Procurement Policies and Procedures

5.0 Construction Projects

5.04 Required Contractor Licenses

As mandated by TCA 62-6-119, the city’s bid documents for construction projects shall contain information stating that it is necessary for bidders to be properly licensed at the time of bid submittal and to provide evidence of compliance at the time of bid submittal before the bid can be considered for award. The city’s bid documents shall require that the following information be written upon the envelope that contains the bid or provided within the electronic bid: the name, license number, expiration date, and license classification of the:

• contractor applying to bid for the prime contract.

• contractor applying to bid for the masonry contract where the total cost of materials and labor for the masonry portion of the construction project exceeds $100,000.

• contractor applying to bid for the electrical, plumbing, heating, ventilation, or air conditioning contracts where the portion of the construction project exceeds $25,000.

• Only one contractor in each classification shall be listed.

During the bid opening of a construction project, the names of all contractors listed on the submitted bid shall be read aloud and incorporated into the bid. Prior to awarding the bid, the Purchasing Assistant shall verify the accuracy, correctness, and completeness of the required information as listed above and, if any discrepancies are found in the spelling of names of bidders, transposition of license numbers, or other similar typographical error, may be corrected within 48 hours after the bid opening excluding weekends and state-recognized holidays. Failure to obtain the required licenses will result in a Class A misdemeanor.

5.05 Notice To Proceed

See Section 3.15 regarding when to issue a Notice To Proceed for construction projects.

5.06 Contract Change Orders

After a construction project has been awarded and commenced, city staff and the Purchasing Assistant may approve written changes to plans, specifications, cost, and scheduling up to the established contingency amount to keep the construction project progressing. Once the contingency amount has been exhausted, any changes from that point on or any changes that are materially different from the original scope of the project shall be first approved by the City Council in a public meeting as a formal change order. In the rare event an immediate change order is needed to avoid significant and expensive delays, the change order may be issued and retroactively approved by the City Council during their next meeting.

5.07 Liquidated Damages

Each construction project’s bid documents, specifications, and contract shall contain an amount of not less than $250 per business day for liquidated damages when the established contract completion date is missed. Inclement weather days or unforeseen events outside the control of the contractor, as reviewed and determined by the city and the contractor, will be factored in the amount of liquidated damages.

5.08 Final Acceptance of Construction Project

Prior to final payment to the contractor and architect, the construction project shall be accepted in writing by the city. In addition, the contractor shall submit a fully executed contractor’s affidavit to the Purchasing Assistant proving all subcontractors have been paid in full.

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