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How To Work With UA
Wednesday, March 31, 2010
By Bill Caton
A contractor must send a request to the University of Alabama to prequalify to bid work with the university and contractors who want to review work to decide if they want to prequalify for a job can view drawings electronically at the UA Sharepoint site: http://facportal.fa.ua.edu/sites/defaultfacilitiessite/constructionadmin/bid%20documents/.
AGC members and guests attended a special West Section meeting at the Country Club of Tuscaloosa on March 31 where they heard presentations from Tim Leopard, assistant vice president for construction at the university, and D.W. Wilson and Hannah Lansdon, attorneys from Tanner & Guin.
Wilson and Ms. Lansdon covered topics ranging from new environmental rules to prompt pay.
“Prequalifying has to be an objective and quantifiable process,” Leopard said. “I’m a big believer that experience is key and (the job specific project relevance item on the prequalification application) is heavily weighted.”
Leopard also said that contractors who want to be notified about university projects should contact Trip Farmer at tfarmer@fa.ua.edu to be added to the distribution list. There are 400 contractors/vendors on the list now, he said.
Leopard also outlined the process for prequalification:
1. Request a prequalification packet and submit it back to the University and/or the A/E per the requirements in the advertisement. Only one-time hard copies will be accepted; faxed, emailed or late submittals will not be accepted.
2. Submit a waiver letter per the requirements in the advertisement. Contractors are advised to submit request waivers as soon as possible; allow two business days for the university to review and respond; the university may request additional relevant project specific and experience information to determine whether to grant waiver.
Common reasons for contractors to not be prequalified are:
1. Prequalification packet not filled out correctly or left incomplete. Instructions were not followed, questions were not answered completely. Contractors should feel free to call for clarification on any item in the packet.
2. Contractor lacks relevant experience to the project. Contractor has never completed a project of comparable scope and size.
3. Financial and/or safety concerns regarding contractor. Also of concern is an incomplete financial statement or an EMR greater than 1.
“The university averages $200 million in construction projects a year,” Leopard said.
Attorney D.W. Wilson said that in this market “money is more important than ever. Even if you know an owner, things change rapidly.”
Wilson offered some advice to contractors, urging them to check an owner’s financial strength before signing a contract.
He said contractors should: obtain and review a financial statement from the owner; check the owner’s payment history, including talking to other contractors who have worked for him; be diligent even though you know the owner because “in the current economic environment an owner’s fortunes can change quickly.
Wilson also said that general contractors should put a “pay if paid” clause in all their subcontracts.
“That provision will allow you to wait to pay subcontractors until you are paid by the owner,” Wilson said. “We have four or five cases of this going on right now.”