TOCA Construction Agreement may be based on either Lump Sum or Guaranteed Maximum Price.
Definition of the Guaranteed Maximum Price (GMP): “the maximum price that the Trustees and Contractor agree upon as payment for managing, providing and installing all the Work.” The GMP is the Not-to-Exceed Contract Amount.
Definition of the Lump Sum Price: Under a lump sum contract, a single 'lump sum' price for all the work is agreed before the work begins. It is defined as; "a fixed price contract where contractors undertake to be responsible for executing the complete contract work for a stated total sum of money" The Lump Sum is the maximum amount which the Trustees will pay the Contractor for completion of the design, preconstruction services, and construction of the project, except as may be adjusted by change orders. Contractor shall be responsible for any cost overrun of the Lump Sum.
Once Trustees and the Design-Builder have agreed upon a GMP, the Trustees will award a Phase 2 collaborative design-build construction agreement to the builder incorporating the Contract General Conditions and Supplementary General Conditions.
The phase 2 agreement will incorporate the Design-Build Contract Documents; updated criteria; direct construction cost budget; GMP; contingency; remaining design fees; site management fees; payment and performance bond premiums; overhead and profit; and schedule as agreed upon in Phase 1.
Notice of Intent to Award Proposal Letter: Contract/Construction Administrator shall use the Notice of Intent to Award Letter which is signed by the approving authority transmits to the Contractor for signature the Contract Documents, which include the agreement form for Phase 2, performance & payment bonds, certification, and the payee data record (STD204).
The Trustees’ construction administrator and the builder shall co-conduct a preconstruction conference with the trade contractors, design personnel, and other appropriate Trustees’ staff. The preconstruction conference services include preparation of meeting agenda, preparation of job procedures for clarifications, change orders, shop drawings, progress payments, field testing and inspection, safety, and preparation and distribution of preconstruction conference notes.
After reaching agreement with the Trustees, the design-builder shall enter into contracts for the construction phase with the successful subcontractors in each trade.
Refer to Stage 5, Construction, for additional information on the Construction Phase.
OCIP is not required for TOCA agreements due to the maximum project size of $7 million.
Forms & Templates:
established for all major capital outlay projects, this program includes builders risk insurance and self insurance for earthquake coverage. A builder's risk policy is not a liability policy; it is a policy covering property, i.e. structures and building materials. Contractors bid the project without this coverage, and are responsible for the deductibles. Maximum coverage is $50,000,000 per occurrence, in excess of the deductibles.
Enrollment: Campuses must enroll their projects to obtain builder risk insurance coverage by submitting an application contained in the Construction Insurance database on the MetaBIM website (https://calstate.metabim.com/dash/caps/brip/Default.htm). The optimum time to enroll the project into the BRIP database is when Construction Administrator/Campus advertises the project. Once Notice to Proceed is issued, Construction Administrator must update the database online and upload the NTP.