Louisiana Administrative Code
Title 34 - GOVERNMENT CONTRACTS, PROCUREMENT AND PROPERTY CONTROL
Part III - Facility Planning and Control
Chapter 1 - Capital Improvement Projects
Subchapter A - Procedure Manual
Section III-107 - Available Funds for Construction (AFC)

Universal Citation: LA Admin Code III-107

Current through Register Vol. 50, No. 9, September 20, 2024

A. The AFC, as defined by §103, shall be stated in the contract between owner and designer.

B. The designer shall be responsible for designing the project so that the base bid does not exceed the AFC. The use of any alternate bids must be pre-approved by the owner. The owner will take into consideration abnormal escalation in construction costs that can be substantiated prior to bid.

C.

1. At the completion of the program completion phase the designer shall make recommendations regarding whether the AFC is realistic for the project when compared with the completed program. At this point, or at any other submissions of the projects statement of probable cost (construction cost estimate) by the designer, if such statement of probable cost is in excess of the AFC, the owner shall have the option to:
a. instruct the user agency to collaborate with the designer to revise the program so that the anticipated base bid will be within the AFC; such program revisions shall be done without additional compensation to the designer, except for extensive program revisions authorized in writing by the owner;

b. provide additional funds to increase the AFC; or

c. abandon or suspend the project.

2. Any adjustment in the AFC, approved in writing by the owner during design shall include an appropriate adjustment in the fee. The fee shall not be modified at any time after advertising for bids, except as allowed per §109.A.1.d and §109.A.3

D.

1. When the lowest bona fide base bid exceeds the AFC, the owner shall have the option to:
a. have the designer, without additional compensation, modify the construction documents as required in order to rebid the project to be within the AFC;

b. provide additional funds to award the construction contract without adjustment of the fee if the project scope remains the same; or

c. abandon the project.

2. The lowest bona fide base bid is defined as the lowest base bid submitted by a responsible and responsive bidder, not withdrawn in accordance with R.S. 38:2214, and which complies in every respect with the bidding requirements of the contract documents.

E. When the lowest bona fide base bid is less than 90 percent of the AFC and the designer has reduced the original program scope to reduce costs, the owner shall have the option to have the designer, without additional compensation, modify the construction documents to restore elements of the program that were eliminated to reduce cost.

AUTHORITY NOTE: Promulgated in accordance with R.S. 39:1410.

Disclaimer: These regulations may not be the most recent version. Louisiana may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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