Current through Register Vol. XLI, No. 50, December 13, 2024
Section 157-3-5 - Award and Execution of Contract5.1. Consideration of Proposals. After the proposals are opened, read publicly, and published, they will be compared on the basis of the summation of the products of the approximate quantities shown in the bid schedule by the unit prices. The results of such comparisons will be made immediately available to the public after they are presented to the Division's award committee. In the event of discrepancy between unit bid prices and extensions, the unit bid price shall govern. 5.1.a. The right is reserved to reject any or all proposals, to waive technicalities or to advertise for new proposals if, in the judgment of the commissioner, the best interests of the State will be promoted.5.1.b. Proposals containing special provisions for Disadvantaged Business Enterprise utilization will be considered as follows:5.1.b.1 When the low bidder's goal submitted in section C DBE Utilization Certificate, of the notice contained in the project proposal, meets or exceeds the contract DBE goals, and the division considers the amount of the bid to be reasonable, such bidder will be the successful bidder.5.1.b.2. When the low bidder's goal submitted in section C, DBE Utilization Certificate, of the notice contained in the project proposal, does not meet the DBE contract goal and the division considers the amount of the bid to be reasonable, the bid will be accepted if he or she can show that good faith efforts were made prior to the bid to meet the contract goals.5.1.b.3. When the low bidder cannot satisfy the division that good faith efforts have been made, then this bid may be rejected and the second low bid will be evaluated in the same manner. This procedure will continue, evaluating bids in ascending order, until either the contract DBE goal is attained or good faith efforts can be verified and that bid will be accepted provided the amount thereof is considered reasonable by the division.5.2. Award of Contract. The award of contract, if it be awarded, will be made within 30 calendar days after the opening of proposals to the lowest pre-qualified bidder. The commissioner may, with the agreement of the successful bidder, withhold award for any length of time. The successful bidder will be notified by letter, mailed to the address shown on their proposal, that their bid has been accepted and that they have been awarded the contract.5.2.a. Contractor's Direct Deposit Requirements. The contractor shall receive all payments electronically via direct deposit. Prior to award of the contract, the contractor shall be approved and registered to accept payments electronically through the West Virginia State Auditor's Office. (www.wvsao.gov)5.3. Cancellation of Award. The division reserves the right to cancel the award of any contract at any time before the execution of the contract documents by all parties without any liability against the division.5.4. Release of Proposal Guaranty. All proposal guaranties, except those of the two lowest bidders, will be released immediately following the opening and checking of the Proposals. The retained proposal guaranty of the unsuccessful of the two lowest bidders will be released within ten 10 days following the award of contract, and that of the successful bidder will be released after a satisfactory contract bond has been furnished and the contract has been executed.5.5. Requirement of Contract Bond. At the time of the execution of the contract, the successful bidder shall execute and deliver to the division a good and sufficient surety or collateral bond payable to the State of West Virginia.5.5.a. The successful bidder has the option of submission of the bond in an amount 9 equivalent to either 102 percent or 100 percent of the contract price.5.5.b. The submission of the aforementioned bond in an amount equivalent to 102 percent of the contract price by the successful bidder is the standard expectation of the division in order to comply with the current special provision for subcontractor prompt payment and does not necessitate the withholding of retainage by the division from monies due on future progress voucher estimates payable under the terms of the contract. Further, the decision by a particular contractor to submit a bond in an amount equivalent to 102 percent of the contract price shall be consistent and applicable throughout the duration of the contract for which the bond is being submitted and shall be consistent and applicable to all contracts executed between the Division and that particular contractor.5.5.c. If the successful bidder elects to submit the bond in an amount equivalent to 100 percent of the contract price, it is necessary that the bidder notify the Contract Administration Division in writing prior to the submission of the bond. Submission of a bond in an amount equivalent to 100 percent of the contract price requires the withholding of retainage by the Division from monies due on future progress voucher estimates payable under the terms of the contract 27 and as set forth in 11.6 of this rule. Further, the decision by a particular contractor to submit a bond in an amount equivalent to 100 percent of the contract price shall be consistent and applicable throughout the duration of the contract for which the bond is being submitted and shall be consistent and applicable to all contracts executed between the division and that particular contractor.5.5.d. As an alternate, the successful bidder may deposit with the State Treasurer cash bond, United States Treasury Bonds, United States Treasury Certificates of Indebtedness, United States Treasury Bills or West Virginia Road Bonds in the amount of either 102 percent or 35 percent of the contract amount. A safe keeping receipt from a bank located in the State of West Virginia may be deposited with the State Treasurer in lieu of any of the definitive securities.5.5.e. The State Treasurer shall, on a regular basis, collect all interest or income on the obligations so deposited and pay same, when and if collected, to the contractor who deposited the obligations. If the deposit is in the form of coupon bonds, the State Treasurer shall deliver 40 each coupon as it matures to the contractor.5.6. Insurance Requirements. The contractor shall be required, in addition to any other form of insurance or bonds required under the terms of the contract and specifications, to procure and maintain during the life of the contract the following types of insurance in the amounts set forth.5.6.a. All such policies of insurance, except for Workers' Compensation, shall name the Division as an additional insured and shall be occurrence policies and the Certificate of Insurance provided to the Division shall so specify. The policies must provide coverage during the life of the contract regardless of when the claim is filed subject to statute of limitations. 5.6.a.1. Contractor's General Liability Insurance: The Contractor shall maintain commercial general liability (CGL) coverage with limits not less than: General Aggregate | $2,000,000 |
Products/Completed Operations Aggregate | $2,000,000 |
Personal & Advertising Injury | $1,000,000 |
Each Occurrence * | $1,000,000 |
| |
Damages to Rented Property $300,000 | |
Medical Expense Limit | $5,000 |
*Each Occurrence limit shall be $2,000,000 when performing any operations that are subject to 107.8 - Railway-Highway Provisions. |
5.6.a.2. The CGL shall be written on ISO occurrence form CG 00 01, or equivalent, and shall cover liability arising from premises-operations, independent contractors, products-completed operations, personal injury and advertising injury, and liability assumed under an insured contract. There shall be no endorsement or modification of the CGL limiting the scope of coverage for liability arising from explosion, collapse, or underground property damage whenever work involving these exposures are undertaken. The CGL policy shall include endorsements that amend the aggregate limits of insurance to be applicable to each construction project separately.5.6.a.3. Contractor shall furnish an Acord Form 25-S Certificate of Insurance, or its equivalent, with a 30 day notice of cancellation provisions to evidence this CGL coverage.5.6.b. Workers' Compensation Insurance and Employer's Liability Insurance. The contractor shall also give evidence of insurance for Workers' Compensation Insurance and Employer's Liability Insurance, with a 30-day notice of cancellation. The Employer's Liability policy must include coverage to protect the contractor for claims brought under W. Va. Code § 23-4-2. The limits of insurance under this section shall be as follows: Each accident | $ $1,000,000 |
Each disease | $ $1,000,000 |
Each disease/employee | $ $1,000,000 |
5.6.b.1. Evidence of this coverage can be set forth on the ACORD 25-S specified in paragraph 5.6.a.1 or other approved form and shall provide that West Virginia statutory Workers Compensation coverage is included.5.6.c. Automobile Insurance. The Contractor shall furnish evidence, with a 30-day notice of cancellation, to the state that it maintains an insurance services office commercial automobile liability insurance policy Form CA0001 or its equivalent. The policy shall include coverage for owned, non-owned, and hired vehicles. 5.6.c.1. The limits for liability insurance must be at least $1,000,000 combined single limit. Evidence for the coverage shall be set forth on an ACORD Form 25-S Certificate of Liability Insurance.5.6.d. Steam Boiler Insurance. In event steam boilers are used on the work, the Contractor shall furnish evidence that the Contractor carries in their own behalf standard Steam Boiler Insurance having an aggregate limit of not less than $250,000. 5.6.d.1. The insurance specified shall be carried until all work required to be performed under the terms of the Contract is satisfactorily completed as evidenced by the formal acceptance of the State.5.7. Special Bonds and Insurance. When the work is of such nature that special bond or insurance is required, the special requirements will be detailed and included in the proposal for the project. This coverage could include, but not be limited to, builder's risk, installation floater, maritime exposures, environmental exposures, and professional liability.5.8. Execution of Contract. The contract shall be executed by the bidder to whom the contract has been awarded, the bond executed by the principal and the sureties, and the contract and bond returned to the division within 20 days after the date of the notice of the award.5.9. Failure to Execute Contract. . Failure by the bidder to execute the Contract and file acceptable bond within 20 days after notice of award shall be just cause for the annulment of the award; and it is understood by the bidder, in the event of such an annulment of award or the Contract, that the amount of the guaranty deposited with the Proposal will be retained by the Division and deposited in the Division of Highways Fund, not as a penalty, but as liquidated damages. Award may then be made to the next lowest responsible bidder, or the work may be readvertised and constructed under contract or otherwise, as the Division may decide.5.10. Pre-Construction Conference. As soon as possible after the award of each contract a pre-construction conference will be arranged by the division. The contractor, his or her superintendent, or an authorized agent shall be present at the conference and shall present the proposed schedule of work, list of proposed subcontractors, if any, and a list of suppliers from whom materials are anticipated to be purchased. The information so presented shall be on forms submitted to the contractor with the letter of contract award. The division will make arrangements for utility representatives to be present.