HomeMy WebLinkAbout~Master - Revisions to purchasing policies regarding bidding and change orders RESOLUTION NO.08-125
RESOLUTION APPROVING REVISIONS
TO PURCHASING POLICIES RELATED TO BIDDING AND CHANGE ORDERS
FOR THE CITY OF AMES
WHEREAS, on November 7, 2007,the Council identified six issues relating to purchasing activities as needing
improvement, and staff explored these improvements in three categories: subcontractor issues,performance bond issues,
and other insurance issues; and,
WHEREAS,a new section in the Standard Terms,Conditions,and Definitions of bidding documents is proposed
that would require general contractors to provide a list of proposed major subcontractor names with their proposed scopes
of work and subcontract amounts prior to the start of work; and,
WHEREAS,this section would also require that the contractor provide a certification from each major subcontractor
prior to the start of work documenting that it agrees to the conditions of the contract between the City and contractor;and,
WHEREAS, insurance issues will continue to be researched, however, in the interim, it is proposed that
requirements continue to focus on the strength of the general contractor,and project-specific risks would be assessed by the
risk manager,in consultation with the engineer, for larger and more complex projects; and,
WHEREAS,contractors would be required to provide insurance certificates from major subcontractors prior to the
start of work,and limits of insurance for subcontractors on large projects would be determined by the risk manager based
on their scope of work for the project; and,
WHEREAS,since August 2007,the required performance bond is more than the base contract amount when extra
work is anticipated on a project,and the percentage is adjusted upward from 100%of the base contract amount dependent
upon the amount of extra work that is anticipated; and,
WHEREAS, it is proposed that the Standard Terms, Conditions, and Definitions state than an additional
performance bond be required in conjunction with change orders when the total of change orders exceeds the existing
performance bond amount by more than$100,000, and obtaining an additional bond may result in a work stoppage while
the contractor secures the additional bond; and,
WHEREAS,both the additional bond requirement and the ability to authorize costs associated with a work stoppage
require revisions to the purchasing policies; and,
WHEREAS,training options in the area of contract administration and management are being researched for staff
working directly with contracts.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that the proposed
improvements relating to bidding proposed in the areas of subcontractors,performance bonds,and insurance,and changes
to the purchasing policies relating to change orders are hereby approved.
ADOPTED THIS 8"'day of April, 2008.
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Diane R. Voss, City Clerk Ann H. Campbell, Mayor if
Introduced by: Goodman
Seconded by: Popken
Voting aye: Doll,Goodman,Larson,Mahayni,Popken,Rice
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 8`h day of April, 2008.