The University of California announced today (July 29) that it has completed a comprehensive review to revamp its construction contracts and procedures. The modifications reflect two years of work to eliminate problematic contract language that was impeding efficient and cost-effective construction of UC facilities and to create a more flexible process that will encourage wider participation of qualified contractors and consultants in UC projects.

"The participation of the California building community has been extremely valuable in our ongoing effort to improve the construction and contracting processes for UC facilities across the state," said Michael Bocchicchio, AIA, systemwide assistant vice president for facilities administration. "We will continue to work with architects, contractors, design consultants and other vendors to ensure that our contracts and procedures reflect best practices in the industry and to encourage participation in our capital projects."

During the 2007-08 fiscal year, the University of California had more than $7 billion worth of capital projects either in the design stage or under construction at its 10 campuses and other facilities throughout the state.

This latest round of contract revisions, developed as part of a broader initiative to reduce capital project costs, will better align university contracts with those of other building owners, particularly among public agencies. Throughout the two-year review, the university solicited extensive public input, including recommendations from contractors and architects, in developing the new contract provisions.

Several important enhancements have been added to those already incorporated during the first phase of review completed in September 2006, including changes to:

• Increase flexibility in scheduling provisions, making UC projects more responsive to construction-market requirements.

• Simplify the contract language for clauses governing project completion and liquidated damages to make contracts clearer and to balance risk.

• Address indirect cost impacts through pricing guidelines for "changes in the work" that make certain costs easier for contractors to identify and recover.

• Clarify design responsibilities to relieve unnecessary burdens upon the contractor while ensuring appropriate protections for the university.

• Improve the equitable treatment of parties in its contract indemnity provisions.

Working closely with the university's general counsel, the UC systemwide Office of Facilities Administration has now incorporated the revisions from both phases of contract review within the university's standard form contracts.

A summary of all the changes is available online in the University of California Facilities Manual: www.ucop.edu/facil/fmc/facilman

For more information about the University of California: www.universityofcalifornia.edu