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T ? T T T @ @ @ @ @ @ CONSTRUCTION/PUBLIC WORKS
Contracts subject to competitive bidding: TC "Contracts subject to competitive bidding:" \f C \l "1" TC "Contracts subject to competitive bidding:" \f C \l "1"
Purchase of equipment, materials and supplies to be furnished, sold or leased to a school district that is over the bid ceiling.
Services/Construction and Public Projects.
Repairs over the bid ceiling.
Formal bidding is required for any project or purchase of $15,000.00 or more for public projects and construction services. $78,500.00 is the bid
ceiling for materials, equipment, supplies as well as repairs and maintenance. A notice calling for bids must be published for two weeks in a newspaper with five days between publication dates. An affidavit of publications must be obtained from the publication company. See attached
Purchasing guidelines, these guidelines conform to the California Public
Contract Code.
After the bid is awarded and the purchase order completed, the following
documents are required in Accounts Payable.
Purchase Order
Board approval of the award
Affidavit of publication
Signed agreement with Contractor
Performance bond
Payment bond
Bid bond
Certificate of Insurance General Liability
Certificate of Workers Comp Insurance
Escrow documents if so elected.
All the documents must accompany the purchase order for any Bid contract.
See pages 1.1 and 1.2 for copies of 20115 and 22002 Code sections.
BONDS TC "BONDS" \f C \l "1"
PERFORMANCE BOND is not required by California Public Contract Code but it is an OCDE requirement. The bond is for 100% of the contract
amount.
PAYMENT BOND is required for any project over $ 25,000.00. The California Civil Code requires that the bond must be in place before any
payment can be made to the Contractor. The amount of the bond shall be
100% of the contract up to five million dollars and any amount over that
a percentage schedule is applied. A DEPOSIT IN LIEU OF BOND IS
NOT ACCEPTABLE. (CIVIL CODE 3247, 3248)
BID BOND must be payable to the District and shall accompany all bids
for construction projects. A bidder can submit other forms of security such
as cash, certified or cashiers checks. The bond is for 10% of the contract
value.
RETENTION TC "RETENTION" \f C \l "1"
Payment on any contact shall not exceed 95% of the work completed.
Types of contracts include: construction, alterations, repairs or improvements on any public structure, building or road that exceeds
$5,000.00.
Retention of not less than 5% is required on all progress payments
over $5,000.00. OCDE disbursements record retention payments
on projects over the bid amount of $ 15,000.00. The release of the
retention money requires board acceptance of the project as
complete and has recorded a Notice of Completion. It is not
necessary to withhold retention on equipment, material, supplies or
repair-maintenance contracts. (see Public Contract Code 9203).
As of January 1, 1993 all contracts relating to the construction of
any public work project in California is subject to Code 9203.
Public Contract Code 7107 states that the retention withheld by
the District SHALL be released after certain specified events occur
and that no disputes occur between the Contractor and the District.
See pages 3.1 through 3.3 for copies of these Code sections.
ESCROW ACCOUNTS TC "ESCROW ACCOUNTS" \f C \l "1"
Included in the invitation to bid and in the contract documents there is
a provision that allows the substitution of securities for any retention
withheld by the District.
At the request and expense of the contractor, securities
equaling the amount to be withheld can be deposited with
the District or any state or federally chartered bank in an
Escrow account. At the satisfactory completion of the contract
the security or deposit is returned to the Contractor. These
securities can be held in an Escrow account or in a Certificate
of Deposit.
An Escrow account can also be opened with state or federal
chartered financial institutions. As Progress Payments are made
to the Contractor, the retention portion is deposited by the
District into the Escrow account. Documentation for an Escrow
payment must have an Escrow agreement signed by the Contractor,
the District and the Escrow Agent. Upon completion of the
contract the District notifies the Escrow agent in writing to release
the funds to the Contractor.
(a) Only the designated representative of the District
may signed the request for the release of Escrow
funds. Our designee is the Vice Chancellor of
Business Operations and Fiscal Services.
Copy of an Escrow agreement on page 4.1
CHANGE ORDERS
Change orders to contract over the original bid amount:
A. Must be specified in writing showing the dollar amount
of the change and the amended total of the contract.
B. There must be Board approval and this approval must
clearly state the change order in the Board action item.
C. Amounts of the change orders are cumulative and must
not exceed 10% of the original contract amount.
D. Change orders must be signed by both parties to the
contract. See District change order form for our signing
requirements. (page 5.1)
NOTICE OF COMPLETION
A Notice of Completion is a written notice, signed and verified by the
owner or his agent, containing the following information:
Date of project completion
Name and address of owner
Street address of the project site
Work done
Name of the contractor
The Notice of Completion must then:
Be recorded in the office of the county recorder
Shall be recorded within 10 days after completion
Must be Board approved, Board must accept the project
as complete and authorizes the notice of completion to
be filed.
RELEASE OF RETENTION
Within 60 days of Board acceptance of a project as complete, the
retention funds should be released to the contractor if no stop notices
are outstanding. In addition, final payment of retention requires a copy
of the Filed and Recorded Notice of Completion by the County Recorder.
OCDE Disbursements will release the retention payment 35 days from the
County Recorders date.
TOC \o "1-3" \h \z \u
HYPERLINK \l "_Toc276118366" CONTRACTS PAGEREF _Toc276118366 \h 1
HYPERLINK \l "_Toc276118369" BONDS PAGEREF _Toc276118369 \h 2
HYPERLINK \l "_Toc276118370" RETENTION PAGEREF _Toc276118370 \h 2
HYPERLINK \l "_Toc276118371" ESCROW ACCOUNTS PAGEREF _Toc276118371 \h 4
PAGE
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