Land Development Playbook

BID AWARD PROCESS

PAYMENTS AND INVOICES

The bid award process starts when all bid packages have been received, spread, and saved in appropriate project folders. This step is critical to the success of an LD project, and constant communication should be kept with vendors during the bid evaluation and award process. A Contracts are awarded to the most competitive bid considering unit costs, quantities, duration of tasks, and scope of work completeness. The division team should review these items and evaluate the variables and how collectively they impact project performance and the overall division business plan. Once all bids have been reviewed and evaluated, select a winning bidder, notify them of the award, and initiate the contracting process (subject to an approved AMC LD start memo or similar approval). A Contact the runner-up bidders and notify them of their non-award along with feedback on their respective bids. This is an essential component of the process that builds trust with vendors/ contractors and provides insight on where bids were deficient (unit costs/pricing, scope of services, task schedules, MSA term comments, or other variables) and how bidders can successfully win work in the future. Maintaining a large stable of contractors for every scope of work is critical to fostering a competitive bidding environment, which helps control and improve LD costs and schedules. The contract is the key document that governs our business relationship with our LD Trade Partners. History, relationships, statements, and conversations have no legal weight in the event there is a disagreement with one of our Trade Partners. Our rights, and those of our Trade Partners, are solely governed by the contract terms of our Master Service Agreement (MSA) and Master Consulting Agreement (MCA). Any proposed revisions/redlines by the vendor to our MSA, MCA, or pricing agreements are to be reviewed by our Century legal team. The contract process includes the following requirements: 1. General Conditions for each scope of work will be inserted in every contract. 2. A detailed scope of work specific to the project will be created by the division, not the contractor. In standard practice, these items originate in the invitation to bid process as discussed above. The scope of work within the Pricing Agreement governs in a contract dispute. 3. The use of contractors’ proposals and/or bid inclusions and exclusions is not considered a contract scope of work and shall not be placed within a contract. (This applies to scope of work items, qualifications, exclusions, and legal terms, it does not include the proposed schedule). 4. Contracts will include an exhibit of a preliminary schedule with bid task durations used to update project schedule upon award. Every division must manage all contracts, POs, change orders, cost management, data entry, and tracking.

All subcontractors and consultants are required to be managed through BuildPro to facilitate payment based on an LD managed schedule. POs should be created when services are contracted, not when the vendor submits for payment. NLD will review contracts over $15M to confirm the scope of work is complete and compare the contract to the original budget. NLD verification is managed through ServiceNow for PO approval.

A The following is a list of vendors who do not require a PO to facilitate payment: o Legal invoices to law firms o Governmental entities for permits, fees, property taxes, etc. o HOA and Metro Districts

o Utility providers o Title companies o Trace Air A For all check requests submitted to Accounts Payable, please attach a current ECC report so AP can verify the request is within budget.

IMPORTANT: POs over $25,000 must be submitted to LSS for budget review and approval. If a PO is over budget on any given line item, submit an interim budget revision to LSS correct any budget overages.

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LAND DEVELOPMENT PLAYBOOK | Bidding and Contracting | 34