Unanimous Approval of Construction Task Force Recommendations

We are thrilled to announce that the School Board of Miami-Dade County unanimously approved the recommendations proposed by the School Construction Task Force! This approval is a huge win for the commercial contractor community, Miami-Dade County Taxpayers and students at Miami Dade County Public Schools (MDCPS). This marks a significant milestone for our organization, which has been tirelessly advocating for these changes over several years. You will find the approved recommendations below.

We extend our heartfelt gratitude to School Board member Danny Espino, who listened to our concerns and resolved to take action. His leadership and dedication have been instrumental in bringing these recommendations to fruition. He created the Construction Task Force to find solutions to the issues highlighted by The South Florida AGC in our 2021 Contractor Survey. He has now taken those recommendations and sponsored the directive to make them policy of the Office of Capital Improvements. Thank you, Danny!

We also want to recognize all the members of the Miami-Dade County School Board who co-sponsored this legislation. Their unanimous support underscores the collective commitment to enhancing the efficiency, accountability, and transparency of school construction projects within our district. Special thanks go to Board Members Mary Blanco and Luisa Santos for their unwavering advocacy on our behalf. Their efforts in meeting with us and championing our cause have been invaluable.

We also need to recognize the individuals who were part of the Miami Dade County Public School Construction Taskforce and showed up ready to work and, after the taskforce’s official work was done, continued meeting and lobbying for these changes. They were Chairman Nestor Castellon, Vice Chair Juan Alfonso, Andres Asion, Richard Gomez, Ario Lundy, and Lucia Soria. Before the formation of this official Taskforce The South Florida AGC had the following members working as a committee to make these changes a reality; Luis Enriquez, John Di Pompeo, Jorge Goyco, Pedro Munilla, Gary Stein, and once again Nestor Castellon and Richard Gomez. I would also like to thank Truly Burton of Builders Association of South Florida, and Gus Cabrera of Latin Builders Association for their contributions to this effort.

While this approval is a huge win for our organization, the journey is not yet complete. We need to make sure these recommendations are put into practice by the Office of Capital Improvements. Help us do that by supporting our association. Become a member, participate in our efforts, and sponsor our events. We need your support to create change in our working environment.

The approved Recommendations are as follows:

1. Construction Time Commencement

Policy Change: Amend appropriate School Board policies and M-DCPS processes to establish construction on the 31st day after Board award. Contractors must submit all required documentation, including bonds and insurance, within 20 days of contract issuance.
Rationale: Aligns with Florida statutes, providing contractors with a clearly defined timeline, minimizing delays associated with document submission. NTP serves as the formal authorization for contractors to begin work, marking the official start of the project timeline.
Impact: Ensures project scheduling consistency and minimizes administrative delays.

2. Maximizing Tax Savings on Direct Purchase Orders (DPOs)

Policy Change: Establish standardized DPO procedures within M-DCPS processes. Require contractor training on DPO implementation and compliance. Include the listing of deductive alternates on bid documents providing an incentive to bidders to maximize guaranteed sales tax savings to deduct from their base bid.
Rationale: Implement new procedures to maximize tax savings on DPOs for hard-bid projects.
Impact: Ensures consistent tax savings and accountability.

3. Change Order Processing

Policy Change: Amend appropriate School Board policies and M-DCPS processes to hold biweekly review meetings and allow project managers to recommend approval of changes up to $200,000 or 5% of contract value, with final approval by the District, without full committee review. Denial by the District will require committee review.
Rationale: Aligns with Florida statutes, reducing bottlenecks in project progress by allowing quicker approvals for minor changes. Delegating authority for smaller adjustments enables swift resolutions while maintaining oversight for larger changes.
Impact: Expedites approval processes while maintaining oversight.

4. Critical Change Order Directives

Policy Change: Introduce a policy requiring conditional approval of critical change orders, on a time-and-material basis, provided fully compiled and detailed accountability logs, with purchase orders or tickets showing direct connection of expenditures to requested change are maintained, if a directive is required prior to the change order being approved.
Rationale: Allow contractors to proceed with critical change order work on a time-and-material basis before formal approval. Management prefers that all change orders undergo full approval processes to ensure budgetary and procedural compliance before implementation.
Impact: Ensures timely responses to urgent project needs, even when formal approval processes are pending.

5. Compensable Delays

Policy Change: Establish clear definitions and dispute resolution procedures for compensable delays within M-DCPS processes, ensuring contractors can recover costs due to delays caused by the District or external agencies. Introduce a mediation process to resolve disputes efficiently.
Rationale: Promotes fairness by recognizing contractor costs associated with delays outside their control.
Impact: Clarifies contractor compensation for delays beyond their control.

6. Punch List Deadlines

Policy Change: Amend appropriate School Board policies and M-DCPS processes to require punch lists to be issued within 15 business days of substantial completion and implement tracking software for compliance.
Rationale: Enforces a firm deadline for issuing final punch lists to prevent delays in final payments.
Impact: Streamlines project closeout and ensures timely final payments.

7. Inspection Timeliness

Policy Change: Require all final inspections to be completed within 15 business days of substantial completion within M-DCPS processes. Implement accountability measures for delayed inspections. Develop a digital platform to track inspection progress.
Rationale: Mandate final inspections within 15 business days of substantial completion to streamline project closeout.
Impact: Reduces closeout delays and enhances compliance tracking.

8. Retainage Reduction for Punch List Completion

Policy Change: Reduce retainage to 1.5 times the value of outstanding punch list items upon substantial completion.
Rationale: Aligns with Florida statutes, balancing contractor cash flow needs with the District’s interests in ensuring project completion.
Impact: Supports contractor cash flow while maintaining project completion incentives.

9. Warranty Item Processing

Policy Change: Amend appropriate School Board policies and M-DCPS processes to ensure warranty issues do not delay final payments. Establish a dedicated tracking system for warranty claims.
Rationale: Aligns with Florida statutes, ensuring prompt contractor payments while maintaining accountability for warranty obligations.
Impact: Maintains financial fairness while ensuring contractor accountability.

10. Consent of Surety for Final Payment

Policy Change: Amend appropriate School Board policies and M-DCPS processes to accept Consent of Surety in place of subcontractor final releases. Develop documentation standards to ensure compliance with this new policy.
Rationale: Align procedures to other partnership protocols and maintain financial protection.
Impact: Creates a standardized process for expediting final payments while ensuring financial protections.

11. Subcontractor Bond Costs

Policy Change: Allow subcontractor bond costs to be included in GMP, provided proof of payment is submitted.
Rationale: Aligns with Florida statutes, ensuring subcontractor bond costs are transparently addressed.
Impact: Supports small subcontractors and enhances financial transparency.

12. Contractor Training and Resources

Policy Change: Establish an online repository for contractor training within M-DCPS processes, with periodic updates and compliance tracking.
Rationale: Enhance transparency of contractor onboarding procedures and streamline understanding of requirements necessary in working with M-DCPS.
Impact: Enhances contractor understanding of certification, compliance, and documentation requirements.