OWNER DIRECT PURCHASES. As authorized by Florida Statutes § 212.08(6), Florida Administrative Code § 12A-1.094, and Florida Department of Revenue Tax Information Publication 13A01-01, the Owner reserves the right to require the Contractor to assign some or all of its subcontracts or other agreements with material suppliers directly to the Town. This process will be referred to as Owner Direct Purchases (ODP) and is a method that may be utilized to create savings for the Owner. The Owner saves the amount of the sales tax when it purchases material/equipment required for a construction project directly from the manufacturer/supplier (material/equipment cost only), and simultaneously decreases the amount of the contract for the cost of the materials/equipment plus the sales tax. If the Owner elects to invoke this process, the contract cost reduction will be accomplished through the issuance of a deductive change order.
OWNER DIRECT PURCHASES. 48.1 The City reserves the right to require the Contractor to assign some or all of its subcontracts or other agreements with material, including equipment, and suppliers directly to the City. Any materials purchased by the City pursuant to such an assignment of a material supply subcontract or agreement shall be referred to as "Owner Direct Purchases" (ODP) and the responsibilities of both the City and the Contractor relating to such ODP shall be governed by the terms and conditions of this clause, which shall take precedence over other conditions and terms of the Contract Documents where inconsistencies or conflicts exist.
48.2 Material suppliers shall be selected by the Contractor using competitive bidding/proposals. Supply contracts shall be awarded by the Contractor to the supplier whose bid/proposal is most advantageous to the City, price and other factors considered. The Contractor shall include the price for all construction materials in its bid. The bid pricing shall also include all Florida State sales and other taxes normally applicable to such material and equipment.
48.3 The City may consider purchasing any item but does not expect to issue purchase orders for less than $5,000. The City purchasing of selected construction materials will be administered on a deductive Change Order basis.
48.4 The Contractor shall provide the City a list of all intended suppliers, vendors, and material men for consideration as ODP. This list shall be submitted at the same time as the preliminary schedule of values and the project CPM schedule. The Contractor shall submit price quotes from the vendors, as well as a description of the materials to be supplied, estimated quantities and prices.
48.5 Upon request from the City, and in a timely manner, the Contractor shall prepare a purchasing request form that shall, in form and detail acceptable to the City, specifically identify the materials which the City may, in its discretion, elect to purchase directly. The purchasing request form shall include: a. the name, address, telephone number and contact person for the material supplier; b. manufacturer or brand, model or specification number of the item; c. quantity needed as estimated by the Contractor; d. the price quoted by the supplier for the materials identified therein; e. any sales tax associated with such quote; f. delivery dates as established by the Contractor; g. any reduction in the Contractor's cost for both the Payment Bond and the Performance Bond; h. ...
OWNER DIRECT PURCHASES. Design Builder will develop and implement procedures to accommodate Owner Direct Purchases so that Owner can take advantage of Owner’s tax exempt status for all materials and equipment exceeding $5,000.00. This includes identification, tracking and coordination with Subcontractors. Design Builder will estimate the Owner Direct Purchases at the time the Guaranteed Maximum Price is submitted, so that the amount can be deducted from the Purchase Order to the Design Builder.
OWNER DIRECT PURCHASES. The CITY reserves the right to issue CITY Purchase Orders directly to suppliers of materials to be incorporated into the Work of Project as described in the Contract, in order to obtain the exemption from sales taxes available under Fla. Stat. § 212.08(6), in accordance with the procedures listed below. For purposes of this Policy, the term, “materials,” means all items of tangible personal property which CITY may be eligible to directly purchase tax free in accordance with Fla. Stat. § 212.08(6), and implementing administrative regulations; and all other terms will have the meaning provided or suggested in the Contract, where applicable.
8.18.1 The DESIGN-BUILDER will provide to the CITY a list of all materials to be used in the Work, including those items of material required to be used by design Professional, and will denote on that list any items that the DESIGN-BUILDER deems suitable for CITY to purchase directly. DESIGN-BUILDER will also denote those items that are to DESIGN- BUILDER’s knowledge likely to have long lead times or that are available from only one or a severely limited number of suppliers.
8.18.2 The CITY may accept or reject the DESIGN-BUILDER’s recommendations and will in CITY’s discretion directly purchase those items that CITY deems suitable for direct purchase. The CITY’s election to make direct purchases under this Policy will not eliminate or affect the DESIGN-BUILDER’s responsibilities under the Contract except as specifically noted herein. Among other things, DESIGN-BUILDER will remain responsible for controlling the means and methods by which the Work is to proceed; working diligently to complete the Work in accordance with applicable deadlines; and for tracking ordering and delivery of materials so as to maintain the critical path. Neither the procedures herein, nor the CITY’s election to directly purchase certain materials, will alter or the applicability of the procedures and standards to be used under the Contract for claims for delay or change orders.
8.18.3 The DESIGN-BUILDER will require that all quotes for materials received by DESIGN-BUILDER for tangible personal property to be incorporated into the Project: (i) itemize sales tax as a separate item; (ii) include language that the quotations are assignable to the CITY; and (iii) include language stating that if assigned to CITY, no sales tax will be charged upon provision of CITY’s sales tax exemption certificate. Nothing herein will prohibit the CITY from requiring th...
