ Course of Construction (“Builder’s Risk”) Property Insurance, delete and replace with the following: Trustees shall insure or self-insure all Work while in the course of construction, reconstruction, remodeling or alteration, including materials incorporated in the Work, against physical loss or damage resulting from the perils Page 3 of 4 pages Supplementary General Conditions to Contract General Conditions for Design-Build Major Projects normally insured under a “Standard All Risk Course of Construction” policy, including, but not limited to theft, fire, flood, vandalism, or Acts of God, as defined in Public Contract Code section 7105. The term, Acts of God, as defined in Public Contract Code section 7105, means earthquakes in excess of a magnitude of 3.5 on the Richter magnitude scale and tidal waves. Trustees shall issue to Design-Builder a “Summary of Coverage” provided under this Article 35.06-c, upon request of Design-Builder. (1) Design-Builder shall be responsible for paying a deductible of $25,000 per occurrence in the event of loss, with the following exceptions. Design-Builder shall be responsible for paying a deductible of: (a) $50,000 per occurrence in the case of water damage, or (b) $100,000 per occurrence in the case of flood, or (c) $100,000 per occurrence in the case of damages caused by Acts of God. (2) Design-Builder shall not be liable for damages proximately caused by acts of God (as defined in Public Contract Code section 7105) in excess of the $100,000 deductible, if the Work damaged is built in accordance with the Contract and applicable building standards. (3) The proceeds under the Course of Construction Property Insurance taken out by the Trustees will be payable to the Trustees and Design-Builder as their respective interests, from time to time, may appear. (4) Trustees’ Course of Construction Property Insurance shall provide limited coverage for materials in transit, and full coverage for materials at the Project site and full coverage for materials stored off site; however, Design-Builder is responsible for reviewing the summary of coverage and reporting large values requiring special treatment. Design-Builder shall advise the Trustees whenever the total value of materials in transit exceeds $1,000,000 at any time, and whenever the total value of materials stored off site exceeds $1,000,000 at any time. (5) Nothing in this Article 35.06-c shall be construed to relieve Design-Builder of Design-Builder’s responsibilities referred to under Article 35.06-a. (6) Insurance policies referred to in this Article 35.06-c shall include the following: (a) Provide that the policies are primary and do not participate with nor are excess over any other valid collectible insurance carried by Design-Builder. (b) Insurer shall waive right of subrogation against Design-Builder and subcontractors of every tier. (c) Insurer shall name the Design-Builder and subcontractors of every tier as additional insured. -End of Supplementary General Conditions-

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