3029. PRICING CONSTRUCTION CONTRACTS

3029 PRICING CONSTRUCTION CONTRACTS 3029.1 The CCO shall prefer the use of firm-fixed-price contracts to procure construction, unless the CCO determines that a different type of contract is in the best interest of the Univeristy. 3029.2 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. 3029.3 The CCO shall use lump-sum pricing in preference to unit pricing except when any one (1) of the following circumstances exist: Large quantities of work (such as excavation, grading, paving, building outside utilities, or site preparation) are involved which cannot be estimated with sufficient confidence to permit a lump-sum offer without a substantial contingency; Estimated quantities of work required may change significantly during construction; or Bidders would have to expend unusual effort to develop adequate estimates. SOURCE: Final Rulemaking published at 57 DCR 2630 (Mar. 2010).