Cutting a School Contract Down to Size

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· A construction management fee of 9 percent, although the industry standard is 3 to 5 percent.

· A clause stipulating no indemnification of the D.C. government for liability. EdBuild also opposed a requirement to provide a performance bond.

· A minimal role for the school system contracting officer's technical representative, who usually oversees such work.

· EdBuild's architect should retain ownership of design documents.

· A management fee for maintenance services. EdBuild also wanted to serve as the final arbiter of disputes that might arise between the school system and a future space-sharing partner regarding use of school facilities.

To his credit, Janey put his foot down and declared those EdBuild requests nonstarters.

Janey knocked down EdBuild's proposed 9 percent construction management fee to less than 3 percent. He also required EdBuild to submit payment requests to the school system's chief financial officer, who will make payment only after an independent construction inspector certifies to school officials that the amount is proportional to the work completed. What's more, the final contract requires EdBuild to purchase liability insurance at agreed upon coverage limits as necessary, and all contractors EdBuild retains must have performance bonds.

Janey not only ensured that the school system would own the design plans but also that the system would have the authority to reuse the plans.