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5.34.810 Definitions for Alternative Contracting Methods.

(Amended by Ordinance Nos. 185898 and 187373, effective October 14, 2015.) The following definitions shall apply to Sections 5.34.800 through 5.34.890, unless the context requires otherwise:

A.  Alternative Contracting Methods. Innovative techniques for procuring or performing Public Improvement Contracts, utilizing processes other than the traditional method involved in the design-Bid-build with Award of a Public Improvement Contract based solely on price (in which a final design is issued with formal Bid documents, construction Work is obtained by sealed Bid Awarded to the lowest Responsive, Responsible Bidder, and the project is built in accordance with those documents). In industry practice, such methods commonly include variations of Design-Build contracting, CM/GC forms of contracting and ESPCs, which are specifically addressed in Section 5.34.880.  These methods also include other developing techniques including, but not limited to, general "performance contracting" and "cost plus time" contracting, for which procedural requirements are identified under Sections 5.34.800 through 5.34.890.

B.  Construction Manager/General Contractor (or "CM/GC"). A CM/GC Contractor means a person who provides Construction Manager/General Contractor services to the City under a Public Improvement Contract.

C.  Construction Manager/General Contractor Method (or “CM/GC Method”) means the Alternative Contracting Method which involves the City’s section of a CM/GC to perform CM/GC Services for a project or projects.

D.  Construction Manager/General Contractor Services (or “CM/GC Services”) means construction-related services the City procures by means of an Alternative Contracting Method under ORS 279C.335 and the at:

1.  Include a Construction Manager/General Contractor’s:

a.  Functioning as a member of a project team that includes the City, the architect or engineer that designs the Public Improvement under a separate contract with the City and other contractors and consultants; and

b.  Reviewing and analyzing a design for a Public Improvement in order to:

(1)  Suggest changes in the design that minimize potential errors, delays, unexpected costs and other problems during construction;

(2)  Recommend means by which the City may achieve the functions of the Public Improvement or a component of the Public Improvement safely, reliably, efficiently and at the lowest overall cost;

(3)  Improve the value and quality of the Public Improvement; and

(4)  Reduce the time necessary to complete the Public Improvement.

2.  May include, depending on the specific terms of the Public Improvement Contract and on whether the City decides to proceed with construction, a Construction Manager/General Contractor’s:

a.  Devising a schedule for constructing the Public improvement;

b.  Estimating construction, materials, labor and other costs for the Public Improvement;

c.  Establishing a fixed price, a Guaranteed Maximum Price or other maximum price;

d.  Constructing portions of the Public improvement and subcontracting portions to other contractors;

e.  Coordinating and overseeing the construction process; or

f.  Performing other services related to constructing a Public Improvement in accordance with the terms of the Public Improvement Contract.

E.  Design-Build. A form of Procurement that results in a Public Improvement Contract in which the construction Contractor also provides or obtains specified design services, participates on the project team with the City, and manages both design and construction. In this form of Contract, a single Contractor provides the City with all of the Professional, Technical and Expert Services and Work necessary to both design and construct the project.

F.  Early Work.  Early Work means construction services, construction materials and other Work authorized by the parties to be performed under the CM/GC Contract in advance of the establishment of the GMP, fixed price or other maximum, not-to-exceed price for the project.  Permissible Early Work shall be limited to early procurement of materials and supplies, early release of Bid or Proposal packages for site development and related activities, and any other advance Work related to important components of the project for which performance prior to establishment of the GMP will materially and positively affect the development or completion of the project. 

G.  Guaranteed Maximum Price (or "GMP"). GMP means the total price at which the Construction Manager/General Contractor agrees to provide Construction Manager/General Contractor services to the City in accordance with the terms and conditions and scope of work for a specific Public Improvement Contract and within which are: 

1.  All costs the City agrees to reimburse and all fees the City agrees to pay for completing the Work; and

2.  Any contingent costs, fees, or other charges specifically identified in the Public Improvement Contract.  For Alternative Contracting Methods other than the CM/GC method, “Guaranteed Maximum Price: (“GMP”) means the total maximum price provided to the City by the Contractor, and accepted by the City, that includes all reimbursable costs of and fees for completion of the Contract Work and any particularly identified contingency amounts, as defined by the Public Improvement Contract.

H.  Project Development Plan. A secondary phase of Personal Services and Work.

I.  Savings Pertaining to CM/GC (or “Savings”).  CM/GC Savings means a positive difference between a fixed price, Guaranteed Maximum Price, or other maximum price set forth in the Contract and the actual cost of the Work, including costs for which the City reimburses a Construction Manager/General Contractor and fees or profits the Construction Manager/General Contractor earns.   For other Alternative Contracting Methods, “Savings” means a positive difference between a Guaranteed Maximum Price or other maximum not-to-exceed price set forth in a Public Improvement Contract and the actual costs of the Contractor’s performance of the Work payable by the City under the terms of the Contract, including costs for which the City reimburses the Contractor and fees, profits, or other payments the Contractor earns.