University policy on new construction states in part: "It is the policy of the University to accomplish new construction of structures and systems by placing such work under contract in the most economical manner to qualified outside firms, carefully supervising the work thus contracted or, in unusual cases approved by the Chancellor, by hiring employees on a temporary basis for periods not in excess of six months." This chapter describes required modes of contracting, types of construction contracts, types of University construction documents, and the members of the construction team. See University policy: "Maintenance and Construction Work," and 

Construction Contracting Requirements Summary Table:

The PCC Section 10503 requires the University to use one of the following contracting modes for entering a construction contract:

• Complete plans and specifications (also called "lump-sum")
• Design build 
• Construction manager
• Cost-plus-fee
• Progressive Design Build
• Other modes (when approved by UCOP), including:
• Integrated Form of Agreement (IFOA)

The complete plans and specifications contracting mode (also called the "lump-sum" mode) requires complete plans and specifications setting forth directions in enough detail to enable a contractor to carry them out. The University's Long Form, Brief Form, and Mini Form construction documents (see Types of Construction Documents) have been written for the complete plans and specifications contracting mode.

In the design-build contracting mode, the University contracts with a single party that designs and builds the project (see Design-Build Contract Templates). Documents for the solicitation of bids under the design-and-build contracting mode include the following:

• A program setting forth the project scope and the size, type, and desired design character of the building and site.
• A set of performance specifications covering the quality of materials, equipment, and workmanship.
• A maximum acceptance cost.
• A method and grading system for evaluating contractor proposals on the basis of a preliminary design, outline specifications, a price, and the financial condition and relevant experience of the contractor and the contractor's design professional.

In the construction manager contracting mode, the University contracts with a firm that provides management services during design and bidding phases and assumes responsibility for the construction work (see Construction Management Agreement for CM Services with any Delivery Method Contract Templates). The construction manager serves as a member of the University’s construction team. Documents for the solicitation of bids under the construction manager contracting mode include the following:

1. Prequalification standards
2. Outline specifications
3. Schematic drawings

These documents must indicate the general scope of the project. They must also clearly designate those requirements upon which prequalified contractors will be invited to submit competitive bids that will, in turn, serve as the basis of selection. 

In the cost-plus-fee contracting mode, the contractor is reimbursed for the actual cost of labor and materials, plus an agreed upon fee for overhead and profit. Cost-plus-fee contracts are usually used for emergency work or for projects in which the scope of work is uncertain. Documents for the solicitation of bids under the cost-plus-fee contracting mode include the following:

1. Prequalification standards
2. Outline specifications
3. Schematic drawings

These documents must generally describe the scope of the work and a definition of "reimbursable costs" and "nonreimbursable costs." They must also designate the fees and other fixed costs upon which pre-qualified contractors will be invited to submit quotations that will, in turn, serve as the basis of selection. Construction documents developed for this mode are available from UCOP.

Bids may be solicited under contracting modes other than complete plans and specifications, design-and-build, construction manager, and cost-plus-fee that the University decides are in the best interest of the University. These other modes of contracting may not be used by Facilities unless approval is first obtained from UCOP.

The PCC requires that documents for the solicitation of bids under other contracting modes allow for uniform bid comparison and that the award be made according to published selection standards.

There are two primary types of construction contracts: single contracts and multiple prime contracts. Variations of these types of contracts involve the participation of a construction manager or project manager.

Single Contract. Plans and specifications are prepared by the design professional and become part of the bidding documents. A single contractor is then selected by the University to perform the work. The single contract is usually the easiest to administer because of its centralization of responsibility, namely, one owner (the University), one contractor, and one construction contract. The standard Long Form, Brief Form, and Mini Form construction documents in Part II have been prepared for those cases where a single contract is awarded.

Multiple Prime Contracts. The University divides a project into two or more parts and enters into a separate contract for each part. Multiple prime contracts are used for phased construction, where contracts are awarded sequentially for each phase (see Separate Contracts). This type of construction is also referred to as the "fast-track" method. Contracts for parts of the project including “make ready” work such as site development, site excavation, or foundation work are awarded before the contract for the main structural work is awarded. Multiple prime contracts require careful coordination because several contractors are involved, and no single contractor is responsible for the entire project.

Samples of customized construction documents developed for multiple contracts are available from UCOP Design and Construction Services.

Construction Management. Sometimes, a Construction Manager is contracted to do limited work on a project or to assume the responsibility for the construction work. Construction management may be used with either single or multiple prime construction contracts, and these contracts may be made with either the University or the construction manager. Contracts involving construction management may also include a guaranteed maximum price, whereby the construction manager guarantees that the construction cost will not exceed a specified amount. The guaranteed maximum price is subject to increase, however, if the project's scope or conditions are changed. Construction documents developed for construction management projects are available from UCOP Design and Construction Services.

Project Management. Project management extends beyond construction management in that it also may include oversight of the design and, planning stages of a project. Projects involving multiple buildings, significant site improvements in high-use areas, or complicated funding require the type of supervision and coordination that a Project Manager can provide. The added supervision and coordination provided by the project manager should reduce the time required to obtain funds and to design and construct the project. Documents developed for project management are available from UCOP Design and Construction Services.

The basic types of standard construction documents used by the University are:

• Long Form
• Brief Form
• Informal Form
• Mini Form
• Design Build Form
• Progressive Design Build Form
• CM at Risk Form
• Multiple Prime Form
• Job Order Contract Form
• Brief Design Build

The Long Form construction documents must be used by the University for projects with estimated contract sums of over 1 million dollars, and may be used for projects below that threshold. In general, the Long Form is organized according to the Construction Specifications Institute's Manual of Practice. The Long Form Instructions to Bidders and General Conditions are organized according to recognized construction industry standards and terms.

The Brief Form construction documents may be used by the University for projects with estimated contract sums up to $1 million. Some Brief Form documents are identical to those in the Long Form; other documents, such as the Brief Form General Conditions, are written specifically for the Brief Form.

The Informal Form construction documents may be used for Competitive Informally Bid Lump Sum Construction Projects that exceed $50,000, but that do not exceed $640,000.

The Mini Form construction documents may be used by the University for projects with estimated contract sums of up to $300,000. Like the Brief Form, the Mini Form uses some Long Form construction documents; however, most of the documents are written specifically for the Mini Form.

The Design Build Form is used by the University for projects constructed under the design build mode.

The Progressive Design Build Form is used by the University for projects constructed under the progressive design build mode. 

The CM at Risk Form is used by the University for projects constructed under the construction manager mode.

The Multiple Prime Form is used by the University for projects constructed by multiple prime trade contractors.

The Job Order Contract (JOC) is used by the University for on-call contractors for efficient delivery of relatively small construction and maintenance projects. A JOC is a contract for a fixed term or maximum dollar value, whichever occurs first, in which a contractor is selected based on a competitive bid to perform various separate job orders in the future, during the life of the contract. Procurement for this type of contract must still follow the requirements of California Public Contract Code sections 10500-10506; it is a contract, not a purchase order. Failure to follow the Public Contract Code provisions can result in a void contract and/or criminal penalties.  Contract award is based on the bid adjustment factor which the contractor will multiply against “pre-priced” unit costs (compiled in a project task catalog) which is part of the contract.  The adjustment factor represents all of the contractor’s costs (indirect and direct) and profit not included in the pre-priced unit costs. The adjustment factor is updated annually based on the Construction Cost Index published for the closest location.

1. Use of JOC

   The JOC scope is exclusive to the contractor. Job order contracts are typically used for well-defined, recurring or repetitive work where quick execution is essential, not for single projects.  Using the JOC should not be an option among other options in deciding how to deliver a specific improvement.  The decision about whether or not to use the JOC for a particular type of improvement project should be made when the JOC is issued, and it should be clear from the JOC scope whether or not the JOC must be used (or cannot be used) for a specific improvement.  The most important decision in administering the JOC is therefore the drafting of the scope.  Consult with Office of the President, Design and Construction Policy and Office of the General Counsel when drafting the scope.

2. Types of Work

   JOC is an appropriate delivery method for any type of repetitive work, especially small renovation jobs.  It allows for a longer relationship with the selected contractor as various job orders issued under the contract are performed during the contract term.  Because the contractor has been selected and the unit price is fixed (by the project task catalog and the contractor’s adjustment factor), the JOC allows contractor input prior to design, which can expedite the work.

3. Coordination with Design

   JOC may be used in conjunction with UC’s Blanket EDPA. The Blanket EDPA retains a Design Professional for a specified type of work for a specified period of time. It is a flexible agreement and is similar to a PSA, in that work authorizations are issued for certain scopes of work. The design can be tailored to meet project stakeholder needs (Contractor, Client, Campus Building Official, Campus Fire Marshal, etc).

4. Due Diligence

   Prior to execution and approval of each job order issued under a JOC, the contractor’s estimates of unit quantities and any other items contributing to the price must be independently verified by the project manager. Following such verification, each job order shall be submitted by the project manager to the same individual with authority to approve change orders for approval and execution on behalf of the University.

5. Contract Terms
   • Duration 
     • The term of a JOC is one year, with two options to extend the term for one year each at the sole discretion of the University.  Each option may be exercised after the previous term has expired or the maximum dollar value for the term has been reached, whichever first occurs. The adjustment factor is updated annually, not necessarily at the start of each new option term.
   • Amount
     • Maximum values. The maximum value of each contract term is $5 million. The maximum value of any job order is $1.0 million.

     • Minimum values. The guaranteed minimum value of any contract is $25,000. The minimum value of any job order is at the discretion of the campus.  

        

6. Non-Prepriced Work 

   Non-Prepriced Work (work that is not reflected in the project task catalog) shall not exceed 10% of the total value of the job order.  The cost of non-prepriced work shall be based on the lowest of three (3) written quotes, copies of which shall be provided to the project manager.

7. Bonding, Insurance and Liquidated Damages
   • Bonding. Payment and performance bonds in the amount of Maximum Contract Value for the then-current Base or Option Term, at least one-half of which must be bonded initially, with the balance of the term to be bonded when the approved Job Orders reach 90% of the bonding limit then in effect.
   • Insurance. Builder’s Risk coverage based on the actual value of each job order.

   • Liquidated Damages. Amount to be determined in accordance with the FM. 

      

8. Implementation Service Providers

   Providers	The Gordian Group	Canon-FOS Simplebid™
   Systemwide Agreement	The University has entered into a systemwide agreement with The Gordian Group for services to be provided to each campus, at the campus’ discretion, for set fees.  No campus is required to work with The Gordian Group. Fees are the same for 5 years from 2025 - 2035.	The University has entered into a systemwide agreement with Canon-FOS Simplebid™ for services to be provided to each campus, at the campus’ discretion, for set fees.  No campus is required to work with Canon-FOS Simplebid™. Fees are the same for 2 years from 2025 - 2026.
   Services Provided	Development of a campus-specific project task catalog (which The Gordian Group calls the Construction Task Catalog® or CTC) and updates. Development of specifications that align with the CTC. Training for UC staff and contractors. Software implementing the CTC and updates. Program support as required by UC staff. Marketing and outreach to campus and contractor communities, including pre-bid seminar. Provides advice, but does not manage the contract or interpret contract provisions for UC staff.	Unlimited user enterprise license to the UC System and all contractors for the Simplebid™ software and unit price database. Pricing fee percentage includes all costs associated with the enterprise license for UC System users and contractors Ongoing maintenance and support. Initial platform setup for each campus. Facility Condition Assessment Services Assessment Management and Capital Planning Software services Asset Inventory and Tagging services Accessibility/ADA assessments iCost Modeling and Total Cost of Ownership services
   Fees	Payable by campus on issuance of job orders UC Campuses have two (2) fee options from which to select: Contractor Fee – Contractor to pay their own Client License fee of 1% of the Job Order Sum for every Job Order. UC Campus pays the posted Client License fee. Campus Fee – UC Covers all Client Licensing fees. Contractor pays none. The Client License fee for the contract year will be determined by the total volume of construction procured through the JOC program system-wide in the immediately preceding year, as determined by 1) the Fee option chosen and 2) the Annual Volume Discount Table. Client License fees schedule to be updated and published by UCOP while systemwide agreement is in effect. Client License fees for 2025-2035: Contractor (Split) Fee – Campus pays 1.66%; Contractor pays 1% Campus Fee – Campus pays all fees at 2.51%	Fees are payable on issuance of job orders. Fees are based on value of cumulative system-wide job orders issued. There is no Contractor fee; fees are only paid by University. Client License fees for Current Year: 2025-2026: Remains at a flat 2.0%

9. Alternative Providers or Self-Managed Program

   Any campus may choose to manage its JOC contracts in-house or to contract with a third party for such services.  The process for creation of a project task catalog should be reviewed with the Associate Director of Design and Construction Policy at the Office of the President before proceeding.

The Brief Design Build Contract is used by the University for projects constructed under the design-build mode for contracts not to exceed $5,000,000. Unlike traditional Design Build Design work and Construction work are not divided into phases.

The construction team for University projects consists of four principal entities:

1. University
2. Contractor
3. University's Representative
4. Design Professional

In certain cases, the University may also choose to contract with the following parties, which then become members of the construction team:

• Construction Manager
• Project Manager

University in the construction documents refers to The Regents of the University of California. In the Facilities Manual, the term "University" has been substituted for "The Regents of the University of California" wherever possible. The University initiates the project; secures funding for planning, design, and construction; selects and contracts with the contractor, design professional, and other professionals, as applicable; and operates and maintains the completed project.

Contractor refers to the person or firm responsible for performing the work and is identified as such in the Agreement. The contractor may use subcontractors, and the subcontractors may use sub-subcontractors to perform parts of the work. However, the Agreement is between the University and the contractor, and the contractor alone is responsible for completing the project.

University's Representative refers to the person or firm administering the construction contract for the University. The University must always have a University's Representative, who may be a University employee, or a qualified consultant. The University's Representative is selected according to project requirements.

Design professional is an architect or engineer (person or firm) qualified and duly licensed to perform architectural or engineering services under contract to or employed by the University. The design professional prepares and signs the construction documents and is eligible to serve as the University's Representative. In most instances, the design professional prepares and participates in the assemble of the bidding documents. The bidding documents consist of standard documents furnished by the University and construction documents including drawings and specifications developed by the design professional and their team. Each Facility must provide the design professional with Supplemental Requirements for preparing the construction documents. The Supplementary Requirements are incorporated into the Executive Agreement as Exhibit C (see Contract Templates - Design and Other Consultants).

Consultants. The design professional usually engages consultants as needed to provide the University with the services required in the Executive Agreement. Although the University approves the consultants, it does not have any contractual relationship with them.

The University may contract with a construction manager that provides input during the design phase and oversight and administration of the bidding and construction phases, or one that assumes responsibility only for the construction phase (see Types of Construction Contracts). In both cases, the construction manager becomes another member of the construction team. The University uses one of the following two methods for contracting a construction manager:

1. When the construction manager is a professional organization and assumes no responsibility for construction work on the project, a contract may be negotiated using the Construction Management Agreement (see Contract Templates - Design and Other Consultants).
2. When the construction manager is a contractor and assumes responsibility for construction work on the project, the contract must be competitively bid using the construction manager mode of contracting. 

The University may use University staff to serve as the project manager. On large, complicated projects, the University may contract with a project manager that oversees the design, contract administration, inspection, and some planning phases of a project. The project manager provides a professional service and the contract is negotiated. Project managers may serve as the University's Representative during the construction phase. A member of the construction team, the project manager does not assume responsibility for the construction work. 

The University uses the three methods listed below for determining, stating, and paying the contract sum:

1. Lump sum
2. Cost-plus-fee
3. Unit prices

Although the lump sum, cost-plus-fee, and unit prices methods may be used with all three types of construction documents, the standard documents do not contain provisions for the cost-plus-fee method, and additionally, the standard Brief Form does not accommodate unit prices. Combinations of these methods may be used on a single project or with a single mode of contracting (see Preparing Individual Construction Documents).

The most common method of determining and stating the contract sum is the lump sum method, in which a single amount is quoted for all the work. The contractor is paid the contract sum in one or more installments. With the lump sum method, the initial contract sum is determined during bidding. Using this method, if the amount bid is within the budget, the project proceeds; if the amount bid is over budget, rebidding or other steps must be taken to either augment the budget or bring the bid amount within the budget. In competitive bidding and informal bidding, lump sums are quoted by the bidders; negotiated contracting may be used when the estimated contract sum is less than $50,000, where a lump sum is negotiated between the University and the contractor.

When the cost-plus-fee method is used to determine the contract sum, the contractor is reimbursed for the actual cost of labor and materials and is paid a fee for overhead and profit (the fee may be a percentage of the labor and materials costs or a fixed amount). Cost-plus-fee contracts are usually used for emergency work or for projects in which the scope of work is uncertain. With this method, the contract sum is not fully determined until the work is completed (the initial contract sum is the amount of the fixed fee or the percentage due to contractor which will be converted to a dollar amount after completion of the work). In some cases, the University stipulates a guaranteed maximum sum that cannot be exceeded.

With some projects, portions of the extent of work cannot be fully determined, or the actual quantities of required items cannot be accurately calculated in advance. In these cases, bidders are requested to submit bids based on unit prices. Unit-price contracts subdivide the work or parts of the work into like items and state approximate quantities for each item. The bidders use these quantities in preparing their bids. The price per unit of measurement (unit price) is quoted for each item. Sums for the extended unit prices are not included in the initial contract sum. As the work is completed, actual quantities are measured, and the contractor is paid according to the contractor's quoted unit prices. The University pays only for the actual quantities of materials used. Unit prices may or may not be used as a basis for the award and with the intent must be explicitly stated and documented in the bid documents at the beginning of the bid period.