Critical Elements of Contractual Agreements - RFP
In the U.S. labor workforce, many organizations and institutions utilize a structured business practice to develop a contractual agreement that is comprehensive, fair, and consistent for business owners, school boards/administrators, contractors, and architects to establish a partnership for the planning, designing, constructing, and equipping necessities for a new facility (Earthman, 2013). One of the initial business processes involves the preparation of a request for proposal (RFP). An RFP is a document
used in sealed-bid procurement procedures through which a purchaser advises the potential suppliers of (1) statement and scope of work, (2) specifications, (3) schedules or timelines, (4) contract type, (5) data requirements, (6) terms and conditions, (7) description of goods and/or services to be procured, (8) general criteria used in evaluation procedure, (9) special contractual requirements, (10) technical goals, (11) instructions for preparation of technical, management, and/or cost proposals. RFPs are publicly advertised and suppliers respond with a detailed proposal, not with only a price quotation (What is a request for proposal, 2021, para.1).
In the creation of a new public school, all private sector business entities typically respond to the RFP detailing how they will collaboratively address the critical needs of the public-school administrators.
An architect is a “qualified professional who designs and supervises the construction of buildings or other structures” (What is architect, 2021, para. 1). As previously stated, school boards/administrators and owners are very interested in selecting and employing architects that can fulfill the five basic services needed to complete the facility project: 1) schematic design; 2) design development; 3) construction document development; 4) bidding advisement; and 5) construction monitoring. After a comprehensive vetting process and the careful selection of the architects passes the school board, an architectural agreement is secured through a business contract that is signed by the school board/owner and the representing architectural firm. According to Earthman (2013), this legal contract
states precisely what services the architectural firm will give to the school system and the amount of money the architectural firm will receive for those services. As stated above, the school board must pass a resolution to enter into a contract with the architectural firm for a stated amount of money (p. 171).
Through this contract, all agreeing parties will understand the method of payment for the work being performed and the details surrounding the scheduled payments after the architect completes each of the five basic services/phases.
A contractor is an autonomous firm that consents to provide a certain “number or quantity of goods, material, equipment, personnel, and/or services that meet or exceed stated requirements or specifications, at a mutually agreed upon price and within a specified timeframe to another independent entity called contractee, principal, or project owner” (What is a contractor, 2021, para. 1). Through a legal bidding process for the construction of a new school facility, the school owner/administrator will likely be in a better position to procure the best competitive price for the construction project by awarding the bid to the best contractor. As stated by Earthman (2013), “of course, the competitive nature of the bidding process means the estimator for the contractor must be rather precise to enable the contractor to have a good chance of being awarded the bid” (p. 191). Once the bid is awarded to the contractor, the contractor signs a legal contract that “states that the contractor will build the facility detailed in these documents adhering to the quality and quantity specified in the documents” (Earthman, 2013, p. 198). Further, the contractual agreement between the school board and the contractor
usually consist of the agreement, the conditions of the contract, the drawings, specifications, all addenda issued prior to, and all modifications issued after execution of the agreement. Specific sections in the agreement deal with the scope of the work, time of commencement and substantial completion, final payment, miscellaneous provisions, contract sum, and progress payments. Any special conditions that require additional work on the part of the contractor or that the contractor must be aware of are listed in the special section of the contract (p. 200).
When school boards/owners enter into contractual agreements with contractors, these critical elements must be clear in detailing the owner & contractor relationship, concise on the details surrounding the project to ensure that all work will be completed, and the safeguards to protect the school system if the contractor fails to perform the agreed upon tasks.
D'uAndre A. Drain, Ed.D. is the Author of The Negative Perception Theory and Founder and Chief Executive Officer of Drain Corporation, LLC., a diversified services organization that provides products and services to help firms Achieve Strategic and Organizational Goals by Engaging the Talent and Passion of People™. Diversified services include, but are not limited to: Lean Six Sigma management; strategic & organizational management solutions; scholastic publication; and multi-media broadcasting.
Works Cited
Earthman, G. (2013). Planning Educational Facilities (4thEdition). Rowman and Littlefield Education. ISBN-13:978-1475801880
What is architect? definition and meaning. (n.d.). Retrieved May 17, 2021, from http://www.businessdictionary.com/definition/architect.html
What is a contractor? definition and meaning. (n.d.). Retrieved May 17, 2021, from http://www.businessdictionary.com/definition/contractor.html
What is request for proposals (RFP)? definition and meaning. (2019). Retrieved May 17, 2021, from http://www.businessdictionary.com/definition/request-for-proposals-RFP.html
