Arizona State University
OP-17: Guidelines for Business Partners

In addition to the Value Based Standards provided above, and the Trademark requirements below, Arizona State University also requires the following in all construction contracts: Here are the requirements as listed in 6.1 of the Exhibit A, Operating Manual, Supplemental requirements major capital projects. The requirements for the CMAR and each Subcontractor are: A. The Owner, the CMAR, and each Subcontractor shall include small businesses and disadvantaged business enterprises in the design, engineering and construction of the Project so long as this would result in services that are comparable in quality and would not result in a material increase in costs of the Project. A Disadvantaged business is a business that meets either the Arizona or Federal Small Business definition or is a Woman-Owned Business Enterprise [WBE] or is a Minority-Owned Business Enterprise [MBE], or is a Disadvantaged/Disabled-owned Business Enterprise [DBE]. B. The CMAR and each Major and Minor Subcontractor must comply with all state and Federal laws; and employees need to be legal Arizona residents. The CMAR and subcontractors will include in its monthly statement of certification affirmation that they are in compliance. The CMAR and each Major and Minor Subcontractor are required to use workers who are legal US and Arizona residents to do the Construction Work to the extent persons with the necessary and appropriate skills are reasonably available. The requirements for the CMAR and each Major Subcontractor are: “Major Subcontractor“ means the Subcontractors that, due to the nature of the construction work, comprise a critical or essential element of the construction such that the amount of the contract is equal to or greater than 10% or $200,000 of the construction budget, whichever is greater. Examples, include, but are not limited to such trades as steel, concrete, plumbing, HVAC, and electrical, excavation/site work, or any other subcontractor trade that is a major subcontractor due to the nature of the construction work in an particular Project. C. Health Insurance: The CMAR and each Major Subcontractor is required to provide health insurance for their respective full-time employees and to make health insurance coverage available to dependents and to employees who are not full-time, but are assigned to the project. Apprenticeship Requirements: D. The CMAR and each Major Subcontractor shall provide a ratio of not less than ten percent (10%) apprentices to journeymen in performing the Construction Work on the Project. The apprentices will be from State of Arizona registered apprenticeship programs. E. Apprenticeship: The CMAR and each Major Subcontractor are required to contribute an amount equal to one percent (1%) of the CMAR’s or Major Subcontractor’s gross payroll for Construction Work in the Project to fund training for Arizona residents in State of Arizona registered apprenticeship programs. The continuation of a prior practice of funding such apprenticeship programs will be counted against this requirement to the extent of the continuing funding. The amount in Item E will be included in the Guaranteed Maximum Price for the Project as a separate line item. The CMAR will indicate, on item #8 of the monthly certification page, the amount to be contributed to a registered apprenticeship program for that month. Owner will have the right to audit the CMAR’s and each Major Subcontractor’s payroll amounts. If Major Subcontractors do not have a designated registered apprenticeship program, the CMAR will impound the amount in Item E and will make payment to the State of Arizona registered apprenticeship program(s) selected by the CMAR and the Major Subcontractors. Any failure by CMAR, or a Subcontractor to comply with the requirements in Section 6.1 or the applicable Final Plan will be a material breach of the CMAR Design Phase Services Contract Documents or the CMAR Construction Contract Documents, as applicable, and the Owner will have all rights and remedies upon occurrence of a material breach (including, without limitation, termination). Anything in the CMAR Construction Contract Documents to the contrary notwithstanding, compliance in full by the CMAR and each Subcontractor with the CMAR’s Final Plan and the requirements in this Section 6.1 are conditions precedent of (A) each progress payment under the CMAR Construction Contract Documents, and (B) Final Completion and Final Payment under the CMAR Construction Contract Documents. This Section 6.1 is one of provisions that the CMAR is obligated to include in its contracts with Subcontractors, respectively, and that Subcontractors at each level are required to include in their contracts with Subcontractors of the next level.

Arizona State University is a long-standing member of the Workers Rights Consortium http://www.workersrights.org/ and the Fair Labor Association http://www.fairlabor.org/. The University monitors thousands of factories that make licensed goods. In addition, the Workers Rights Consortium and the Fair Labor Association audit production facilities and require improved conditions. The University monitors dozens of labor and student sites (like USAS http://usas.org/). The Fair Labor Association is also working to improve the sustainability of supply chains for apparel as well as prevention of fires in foreign factories.