Contracting for Construction

1
Contracting for Construction

• PUG Meeting
• by Architecture Engineering Division

2
(No Transcript)
3
The Six Phases of a Construction Project-
ENTHUSIASM- DISILLUSIONMENT- PANIC- SEARCH
FOR THE GUILTY- PUNISHMENT OF THE INNOCENT-
PRAISE HONOR FOR THE NON-PARTICIPANTS
4
What is construction?

• 18-2-101 MCA
• a building is a building, facility, or
  structure
• construction includes
• construction, alteration, repair, maintenance,
  and remodeling of a building and the equipping
  and furnishing a building during construction,
  alteration, repair, maintenance, and remodeling
• Exceptions
• connected to highways water conservation
  projects mine reclamation projects
• Touch something besides the furniture?
• its construction!

5
Whats the process?

• Statutes are odd mix difficult to manage
• Primarily dealing in 18-1,18-2, and 18-8 MCA
• Local Govts refer partially to Title 7 18
• School Districts refer partially to Title 18 20
• No rule making authority for construction

6
Two Main Considerations

• Funding Authority
• Legislature MUST authorize projects greater than
  150,000 (HB 2 funds count as authorization)
• Hire Architect/Engineer or direct to a
  Contractor?
• Ask Does the project need plans or a building
  permit?
• Yes hire a designer
• No can go direct to a contractor
• A/E fee greater than 20K needs an appointment by
  the Director of Administration
• Contact AE Division about process to hire A/E

7
How to do it

• Process is called Design-Bid-Build
• Hire the A/E, do the design
• refer 18-8 and to AE Division for selection
  procedure (if fee 20K)
• Put the project out to bid
• 25K to 75K need three bids, no advertising
• 75K must do formal advertising

8
What are the contract requirements?

• AE has boilerplate information available -
• http//www.discoveringmontana.com/doa/aed/default.
  asp
• Advertising
• At least 2 papers for 3 weeks
• One paper must be in the county where the project
  is
• Public bidding requirements
• Award to the lowest, responsible bidder
• Indian preference for projects on reservation
• MT products preference
• Records access clause required
• Retainage limited to 5
• 25K must include prevailing wage rates (be
  careful!)
• 50K must require Performance and Payment Bonds

9
Questions?

• AE website has statute information -
• http//www.discoveringmontana.com/doa/aed/default.
  asp
• Call or e-mail me -
• [phone]
• rkatherman_at_state.mt.us