HomeMy WebLinkAboutCOD-002-13 Clarftwn REPORT
CORPORATE SERVICES DEPARTMENT
Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
Date: March 18, 2013 Resolution#: - , By-law : N/A
Report#: COD-002-13 File#:
Subject: RFP2012-9 GENERAL CONTRACTOR AND TRADE REGISTRY
RECOMMENDATIONS:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. THAT Report COD-002-13 be received; and
2. THAT selected contractors listed in Attachment 1 be approved to form a registry
for the provision of various trades and related services with an estimated value of
less than $25,000.00 (i.e., net of H.S.T. Rebate) per project for the period April 1,
2013 to March 31, 2016, with the option to extend contracts on the registry for
two one-year terms.
el
Submitted by: r Reviewed by:
Marie Marano, H.B.Sc., C.M.O., Franklin Wu,
Director of Corporate Services Chief Administrative Officer
J DB\bh
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET, BOWMANVILLE, ON T ARIO L IC 3A6 T(905)623-3379
REPORT NO.: COD-002-13 PAGE 2
1.0 BACKGROUND
1.1 The purpose of this report is to obtain Council approval of the selected
contractors listed in Attachment 1 of this report to form a trade registry for the
provision of various trade services having an estimated value of less than
$25,000.00 per project, which shall be applied in accordance with terms and
conditions set forth in Request for Proposal RFP2012-9.
1.2 Request for Proposal #RFP2012-9 for the provision of various trades and related
services was issued and distributed publicly for the purpose of soliciting
proposals/applications from contractors interested in the serving on the
Municipality's Contractors Trade Registry. Services covered by the registry will
include the following trades: General Contracting Services; Minor General
Contracting Services; Roof Repairs; Painting Services; Flooring Services;
Welding Services; Manual Door and Control Repair and Replacement Services;
and Window/Glazing Repair Services.
1.3 The trade registry provides an available list of suitably qualified contractors to
perform projects for various municipal facilities having an estimated value less
than $25,000.00 (net of H.S.T. rebate) per project. These services will be utilized
by the Operations and Community Services Departments on an "as needed"
basis.
1.4 This approach effectively supplements the Municipality's resources with well
qualified contractors, provides good value through competitive service rates,
promotes competitive bidding of larger valued projects, and reduces
administration and project completion times through established term order
contracts. Only contractors who have demonstrated that they meet specified
criteria for their respective trade categories are selected.
1.5 Request for Proposals were publicly advertised and called for the General
Contracting & Other Trade Contractor Services as required by the Municipality of
Clarington. Subsequently, seventeen (17) request for proposals were received.
1.6 The RFP covers the requirements for a three year period effective April 1St, 2013
to March 31, 2016 with the Municipality of Clarington reserving the option to
extend the contract for two additional one (1) year terms provided the
Contractor's performance is satisfactory and proposed pricing for the subsequent
years is acceptable.
2.0 ANALYSIS
2.1 All proposals met the bid submission requirements and were evaluated based on
company background, staff experience, pricing/cost, health and safety, quality
control, vehicles/equipment and proposal quality.
REPORT NO.: COD-002-13 PAGE 3
2.2 The proposals were reviewed and ranked by staff members from the Operations,
Community Services and Corporate Services Department. The criteria was
ranked accordingly on a scale from 1 (poor) to 5 (excellent) consistent with the
RFP guidelines.
2.3 Each proposal was reviewed for compliance with the mandatory submission
requirements. All proposals were compliant and evaluated by the committee in
relation to the other evaluation criteria, and scores were awarded. Proposals
were ranked by highest scores awarded within each trade category. The nine (9)
recommended firms which met or exceeded the score of 70% are noted in
Attachment 1. Eight (8) firms failed to achieve the minimum score need for
consideration.
2.4 As projects arise, these priced by the contractors on the registry and awarded
using the methods noted below:
• For individual projects with estimated value of less than $5,000.00, pricing
is based on the actual labour and materials used by the contractor to
complete the work (pre-established service fees and mark up rates are
applied). When the project is completed, the project manager reviews the
pricing for accuracy before payment is authorized. This approach is also
used to select a contractor to perform emergency repair work when
required.
• For individual projects with estimated value of $5,000.00 to less than
$10,000.00, pricing is based on the actual labour and materials used by
the contractor to complete the work (pre-established service fees and
mark up rates are applied) or pricing is competitively bid among the
registered contractors, with the award going to the lowest compliant
bidder.
• For individual projects with an estimated value of from $10,000.00 to
$25,000.00, pricing is competitively bid among the registered contractors,
with the award going to the lowest compliant bidder.
2.5 It is recommended that the contractors with proposals ranked 70% and greater
be added to the Trade Registry. The references for the nine (9) qualified
respondents have been checked and are satisfactory.
2.6 The Purchasing Manager has established guidelines for the management of the
General Contracting and Other Trade Contractor Services for the administration
of the trade registry. Draft copy attached as Attachment 2.
REPORT NO.: COD-002-13 PAGE 4
3.0 COMMENTS
3.1 Queries with respect to the department needs, specifications, etc. should be
referred to the Director of Operations and Director of Community Services.
4.0 FINANCIAL
4.1 The funds required for services provided as part of the trade registry are included
in the Operations and Community Services Departments approved 2013
Operating and/or Capital Budget.
5.0 CONCURRENCE
5.1 This report has been reviewed by the Purchasing Manager, with the appropriate
department and circulated as follows:
Concurrence:
Director of Operations
Director of Community Services
6.0 CONCLUSION
6.1 It is recommended that the contractors with proposals ranked 70% and greater
be added to the Trade Registry.
CONFORMITY WITH STRATEGIC PLAN — Not Applicable
Staff Contact: Jerry Barber, Manager of Purchasing
Attachments:
Attachment 1 — Contractors for Trade Registry
Attachment 2 — Guidelines for the Management of the General Contracting and Other
Trade Contractor Services
Attachment 1
To Report COD-002-13
MUNICIPALITY OF CLARINGTON
CONTRACTORS FOR TRADE REGISTRY
BIDDER
Silver Birch Contracting Limited
Schomberg, ON
True-Care Restorations Inc.
Pickering, ON
Richview Renovations
Weston, ON
Dalern Limited
Cobourg, ON
ICI Roofing Limited
Peterborough, ON
Taxis Contracting Limited
Newcastle, ON
Direct Construction Company Limited
Scarborough, ON
RCI Restoration & General Contracting Inc.
Bowmanville, ON
Town and Country Contracting Limited
Oshawa, ON
Attachment 2
To Report CUD-002-13
Guidelines for the Management of the General Contracting and
Other Trade Contractor Services
Lending tke Wny Date: March 4, 2012
1. Scope and Purpose:
This procedure deals with the General Contracting and Other Trade Contractor Services (GCOTCS)
Term Orders(s) and covers the requirements to access registered contractors, financial and other
required pre-approvals, and the administration of individual projects. It is divided into three parts:
o Considerations Prior to Releasing Service;
o Contractor Selection Process for Individual Projects and, x
• Administrative Requirements.
The purpose of this procedure is to establish common 'guidelines;for the administration of the
GCOTCS Term Order(s) covering ongoing repair, r�aJrttenance, msta;llation and renovation projects
required by the Municipality of Clarington JW 'Ofder to promote operational efficiency, cost
effectiveness, performance excellence, and reduced lead times with re's`pect to the selection of
qualified contractors to perform various projects.
The Service Registry is established with the objective of fair treatment of registered contractors; by
consistently providing fair access to Municipal Projeects, and trr risparency used to select contractors
to perform work. This objective is achiever through the methods„shown in the following sections,
which stress selection of contractors to perform work 66sed on 66'rnpetitive bidding, rotation lists,
and/or consideration off ti hat are relevant to the project.requirements.
2. Policies:
Municipahtyof Clar�ingto:n departments and`staff are to follow the procedures outlined under
Purchasing BV`Law 2010=112 and Corporate Policy G5 Capital Project Overexpenditures.
3. Procedure
Prior to any renovation project, the Engineering Services Department should be contacted to
determine if a building permit is required. An environmental consultant may be required if there are
designated substances in the fa;cility`(i.e., project will disturb the designated substances). If structural,
mechanical and or electrical Wo.rk,is required, a consultant may be required to draft the scope of work
specifications and drawings. If it is determined that these services are required, the applicable costs
are to be budgeted. The necessary permits may be applied for prior to the solicitation of quotes from
the contractors.
Overview of Service Registry Term Orders(Contracts)
The GCOTCS Term Orders (Contract RFP2012-6) are established by Purchasing Services through
competitive requests for proposals (RFP's) to ensure that Contractors are suitably qualified and
provide competitive service rates for Time and Material based awards.
THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
PURCHASING DIVISION
Management of General Contracting and Other Trade Contractor Services Term Orders
Page 2 of 12
RFP2012-9
Upon Council approval, these Contracts are then made available to authorized municipal staff(Project
Supervisors) so they may select suitably qualified contractors to perform specific repairs or budgeted
capital improvements of Municipal buildings, plants, public infrastructure or other assets (projects) as
required. The registry applies to projects less than $25,000.00 (net of H.S.T. Rebate).
Note that lump sum competitive bidding is required to award projects released from Service
Registries where the estimated value exceeds $10,000.00; unless,.,a higher limit is authorized by the
Purchasing Manager or if specific conditions such as an emergency:requirement preclude bidding due
to time urgency (i.e., refer to Purchasing By-Law No. 2010 112 Section 11.0 Exceptions).
r
Only individual projects with an estimated value that does` not exceed any of the following may be
released from a Services Registry: a) $25,000.00 (net of H.S.T. Reba'te),,b) a lower maximum project
value if identified in the Contract, or, c) the authorized budget allocatiObJor that project. Projects
may not be split to circumvent the limits for awards
The contract term for GCOTCS is a three year term with the option to extend"th" contract for two
additional one (1) year terms. Prices are frr, for the first, second and third year of the contract.
The overall administration of the Registry Rf P process and subs�guently awarded Contracts is the
responsibility of Purchasing Services, whereas individu al project leased against Contracts are
administered by the authoriJzed municipal staff(Project Super�ii.sors)
Section 1 - Considerations Prior to Releasing Services
Authorization for Empl®gees to Aceess Contracts;,
Employees may use Contracts provided they meet the following requirements:
a) The employee (Project Supervisor) is,,cleemed by the requesting department to be suitably
qualified to administer projects and to assume the role and responsibilities of Project Manager
where applicable;;.
b) The Project Supervisor understands the guidelines including: applicable contractor selection
methods, contractor perto ance monitoring, price verification. and payment authorization,
and, administrative res"PgRsibilities, legislative requirements, and
c) The Project Supervisor or his/her Approver has the minimum signing authorities required to
approve projects (i.e., minimum $1,000 or maximum $25,000 as applicable).
THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
PURCHASING DIVISION
Management of General Contracting and Other Trade Contractor Services Term Orders
Page 3 of 12
RFP2012-9
Review General Work Specifications of RFP
The Project Supervisor shall familiarize himself/herself with the general work specifications identified
in the originating RFP2012-9 General Contracting and Other Trade Contractor Services. Refer to
Appendix 'A'.
Determining if a Requirement is within the Service Registry Scope,of Work
The Project Supervisor shall ensure that the scope of wort for'"the required project is within the
defined scope of work for the applicable GCOTCS Registry If ,'doubt, the Purchasing Services should
be consulted to determine if the project is applicable
Determine what contract service is to be purchased? Are the product.specifications known and
generic? Will the scope of work apply to one IOCa�tiQn or several locations?, ls. a consultant required
(i.e., structural, electrical, mechanical)? Are there' iegislative.,W, nponents appaicable to the project
�
(i.e., Electrical Safety Authority, Technical Standards & S;afety Authority, Building Code, and
Designated Substances)? Who is involved.?:;.�.:Which infernal departments, external departments,
community hall boards? Is the project high �:rofile? Is the;rproject high risk? If in doubt, call
Purchasing.
Obtain Financial Authorization""P,Mott"o Requesti=r�,g Bid
The Project Supervisor shalF" ,cleterm'n�e if sufficient funds are allocated and available within the
appropriate budgets before either rbId"0es0ng compefitive lump sum bids or selecting a Contractor to
perform work oP a,'time An"d payment basis.
Section 2 Co"ntractor Selection:Proce"ss.for Individual Proiects
Project Specifications, Drawings bind, Pre Bi' 4ob Site Meeting
Prior to selecting a Coin"r"actor to, complete a project, the Project Supervisor shall submit to the
selected Contractor(s) specJ,JcaV0ns and drawings for each lump sum bid project, or shall provide
specifications and drawings directly to a Contractor selected to perform a T&M project (to be used to
prepare cost estimate to complete the project). It is imperative that the scope of work is the same for
each contractor so that everyone is quoting on the same scope of work.
A pre-bid job site meeting should also be arranged by the Project Supervisor to supplement the
specifications and drawings by viewing the job site, and to provide instructions for contracted workers
or rules to access the facility or job site if applicable.
THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
PURCHASING DIVISION
Management of General Contracting and Other Trade Contractor Services Term Orders
Page 4 of 12
RFP2012-9
Selecting Contractors-General Guidelines Two Approaches
There are two approaches that may be used to select a contractor from a Service Registry to perform
work. The first approach is to invite all (or a select number) of registered contractors to submit
"Lump Sum" bids and award the project to the lowest compliant bidder. The second approach is to
select only one registered contractor to perform the work on a Time and Materials basis (T&M
project). The choice is largely determined by the estimated value,.of the work:
Individual Project Value Approach
< $5,000 T&M Project Basis (select ogre contractor)
$5,000 to $10,000 T&M Basis Or Lump SP.M
$10,000 to $25,000 Lump Sum (all registered app licab,le:Gontractors)
> $25,000 Formal T6'6der pr,,RFQ(to be issued separately from the
Registry)
User Department Responsibilities-
The User Department st'Wshall record each ins tance°when a Registered Contractor has declined to
accept a T&M bid or has declined to 0 cl a lump su:�bid project. This information will be provided to
Purchasing after each xproject a;nd reviewed,,by Purchasing Services on an annual basis in conjunction
with a contractor-'performance review process to.deterl ine whether or not the current Contractors
should be.,rb'd6mmende ' for.the next,contract term In the event of any complaints received from
any registered contractor in re*ards to the, use of a Rotation List* or actual selection of a contractor
for a specific project etc,the Prole�t Supervisor shall notify the Buyer to resolve.
The Project Supervisor shall ensure that the contractor selection procedures are followed
consistently. Any deviations may eesult in a detailed review by Purchasing Services, requiring
appropriate measures to be take 6y the user department to ensure future compliance as a condition
of being permitted continued.;eccess to the Service Registry. Failure to maintain compliance with
these procedures may result in removal of access to the Registry or cancellation of the program.
Purchasing Services shall be notified each time a selected contractor has been non-responsive or non-
compliant. All estimates and lump sum bids obtained shall be retained as an official record by the
requesting department, and prices shall not be revealed to any other contractor. A copy of the
documents shall be e-mailed to Purchasing Services to be kept on file for compliance audits and to
consolidate records at the end of the contract terms.
THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
PURCHASING DIVISION
Management of General Contracting and Other Trade Contractor Services Term Orders
Page 5 of 12
RFP2012-9
Time and Materials Approach to Awarding a Project
All individual projects with an estimated value of up to $5,000 should be awarded on a T&M project
basis. Pricing will be based on the contracted time and materials rates. No further bidding is to be
conducted.
Individual projects with estimated values ranging from $5,0010,to $10,000 (or a higher limit if
authorized by the Purchasing Manager) may be awarded to a registered contractor directly by the
Project Supervisor on a time and materials pricing basis (T&M project). The selected contractor(s) will
be required to submit an estimate of the project cost.;and p'royide an upset limit (not to exceed
amount). Note: the final pricing will be based on actua-!"labour hours worked and materials used
priced according to the contractor's T&M rate schedule `
There are two methods that can be used to select Registered Contractors ona T&M basis:
T&M Basis—Approaches*
a) Rotation (i.e. next in line),
b) Best Fit with Contractor's experiejCe, gt�alifications hourly rates, resources, location,
availability and familjartyy.wilrh site req"iii►' ments
*records of approach to be Maintajngd
T&M Approach for Project5 L Wethod:Pne: Select'a Contractor by Rotation (i.e., next in line)
All registered Cont'hactors shalh oo initially `ranked and;Jisted in the Registry by order of lowest to
highest _g scores from the prit0s,$id in the 060- sals.
For the first T&M, project, the=.contractor at the top of the list shall be approached to provide an
estimate and supsuently perform the `�ti<<u brl<. For the next available T&M project, the next
contractor in sequetC0- (i.e., next h' line to the contractor awarded the previous project) will be
approached, using the same process described in this method.
The user department will advisee the Buyer of the selected contractor, so that a rotation list of
contractors is maintained for the purpose of establishing the next contractor in line to be approached
for T&M work. The rotation list shall be maintained throughout the term of the service.
THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
PURCHASING DIVISION
Management of General Contracting and Other Trade Contractor Services Term Orders
Page 6 of 12
RFP2012-9
T&M Approach - Method Two: (By Consideration of Project Requirements)
For certain projects where; the work is urgent in nature, requires unique skills, or arises from an
emergency; the Project Supervisor may select a suitable contractor based on the registered
contractors' relevant experience, qualifications, previous performance on similar municipal projects,
and/or familiarity with the job site or facility where the work is to be performed.
The Project Supervisor shall advise the Buyer of the circumstances�affecting the decision to use this
selection method so that it may be documented and kept on fl=e`if audited. This approach shall only
be used when it is impractical or inappropriate to use method on'6„rand shall not affect the position of
contractors on any applicable rotation listings prior to the'award of the project.
Failure to Provide a Responsive or Competitive T&M Estimate
If the selected contractor is unable to undertake the work;, aor, in the judgment of the Project
Supervisor:
a) The estimate provided is excessive in �price,rproposes ir�stfficient staffing or other resources to
perform the work to the required stanards,"fiails tp meetthe.required start or completion date,
or fails to address any Qtle1- pecific project requireriment requested; or
b) The selected contractor refusq`s:, or is unable to provide`'equipment, materials or services
contained on his contract rate schedule thattn,the Project Supervisor's judgement is required to
undertake the.work: or,
C) The selected cont ractor.,propos6 to substitU"te equipment from the contract rate schedule with
more,0-pensive equiph)0 that'in thae judgement of the Project Supervisor is not necessary; or
d) Project speuticz- the select - contractor does not submit within a reasonable time frame
specified by the Project Supervisor evidence that staff to be assigned to the project; i) have
specific training as' 'by the Project Supervisor, ii) police clearance (vulnerable sector),
or iii) any other app I cable certifications or licenses required to perform the work in a particular
facility.
Then the next contractor in sequence (as applicable to the selection method used) will be contacted.
This selection process will repeat until a contractor is ultimately selected to perform that project.
* Project Supervisor judgment to be supported by facts, data and documentation that supports the
decision.
THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
PURCHASING DIVISION
Management of General Contracting and Other Trade Contractor Services Term Orders
Page 7 of 12
RFP2012-9
Responsibility of Staff with Regard to T&M Projects
Purchasing Services will not normally be involved in the selection of a contractor to perform T&M
projects. However, the Project Supervisor shall immediately advise the Buyer of any concerns or
complaints received during the preparation of an estimate, and to resolve any disputes with regards
to pricing, performance of the work, or the selection process.
Lump Sum Bidding Approach to Awarding a Project
Individual projects valued above $10,000.00 to a maximum of$ 5rp00.00 (net of H.S.T. Rebate) are to
be bid competitively using a lump sum bidding process, u'n'le ss otherwise identified for the Contractor
Service Registry.
There are two methods that can be used to selec1t:',a J st of contractors to 16-0:i,nvited to bid Lump Sum
projects:
Lump Sum Bidding Approach- Method One:,(Full Invitation) ,,
All registered contractors are invited to submit a'LLu bp..Sum Bid The bid invitation document shall
include all project specific requirements to en�;ure that r�$pondmg Wdders agree to required start &
completion dates, speciTficat�ons; site and access,'cond�tions, etc.
Lump Sum Bidding Approach r,MethodTwo: (Selecting a Short List from within a Larger List)
All registered C�ntiacto shal( be initiallyanked and slisted in the Registry by order of highest to
lowest scares of the evaluated,propos .ls.
A set number of registered contractors (typea,lly 3 to 5) are invited to submit a lump sum bid for each
project from withika larger total lift. Thed invitation document shall include all project specific
requirements to erisdre that responding bidders agree to required start & completion dates,
specifications, site and access condffions, etc. However, this method requires a rotation list to be
maintained by Purchasing Sevices
For the first lump sum bid project, the required number of contractors ranked at the top of the list is
invited to bid. Bids will be received, evaluated and a Bidder selected following the previously
explained process. (In the event that the bid call is cancelled and will be recalled, the invited
contractors shall be invited to bid the re-call. If the project is cancelled without a recall, the invited
contractors will be placed back in priority sequence on the rotation list to be invited to bid on the next
available lump sum project).
THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
PURCHASING DIVISION
Management of General Contracting and Other Trade Contractor Services Term Orders
Page 8of12
RFP2012-9
For the next lump sum bid project, the next group of contractors in sequence (following the initial
invited list) will be contacted, using the same process in the previous paragraph. When the final
contractor on the list is invited, the list will repeat from the beginning.
Responsibility for maintaining and updating the list of contractors (i.e., to determine next in line to bid
on the next project) resides with Purchasing Services.
Responsibility of Staff with Regard to Lump Sum Bid Projects
The Project Supervisor shall perform or coordinate the fol.lowmg activities:
• Provide selected contractors with the work specifications,
• Respond to any inquiries received,
• Analyze the bids (ensure bidding on the sarre'scope of work; ask for clarification if in doubt),
and award to the lowest compliant bidder (if=Within budget).
• In the event that the lowest compliant bid exceeds.the ayaila,ble funds suspend the award of the
bid until the Project Supervisor can provide one of;the fol�lovving directions,,",nc nsultation with
the Department Manager or Director ancl,Finance Department:
a) Additional funds needed to complete the;,project are available in accordance with the Policy
G5 Capital Project Overexpenditure .y(the '`F?fe)e Supervisor will proceed to award to the
recommended Bidder),
b) Additional funds needed to complete the,proIect are not available, b.ut the scope of work will
be reduced to conform to ava,fable funds; $dxthat the project may be re-bid (the Project
Supervisor will notijty the invited contractors,�- yxletter of the cancellation of the bid call and the
re-call in the,near future =The same contractor`s will be invited to bid on the re-call),
c) Additional"funds needed toeompiete the proioct are not available, and the scope of work
cannot tie red ucecrlo conform to availably N'hcls (the Project Supervisor will notify the invited
contractors by letter of the can of the bid call due to funds. The same contractors will
be invited;o,bid on the next available (ump Sum Bid project)
• Upon concurrence of the recommended"contractor from the Project Supervisor and/or Manager
and/or /Director:,..(depends on signing authority), reference the contract term order and
authorize the awar,,d: f the project.
THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
PURCHASING DIVISION
Management of General Contracting and Other Trade Contractor Services Term Orders
Page 9 of 12
RFP2012-9
Section 3.0-Administrative Requirements
Contractor Performance
The Project Supervisor shall ensure that the Contractor fully complies with the project specifications
and that work is performed in a safe and compliant manner. If there are any problems encountered,
or any disputes arise with the Contractor, the Buyer should be notified immediately to determine next
steps. Performance problems and associated correspondence should be documented for future
reference.
Purchase Requisitioning
T&M Based Projects& Lump Sum Projects:
T&M based and lump sum projects are cond6ctI0d"=under the contract tOrm order set up for the
contractor.
Requisitioning and Verifying Pricing for TWM Based Projects&"Lump Sum Based Projects
Requisitioning Method:
The Term Order & Contract Number, is to be us.ad a's a docu,ri►ent co"ntrol number for work orders,
invoices and other docur6ents or correspondence relafrng to the awarded project.
Steps to Verify Pricing(these must be:done prior to authorizing payment):
The Cont(, (tbr shall submit,an invofu to the I?roject Supervisor within 14 business days of the
completion pf the work. The Projectuperyisor shall verify that:
a) The work]has been inspected and is found to be completed, and compliant with the project
specifications, =including any"modifications to the project specifications authorized under a
change order,
b) The unit prices and; nam up percentages stated on the priced work order (labour rates, installed
service rates, materials: equipment, rentals, sublet charges etc.) fully comply with the T&M
Rates established in the";i:Contract. This shall also apply to any extra work authorized by the
Project Supervisor under a"change order,
c) Where the actual value of any of the contractor's supplier's materials, equipment rentals or
subcontracted work exceeds $1,000.00, the Contractor has supplied copies of the supplier
invoices (or the Supplier's net priced sales order if invoice is pending) and proof of receipt with
the priced work order per the attached sample (supporting documentation shall be kept on file
for future reference),
THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
PURCHASING DIVISION
Management of General Contracting and Other Trade Contractor Services Term Orders
Page 10 of 12
RFP2012-9
d) The dates & times worked and the supplied equipment, materials and sublet services stated on
the priced work order are accurate and consistent with the municipality's records and the
completed work,
e) Prices for materials, supplies, equipment, rentals and sublet services stated on the priced work
order have been reviewed to ensure these have been purchased at competitive prices,
f) The final amount does not exceed the Contractor's estimate plus any additional costs
authorized by the Project Supervisor under one or more cha.,nge orders.
If inaccuracies or discrepancies are found, the Project Supervisor shall reject the proposed pricing and
instruct the Contractor to re-submit the priced work order with,the necessary changes made. The
Contractor shall be instructed to not issue an invoice �u`ntil the changes are made to the Project
Supervisor's satisfaction. Purchasing Services and in Department shall also be advised of
ongoing invoicing or pricing discrepancies for any Contractor.
The Project Supervisor shall notify Purchasing Services if .the..Contractor has not provided the
requested pricing documentation within fourteen business day 'of the Municipality's request, so that
appropriate action may be taken.
The Project Supervisor should verify the p-... and acceptan6 of the work as noted above. The
Project Supervisor may withhold )nvoice payro.0 by such amount as,`ay be sufficient to remedy any
defect or deficiency �n ;the 'work, pending correction` of tfe Sam""e. However, the Contractor,
Purchasing Services and Finance Department must;»be nformed'of"the project and invoice status.
Change Orders
Extra Work Orders:
An "Extra Work:Qrder" is issued for extra work that is unanticipated at the start of the project, and is
deemed necessary�to complete th.e`original`scope of work identified in the original project. A Change
Order may be authorized directly by the Project Supervisor in circumstances where it has been
determined that extra work is t`6eded to complete a project to the original performance
requirements. The need toperform the extra work may be due to unforeseen job site conditions
discovered after the work has started, or where it is determined that the design specifications must
be modified in order to meet any required building codes or other legislated requirements.
The Contractor shall first submit a price for the extra work to the Project Supervisor for approval,
using the applicable contract rates or mark-up percentages to develop a price. Where the Contract
rates cannot be applied, then the Project Supervisor shall review the pricing proposed by the
Contractor to determine if it is reasonable.
THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
PURCHASING DIVISION
Management of General Contracting and Other Trade Contractor Services Term Orders
Page 11 of 12
RFP2012-9
Additional information may also be requested to support the proposed pricing (i.e., copies of the
estimate from the Contractor's suppliers, or a breakdown of the estimated labour hours and rates
etc.) In the event that the Project Supervisor and the Contractor cannot come to an agreement on the
price to be charged, the Buyer shall be notified immediately to try to resolve. In circumstances where
the extra work must proceed immediately to avoid delays in the Project (such as to not interrupt work
already in progress), the Project Supervisor may direct the Contractor to proceed with the extra work
prior to obtaining pricing. However, the Project Supervisor shall,be responsible to ensure that the
pricing for the extra work is submitted by the Contractor as $oon as possible and authorized in
accordance with this Section before payments to -the Co' ctor for the extra work may be
authorized.
Adherence to Corporate Policy GS Capital Project'0ver6koenditure "64-Purchasing Bylaw
The Project Supervisor shall ensure that if a Change,Order is required for E- ra Work (or Additional
Work authorized in the manner noted) that would result in ;overexpenditure tinder the Policy G5
Capital Project Overexpenditure, the appropriate Departmentmancial authority. ill be immediately
contacted to arrange for the approval" the additional funds in accordance with the Corporate Policy
G5 Capital Project Overexpenditure.
In the event that authorizatlq for the overexpendi'W're 1s,denied, �the Change Order shall not be
issued. If as a result of this, the`Project must either he cancelled, or the work modified in such a way
to complete the project within the available funds, th'e Project Supervisor and Buyer shall negotiate
the terms for the cancellation:or the eequired changes as applicable with the Contractor.
Terms of Payment-and Invoicing Irtistructions
The Contra 'ibruwho has been�awarde'd a project is required to perform the project for either the bid
price (if awarded a lump sum"tased project), or, priced in strict accordance with their T&M Rate
Schedule (if awarded=ra T&M based project).`�A'n all circumstances, payment may only be authorized by
the Project Supervisoe:.after the Cor� :ractor has performed the work. This involves the following two
determinations to be mO e:
a) That the approved paym6 t,amount equals the value of the work actually performed, and
b) That the quality of the wgik performed is in accordance with the required specifications of the
Project.
THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
PURCHASING DIVISION
Management of General Contracting and Other Trade Contractor Services Term Orders
Page 12 of 12
RFP2012-9
Original hardcopy invoices must be delivered or mailed to the Municipality of Clarington, Purchasing
Office, 40 Temperance Street, Bowmanville, Ontario, L1C 3K6. Invoices must provide the purchase
order number, complete description of good/services, contact name and location of the requesting
department/location, the date when the services were completed, HST registration number and
complete prices in accordance with the Contract provisions. Failure to submit an invoice with the
correct information may result in payment delays.
Invoices for work performed on a time and materials cost basiT8�,M) shall include a summary of the
applicable service fees or labour rates (individually for each service category, tradesman, apprentice,
helper, foreman or other workers etc.), and identify I( materils, equipment and subcontracted
services supplied at the company's costs (applying the applicable Gost Plus Mark Up percentages in
accordance with the specific pricing provisions of the (ontract), and=the-dates and times the services
were performed. Copies of the company's subcontractor and/or supplier Jnvoices may be requested
for verification of the costs and mark-ups billed T-hewabove noted supporting,documentation shall be
signed or otherwise authorized by the Project Supervisor or hjss/hpr designate, or applicable Director
or his/her designate to indicate the Municipality's acceptanc' 4'Ethe work performed.
Attachments:
Terms of Reference
Purchasing By-Law 2010-11
Corporate Policy G5 Capital Prdject Oyerexpend�tures
Contractor ManagemeW ,.�