D.C. Mun. Regs. tit. 22, r. 22-B9700
Procurement for construction and architect-engineer services shall be awarded in accordance with the provisions of this section. In instances where the provisions of this section are inconsistent with other sections, this section takes precedence for that award of a construction or architect-engineer contract.
For all construction contracts estimated to exceed fifty thousand dollars ($50,000), the CO shall include a liquidated damages clause and shall determine appropriate, reasonable rates of liquidated damages. In addition to standard liquidated damages, the contractor shall be liable for the estimated cost of inspection and superintendence for each day of construction delay.
Construction projects will be procured using firm, fixed-price contracts.
A contract may be priced on a lump-sum basis (when a lump sum is paid for the total work or defined parts of the work), on a unit-price basis (when a unit price is paid for a specified quantity of work units), or a combination of both methods.
Because of potential labor and administrative conflicts, contracts with cost variation or cost adjustment features shall not be permitted concurrently at the same work site with firm, fixed-price, or unit-price contracts without the prior written approval of the CO.
The CO shall not award a contract for the construction of a project to the firm that designed the project or its subsidiaries or affiliates, unless the project is a turnkey project.
The CO shall make appropriate arrangements for prospective bidders to inspect the work site and to have the opportunity to examine data available to the Hospital that may provide information concerning the performance of the work.
The CO shall provide notice to the prospective contractor of the intent to award. Each notice of intent to award shall include the following:
The Hospital may, without any liability upon the Hospital, rescind the notice of intent to award at any time prior to approval of a formal written contract signed by the prospective contractor and the CO.
The architect-engineer firm shall be responsible for the professional quality, technical accuracy, and coordination of all services required under its contract. The firm shall be liable for costs to the Hospital resulting from errors, deficiencies, and omissions in designs furnished under its contract.
When modification of a construction contract is required because of an error or deficiency in the services provided under an architect-engineer contract, the CO shall consider the extent to which the architect-engineer contractor may be liable.
If the CO determines that the firm is liable, and the recoverable cost will exceed the administrative cost involved or collection is otherwise in the best interests of the Hospital, the CO shall initiate procedures to collect the amount due.
The CO may enter into General Service requirement contracts with firms recommended by the evaluation board. The Hospital shall negotiate each project in an alternating rotation with each firm with which it has an existing General Service contract.
The Hospital may require the architect-engineer contractor to design the project so that construction costs will not exceed a contractually specified dollar limit. The amount of the construction funding limitation shall be established during negotiations between the firm and the CO.
If the price of construction proposed in response to a Hospital solicitation exceeds the construction specified dollar funding limit in the architect-engineer contract, the firm shall be solely responsible for redesigning the project within the funding limitation.
Any redesign services required shall be performed at no increase in the price of the architect-engineer contract. However, if the cost of proposed construction is affected by events beyond the firm's reasonable control (such as an increase in material cost which could not have been anticipated or an undue delay by the Hospital in issuing a construction solicitation), the Hospital may be obligated for any additional costs.
If an architect-engineer firm's design fails to meet the contractual limitation on construction cost and the Hospital determines that the firm should not redesign the project, the CO shall place a written statement of the reasons for that determination in the contract file.
The architect-engineer firm shall make necessary corrections at no cost to the Hospital if the designs, drawings, specifications, or other items or services furnished by the firm contain any errors, deficiencies, or omissions.
If the CO does not require a firm to correct errors, the CO shall include a written statement of the reasons for that decision in the contract file.
D.C. Mun. Regs. tit. 22, r. 22-B9700