UNM construction projects are entering an era where the company with the best value would get the bid.
The University has toyed with accepting the lowest bid, using project labor agreements and giving priority to Lobo Club donors when awarding contracts for construction projects.
The intent of a policy adopted Tuesday at the Board of Regents meeting is to allow the University to consider nonprice factors such as past performance, management resources and the ability to do a certain job when awarding contracts.
"The good news is they decided they want to look at improving the process," said Don Kawal, president of Klinger Construction. "They are taking time and effort and are soliciting effort from the broad construction community. That's a positive move, and I'm glad to see that happening."
An amendment to the policy was added that states there are no construction projects in the planning stages at UNM in which project labor agreements would be needed. But if the board should consider using one, notice would be given 30 days before the next board meeting.
Regents Mel Eaves and Jamie Koch went back and forth in Monday's Finance and Facilities Committee meeting, addressing whether financial statements should be requested from contractors.
Koch opposed the statements, saying bond companies assure projects are running smoothly.
"Seems to me a bond is certainly good, but you can learn a lot about a company by looking at their financial statements," Eaves said.
The policy states all contractors' bonding companies need to be on the U.S. Department of the Treasury's Listing of Approved Sureties. If they are not on the list, Koch said, "That is too bad."
He said bonding companies monitor the project's progress monthly, checking for lapses in finance or in schedules.
Eaves said he voted for the recommendation only because regents retain the right to ask for the last three years of contractors' financial statements. Contractors will not be required to submit financial statements for every project.
"It throws my personal business for whoever wants to look at it for no reason," said Robin Hendrixson, co-owner of Mechanical Concepts.
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Although his company does not bid on University projects, he was part of the Capital Improvement Committee, along with Kawal, that addressed concerns the contracting community had with UNM projects.
The committee was made of contractors who were split on favoring project labor agreements and UNM representatives.
"It's disappointing that they're fumbling," Kawal said. "That discourages contractors from bidding at the University."
Regent Sandra Begay-Campbell said the policy is a good way to make the procedure a little easier for contractors.
Regents have been concerned with timeliness and quality of projects at the University.
"What we want to do is settle down and get down to some good practices," Kawal said. "Hopefully, we're about there."
