Construction Contracts FAQs & Resources

Below you'll find answers to common questions about Construction Contracts at OSU, along with resources such as links to General Conditions and related guidance.

Choose the section that best matches your role--whether you're part of an OSU department initiating work or a contractor or consultant preparing to do work or currently performing work for the university.

For OSU Departments

Construction Contracts Administration supports Oregon State University by preparing, issuing, and managing contracts for construction-related services. This includes professional design services, construction, renovation, abatement, and other work that is physically connected to university buildings or infrastructure.

A contract is a written legal agreement between Oregon State University and another party that defines the work to be performed, the cost, the schedule, and each party's responsibilities. A contract must be reviewed and signed by authorized university officials before any work may begin. Emails, proposals, quotes, invoices, and verbal agreements are not contracts and do not authorize work.

Construction Contracts Administration must review any project that involves construction-related labor or services at any dollar level. This includes work that installs, modifies, repairs, removes, or is physically attached to a building, system, or structure. If there is uncertainty, departments are encouraged to contact Construction Contracts Administration before engaging a vendor.

Yes. Oregon State University uses different contract types depending on the nature of the work, the total project cost, and legal requirements. These may include purchase orders, public improvement contracts, professional services contracts, and reserve contract supplements. Construction Contracts Administration determines the appropriate contract type for each project.

In limited situations, a purchase order may be used for construction-related work when the total cost is under $25,000, and the work is not professional consulting services. Many construction activities still require a formal construction contract regardless of dollar amount. Construction Contracts Administration determines whether a purchase order is appropriate for a specific project.

Some types of construction work are subject to legal, safety, insurance, or prevailing wage requirements that require a formal contract. These requirements may apply regardless of project size.

Construction Contracts Administration manages construction-related services that are subject to public contracting laws, prevailing wage requirements, and construction-specific insurance and risk requirements.

Procurement manages the purchase of goods and non-construction services.

No. Work may not begin until a contract or reserve supplement has been fully executed by the university. Work that begins before execution is considered unauthorized and may not be paid.

At a minimum, the following information is required: a clear scope of work, an estimated project cost, the budget approval, the project location, and the proposed contractor or consultant. Additional documentation may be required depending on the project.

The way a construction contract is requested depends on who is managing the project. For construction-related work not managed by Capital Planning and Development, and not managed by designated units such as the College of Agricultural Sciences or University Housing and Dining, a requisition in BennyBuy is used to initiate the request. Because BennyBuy does not capture all of the information needed to develop a construction contract, a Contract Request Form is used in addition to the requisition. The requisition establishes funding. The Contract Request Form provides the additional scope, project, and compliance information required to prepare the contract. Submitting a requisition alone does not create or authorize a contract.

e-Builder is used for project management and tracking for capital construction projects, major renovations, and other projects managed through Capital Planning and Development or designated campus units. The use of e-Builder does not replace the requirement for a fully executed contract. Work may not begin until the contract has been executed, regardless of project status in e-Builder.

The Contract Request Form is used when a requisition exists, and a construction contract is required. It supplements the requisition by collecting information that cannot be captured in BennyBuy but is necessary for contract development. The Contract Request Form does not replace a requisition and does not authorize work.

Departments should coordinate early with Construction Contracts Administration when construction-related services are anticipated. Construction Contracts Administration will confirm whether the project is managed through Capital Planning and Development, whether a requisition in BennyBuy is required, and whether a Contract Request Form is needed. Departments should not determine the contracting method on their own.

Construction Contracts Administration determines whether the Oregon Bureau of Labor and Industries Prevailing Wage Rates apply to a project. All projects that may be subject to prevailing wage must be reviewed by this office.

Only designated university officials have the authority to sign construction contracts on behalf of Oregon State University. Department staff and project managers are not authorized to sign contracts.

Questions should be directed to:

[email protected]

For Contractors and Consultants

A contract is a written legal agreement between Oregon State University and a contractor or consultant. It defines the scope of work, compensation, schedule, and legal responsibilities of both parties. Construction work may begin only after the appropriate contract for the project has been fully executed by Oregon State University through Construction Contracts Administration. Quotes, proposals, requisitions, and similar documents do not authorize construction work.

Most construction-related work is performed through competitive solicitations or under an existing Oregon State University Reserve Contract. Firms must meet licensing, insurance, and compliance requirements to be eligible for work.

Oregon State University publicly advertises construction solicitations through its procurement and construction contracting website at https://bid.oregonstate.edu/. These postings include invitations to bid, requests for proposals, and related documents. Contractors and consultants are responsible for monitoring these sites for opportunities and deadlines.

Oregon State University uses several types of contracts for construction-related work, depending on the project scope, cost, and legal requirements. These include public improvement contracts, professional services contracts, reserve contract supplements, and purchase orders. The university determines the contract type. Contractors and consultants do not select the contract form.

In some limited cases, Oregon State University may use a purchase order for construction-related work. The use of a purchase order depends on the type of work, the total project cost, and applicable legal requirements. The university determines whether a purchase order or a formal contract is required.

No. The standard terms of a Reserve Contract are not negotiable.

A Construction Contractors Board license is required for construction services. Professional consulting firms must ensure that all work requiring professional licensure is performed by appropriately licensed individuals.

Prevailing wage requirements apply to certain public improvement projects. Construction Contracts Administration determines whether prevailing wage applies and provides compliance direction when required.

No. Work may not begin until the contract or reserve supplement has been fully executed by Oregon State University.

Questions should be directed to:

[email protected]

Resources

Oregon State University issues purchase orders (PO's) using standard or special terms and conditions. When using the standard terms and conditions, those are usually not attached, except by reference, to the physical PO.

  • VIEW  General Conditions for Purchase Order Construction Contracts (PDF) Updated 2018