FACILITIES & REAL ESTATE POLICIES

ABOUT

The Archdiocesan policies present on this site are the norms and directives of the Archdiocese of Baltimore and are designed to be consistent with its mission. All internal operating procedures practices, rules and guidelines of individual schools, parishes and agencies must be consistent with these policies and may not contradict them.

Facilities & Real Estate

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FACILITIES & REAL ESTATE

100 POLICIES AND PROCEDURES FOR NEW CONSTRUCTION, RENOVATIONS AND CAPITAL MAINTENANCE PROJECTS

INSTALACIONES Y BIENES RAÍCES

These policies and procedures apply to the development and execution of new construction, renovations and capital maintenance projects.

The Department of Management Services (DMS) oversees and administers the temporal goods of the Archdiocese. The Executive Director of the DMS is the primary contact for the initiation of the capital project approval process.

The Division of Facilities and Real Estate Management (DFREM) supports capital projects from concept to completion and warranty.

These policies and procedures are reviewed by the Archdiocesan Facilities and Real Estate Advisory Commission (FREAC). FREAC’s membership includes pastors, construction, facility and real estate professionals with significant experience and technical expertise in the successful performance of capital and real estate projects. FREAC provides general advice in the development of policies and procedures, reviews capital projects and real estate transactions, and provides recommendations to the Archbishop.
The Division of Information Services provides assistance in the assessment and evaluation of technology needs (computers, wiring, phone and security systems), RFPs, cost comparisons, etc. The Director of Information Services also serves as a member of FREAC.

The Division of Risk Management is involved in bonding and risk coverage during and after completion. If the project is related to replacement or repair from an accident, fire or other physical damage, the Division of Risk Management assists in obtaining insurance funds for covered losses.

The Department of Development provides support for the evaluation of fund-raising opportunities, consultants and techniques

FACILITIES & REAL ESTATE

101 CAPITAL PROJECT CATEGORIES

Capital projects are classified into one of four categories based on the Total Project Cost (TPC) and whether the project involves certain environmental, structural, or liturgical aspects. The policies and procedures applicable to a project vary depending on project category.

Procedure:
A) TPC includes the cost of all phases of a project or program, regardless of duration or scheduling, including the cost of design, construction, furnishings, permits, contingency and inflation costs.
B) The Capital Projects Flowchart, available here, helps explain the proper categorization of projects.
C) The Capital Projects Lifecycle, available here, provides an overview of the process for completing a capital project from conception to completion and warranty.
D) The Capital Projects Required Actions by Project Category, available here, provides a summary of the actions required for each project category during the Project Lifecycle.

101.1 Category I Projects:
Category I includes any project, regardless of TPC, involving environmental issues (e.g., asbestos, lead/lead paint, underground fuel tanks, radon, indoor air quality or other hazardous substances/conditions), liturgical space (in particular, any work inside the sanctuary of a church or chapel), structural components or the roof of a building or property, or boiler replacement.

Procedure:
A) Category I projects must be approved by DFREM before commencement or contract execution.
B) Category I projects may also be a part of or classified as a Category II, III, or IV project based on TPC, provided that any more restrictive policies and procedures applicable to Category I projects must also be adhered to.

101.2 Category II Projects:
For parishes with annual offertory of $400,000 or less, Category II includes projects with a TPC of less than $30,000. For parishes with annual offertory greater than $400,000, Category II includes projects with a TPC of more than $50,000.

Procedure:
A) Parishes/schools may proceed with Category II Projects without approval (except where the project includes a Category I Project).
B) DFREM staff is available for consultation and advice regarding Category II projects and has guidelines available for parish/school use regarding project evaluation, contract content and legal standards.

101.3 Category III Projects:
Category III includes projects with a TPC of more than $50,000 but less than $300,000.
Procedure:
Complex projects (including those with unusual project requirements or potential difficulties) may be included in Category III in the discretion of DFREM staff even if the project has a TPC of less than $50,000.

101.4 Category IV Projects:
Category IV includes projects with a TPC of $300,000 or more.

FACILITIES & REAL ESTATE

102 CONTRACT POLICIES

102.1 Legal Requirements:

102.1.1 Legal Review: Parishes, schools, and other related Archdiocesan entities shall contact Gallagher Evelius & Jones LLP, Archdiocesan Legal Counsel (ALC), for preparation and review of all contracts, leases, and any documents related to the alienation of property, including deeds, use agreements, licenses of property interests, title documents, surveys and/or other items to be recorded, unless expressly authorized to proceed without ALC review by the Policies and Procedures for New Construction, Renovations, and Capital Maintenance Projects.

102.1.2 Corporate Titling: Legal title to all buildings and real property (all land and improvements) shall be in the name of a corporation or other limited liability entity, as approved by DMS.

102.1.3 Handicapped Accessibility: All new construction and renovation projects must fully comply with all applicable laws, regulations, codes and ordinances regarding accessibility for persons with disabilities and with all accessibility guidelines and policies set forth by the Archdiocese, United States Catholic Conference of Bishops (e.g., Built of Living Stones) or other Roman Catholic governing bodies. Every reasonable and practical effort shall be made to bring all existing buildings and properties into full compliance.

102.1.4 Compliance with Environmental Laws: All new construction, renovation, and maintenance projects shall comply fully with all applicable environmental laws and regulations.

Procedure:
A) Because of stringent federal and state laws regarding hazardous materials, any workers involved with demolition, additions, or renovations must be notified of those areas of any building that contain such materials.
B) DFREM must be contacted in advance for consultation on projects involving hazardous materials.
C) In school buildings, asbestos-containing materials are clearly indicated in the Asbestos Management Plan (AHERA Plan), which is kept on file by the principal and DFREM and available for inspection. The Asbestos Management Plan must be updated if asbestos material is discovered or removed. Copies of any asbestos-related work documents must be filed with the DFREM and, if applicable, with the principal for updates to the Asbestos Management Plan.
D) Qualified professional personnel should carefully examine any suspect building material before it is disturbed.

102.2 Contract Policies:

102.2.1 Authorized Contract Signer: Contracts over $300,000 and all contracts for professional services (architect, engineer, planner, etc.) may only be signed by the Archbishop. Contracts under $300,000 may be signed by the pastor, Vicar Bishop, or PLD once all approvals required by these Policies and Procedures for New Construction, Renovations, and Capital Maintenance Projects have been obtained.

102.2.2 DFREM Review of Certain Contracts: The following contracts must be submitted to DFREM for review by DFREM and ALC:
Category I, III, and IV contracts;
Contracts for soil investigation and engineering evaluation services during the design process;
Contracts for mandatory code inspection and testing services during the construction process; and
Contracts for independent onsite construction inspection or management services not required by code during construction process.

102.2.3 Professional Services Contracts: Professional services contracts should follow the applicable amended American Institute of Architects (AIA) form or other approved form.
102.2.4 Change Orders: All changes to any contract resulting in change of scope, credits, or extras, must be documented by a written Amendment or Change Order prepared by the Contractor, Architect or Project Manager, and accepted by the pastor and the Contractor or Architect as necessary. Any amendment substantially altering the terms of a contract should be reviewed by DFREM and ALC.

102.3 Method of Delivery:
Projects shall be delivered by the Design-Bid-Build method. Alternative methods of delivery, such as Construction Management or Design Build, are permitted only with written permission from the Archbishop.

102.4 Bonding and Insurance:
The following bonding and insurance requirements apply to capital projects as follows:
All Category IV Projects must have Contractor Performance and Payment Bonds for the full value of the project in the formats stipulated in AIA Document A312. The bonding company must be approved by the Division of Risk Management.

Bidders for Category IV Projects may be required to obtain Bid Bonds of a required percentage of TPC, guaranteeing that the contractor will enter into the contract for the amount of the bid.
Builder’s risk coverage shall be provided by the contractor on all projects. This amount will vary by project and will be determined by the Division of Risk Management.

General liability coverage naming the Archdiocese as an additional insured shall be required of all contractors doing work on any Archdiocesan or parish/school property, in an amount determined by the Division or Risk Management.

Professional liability coverage naming the Archdiocese as an additional insured shall be required of all architects doing work for any Archdiocesan, or parish/school project.
The detailed insurance coverage requirements for capital projects are available here.

102.5 Applicability of Contract Policies:
A spreadsheet summarizing the applicability of the foregoing contract policies is available here.

FACILITIES & REAL ESTATE

103 POLICIES FOR PROFESSIONALS

103.1 Conflicts of Interest:
The retention of any consultant, contractor, or subcontractor shall be subject to and in accordance with the Archdiocesan Conflict of Interest Policy, available here. In general, a parishioner, or any company in which a parishioner holds a vested interest, shall not be retained as a consultant, contractor, or subcontractor on a project at a parish where the parishioner is registered.

103.2 Contract with Professional:
A contract reflecting the specific services to be provided shall be executed upon selection and approval of a professional.

103.3 Contractors:

103.3.1 Competitive Bidding: Competitive bidding shall be required for all Category I, III, or IV projects. At least three (3) competitive bids are recommended for Category II projects. Exemptions from this policy will be granted only in extraordinary cases where the Architect has provided sufficient information to allow DFREM to compare the scope of the work and price of the selected contractor with other contractors in the area sufficient to determine that the quoted price is competitive.

103.3.2 Prequalification of Contractors: DFREM will pre-qualify and recommend general contractors for all Category I and IV projects.

103.3.3 Licensure and Insurance: Certificates of insurance for the General Contractors and all sub-contractors meeting Archdiocesan requirements shall be filed with the Division of Risk Management with copies to DFREM. Only licensed, insured, and certified contractors shall perform the removal of any hazardous materials (e.g., asbestos, oil tanks, etc.).

103.4 Architects:

103.4.1 Prequalification Required: Only prequalified architects may perform work on any Archdiocesan project, regardless of category.

103.4.2 Insurance: Certificates of insurance for the architect meeting Archdiocesan requirements shall be filed with the Division of Risk Management with copies to DFREM.

103.4.3 Project Selection Committee: For Category IV projects, the architect will be selected by a Project Selection Committee, which shall include the pastor, parish/school project chairperson, and a representative from the parish/school finance committee. DFREM shall issue a Request for Proposal (RFP) to architects, and from the responses shall select no more than three (3) firms to be interviewed by the Project Selection Committee. Following interviews, the Project Selection Committee shall make the final selection with the advice and approval of DFREM.

103.4.4 Structural Changes: Any structural changes required to any property must be designed and inspected by a registered structural engineer prequalified by DFREM. Structural changes include the construction or installation of new buildings and additions and any modifications to a building/property that compromises the safety or integrity of a structure or site.

103.4.5 Changes to Building Systems: Any change, renovation, modification or addition to a major building system (e.g., mechanical, electrical, roofing, etc.) must be reviewed by a consultant recommended by DFREM before execution of any contract for such change.

103.4.6 Compliance with Archdiocesan Standards: The architect for any project shall comply with any Archdiocesan standards established by DFREM, including the “Electronic Standards for Facilities Management and Design.”

FACILITIES & REAL ESTATE

104 FINANCIAL POLICIES

104.1 Scope:
The following financial policies apply to all projects, except Category II projects.

104.2 Financial Requirements:
Except in exceptional circumstances, as determined in the sole discretion of the Archbishop or the Executive Director of DMS, the Executive Director of DMS must confirm that the following requirements have been satisfied before project approval will be given.

104.2.1 Contingency Fund: To be prepared for contingencies, the parish/school must have reserve funds in the InterParish Loan Fund (IPLF) sufficient to meet the parish/school’s operating expenses for at least four (4) months. This amount is in addition to the cash amounts that the parish/school is required to have on hand.
104.2.2 Cash on Hand: The parish/school must have cash on hand of at least 50 percent of the TPC prior to bid solicitation, and must have completed a budget or financial plan approved by the finance committee chair and parish corporators sufficient to complete the project. Funds equivalent to an additional 15 percent of TPC must be collected prior to project completion.

104.2.3 Financing Limit: Financing for any parish/school construction/renovation project or property acquisition shall not exceed 35 percent of TPC, which includes, but is not limited to, construction costs, fundraising costs, architect/engineering fees, furnishings, escalation estimates, and appropriate project contingency reserves as reflected in the Project Cost Data Form, available here.

104.2.4 Loan Term: The term on any loan required for construction, renovation, or property acquisition shall not exceed ten years. With respect to IPLF loans, the IPLF Loan Committee, in consultation with the parish/school, shall determine the loan term and amount.

104.2.5 Approval of Large Projects: Projects with a TPC over $2.0 million or with expected debt of $1.0 million or more must be approved by the College of Priest Consultors and the Board of Financial Administration (BOFA), who recommend approval to the Archbishop. The Archbishop shall make the final decision regarding approval of the project, and issue his decision in writing.

104.2.6 TPC Increases: Increases in TPC in excess of 5% must be approved by DMS.

104.2.7 Contingent Liability: The limit for direct debt or for contingent liabilities of the Archdiocese will be determined by a formula approved by BOFA. BOFA shall review the contingent liability level on an annual basis to ensure that the Archdiocese’s credit rating remains at an acceptable level. Priorities for the authorization of loans will be assigned by the Executive Director of DMS in consultation with the appropriate divisions.

104.2.8 Compliance with Reporting and Payment Obligations: Before a project may be approved, all required financial reports must be filed by the parish/school and all Cathedraticum payments, insurance bills and other open items must be paid in full. The parish/school must continue to comply with reporting and payment obligations throughout all stages of the project.

104.3 Funding for Category II Projects:
Generally, debt is not permissible for Category II projects. Exceptions for entities that do not have sufficient funds on hand to complete a project must be approved by the Executive Director of DMS prior to initiation of the project.

104.4 Fundraising Campaign Approval and Restrictions:

104.4.1 Fundraising Campaign Approval: In order to conduct a fundraising campaign, the parish/school must submit a “Permission to Conduct a Fundraising Campaign” form, available here, and receive approval from the Archbishop.

104.4.2 Compliance with the Law: All fundraising campaigns and activities shall be conducted in strict conformity with federal, state, and local laws.

Procedure:
A) No consideration (such as a discount or reduction in school tuition) shall ever be offered in return for a tax-deductible contribution.
B) Questions about fundraising activities should be directed to ALC.
104.4.3 Cathedraticum Tax Exemption: A Cathedraticum tax exemption may be granted for an approved fundraising campaign for new construction, renovation, or loss reconstruction to the extent not covered by insurance.
Procedure:
A) An exemption should be requested on an approved Archdiocesan permission form, available here, and submitted to the Executive Director of DMS for review and recommendation to the Archbishop.
B) The Archbishop will review for approval exemption requests recommended by the Executive Director of DMS.
C) Exemptions will ordinarily be limited to one (1) campaign (maximum three (3) years) and one (1) campaign extension (maximum three (3) years).

104.5 Project Financing:

104.5.1 Approval Required: A parish/school seeking to borrow funds for the construction or substantial expansion or renovation of any facility must have the prior approval of the Archbishop. This approval will be determined during the Needs Analysis Study described in Section 105.3 below, “Feasibility Analysis and Planning.”

104.5.2 IPLF Funding: Projects requiring financing will request funding from the IPLF. To provide low-rate loans for capital projects, the Archdiocese has established lines of credit with financial institutions at favorable terms and conditions.

Procedure:
A) A parish/school seeking IPLF funding must submit the following project information:
The reason for the loan application.
The estimated costs of the project being funded in the standard format required by the Archdiocese.
The projected source of funds for repayment of the loan and estimation of probability of receipt of such funds.
An operating budget for the present parish/school facilities and projected for ten (10) years after project completion.
Reasonable projections (including lists of pledges receivable and collection projections) indicating that the borrower will meet its minimum cash requirement at the time of completion of the project.
B) Updated financial information must be provided at least annually.
C) The maximum amount of the loan will not exceed the borrowing level for the project as approved by AOB policy
D) Before loan funds are advanced, the parish/school provide documentation demonstrating its compliance with the policies and procedures contained in this Section.
E) A Capital Projects Report, available here, must be submitted with the regular annual financial report.

FACILITIES & REAL ESTATE

105 PROCEDURES FOR CAPITAL PROJECTS

105.1 Scope:
All capital projects are subject to the following procedures regardless of the type of project, facility, or cost.

105.2 Project Concept/Feasibility:
After initial discussions with the parish council/school board and the Office of the Vicar Bishop regarding the need for and feasibility of a new construction or renovation project, the pastor should make a written request for permission to pursue evaluation and conceptual development of the project to the Archbishop, with copies to the Vicar Bishop and Director of DFREM. The written request should describe the project, anticipated TPC, and the method/means of funding.

Procedure:
A) Departments affected by the project will be asked to submit recommendations regarding the project to the Archbishop.
B) The parish/school should not take any further steps nor hire any consultant (architect, engineer, planner, interior designer, etc.), until the pastor has received written permission to proceed from the Archbishop.
C) The written request should include a facilities condition assessment and capital reserve study performed within the past thirty-six (36) months for each building in the parish/school complex. This report is used to plan and prioritize work at the parish/school.

105.3 Feasibility Analysis and Planning:

105.3.1 Development of Feasibility Studies: Depending on the circumstances, DFREM may request that the parish/school compile and submit a Needs Analysis Report – a summary report describing the present and future needs of the parish/school and the present and future use of its buildings and property. The parish/school may also be required to develop a programmatic spatial and site master plan for its buildings and property.

105.3.2 Use of Third-Party Consultant: Where appropriate, DFREM will recommend a consultant to work with the parish/school to develop the required Feasibility Studies. The cost of the consultant’s services shall be borne by the parish/school. A DFREM project manager (PM) may be assigned to oversee the third-party consultant’s services.

105.3.3 On-Site Meeting: DFREM may require an on-site meeting at the parish/school to review the Needs Analysis Report and discuss DFREM’s role, if any, in the proposed project. The Executive Director of the DMS shall then make a recommendation to the Archbishop regarding concept approval.

105.4 Concept Approval and Creation of Committees:

105.4.1 Concept Approval: If the Archbishop approves of a project concept, written permission will be provided to the parish/school to develop the concept further. DFREM staff shall meet with the parish/school to discuss Archdiocesan construction and fiscal policies and any specific stipulations that have been placed on the Archbishop’s approval.

105.4.2 Project Committees: A Building Committee, Finance Committee, and Project Team shall be created to continue work on the project.

105.4.2(A) Building Committee: The Building Committee includes the pastor/principal, and is typically composed of an additional two (2) to four (4) members of lay parish/school leadership and staff knowledgeable in the requirements of the project or with professional experience in the development, design or execution of buildings or building systems. The Building Committee shall work in consultation with DFREM in the selection of an architect from the Archdiocesan prequalified list. If the project is a renovation, the parish/school and DFREM must ensure that the architect makes a thorough assessment of the entire building to ascertain the soundness of all major building systems before proceeding. The Building Committee also works with DFREM to develop a broad outline of the tentative project requirements together with a cost estimate. The parish/school shall use the Project Cost Estimate Worksheet as a planning guide for the construction process.

105.4.2(B) Finance Committee: The Finance Committee includes the pastor/principal, and is typically composed of an additional two (2) to four (4) members of lay parish/school leadership and staff with finance and/or accounting experience. The Finance Committee develops the Financial Plan (including income and expense, and cash flow projections) to execute the project considering the institution’s operating budget, cash reserves and any fund-raising campaign. A minimum ten (10) year operating projection should be prepared, which includes the operating and depreciation (replacement) costs for the project and other facilities of the parish and/or school.

105.4.2(C) Parish/School Project Team: The parish/school project team shall include the pastor/principal, Building Committee Chair, Finance Committee Chair, and DFREM Project Manager (acting as the Owner’s Representative) and shall be responsible to oversee the project on an on-going basis.

105.5 Approval to Retain Architect:
If the Parish Council or School Board recommend approval of the project following the completion of concept development and any required feasibility studies, and the pastor agrees with that recommendation, the pastor shall forward to the Executive Director of DMS all relevant material including:

A financial statement listing all assets and liabilities.
An explanation of financial and fund-raising projections.
A statement of all reasonable alternatives to building or renovating, including the possible use of neighboring facilities.

A project scope and an estimate of the TPC including the construction cost, site development, landscaping, furnishings, professional fees, contingency and inflation as developed by the DFREM using the standard Project Cost Estimate Worksheet.

The Director of DFREM shall than make a recommendation on whether to proceed with the project and retain an Architect to the Archbishop. Final approval to retain the Architect must be given by the Archbishop.

105.6 Retention of Architect for Project Design/Development:

105.6.1 Selection of Architect: Following approval from the Archbishop, DFREM will assist the parish/school in selecting an Architect from the Archdiocesan prequalified list using a Request for Proposal (RFP) method. The final selection shall be made by an interview committee chaired by the DFREM and composed of the pastor and Parish/School Building Committee Chair.

105.6.2 Contracting with Architect: DFREM and ALC shall prepare the contract for services with the Architect using the appropriate AIA form. Typically, building design contracts shall be separated into two phases: 1) schematic design and 2) design/development through construction administration. A requirement shall be made in the second phase for the provision of record documents or “As Builts” to be completed and delivered at the conclusion of the project. After review and approval by the Director of DFREM, the Executive Director of the DMS, and ALC, the contract shall be submitted for the Archbishop’s signature.

FACILITIES & REAL ESTATE

106 CAPITAL PROJECTS - PHASES

106.1 Phase I – Master Plan:
After the necessary contract with the Architect is prepared and executed by the Archbishop, the Architect will:
1. Meet with DFREM, the pastor and Parish/School Building Committee regarding the project and the expectations of the parish/school and DMS.
2. Develop a site plan showing existing conditions to include boundaries, land contours, zoning/development restrictions (e.g. wetlands, steep slopes, woodland, soils, cemeteries, etc.), all utilities (water, sewer, electric, gas, cable), and all existing improvements (buildings, paving, etc.). Special considerations, such as historic designations or environmental issues, must also be identified.
3. Based on the Needs Analysis Report, prepare a spatial program for approval by the pastor, Parish/School Building Committee and the DMS.
4. Based on the approved spatial program, prepare a master plan of the entire campus/property for approval by the pastor, Parish/School Building Committee and the DMS.
5. A facilities condition assessment and a hazardous material survey must be completed for any/all buildings before any project is planned or undertaken.
6. FREAC shall review and make a recommendation to the Archbishop regarding whether to approve the final plan.

106.2 Phase II – Schematic Design and Project Cost Estimate:
Based on the approved spatial program and master plan, a detailed site plan showing all existing conditions and restrictions, floor plans, and building elevations, and schematic drawings for the work contemplated shall be prepared by the Architect. DFERM, in consultation with the Parish/School Building Committee and Architect, shall prepare a Project Cost Estimate Worksheet for review by FREAC.

106.3 Phase III – Design/Development:

106.3.1 Preparation of Design Development Plans: The Architect shall prepare design/development plans and an outline specification for the project. The Architect’s design documents shall include: a detailed site plan (existing and proposed), floor plans, building elevations, building sections, material/color selection board; preliminary mechanical, electrical, plumbing and structural plans; and complete outline specifications.
106.3.2 Preparation of Revised Project Cost Estimate: A revised project cost estimate must be obtained from a general contractor or professional estimator recommended by the DFREM. This estimate, together with the Capital Project Cash Budget Form, available here, must be submitted to the Director of DFREM for approval.

106.3.3 Meeting with FREAC: The design/development plans, Revised Project Cost Estimate, and Capital Project Cash Budget Form shall be submitted to DFREM for a review meeting with FREAC at the Catholic Center. The pastor must be present at the meeting at which FREAC’s review is performed. Following DFREM and FREAC review, and any necessary revisions, the project will be recommended by the Director of DFRM to the Archbishop for his approval.

106.3.4 Review of Renovations to Liturgical Areas: The Archbishop will review and approve all renovations or changes to liturgical areas.
Procedure:
A) In the case of renovations to liturgical space, a color rendering or elevation of the interior space is required.
B) The rendering shall show such features as site lines, key liturgical furnishings and artwork elements (altar, tabernacle, crucifix, baptismal font, ambo, lectern, celebrant seating, reconciliation rooms, gifts table, reredos screen, choir, stations of the cross, stained glass, etc.).

106.4 Phase IV – Construction Documents:
106.4.1 Drafting of Construction Documents: With the Archbishop’s approval, the design/development plans shall be expanded into construction documents, including working drawings and specifications.

106.4.2 Preliminary Review by DFREM: When the construction documents are 50 percent complete, updated TPC estimates and supporting documentation must be submitted along with the draft construction documents to the director of DFREM for review. Any changes identified during this review shall be forwarded to the Architect through the project manager for amendment of the construction documents prior to soliciting bids.

106.4.3 Final Review by DFREM: When the construction documents are 95 percent complete, the Architect shall submit a complete set of plans and specifications to the DFREM for final review and approval prior to release for bids.

106.4.4 Required Specifications: Specifications shall include: standard Archdiocesan General Conditions; Front-end Documents (AIA Section 800, as formatted by the Archdiocese) and form of contracts.

106.4.5 Required Construction Documents: Construction Documents shall include: Statement of the right to accept/reject any and all bids; Standard General Conditions; Statement of Owner’s right to approve all principal subcontractors; and Requirement for Bid-Bond equal to 5 percent of the Contractor’s bid.

106.5 Phase V – Bidding:
106.5.1 Pre-Qualified Bidders: DFREM will pre-qualify and recommend general contractors and certain principal trade contractors, (e.g. mechanical, electrical, masonry, roofing, etc.) for all Category I & IV projects.

106.5.2 Recommended Bidders: DFREM shall recommend not less than three (3) bidders who have agreed in advance to submit a bid if invited.

106.5.3 Unqualified Bidders: Contractors who are determined by the DMS to have discriminated in any way with respect to race, sex or national origin or to have failed to provide a living family wage reflective of the principles of social justice shall not be qualified to bid. Subject to and in accordance with the Archdiocesan Conflict of Interest Policy, available here, parishioners or related parties shall not bid on projects for their own parish to avoid conflicts of interest. Requests for exception to the Conflict of Interest Policy must be approved by the Archbishop in writing.

106.5.4 Pre-Bid Meeting: A pre-bid meeting shall be held by DFREM, the Architect, and parish/school for the benefit of all bidders to clarify the scope of work and answer any questions.

106.5.5 Performance and Payment Bond: Contractors must furnish a Performance Bond and a Labor and Material Payment Bond in the total amount of the contract. The name of the bonding company must be submitted to the Office of Risk Management for review and approval.

106.5.6 Receipt and Opening of Bids: Bids shall be received and opened at the parish/ school, the Catholic Center, or other location approved by DFREM.

106.5.7 Bid Evaluation and Selection: Bids shall be evaluated by the DFREM, Architect and Parish/School Project Team. The project shall be awarded to the lowest, qualified bidder.

106.5.8 Contract Preparation: The ALC shall prepare for execution an agreement with the selected bidder using the appropriate amended AIA form for review and approval by the Archbishop.

106.5.9 Final Bid Review: Before the contract is signed, DFREM, parish/school representatives, and the Architect shall review the bid proposal in detail with the successful bidder to insure that the bid covers and satisfied all specifications.

106.5.10 Distribution of Executed Agreement: Copies of the executed agreement shall be distributed as follows:
1.One (1) original to the Pastor or Head of the Institution;
2.One (1) original to the Contractor;
3.One (1) original to ALC;
4.One (1) original to DFREM;
5.One (1) photocopy to the Architect.

106.6 Phase VI– Construction:

106.6.1 Pre-Construction Meeting: After the contract is signed and prior to beginning construction, a meeting of the General Contractor, all Principal Subcontractors, the Architect, DFREM, the pastor or designated parish/school representative shall be held to review all aspects of the contract.

106.6.2 Progress Meetings: Progress meetings shall be held at least every two (2) weeks at the job site with the Contractor, Architect, DFREM and parish/school representatives. Minutes of all meetings shall be recorded by the Architect or Contractor and copies submitted to all present and interested parties.

106.6.3 Change Orders:
All Change Orders shall be processed and documented in a timely manner in accordance with section 102.2.4 of this Policy.

Procedure:
A) Any adjustments/changes to the authorized budget shall be approved in advance by DMS or Archbishop as appropriate.
B) Copies of all Change Orders shall be submitted to DFREM for its records.

106.6.4 Payments to Contractor: Payments to the Contractor shall be made upon monthly requisitions, after payments are certified by the Architect and forwarded to the Project Manager. Five percent shall be withheld from each monthly requisition until the project is substantially complete.

106.6.5 Payments to other Professionals: Payments to the Architect and other professionals shall be paid in stages as set forth in the contract for professional services. Ordinarily, professional fees for construction administration shall be paid monthly.

106.6.6 Pre-Acceptance Requirements: Prior to acceptance of the Work:
1. Parish/school representatives, Contractor, Architect and DFREM shall conduct an inspection of the Work, during which the Architect shall prepare a “Punch List” of all non-compliant work.
2. The Contractor shall obtain all Use and Occupancy Permits.
3. The Architect shall issue the Certificate of Substantial Completion identifying the date on which the Archdiocese, or parish/school was able to take beneficial occupancy and the Contractor Warranty Period initiation date for all satisfactorily completed work.
4. The Contractor shall submit all Operating and Maintenance manuals.
5. The Contractor shall train the Owner in the operation and maintenance of all systems.
6. The Contractor shall submit to the Owner all warranties, permanent keys, and all special tools.

106.7 Phase VII – Completion and Closeout:

106.7.1 Final Inspection: Final inspection shall be conducted jointly with the Design Team, PM, pastor and parish/school representatives.

106.7.2 Final Payment to Contractor: Final payment to the Contractor shall be made only after 100 percent completion of all punch list work including: punch list items; submission by the General Contractor and all subcontractors of a Release of Liens; the Consent of Surety to Reduction in Retainage, and Consent of Surety of Final Payment; submission of record drawings or “As-Builts” to the Design Team; and completion of any other requirements of the contract documents.

106.7.3 Final Payment to Architect: Final payment to the Architect shall be made only after completion of all aspects of the project by the Contractor as described above, submission of record documents to the parish/school and, one (1) electronic copy and completed final Project Cost Data Form to the DFREM.

106.7.4 Record Documents and As-Built Drawings: As part of their basic services, design consultants must continuously update and provide final record documents for all Category I, III and IV projects and final as-built drawings to the parish/school and DFREM.

Procedure:
A) As-built drawings shall be provided in hardcopy and electronic form.
B) The electronic form of the documents shall be in the format approved by DFREM at project completion.
C) All cross-referenced files and blocks shall be bound thereto and all files purged of unused layers and objects.
D) Drawing Execution shall conform to The U.S. National CAD current Standard for Layering, Drafting, Schedules, Organization, Symbols, Referencing, Terms, and Code Conventions.

106.8 Phase VIII – Project Warranty Period:
Latent (hidden) defects in the Work of the contract discovered within twelve (12) months after the Architects’ issuance date on the Certificate of Substantial Completion and Punch List are considered warranty defects that the Contractor is required to correct at no additional cost to the parish/school.
Procedure:
Upon discovery of such defects in the Work, the parish/school shall notify the Contractor of the problem in writing with copies to the design consultant and DFREM.