Procurement Procedures - Chapter 7: Construction Procurement

CN 1 - Introduction

This chapter will address the unique characteristics of construction solicitations with Hillsborough County (County).

CN 2 - Invitation for Bids (IFB) - Construction procurements

Construction bids, known as IFB, have additional steps and requirements, as listed below, beyond typical cost-based procurements (Chapter 5).

CN 2.1 - Newspaper publication

For construction projects over $200,000, but not exceeding $500,000, an advertisement must be published in a newspaper of general circulation within the County at least 21 days before the bid close date and five (5) business days before any pre-bid conference. For construction projects exceeding $500,000, the advertisement must be published in a newspaper of general circulation within the County at least 30 days before the bid close date and five (5) business days before any pre-bid conference ¹.

CN 2.2 - Bid securities

IFBs will require a form of bid security that must be submitted to the County. See Chapter 16 (Insurance and Bonds) for additional information.

CN 2.3 - County Attorney’s Office review

The County Attorney’s Office will review the solicitation documents before publishing and offer(s) before award.

CN 2.4 - The Bid Review Committee (BRC)

1. Purpose and Members
• For capital improvement projects, the Requesting Department (RD) must convene a BRC when bid submissions exceed $50,000 and is ten percent (10%) or more above the estimated construction cost².
• The BRC shall include the RD’s Director (or their delegate) who serves as chair; the Project Manager or engineer; a Management and Budget representative; and, if applicable, the consulting engineer or architect. Additional County employees may serve as advisors to the BRC.
2. Role of the Bid Review Committee
• The BRC will analyze submissions and determine whether to accept or reject the lowest responsive and responsible submission. The review shall consider factors such as plans, quality, quantities, costs, escalation clauses, and other items. Once the BRC meeting has concluded, the project manager will prepare the BRC memorandum consisting of a list of attendees, an overview of the project, an analysis of the bid, and the committee’s recommendation. The BRC memorandum will be submitted with the award recommendation through the County’s electronic procurement system (EPS).

CN 3 - Construction Manager At-Risk (CMAR)

CMAR is a qualification-based project delivery method where a construction manager provides pre-construction services and commits to delivering a project within a Guaranteed Maximum Price (GMP). The construction manager acts as a consultant to the owner during the design phase and then transitions to a general contractor role during construction, taking on the financial risk of staying within the agreed-upon GMP. A CMAR typically is subject to the same performance and payment bond requirements applicable to Builders. The CMAR process is generally a project-specific delivery method that is suited for medium to large capital or renovation projects. The CMAR provides technical assistance to the designer during the design phase, has a cost-capping feature (e.g., GMP), and may allow construction to begin before the design documents are 100% complete. The CMAR generally awards subcontracts much like a general contractor in a Design-Bid-Build project and assumes responsibility for the proper or timely performance of the same.

CN 4 - Design-build projects

Design-Build projects will be awarded in accordance with County Ordinance 08-18 and the Procurement Policy. A design-build typically is subject to the same performance and payment bond requirements applicable to builders.

CN 4.1 - Design-build projects (fixed price/two-step)

A two-step design-build procurement process first identifies the most highly qualified design-builders then seeks design and cost proposals. The owner selects the design-builder offering the best value proposal (a combination of design, project approach and contract price).

CN 4.2 - Progressive design-build (negotiated price)

Progressive design-build is a qualification-based project delivery method that combines design and construction services under a single contract, emphasizing collaboration and flexibility throughout the project lifecycle. It builds on the traditional design-build model by engaging the design-builder earlier and negotiating the final price and construction details later in the design phase. This approach allows for greater owner involvement, risk management, and potential for innovation.

CN 5 - Job-order contracts

Job-order contracting is a construction procurement method that establishes a long-term contract with a single contractor for a variety of maintenance, repair, renovation, and minor construction projects. Instead of bidding each project individually, Job-order contracts allow for the issuance of multiple work orders under a single, pre-priced contract. This approach streamlines the procurement process, reduces administrative costs, and fosters stronger relationships between owners and contractors.

RD must have standard procedures for the development of, issuance, and management of job order contracts and the resulting work orders.

CN 6 - Direct purchase of construction material

When developing specifications, the RD and design consultant (if applicable) should consider if the project will include the requirements for direct purchase. This consideration will be based on the analysis of the advantages and disadvantages below:

CN 6.1 -Advantages

1. Savings sales tax money
2. Delivery of certain items with long lead times can affect the completion of projects. The County can purchase materials sooner than the contractor.
3. Generally, bonding is not required for material purchases (as it is for construction projects), so additional savings are realized.
4. Planning for multi-year requirements enables volume discount buying so additional savings are realized.
5. In most cases, by directly purchasing large equipment, the County has more control over the quality of items purchased.
6. The cost of the material is not increased by the offeror’s overhead and profit.
7. Additional savings might be realized by having County staff install the direct purchase material. However, the savings will need to be weighed against any loss of the contractor’s guarantee/warranty.

CN 6.2 - Disadvantages

1. It is important that the contractor maintain responsibility for the completion of the project and the County not take on the risk of providing equipment/material that is defective or late.
2. Coordination of the ordering and delivery of construction equipment/material is critical to the timely completion of the project. Late delivery may result in claims by the contractor for additional compensation.
3. Despite the method purchase, responsibility for the equipment’s/material’s quality rests with the County rather than the contractor.
4. The direct purchase of any capital equipment (≥$5,000) must comply with the Tangible Personal Property Control³ . The project manager must ensure the equipment is properly inspected and identified as County property at the time of storage under the control of the contractor to avoid any potential loss should the contractor experience bankruptcy or default on the contract.
5. A guarantee/warranty may become an issue when the contractor and the material supplier accuse each other of defects. If the contractor purchases the material, the contractor is solely responsible for the materials used for the project.
6. Storage of large direct purchases may result in additional costs.
7. The contractor’s purchasing ability may be greater than the County’s for certain materials, thereby resulting in the County paying more than the contractor.
8. (Any sales tax not paid decreases the amount of sales tax revenue to the County.

CN 6.3 - Direct purchase procedures

After considering the advantages and disadvantages, the RD and design consultant will determine if the requirement of direct purchase will be incorporated into the published solicitation document.

CN Notes

1. Per Fla. Stat. § 255.0525
2. Pursuant to Board Policy 03.02.01.00
3. Policy 08.02.01.00; AD PI-01 (Procedures for Implementation of Board Policy for Control of Tangible Personal Property (08.02.01.00) and Sensitive Property (08.02.02.00)