Acting upon a MITA suggestion, MDOT will lower the percent of the original contract amount the prime contractor is required to self-perform with its own organization. Subsection 108.01, of the 2012 Standard Specifications for Construction, currently requires that the prime contractor self-perform work amounting to at least 40% of the original contract amount. When MDOT implements the approved change, the prime contractor will be required to self-perform work amounting to at least 35% of the original contract amount.
A change in the amount of work available for subcontracting will be correspondingly increased from 60% to 65% with this prime contractor self-performance reduction.
These changes will be implemented by Special Provision starting with projects in the August 7, 2020 bid letting, and they have been incorporated in the final version of the 2020 Standard Specifications for Construction.
MITA suggested a reduction in the prime contractor self-performance percentage on the premise that the change could result in added prime contractor prequalification classifications per project, which could allow more bidders to bid as prime and that it may increase the overall number of bidders on a project and thus expand the level of competition.
To view MDOT’s Special Provision for Subcontracting of Contract Work that will be used to implement these changes click here.
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