§ 4-08 Completion of Contracts Following Default or Termination for Cause of Construction and Construction-Related Service Contracts.
RCNY § 4-08
(a)Policy. The City may, as appropriate, default a contractor or terminate for cause in accordance with the terms of the contract and provide for timely completion of the work on a cost-effective basis. To that end, completion of the required work shall be accomplished in as expeditious and competitive a manner as practicable in accordance with these Rules.
(b)Definition. Completion contracts are contracts entered into by an agency with a vendor for completion of all or part of the work of a construction or construction-related service contract. Completion contracts shall not be considered new procurements.
(c)Application. Completion contracts shall be entered into pursuant to this section in cases where: (1) the contractor has been defaulted or terminated for cause; (2) there is no surety, or after a demand has been made by the agency, the surety either fails to perform its obligations in a timely manner or elects to tender a payment of funds as performance rather than completing the work, in accordance with its obligations; and (3) there is a continuing need to complete all or part of the work.
(d)Completion pursuant to contract terms and conditions. The agency may, consistent with the guidelines set forth below, include provisions in construction and construction-related service contracts for completion contracts to be used in the event of default or termination for cause.
(1)The ACCO shall select from the following alternatives the most competitive alternative appropriate under the circumstances. The ACCO shall document the reasons that this is the most competitive alternative appropriate under the circumstances. The following methods, in decreasing order of competitiveness may be used: (i) solicitation of sealed bids through public notice. Notice of the availability of the IFB shall be publicly advertised at least once in the City Record. Individual notice to bidders in accordance with 9 RCNY § 3-02(e) shall not be required, but the published notice shall contain all the information required by 9 RCNY § 3-02(e); (ii) award to either the next lowest responsive and responsible bidder or next most advantageous responsive and responsible proposer on the original solicitation at a price agreed upon between the bidder or proposer and the City; (iii) solicitation of sealed bids or proposals from a prequalified list prepared in accordance with 9 RCNY § 3-10; (iv) solicitation of sealed bids or proposals from a Special Completion Contract Bidders or Proposers List. The ACCO may develop a list of available vendors competent to perform the completion contract and seek bids or proposals from at least three such vendors; or (v) negotiation with one or more contractors or subcontractors on the site.
(2)For the purpose of soliciting a completion contract, the Contracting Officer shall make the following documentation available to prospective contractors: (i) a copy of the original contract, (ii) contract changes which have been approved or for which approval is pending, (iii) available documentation and/or correspondence which would aid the prospective contractor's understanding of the status and complexity of the work, (iv) payment history, and (v) information regarding subcontractors utilized by the defaulted or terminated contractor and other prime contractors working on the project, if any.
(3)The Contracting Officer shall hold a walk-through of the site for prospective contractors, unless the ACCO determines that such a walk-through would not be beneficial.
(4)In the event of default, the agency shall take steps to charge the defaulted contractor and/or surety, as applicable, for any additional costs and expenses arising out of or related to the completion of the work, including, without limitation, any administrative costs and the cost of any required corrective work.
(e)Notification. The agency shall provide the following information to the Comptroller: (1) the contract registration number, (2) the name of defaulted contractor, (3) the date of default and a copy of default notice, (4) the completion contract source selection method utilized, (5) the name of completion contractor, and (6) a copy of the completion contract.
(f)Funding. The balance of the contract funds shall be utilized for the completion contract. In the event additional funds are required, the agency shall take steps to encumber the same.
(g)Notice of award.
(h)Documentation. Documents reflecting the agency determination to default the contractor or terminate for cause shall be maintained and copies of these documents shall be sent to the CCPO for inclusion in the VENDEX database.
