A Bond Program Manager oversees bond-funded construction projects, construction activities, and related personnel. Bond Program Managers must protect the public and the stakeholders of the business services division by knowing best practices to avoid financial missteps that could expose the district to an audit.
Ensure expenditures are tied back to the bond language. Identify what costs are acceptable per project within the bond language.
The distinction outlines the method for how to follow bidding requirements and procedures, protecting the program and all related projects. The method provided is about understanding bid limits and avoiding bid splitting.
CUPCCA or the California Uniform Public Construction Cost Accounting Act establishes higher threshold amounts for force-account and projects required to be formally bid, allowing alternative bidding procedures when an agency performs public project work by contract.
For example, if CUPCCAA, you may break up bids based on trades. For traditional contract code bidding, you must bid per contractor for the entire project.
For example, you can contract with individual trades for smaller projects. However, if there is a potential for the perception of bid splitting, you’re better off treating them all as formal bids to protect the process and the project.
If you must to split the trades for a project, consider altering and/or spacing out the phases to remove any appearance of bid splitting.
State auditing will take place and will require both the financial snapshot already provided to the oversight committee, as well as plenty of additional documentation in order to be closed out. Payment bonds will undergo an annual audit per district wherein they randomly select contracts to review and invoices to compare. Performance bonds will audit the process of bidding, how the money is being spent, and determine if both are adhering to the law.
Use one system for everything. This is crucial. Store all documentation (budget transfers, contracts, invoices, change orders, notices of completion) as hard copies as well as digitally.
Use an application that isn’t just a financial tool (not Excel!).
Maximize the value of your team’s time and limit the risk to the district that hired you.
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For more information on topics touched upon in this article, please visit the below links:
Traditional Contract Code Bidding