REQUEST FOR DESIGN / BUILD BID – PAGE1OF 7

/ CAHILL CONTRACTORS, INC.
CONTRACTING ENGINEERS
425 CALIFORNIA STREET – SAN FRANCISCO, CA94104
1111 BROADWAY, SUITE 2130 –OAKLAND, CA94607 / SAN FRANCISCO
(415) 986-0600
F: (415) 986-4406
OAKLAND
(510) 250-8500
F: (510) 250-8520

NIHONMACHI TERRACE RENOVATION

1615 Sutter Street, San Francisco, CA 94109 (Between Laguna & Post)

REQUEST FOR DESIGN / BUILD PROPOSAL

September 2, 2008

Cahill Contractors, Inc. is requesting design/build proposals for THE NIHONMACHI TERRACE RENOVATION PROJECT on Wednesday, October 1st, at 2:00 pm AT 2:00 pm.

Job walk(s) will be on:

Monday, September 8th AT 10:00 am. AND on

Thursday, September 11th AT 10:00 am.

a VOLUNTARY PRE-BID MEETING will be AT CAHILL’S OFFICE, 22ND FLOOR, 425 cALIFORNIA STREET, SAN FRANCISCOon

TUESDAY, SEPTEMBER 16th, at 10:00 am.

Address and fax to deliver bids to:

Cahill Contractors, Inc.Attn: Larry Ketelaar / Paul Pedtke

425 California Street, Suite 2200, San Francisco, CA 94104

Phone: (415) 986-0600Fax: (415) 986-4406

Email: lketelaar@cahill-sf.com or .

This Cahill project entails the renovation of the 2.7 acre Nihonmachi Terrace apartment complex constructed in 1976. It consists of a total of seven (7) buildings which include:

  • One (1) 13-story midrise building of one and two bedroom units, as well as, existing major mechanical and electrical equipment and systems as indicated.
  • Two (2) buildings 4-stories or less of studio, one and two story units
  • Four (4) buildings which are groups of townhouses of different sizes (but the same unit footprint).
  • Site work and paving patching.
  • All buildings will be occupied during renovation. Schedule is based on working 12 units at a time.
  • All buildings are rentable residential units under the San Francisco Redevelopment Agency (SFRA). They are not for sale or condo conversion. No OCIP is in place or required.

General Bid Requirements:

  1. Fire Protection, Plumbing, Mechanical and Electrical (MEPs) design / build proposals shall include a firm price for construction of the project and a separate design/drawing completion fee. The subcontractor will be required to attend and participate in design meetings as necessary. The following language will be included in the letter of intent and subcontract agreement for the successful design build subcontractors:

“The design / build cost is established at $AMOUNT. The design / build subcontractor is responsible to assist in assuring that this budget is not exceeded. This will include preparation of drawings and participation in design coordination meetings with the project team to review the progress of drawings and specifications to insure that the established budget is maintained. If Architect or Owner revisions introduce requirements that will result in a cost increase over the established budget then the Fire Protection / Plumbing / Mechanical / Electrical subcontractor must notify Cahill Contractors Inc. at once and participate in redesign / value engineering or obtain Cahill and Owner approval to increase the approved budget.”

If the subcontractor is unable to maintain the established budget or if we are unable to agree on terms in good faith, the Owner may at its option decide to bid the work to additional subcontractors. In this case the design assist subcontractor would be paid for the time spent on the project, not to exceed the design fee noted above.

  1. The design / build Subcontractor shall prepare a proposal for complete design and construction services based on the enclosed performance specifications along with architectural and structural plans and other program requirements. All drawings shall be sealed and signed by a licensed Mechanical Engineer licensed in the State of California.
  1. The specifications are intended to specify system performance / design criteria. The Subcontractor’s proposal shall not deviate from the design criteria without written approval. Questions regarding the appropriateness or correctness of requirements shall be directed to Cahill in writing prior to the bid. Any changes in design or performance criteria will be disseminated to all bidders.
  1. The specifications are intended to establish the desired level of quality, including suggested design options that the Engineer feels will meet the performance requirements and design intent. Mechanical Subcontractors’ proposals may be based on the suggested approaches or on any other design of similar quality. If there is a question as to the appropriateness of any alternative system ideas, the Mechanical Subcontractor shall review the proposed design with the Consulting Engineer prior to bid.
  1. Subcontractor proposals shall include the following:

a)A narrative of the proposed system design.

b)Completed bid form:

  1. Design price
  2. Construction price
  3. Breakout pricing
  4. Alternate pricing
  5. Unit pricing.
  1. Subcontractor proposals shall include the following:

a)Preliminary equipment list

b)Sketches showing proposed locations and approximate dimensions of all equipment.

c)Description of system and components

d)Description of coordination requirements of other trades (i.e. electrical and structural)

e)Proposed routing of piping and duct.

f)Confirmation of ceiling space for installation.

g)Resumes of personnel who will be assigned to the project.

  1. Unit pricing requirements (all unit pricing is valid for 1 year from award of contract). Unit prices shall include all equipment, material, labor, design, engineering, balancing, start up and testing costs as necessary for a complete and operational installation:

a)Plumbing: NONE

b)HVAC: NONE

  1. Value engineering suggestions are strongly encouraged.
  1. The final selection will be made by the project team and will be based upon the best total proposal provided. It is possible that the best candidates will be interviewed by the project team prior to selection.

Assume the following will be part of your subcontract for budgeting purposes:

  1. A Subcontract will be awarded on the standard Cahill Contractors, Inc. Subcontract Agreement form with the Cahill Environmental, Health and Safety (EHS) Requirements as well as other exhibits. Copies will be provided if you are not familiar with these documents.
  1. Retention will be ten percent.
  1. Maximum allowable mark-up for overhead and profit on Change Orders will be fifteen percent.
  1. Certificate of Insurance will be required for the construction work. Minimum insurance limits are required as follows:

Subcontract Amount / Minimum Insurance Limits
0 - $ 100,000 / $1,000,000 Insurance
$100,001 – $499,999 / $2,000,000 Insurance
Over $500,000 / $5,000,000 Insurance
  1. Subcontractors are responsible to furnish their own scaffold, flagmen, traffic control and dust control as required for their work.
  1. The General Contractor will furnish debris boxes. Subcontractors are responsible for their own clean up and for hauling their debris to the debris boxes.
  1. Subcontractors are responsible for their own parking costs. No parking or delivery trucks will be allowed in front of the adjacent properties.
  1. Schedule – The project is expected to commence in March 2009. It is anticipated that this project will take approximately 13 months.
  1. For overtime authorized by Cahill, Cahill will pay the actual premium costs only. No additional overhead and profit will be allowed on overtime premium costs. Subcontractors should include the straight time and premium time rates for all trades in their employ.
  1. Generally, trades are to pay “Prevailing Wage” - except for trade jurisdictions falling under the Carpenters, Laborers or Operating Engineers, which must be Union.
  1. Bid Documents:
  1. DRAWINGS
  • Architectural (all dated DATE)
  • Civil (all dated DATE)
  • Landscape (all dated DATE)
  • (all dated DATE)
  • Structural (all dated DATE)
  • Electrical (all dated DATE).
  1. PROJECT MANUAL (Specifications), dated DATE

SMALL BUSINESS ENTERPRISE AGREEMENT

The company or entity executing this Small Business Enterprise Agreement, by and through its duly authorized representative, hereby agrees to use good faith efforts to comply with all of the following:

I.PURPOSE.The purpose of entering into this Small Business Enterprise Program agreement (“SBE Program”) is to establish a set of Small Business Enterprise (“SBE”) participation goals and good faith efforts designed to ensure that monies are spent in a manner which provides SBEs with an opportunity to compete for and participate in contracts by or at the behest of the San Francisco Redevelopment Agency (“Agency”) and/or the Agency-Assisted Contractor. A genuine effort will be made to give First Consideration to Project Area SBEs and Local SBEs before looking outside of San Francisco.

II.APPLICATION. This SBE Program applies to all Agency-Assisted Contractors and Contractors and their subcontractors seeking Agency assisted Contracts.

III.GOALS. The Agency’s SBE Participation Goals are:

CONSTRUCTION50%

PROFESSIONAL SERVICES50%

SUPPLIERS50%

A.Trainee Hiring Goal. In addition to the goals set forth above in Section III, there is a trainee hiring goal for architects, designers and other professional services consultants as follows:

TraineesConsultant Fees

0$ 0 – $249,999

1$ 250,000 – $399,999

2$ 400,000 – $599,999

3$ 600,000 – $999,999

4$1,000,000 – $1,999,999

5$2,000,000 – or more

IV.TERM.The obligations of the Agency-Assisted Contractor and/or Contractor(s) with respect to SBE Program shall remain in effect until completion of all work to be performed by the Agency-Assisted Contractor in connection with the original construction of the site and any tenant improvements on the site performed by or at the behest of the Agency-Assisted Contractor.

V.FIRST CONSIDERATION. First consideration will be given by the Agency or Agency-Assisted Contractor in awarding contracts in the following order: (1) Project Area SBEs, (2) Local SBEs (outside an Agency Project or Survey Area, but within San Francisco), and (3) Non-local SBEs (outside of San Francisco). Non-local SBEs should be used to satisfy participation goals only if Project Area SBEs or Local SBEs are not available, qualified, or if their bids or fees are significantly higher than those of non-local SBEs.

VI.CERTIFICATION.Only businesses certified by the Agency as SBEs will be counted toward meeting the participation goals. The SBE Certification Criteria are set forth in the Policy (as defined in Section VII below).

VII.INCORPORATION. Each contract between the Agency, Agency-Assisted Contractor or Contractor on the one hand, and any subcontractor on the other hand, shall physically incorporate as an attachment or exhibit and make binding on the parties to that contract, a true and correct copy of this SBE Agreement.

VIII.DEFINITIONS. Capitalized terms not otherwise specifically defined in this SBE Agreement have the meaning set forth in the Agency’s Interim Purchasing Policy and Procedures as adopted on November 16, 2004 (“Policy”) or as defined in the Agency-Assisted Contract or Contract. In the event of a conflict in the meaning of a defined term, the Policy shall govern over the Agency- Assisted Contract or Contract which in turn shall govern over this SBE Agreement.

Agency-Assisted Contract means, as applicable, the Development and Disposition Agreement (“DDA”), Land Disposition Agreement (“LDA”), Lease, Loan and Grant Agreements, and Operations Agreement that the Agency executed with for-profit or non-profit entities.

Agency-Assisted Contractor means any person(s), firm, partnership, corporation, or combination thereof, who is negotiating or has executed an Agency-Assisted Contract.

Arbitration Party means all persons and entities who attend the arbitration hearing pursuant to Section XII, as well as those persons and entities who are subject to a default award provided that all of the requirements in Section XII.L. have been met.

Contract means any agreement between the Agency and a person(s), firm, partnership, corporation, or combination thereof, to provide or procure labor, supplies or services to, for, or on behalf of the Agency.

Contractor means any person(s), firm, partnership, corporation, or combination thereof, who is negotiating or has executed a Contract.

Local Small Business Enterprise means a SBE that: (a)has fixed offices located within the geographical boundaries of the City where a commercially useful function is performed; (b)is listed in the Permits and License Tax Paid File with a San Francisco business street address; (c)possesses a current Business Tax Registration Certificate at the time of the application for certification as a SBE; (d) has been located and doing business in the City for at least six months preceding its application for certification as a SBE; and (e) has a San Francisco office in which business is transacted that is appropriately equipped for the type of business for which the enterprise seeks certification as a SBE. Post office box numbers or residential addresses alone shall not suffice to establish a firm's status as local.

Non-local Small Business Enterprise means a SBE that has fixed offices located outside the geographical boundaries of the City.

Project Area Small Business Enterprise means a SBE that: (a) has fixed offices located within the geographical boundaries of a Redevelopment Project or Survey Area where a commercially useful function is performed; (b) is listed in the Permits and License Tax Paid File with a Project Area or Survey Area business street address; (c) possesses a current Business Tax Registration Certificate at the time of the application for certification as a SBE; (d) has been located and doing business in a Project Area or Survey Area for at least six months preceding its application for certification as a SBE; and (e) has a Project Area or Survey Area office in which business is transacted that is appropriately equipped for the type of business for which the enterprise seeks certification as a SBE. Post office box numbers of residential addresses alone shall not suffice to establish a firms’ location in a Project Area or Survey Area.

Project Area means an area of San Francisco that meets the requirements under Community Redevelopment Law, Health and Safety Code Section 33320.1. These areas are described in the Policy with specific street boundaries and include the Bayview Industrial Triangle, Hunters Point, Bayview Hunters Point, Hunters Point Shipyard, India Basin Industrial Park, Golden Gateway, Mission Bay (North), Mission Bay (South), Rincon Point/South Beach, South of Market, Transbay, Western Addition Area A-2, and Yerba Buena Center.

Small Business Enterprise (SBE) meansan economically disadvantaged business that: is an independent and continuing business for profit; performs a commercially useful function; is owned and controlled by persons residing in the United States or its territories; has average gross annual receipts in the three years immediately preceding its application for certification as a SBE that do not exceed the following limits: (a) construction--$14,000,000; (b) professional or personal services--$2,000,000 and (c) suppliers--$2,000,000; and is (or is in the process of being) certified by the Agency as a SBE.

Survey Area means an area of San Francisco that meets the requirements of the Community Redevelopment Law, Health and Safety Code Section 33310. These areas are described in the Policy with specific street boundaries and include Mid-Market and VisitacionValley.

CAHILL CONTRACTORS, INC. REQUEST FOR DESIGN / BUILD BID – PAGE1OF 7