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VU Standard Contracts and Agreements

Contracts & General Conditions

The Architect Contract governs building design between VU and the architect. This agreement is used for projects where the Architect will be assisting in construction administration, in other words, reviewing pay applications and coordinating with the construction management firm. 

The Architect Contract frequently follows a Professional Services Agreement (PSA). In these cases, the PSA is used for feasibility or planning studies. When the same firm performs both feasibility and full design, the firm will transition from a PSA to the Architect Contract after funding for full design has been approved by appropriate VU parties.

Potential progression of agreements:


Please note that both feasibility and full design services are competitively bid. Therefore, performing feasibility for a project does not guarantee the full architect contract will be awarded.

This agreement serves as a front-end document and is packaged together with corresponding exhibits: VU Modified AIA B101 terms and conditions, hourly billing rates, and the certificate(s) of insurance.

VU Architect Contract Form - 2019.03.16

The Engineer Contract (which is similar to the Architect Contract) is used when the majority of the design work will be performed by an engineering firm rather than a design firm. For example, engineering work for infrastructure or utility projects. This agreement is used for projects where the Engineer will be assisting in construction administration, in other words, reviewing pay applications and coordinating with the construction management firm. 

The Engineer Contract sometimes follow a Professional Services Agreement (PSA). In these cases, the PSA is used for feasibility or planning studies. When the same firm performs both feasibility and full engineering/design, the firm will transition from a PSA to the Engineer Contract after funding for full engineering/design has been approved by appropriate VU parties.

Potential progression of agreements:

Please note that both feasibility and full engineering services are competitively bid. Therefore, performing feasibility for a project does not guarantee the full engineering contract will be awarded.

This agreement serves as a front-end document and is packaged together with corresponding exhibits: VU Modified Engineer AIA B101 terms and conditions, hourly billing rates, and the certificate(s) of insurance.

VU has separate VU Modified B101 documents for architects and engineers. This document is based on the industry-standard AIA B101 and has been modified to better fit VU specifications. Additions and deletions reports are available so that the modifications can be viewed.

An architect or engineering amendment is executed when there are changes to the agreement: schedule, contract sum, or terms and conditions. The architect or engineer should provide the industry AIA standard G802 form for signatures.

This agreement governs the entirety of the construction process between VU and the Construction Manager (CM). Preconstruction work is used to determine a more accurate budget for the project, and eventually evolves into a Guaranteed Maximum Price (GMP), which is formalized in a GMP Amendment. The GMP stipulates that the CM will submit monthly pay applications for compensation, and these will be reviewed by the architect or engineer of record on the project. Progressive scope approvals before the GMP is set are handled by an Authorization to Proceed (ATP). For example, due to schedule constraints, an ATP may be authorized for a set amount so that the CM may begin demolition work while design specifications are finalized. Once design is finalized, the CM will competitively bid the full project scope. The results of bid selection by the CM for subcontractors and materials pricing will be the basis to set the GMP for the project.

Potential progression of agreements:

This agreement serves as a front-end document and is packaged together with corresponding exhibits: VU Modified AIA A201 terms and conditions, scope of preconstruction services, VU GMP Amendment, schedule of key employees, hourly billing rates, and project schedule.

VU GMP Preconstruction Form Agreement

The ATP is a formal letter in accordance with Section 7 of the GMP with Preconstruction agreement which allows for ordering equipment and services before the final GMP is set. This is generally used when the final design of the project under development, but material or services packages are needed to adhere to project timelines.

The GMP Amendment is executed after all subcontractor bidding, selection, and materials estimates have been finalized. This document establishes the guaranteed maximum price, sets milestone dates, and establishes any allowances. The GMP should incorporate values from all previous authorization to proceed letters (if applicable). This agreement is packaged together with corresponding exhibits: index of drawings, schedule of values, construction schedule, and schedule of equipment (if applicable).

Note, there will only be one (1) GMP Amendment per eBuilder project. However, the Cost Plus Fee agreement may be used in a master capacity, where there may be multiple GMP Amendments under a single Cost Plus Fee agreement for each subproject. For example, Barton Malow’s agreement covers all the Athletics Phase 1 projects. Each Athletics subproject should have its own GMP Amendment.

VU GMP Amendment Form

A change order is used when there are changes to the contract: schedule, contract sum, or terms and conditions, after a GMP Amendment has been executed. The contractor should provide the AIA standard G701 document for signatures.

This agreement governs the entirety of the construction process between VU and the Construction Manager (CM) but does not include consideration for preconstruction work. All costs are known from the outset via GMP, including construction management fee, overhead fee, and contingency. This agreement is typically used for large construction jobs to protect from cost overruns. The GMP stipulates that the CM will submit monthly pay applications for compensation, and these will be reviewed by the architect or engineer of record on the project.

This agreement serves as a front-end document and is packaged together with corresponding exhibits: VU Modified AIA A201 terms and conditions, VU GMP Amendment, schedule of key employees, hourly billing rates, and project schedule.

The stipulated sum agreement is typically used for smaller scope construction jobs than the GMP. This agreement does not involve construction management or overhead fees and is paired with the VU Modified A201 general conditions. The GMP stipulates that the Construction Manager (CM) will submit monthly pay applications for compensation, and these will be reviewed by the architect or engineer of record on the project. However, these pay applications do not include the supporting detail and backup documents found under a traditional GMP agreement. The industry standard G702 document is used for pay application submission to indicate process completed to date.

This agreement serves as a front-end document and is packaged together with corresponding exhibits: VU Modified AIA A201 terms and conditions, specifications, drawings, addenda, and various exhibits.

VU Stipulation Sum Agreement

The Design-Build Agreement is used when one firm manages both design and construction. The firm will subcontract for either of those services (design or construction), but VU will only directly hire one firm. Typically, VU will hire a Construction Management (CM) firm who will in turn manage the architecture firm as a sub-contractor.

Due to the relationship between the architect and CM (one is a sub to the other) monthly pay applications for compensation are not certified by the architect or engineer of record on the project. In addition, similar to the Stipulated Sum agreement, these pay applications do not include the supporting detail and backup documents found under a traditional GMP agreement. The industry standard G702 document is used for pay application submission to indicate process completed to date.

This Agreement is complex must be reviewed with VU’s Office of General Counsel (OGC). Any changes to the contract (schedule, contract sum, or terms and conditions) should be submitted with the industry standard AIA G701 document for execution.

VU requires the industry-standard AIA G704 document to signify punch list completion, a Certificate of Occupancy (CO) has been received, and the warranty period should be started. The document is certified by the Architect, Construction Manager, and VU.

According to Tennessee construction law, any construction contract $500,000 or greater requires establishing an escrow account. The escrow account is shared by the Construction Manager (CM) and VU. The CM firm will deposit retainage (5% of cost of work) into the escrow account monthly after they receive payment from VU for their pay application. This enables protection of the subcontractors to ensure funds are available for their final payouts by the CM. Partial and final funds are released from escrow after written permission is received through execution of an Exhibit A document between the CM and VU.

This agreement serves as an umbrella (or master) agreement for suppliers who regularly work on VU’s campus. The MWA is reserved for on-site physical work. Parties agree to all the terms and conditions through the MWA. Each specific job completed by the supplier on campus is executed through individual Work Contract Forms.

There are three parts to this agreement: the Master Work Agreement, the Work Contract Form, and the Work Contract Change Order Form. The Work Contract Form is filled out for each job (scope) the supplier is to perform. The Work Contract Change Order Form is used if there are changes within an existing job such as costs or schedule. The MWA agreement does not provide for contract administration by the Architect and should not be used when a project has an Architect under a B101.

Sample relationship for MWA documents with change orders on jobs #1 and #3, but not job #2:

This agreement serves as an umbrella (or master) agreement for suppliers who perform administrative, design, or engineering services for VU. Parties agree to all the terms and conditions through the PSA. Each specific job completed by the supplier on campus is executed through individual Schedules.

There are two parts to this agreement: the Professional Services Agreement and the Schedule A. The Schedule A is filled out for each specific job awarded. If changes are required to that particular job a subsequent Schedule B, C, D, etc. will to be executed.

This agreement is also used with Architects and Engineers when starting design or engineering services on projects, before potentially transitioning to the Architect Agreement (B101). The PSA is appropriate in this context for work required before a full project budget is set and the full scope of design is known.

Sample relationship for PSA documents with change orders on jobs #1 and #3, but not job #2:

This agreement is typically used for equipment purchases/installations such as large digital signage installations (video boards) for the athletics fields or work that does not require high level technical expertise such as hydrovac excavation services on infrastructure projects. Use of this Agreement should be reviewed and coordinated with VU Procurement Services.

CONSTRUCTION

Stipulated Sum

Cost Plus Fee with GMP:

 

ARCHITECTURE:

 

MASTER AGREEMENTS:

 

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