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Section 3: Contract Work and Consultants

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Contract Work

Differences between actual cost and lump sum agreements regarding the support required for contract work are as follows:

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  • Actual Cost
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    • When the utility proposes to perform adjustment by using a contractor, it must show the method of solicitation or contracting procedure used by including a completed Form ROW -U-48, Statement Covering Contract Work for Construction, with the agreement.
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    • If all or part of the work is to be accomplished on a contract basis, the estimate must reflect that portion of the work to be performed by contract forces.
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    • A utility may estimate the cost of work to be performed by contract forces without securing bids. However, the utility must include a reasonable basis for estimating the contract work.
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  • Lump Sum
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    • Lump sum over $500,000.00 must be approved by ROW Division.
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    • Actual bids must be secured to support contract work in the estimate.
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    • Reimbursable contract costs are limited to the amount of the low bid submitted by a qualified contractor.
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    • The utility must defer the award of the low bid pending execution of the Standard Utility Agreement.
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    • Copies of bids received should be included in the agreement assembly to document that the amount appearing in the estimate represents the low bid.
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    • If it is not practical to include bids in the agreement submission, the plans, estimates, and other supporting data should be submitted before the agreement itself so that all other charges can be reviewed and their eligibility established.

The estimate should be explicit regarding the work to be performed under contract and the work to be accomplished with the utility’s own forces.

If the work to be accomplished is

then a copy of the contract need not be included in the lump sum agreement. In such cases, only the current rate schedules included in the continuing contract must be submitted to support the charges in the estimate.

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Consultants

In addition to the requirements outlined in the Use of Consulting Engineers, the utility should take into account the following in submitting costs for consultants in the estimate:

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