tag:blogger.com,1999:blog-3271900052374447274.comments2024-01-25T05:35:55.975-08:00Mike Purdy's Public Contracting BlogMike Purdyhttp://www.blogger.com/profile/15239516189299153384noreply@blogger.comBlogger220125tag:blogger.com,1999:blog-3271900052374447274.post-60363094704247570042018-04-26T21:52:14.671-07:002018-04-26T21:52:14.671-07:00David,
Whether something is subject to prevailing ...David,<br />Whether something is subject to prevailing wages is based on the type of work being performed, not who is contracting for it. Public agencies are responsible for any work done for them that is subject to prevailing wages and to make sure wage requirements are included, even if the work is done by a subcontractor/subconsultant of any tier. Please feel free to contact me directly if you'd like to talk about more of the details of the types of situations you find yourself encountering.<br />MikeMike Purdyhttps://www.blogger.com/profile/15239516189299153384noreply@blogger.comtag:blogger.com,1999:blog-3271900052374447274.post-51337019397096798702018-04-16T10:50:31.043-07:002018-04-16T10:50:31.043-07:00Mike,
We often run into the following scenario:
...Mike,<br /><br />We often run into the following scenario:<br /><br />A firm is chosen to provide to a municipality either professional services (under an RFQ) or non-professional services (under an RFP, but subject to prevailing wage, since it is a public works project). Said company then contacts us (Land Surveyors) with an RFP, for BOTH professional services and construction work (generally failing to mention prevailing wage, especially if they are a professional design company).<br /><br />This seems like a kind of work-around of the law, where the client is said company, not the municipality. Under this idea, it seems that municipalities have found a way to circumnavigate the RFQ vs RFP requirement of the law.David H Myhillhttps://www.blogger.com/profile/08697107913507384509noreply@blogger.comtag:blogger.com,1999:blog-3271900052374447274.post-4113407662546597612018-02-06T08:57:17.504-08:002018-02-06T08:57:17.504-08:00There are 3 basic types of bonds. 1) A bid bond w...There are 3 basic types of bonds. 1) A bid bond would kick in if a public agency awarded the contract to a firm and the firm refused to sign or execute the contract. In this case, the agency would be able to collect from the surety the amount of the bid bond, typically expressed as a percentage of the bid amount, with 5% being the most common. 2) A performance bond guarantees that the contractor will faithfully perform the work. In the event the contractor fails to complete the project, the agency could go to the surety to have them either provide financial resources to the contractor to complete the job or the surety would pay for another contractor to finish the work. 3) A payment bond protects subcontractors, suppliers, and workers who have not been paid by the contractor or lower tier subcontractors. These parties can file a claim against the bond to try to collect from the surety. I hope this addresses your question. If not, please let me know. Thanks.Mike Purdyhttps://www.blogger.com/profile/15239516189299153384noreply@blogger.comtag:blogger.com,1999:blog-3271900052374447274.post-6387997077611146682018-02-06T08:20:20.368-08:002018-02-06T08:20:20.368-08:00Hi Mike, I have a question bothering me. The bid b...Hi Mike, I have a question bothering me. The bid bond is issued based on the estimated contract value. Let's say if the awarded subcontractor refuse the job due to contract order changes by the General Contractor or owner, will the surety still pay the claim?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3271900052374447274.post-49872279464184475022016-10-06T13:36:16.464-07:002016-10-06T13:36:16.464-07:00It really depends on what your contract or General...It really depends on what your contract or General Conditions states about deductive change orders and whether you get a credit for bonds and insurance. There's a strong logical argument that you should get such a credit because the contractor presumably bid the project at a certain dollar amount that includes the cost of bonds and insurance for that size contract. Now that it will be a smaller contract amount, you should get a credit not just the cost of the deleted work, but for the bonds and insurance (and overhead and profit). But if your contract documents don't address this, you may have a difficult time contractually getting the contractor to agree to such a credit. Remember that all change orders are subject to negotiation. You have strong logical grounds for the credit, and stronger grounds if your contract outlines the bonds and insurance credit as well. I hope this helps.Mike Purdyhttps://www.blogger.com/profile/15239516189299153384noreply@blogger.comtag:blogger.com,1999:blog-3271900052374447274.post-14847492324517725652016-10-06T09:03:24.696-07:002016-10-06T09:03:24.696-07:00When we have a deductive change order should we ge...When we have a deductive change order should we get a credit for bonds and insurance?Anonymoushttps://www.blogger.com/profile/09929882382074538519noreply@blogger.comtag:blogger.com,1999:blog-3271900052374447274.post-5007701618510335842016-03-25T01:21:04.196-07:002016-03-25T01:21:04.196-07:00Mike, I just found your site and I have to say it ...Mike, I just found your site and I have to say it is pure gold! I'm sad to see that you are no longer updating it as you were. However, there is still tons to learn here.<br /><br /><a href="http://www.dorriscm.com" rel="nofollow"></a>Ryanhttp://www.dorriscm.comnoreply@blogger.comtag:blogger.com,1999:blog-3271900052374447274.post-9986190862394805812015-04-30T15:23:38.294-07:002015-04-30T15:23:38.294-07:00As a construction manager in the public arena, the...As a construction manager in the public arena, there is a big difference on the "back side" of the cost for either an 'Adder' or Deduct. Another factor in the equation is how time is affected in each line item.<br />The first factor is how how the contractor views ownership of the indirect costs. Typically in an additive situation, the contractor is faced with a base bid, then adds costs as prescribed by the owner, and their associated values of Overhead and Profit (for simplicity's sake, include taxes, bonds, insurances, fees in Overhead)<br />In a deductive situation, the contractor may or may not refund all overhead cost associated with a particular line item, based on how they view the job or how they want to protect their bottom line. <br />I could go on with a litany of reasons why a contractor will <i>ALWAYS</i> come out a winner in a deductive bid scenario. Another deciding factor for contractors as to how they view and bid projects is application of the P.I.T.A factor, also known as the, <b>Pain-in-the-***</b>, factor. <br />I am currently consulting with a contractor on several Veteran's Administration projects. With the VA facing a serious backlash of bad press, the American public would be outraged at the wonton waste occurred based on the VA's use of Deductive Alternates. <br />In order for any owner, public or private, to understand the true cost of their work is to avoid the use of Deducts and Deductive Alternates. It is hard to find a justification to use this type of pricing. <br />IMHO, adding is always easier and more efficient than subtracting.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3271900052374447274.post-40905961141330571392015-03-05T15:24:23.995-08:002015-03-05T15:24:23.995-08:00Thanks, Sue, for your comments. I'm glad that...Thanks, Sue, for your comments. I'm glad that you've always found my blog postings to be interesting and reliable. Thanks, also, for the good wishes as I moved into semi-retirement. All the best to you.Mike Purdyhttps://www.blogger.com/profile/15239516189299153384noreply@blogger.comtag:blogger.com,1999:blog-3271900052374447274.post-74368767234901839392015-03-05T13:39:22.862-08:002015-03-05T13:39:22.862-08:00Thanks Mike! I'll miss your morning emails. I...Thanks Mike! I'll miss your morning emails. I've shared many of them with my fellow Public Works employees. Always interesting and reliable information.<br />Enjoy your well deserved semi-retirement!Sue Nielsenhttp://www.sanjuanco.comnoreply@blogger.comtag:blogger.com,1999:blog-3271900052374447274.post-70340058095356571832015-03-05T09:08:50.233-08:002015-03-05T09:08:50.233-08:00Darryl, It has been a pleasure to be of assistance...Darryl, It has been a pleasure to be of assistance over the years, and I'm glad that you found my blog to be helpful. Thanks for writing to let me know. Much appreciated. MikeMike Purdyhttps://www.blogger.com/profile/15239516189299153384noreply@blogger.comtag:blogger.com,1999:blog-3271900052374447274.post-16218744509697215662015-03-05T08:22:13.948-08:002015-03-05T08:22:13.948-08:00Mike, Many thanks to all your hard word work and a...Mike, Many thanks to all your hard word work and attention to detail by providing an invaluable source of information. I know the rest of Washington school districts purchasing group relied and trusted your comments, opinions and information as much as I did.<br /><br />Have fun with the Prez blog!<br /><br />Darryl<br />Shoreline SDDarrylhttps://www.blogger.com/profile/08369893920774757522noreply@blogger.comtag:blogger.com,1999:blog-3271900052374447274.post-49279837318503239902015-03-05T07:03:49.684-08:002015-03-05T07:03:49.684-08:00Thank you, Tina, for your very kind comments about...Thank you, Tina, for your very kind comments about my blog. I'm looking forward to pursuing my lifelong interest in presidential history.Mike Purdyhttps://www.blogger.com/profile/15239516189299153384noreply@blogger.comtag:blogger.com,1999:blog-3271900052374447274.post-83991758561731718792015-03-05T04:19:46.566-08:002015-03-05T04:19:46.566-08:00Thanks so much for sharing your knowledge and expe...Thanks so much for sharing your knowledge and experience with us for so many years on your blog, Mike. I will miss seeing your emails come through, but I am happy you are pursuing your other interests. A new audience is exciting! Tina M Borger, CPPOnoreply@blogger.comtag:blogger.com,1999:blog-3271900052374447274.post-22964437971193851492015-02-24T09:01:57.332-08:002015-02-24T09:01:57.332-08:00It's too funny that this discussion just came ...It's too funny that this discussion just came up about an hour ago in a business process review discussion. <br /><br />Thanks for posting. Good luck on your new ventures!Alexhttps://www.blogger.com/profile/09782263161373932916noreply@blogger.comtag:blogger.com,1999:blog-3271900052374447274.post-56964921141258811642015-02-05T11:58:14.655-08:002015-02-05T11:58:14.655-08:00I'm so glad that my blog has been a great reso...I'm so glad that my blog has been a great resource for your agency. My intent all along has been to provide a service so that the public procurement profession can have a common understanding of critical issues. The blog will remain online and can be searched by key words or by the subject index to conduct research. My decision to discontinue writing the blog was not an easy one for me to make, but I think it's the right time for me to transition into a new season of life that will enable me to write about the U.S. Presidents - something that has been a passion of mine for years. Mike Purdyhttps://www.blogger.com/profile/15239516189299153384noreply@blogger.comtag:blogger.com,1999:blog-3271900052374447274.post-63398208838003528102015-02-05T10:47:10.159-08:002015-02-05T10:47:10.159-08:00I will miss this Blog! It has been an amazing reso...I will miss this Blog! It has been an amazing resource at my agency, an Illinois local government agency.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3271900052374447274.post-55210034114348968762015-01-14T09:25:54.076-08:002015-01-14T09:25:54.076-08:00i agree when is a low bid to low !!
when will w...i agree when is a low bid to low !!<br /><br /><br /><br />when will we all do something about itunicon truckinghttp://www.unicontrucking.comnoreply@blogger.comtag:blogger.com,1999:blog-3271900052374447274.post-32970966334463338892015-01-13T15:02:54.804-08:002015-01-13T15:02:54.804-08:00Thank you, Tina, for your very kind and gracious c...Thank you, Tina, for your very kind and gracious comments. It has been my pleasure to serve the public procurement community over the years. MikeMike Purdyhttps://www.blogger.com/profile/15239516189299153384noreply@blogger.comtag:blogger.com,1999:blog-3271900052374447274.post-2306756825413303562015-01-12T05:04:51.433-08:002015-01-12T05:04:51.433-08:00Mike, Your message is bittersweet. I will miss yo...Mike, Your message is bittersweet. I will miss your blogs. With a busy work and family life, it's hard to keep up with everything. You often covered something that I wouldn't have heard about otherwise. I truly appreciate the time and effort you put in!<br /><br />However, you have served public procurement well in your career, and in your consulting work. You deserve to focus on other things at this mid-stage of your life. I wish you all the best!<br /><br />TinaTina M Borger, CPPOnoreply@blogger.comtag:blogger.com,1999:blog-3271900052374447274.post-63732059629816237862014-12-17T12:31:16.436-08:002014-12-17T12:31:16.436-08:00If Design-Bid-Build is not managed properly, it ca...If Design-Bid-Build is not managed properly, it can be very problematic. Public owners who venture into Design-Build need to have the appropriate expertise to manage this different project delivery method.Mike Purdyhttps://www.blogger.com/profile/15239516189299153384noreply@blogger.comtag:blogger.com,1999:blog-3271900052374447274.post-57577101499134085672014-12-17T12:23:23.307-08:002014-12-17T12:23:23.307-08:00I live in the upstate New York region and this are...I live in the upstate New York region and this area is by and large design/bid/build for public work but quite a bit of design/build for private work. I far and above prefer to do design/build. The design/bid/build process around here is fully of highly dysfunctional and corrupt processes which inflate prices and push down overall value.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3271900052374447274.post-63332217383082075262014-12-12T08:39:41.555-08:002014-12-12T08:39:41.555-08:00Interesting since the Federal Acquisition Regulati...Interesting since the Federal Acquisition Regulation (FAR) allows such preferences.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3271900052374447274.post-66571802957706779052014-12-05T11:22:07.936-08:002014-12-05T11:22:07.936-08:00I assume that Jefferson Parish does receive some f...I assume that Jefferson Parish does receive some federal funds. It's a great question about how their less than transparent and non-best practices selection processes could be in compliance with federal grant requirements.Mike Purdyhttps://www.blogger.com/profile/15239516189299153384noreply@blogger.comtag:blogger.com,1999:blog-3271900052374447274.post-38017272777811375142014-12-05T09:27:29.011-08:002014-12-05T09:27:29.011-08:00Mike, by any chance do you know if they ever use f...Mike, by any chance do you know if they ever use federal funds? How can they possibly have these requirements and comply with grant requirements?Anonymousnoreply@blogger.com