01-27-2014 Council Packet - Laserfiche WebLink

Home Browse Search

. I• Mr. Jesse Struve, PE . � January 6, 2014 Page 2 The work is completed per the contractor's maintenance agreement, and many times does not specifically identify details of the work to be performed(structural details, specific paint products, coating thickness, etc.). Once the wark is completed per the agreement, payments are made annually as scheduled until the contract term expires. Work is scheduled by the contractor and coordinated through the owner, but the owner's specific schedule may not be followed if it is not defined in the term of the agreement. The extended maintenance agreement provides a quality of work guarantee and can be issued in any number of scheduled terms. Five(5) and 10 (ten)year maintenance agreements are fairly common. Normally spot coating repairs, which may or may not be required, are completed every five years. Design-Bid-Build (DBB) This is the traditional program of awarding construction/reconstruction contracts. In DBB, an engineer assembles bidding documents that are publicly advertised and awarded to the lowest qualified bid. Typically, minimum qualifications are required based on the size of the project and the number of similar projects done in the past. While less common, Quality Based Selection(QBS) can also be used to award the contract to a contractor based on predetermined formula for award which can include history, safety record, quality of work, etc. An example of using QBS is the City of Eagan where a previous tank rehabilitation contract was awarded by QBS. Once the award is made to a contractor, a predetermined schedule is followed to complete the work. The engineer provides construction observation and testing(such as environmental controls, surface preparation, dry film thickness and holiday testing)to ensure that the specifications for the work are met. Once the project is completed, the contractor is paid per the contract. Tank repairs are made prior to the expiration of a warranty term, commonly one or two years. However, extended warranties(5 years, 10 years, etc.) can be included in bidding documents. Benefits-Drawbacks of Desi�n Build Benefits • Direct selection of contractor • Hands off approach by owner. Contractor coordinates any work required. • Tower meets minimum industry standards for term of contract. • Known schedule of payments Drawbacks • None or less competitive bidding resulting in higher compared cost(Example: SEH D�B - $466,700 for 5 Year Term; $548,800 for 10 Year Term) • Additional work that may not be needed is included in contract • Minimum inspection oversight • No engineer to represent owner with technical issues G:\Orono\010614 struvememo.dotx You created this PDF from an application that is not licensed to print to novaPDF printer(http://www.novapdf.com)