Typically, private clients and their professional agents select a management system that will place with one entity all responsibility for ensuring fulfillment of plans and specifications. Unburdened by the restrictions of the multiple contract statutes of the State of New York, the client may opt to utilize the services of a qualified general contractor or, in the alternative, those of a construction manager. To ensure performance, private clients often require appropriate surety bonds as well as a fixed price or a guaranteed maximum price.

Given single responsibility, the private client is relieved from the responsibilities demanded of the public client by the multiple contract system. Administration of contract is made more facile by reason of the placement of such responsibilities with the general contractor or construction manager under the general supervision of client and professional.

PUBLIC WORK CONSIDERATIONS, THE MULTIPLE CONTRACT SYSTEM (WICKS): With regard to public work, the provisions of Section 101, General Municipal Law, Section 135, State Finance Law, as well as the similar terms bearing on contract documents for construction of public housing facilities, and those projects sponsored by the Urban Development Corporation, Environmental Facilities Corporation and other contracting agencies govern. Simply put, all construction projects involving a building where the entire value of the building work is greater than $50,000, the Wicks Law is in play.

To honor the terms of the multiple contract statutes, separate specifications must then be drawn for plumbing and gas fitting, HVAC and electric wiring and illuminating fixtures. The balance of the work will generally be for the account of a contractor for general construction. Given highly complex projects, usually those of significant cost, to be expedited and coordinated, a construction manager may be engaged to act as agent for the public client. He may determine it to be advisable to break the general construction package into a few additional prime specialty contractors. (Click here – (link to come) for additional discussion on how many primes.)

Questions abound with regard to the Wicks Law (besides the obvious question of WHY?). Regularly, for example, we are asked about the $50,000 threshold. In answer to frequently asked questions:

• If a public building is valued at less than $50,000 (including all components), the single contract system may be utilized.
• The fact that one of the packages is valued at less than $50,000 does not allow that package to be combined with another package (plumbing with HVAC, for example).
• If a project involves construction of process facilities (water and sewage, as examples), the professional and its client may wish to investigate to determine whether the application of the single contract system may be possible.
• The definition of a "building" may be found in the New York State Uniform Fire Prevention and Building Code (previously in the Executive Law). Simply stated, a building consists of four walls and a roof. If the structure proposed does not fit within the definition, then the professional and its public client should question the use of the multiple contract system as opposed to other management systems.

MULTIPLE CONTRACTS/COORDINATION: Where the choice is made to let multiple contracts, a number of issues must be considered. The advertisement for bids, invitation for bids, instructions to bidders, form of bid, and agreement, as well as the body of the contract documents, must reflect the multiple contract nature of the project. If the multiple contract system is utilized, then the coordination of documents and delineation of the responsibilities of the separate prime contractors is required. To avoid debate, contention, claim or litigation, it is imperative that each of the separate primes be instructed as to its responsibilities. Examples: Cutting and patching, cleanup, temporary facilities, temporary heat and winter protection, trenching and dewatering. The New York State AIA, working jointly with GBC, has produced recommended winter protection/temporary heat specifications. Architects/engineers who have utilized the recommended specifications report significant cost savings as well as relief from competing claims of separate prime contractors.

Public Work Considerations – Coordination: In 1972, the case of GBC v. the City of Syracuse found at the Appellate Division and affirmed at New York’s highest court, the New York State Court of Appeals, that the responsibility for coordination on multiple prime contract (Wicks) work lies squarely on the shoulders of the public owner. That responsibility may not, the courts found, be delegated to one or all of the separate prime contractors.