13 Scary Things About Public Works Contracting

On October 31, 2012, I spoke at a public works contracting seminar sponsored by the law firm Foster Pepper, PLLC in downtown Seattle.   

In keeping with the fact that the event was held on Halloween, my topic was "13 Scary Things About Public Works Contracting."

13 Scary Things:  Here is the list of the 13 scary things I spoke about, offering tips on how to manage each of them:

1. Definition of Public Works is Confusing
2. The Low Bid is Too Low
3. Cash or Check as Bid Guaranty
4. Bid is Unbalanced
5. Bidder Isn't Qualified
6. Forged Payment and Performance Bond
7. Front Loaded Schedule of Values
8. Dealing with a Change Order Artist
9. Prevailing Wages Not Paid
10. Subcontractors and Suppliers Not Paid
11. Work Not Completed on Time
12. Punch List Items Not Completed
13. Warranty Work Ignored by Contractor  

Audio of event:  The event was audio recorded and I hope to be able to post a link of it on my blog soon.

Video of 2011 speech:  I spoke in 2011 at Foster Pepper's public works seminar on the topic of "Project Management:  Turning a Good Contract into a Good Project."  Click on the following link to watch the video of that event. http://www.foster.com/rss/FP_Podcasts.aspx?mid=16

Mike Purdy's Public Contracting Blog 
© 2012 by Michael E. Purdy Associates, LLC 
http://PublicContracting.blogspot.com

Workshop: Reducing Construction Change Orders

Interactive Workshop:  Reducing Construction Change Orders - Implementing a Neutral Project Facilitation Program

When:  Wednesday, November 7, 2012 (9:30 a.m. to 11:30 a.m.)

Where:  Snohomish, Washington (Snohomish Fire Rescue Training Auditorium, 1525 Avenue D)

Cost:  Free to public agencies; $50 per person for private firms.  Seating is limited.

Co-Sponsored by: 

• Washington Cities Insurance Authority
• Contract Solutions Group

Description:  This interactive presentation is geared toward helping public agencies develop better construction project administration practices.  All construction projects can benefit from improved project team communication, coordination and problem-solving skills and behaviors.  Neutrals with special training and sills are often very beneficial in achieving the full benefits from improved project team performance.

Instructors:

• Dick Andrews
• Ron Leaders  

Information and Registration:  Click here.

Mike Purdy's Public Contracting Blog 
© 2012 by Michael E. Purdy Associates, LLC 
http://PublicContracting.blogspot.com

Training Opportunities in October and November

Which Contract Type Should I Use.  Sponsored by APWA Contract Administration Subcomittee (CASC).  Cost:  Free.  Click here for more information and to register.

• October 31, 2012 (Yakima, WA)
• November 8, 2012 (Everett, WA) 
• November 15, 2012 (Renton, WA)
• November 29, 2012 (Camas, WA)
  

Lean Construction.  Wednesday, October 31, 2012 (7:15 a.m. to 9:30 a.m.)    Sponsored by:  Design-Build Institute of America - Northwest Region.  Cost: $65 for members; $90 for non-members.  Where" Harbor Club - Seattle (801 Second Avenue, 17th Floor, Seattle, WA).  Click here for more information and to register.

Yesler Terrace Development Update by Seattle Housing Authority. Thursday, November 15, 2012 (5:30 p.m. to 8:30 p.m.).  Sponsored by: CMAA Pacific Northwest Chapter.  Cost: $45.  Where:  Rock Salt Steaks and Seafood (1232 Westlake Ave. N., Seattle, WA). Click here for more information and to register.

Mike Purdy's Public Contracting Blog 
© 2012 by Michael E. Purdy Associates, LLC 
http://PublicContracting.blogspot.com

The Problem of Counterfeit Payment and Performance Bonds

Changes in technology have given rise to a number of cases where contractors have forged Payment and Performance Bonds, leaving the public unprotected.

What do bonds do?  Most public agencies require Payment and Performance Bonds for public works construction projects.  These bonds are important tools to protect the public in the event the contractor either fails to pay subcontractors, suppliers, and workers, or the contractor fails to perform the work.

Check the bonds:  Here's a quick list of things to do to help ensure that the Payment and Performance Bonds you receive from contractors are not counterfeit.

• Evaluate the contractor's reputation:  Have you done business with the contractor in the past?  What is their reputation?  Are they are new and unknown contractor?   If you aren't familiar with the contractor, you may want to investigate the legitimacy of the bonds. 

• Review the bonds:  Are there irregularities or inconsistencies in the bonds?  Is the bond form current?  Are all of the dates, including those on the Power-of-Attorney document current?  The last date on the Power-of-Attorney should be within the last six months to year.

• Verify the bonds independently:   Contact the actual bonding company backing the bond, not the attorney-in-fact who signed the bond on behalf of the bonding company.  Research the contact information for the bonding company independently and don't rely on a phone number provided on the bond.  One California contractor set up a separate cell phone number they included on a forged bond in the event a public agency called to verify the bond.  Contact the surety to verify that the bond was appropriately issued by the attorney-in-fact.

Examples of bond forgeries:  Here are a couple of stories of forged bonds by contractors:

• New Jersey contractor jailed for forgery.  Click here to read the entry from my blog on June 12, 2011.  

• California contractor pleads guilty to forging payment and performance bonds.  Click here to read the entry from my blog on September 25, 2011.     

• New York City contractor submits phony bonds to Housing Authority. Click here for details. 

• Washington state contractor forges bonds. Click here for details. 

Mike Purdy's Public Contracting Blog 
© 2012 by Michael E. Purdy Associates, LLC 
http://PublicContracting.blogspot.com

Job Opening: Contract Specialist

Washington State Department of Enterprise Services

• Position:  Contract Specialist 3 (2 positions)

• Location:  Olympia, Washington

• Closing Date:  Friday, November 2, 2012 at 11:59 p.m. Pacific Time

• Salary:  $3,991 to $5,233 per month

• Job Summary:  These positions will provide professional level of expertise, using mature judgment and expert understanding of procurement and contract laws, policies and best practices, in advising internal and external customers on procurement and contracting for goods and services, including IT.  

• For More Information and to Apply:  Click here.  

Mike Purdy's Public Contracting Blog 

© 2012 by Michael E. Purdy Associates, LLC 

http://PublicContracting.blogspot.com

Job Opening: Senior Buyer

City of Seattle (Washington)

• Position:  Senior Buyer

• Location:  Seattle, Washington

• Closing Date:  Tuesday, November 6, 2012 at 4:00 p.m.

• Salary:  $33.22 to $38.68 per hour

• Job Summary:  The Senior Buyer is assigned a contract portfolio, with a group of related commodities and contracts many of which require extensive on-going contract administration.  In addition, this position is assigned special projects with multiple issues of considerable scope that require long-term commitments and are of an ongoing duration with policy implications.  The Senior Buyer will also be assigned to lead special projects, which may include policy research, WMBE programs or environmental initiatives or other social responsibility initiatives of the City.

• For More Information and to Apply:  Click here.  

Mike Purdy's Public Contracting Blog 

© 2012 by Michael E. Purdy Associates, LLC 

http://PublicContracting.blogspot.com

Introduction to Lean in Design

Introduction to Lean in Design

When:  November 6, 2012 (7:30 a.m. to 9:30 a.m.)

Where:  Seattle, Washington (Sellen Construction Offices, 227 Westlake Avenue N.)

Cost:  $35.00

Speaker:  Kristin Hill, Principal, InsideOut Consulting

Sponsored by:  Lean Construction Institute, Cascadia Community of Practice, Seattle Branch

Information and Registration:  Click here.

Mike Purdy's Public Contracting Blog 
© 2012 by Michael E. Purdy Associates, LLC 
http://PublicContracting.blogspot.com