Security under Construction Contract

Whether a termination should be made before a security call depends on the terms of the contract and applicable legislation. Contracting entities and contractors should ensure that they are aware of all termination obligations and that those requirements are met. Non-compliance could limit a customer`s right to request an “unconditional” warranty. (a) The Government may require the architect-engineer contractor to design the project in such a way that the cost of construction does not exceed a contractually agreed dollar limit (funding restriction). If the price of the proposed construction in response to a government request exceeds the construction funding limit in the architect-engineer contract, the office is solely responsible for redesigning the project within the funding limits. These additional services are provided without increasing the price of this contract. However, if the cost of the planned construction is affected by events beyond the reasonable control of the company (p.B. if there is an increase in material costs that could not have been foreseen, or an unreasonable delay by the government in issuing a construction application), the company is not obligated to redevelop the government free of charge. If a company`s design does not comply with the contractual construction cost limit and the government determines that the company should not rethink the project, a written explanation of the reasons for this finding must be included in the contract file. Although a guarantee for loved ones is supposed to work in much the same way, this rarely happens in practice. Most often, this is because the interests of the related party coincide with the interests of the entrepreneur. The contract agent may include the clause under 52.236-16, quantitative surveys, in invitations and contracts if a fixed-price construction contract is envisaged, which provides for a unit price for the articles and a payment on the basis of quantitative surveys. If, at a level higher than that of the contract agent, it is found that it is not possible for officials to carry out the initial and final investigations, and the Government wishes the contractor to carry out these investigations, the clause with his deputy applies.

(b) The amount of the mortgage limit (inserted in clause 52.236-22 (c)) will be determined during negotiations between the contractor and the government. This estimated construction contract price takes into account any legal or other restrictions and excludes any allowance for government oversight and overhead, as well as any amount set aside by the government for unforeseen events. When negotiating the amount, the contracting authority should provide the contractor with the information on which the government based its initial estimate of the construction and any information subsequently obtained that could affect the cost of construction. 36.201 Evaluation of the contractor`s performance. See paragraph 42.1502(e) for requirements for the preparation of past performance evaluations for manufacturing contracts. 36.202 Technical data. (a) the construction specifications shall comply with the requirements of Part 11 of these Regulations; (b) To the extent possible, contract agents shall ensure that specifications refer to widely accepted standards or specifications adopted by governments, industries or technical companies. (c) where `trade mark or equivalent` designations are required, the specifications shall clearly identify and describe the specific physical, functional or other characteristics of the branded goods considered essential to meet the requirement; 36,203 Government estimated construction costs. (a) For each proposed contract and for any modification of the contract likely to exceed the simplified procurement threshold, an independent estimate of the construction costs shall be drawn up by the Government and submitted to the contracting authority as soon as possible; The contractor may request an estimate if the cost of the work required should not exceed the simplified coverage threshold. The estimate must be prepared in as much detail as if the government were competing for the contract. (b) When a two-tier sealed bid is used, the government`s independent estimate must be prepared when determining the requirements of the contract. (c) Access to information on government estimation is limited to public servants whose official duties require knowledge of the estimate.

An exception to this rule may be made during contract negotiations to allow the contracting authority to identify a specific task and disclose the breakdown figures of the associated costs in the government`s estimate, but only to the extent deemed necessary to obtain a fair and reasonable price. The total amount of the government`s estimate will only be disclosed if the authority`s regulations permit it. 36,204 Disclosure of the scope of construction projects. Notices and requests indicate the amount of the requirement in relation to physical characteristics and the estimated price range. Under no circumstances may the government`s estimate be disclosed in the state of magnitude. Therefore, the estimated price must be described in relation to one of the following price ranges: (a) Less than $25,000. (b) Between $25,000 and $100,000. (c) Between $100,000 and $250,000. (d) Between $250,000 and $500,000. (e) Between $500,000 and $1,000,000. (f) Between $1,000,000 and $5,000,000. (g) Between $5,000,000 and $10,000,000.

(h) More than $10,000,000. 36,205 Legal cost restrictions. (a) Works contracts may not be awarded at the expense of the Government – (1) Beyond the legal cost limits, unless the applicable restrictions cannot and are lifted in writing for the respective contract; or (2) that exceed legal authority with allowances for contingencies and overheads imposed by the state. (b) Applications containing one or more items subject to legal cost restrictions must indicate (1) the applicable cost limit for each affected item in a separate scale; (2) an offer which does not contain separate timetables is not taken into account; and (3) that the price in each schedule includes an approximate breakdown of all estimated direct costs, transferable indirect costs and benefits […].