Construction Self-Performance Projects
Projects within DCM’s Jurisdiction:
Any construction regardless of funding source on: state-owned property, public and private kindergarten through twelfth grade (K-12)
schools, public universities, Alabama Community College System (ACCS) projects with Notices-To-Proceed issued prior to August 1, 2021, hotels/motels, and movie theaters.
When a project is within DCM’s jurisdiction and the owner intends to self-perform the construction work, follow the steps below.
Step 1: Project Verification
Verify with DCM Technical Staff, beginning with a call or email to Bob ÓReilly, Architect, 334-242-4803 or
, whether or not a project
requires review and/or administration (including plan review, contract document and inspections approvals) by DCM.
- If a project is verified by Technical Staff that it does not require review or administration by DCM, consult with the
Alabama Department of Finance-Division of Purchasing or use other contracting means available to the owner.
Step 2: Procedure Requirements
If an intended construction self-performance project is verified by DCM Technical Staff as required to be reviewed and/or
administered by DCM, then a construction self-performance letter must be issued and requirements of the DCM Manual of
must be met including contract document administration, plan review submittals and approvals, bidding, inspections,
and User Fees
Contract Document Administration (CDA)
- Agreements between Owners and Architects (O/A Agreements) and Amendments issued for construction self-performance projects of state agencies,
Public School and College Authority (PSCA)-funded projects (including ACCS projects with Notices-To-Proceed issued prior to August 1, 2021) must be
submitted to DCM for review. The CDA-OA fee applies.
- Reminder: If a state agency is subject to Contract Review Permanent Legislative Oversight Committee (CRPLOC), prior to submission of an
O/A Agreement or an Amendment (adding money or time extensions) to DCM, it must first be sent by the owner to CRPLOC per
CRPLOC procedures. If you are
unsure whether or not a state agency is subject to CRPLOC, please consult the state agency’s legal counsel.
- Note: Designers submit fully locally-funded K-12 school contract documents to the Alabama State Department of Education (SDE), LEA Auxiliary Services,
School Facilities for full review. SDE then forwards a copy of the documents to DCM.
- Designer’s Statement for Services for construction self-performance projects of state agencies and PSCA-funded projects (including ACCS projects
with Notices-To-Proceed issued prior to August 1, 2021) must be submitted to DCM for review and processing. DCM does not review nor process fully
locally-funded K-12 school project payment applications.
- If a construction contract is issued during the course of a construction self-performance project, DCM’s CDA procedures and CDA-CC fee applies to
the construction contract.
- All projects within DCM's jurisdiction: Any construction plans and specifications including front-end documents must be issued by a design professional
and must be submitted to DCM for review and approval, along with applicable Plan Review fees which for construction self-performance projects are based
on the Owner’s expected outlay for labor and materials. All DCM front-end documents are recommended for inclusion in specifications in case a project
which starts as construction self-performance develops into a project with a construction contract. Exception: fully locally-funded K-12 and four-year public University projects
for capital improvements, HVAC or roofing, with both an estimated cost of $750,000.00 or Less and a contract awarded on or after 10/01/22, are exempt from DCM Fees;
such projects are still subject to DCM plan review.
Construction Self-Performance Letter, Insurance & Inspections
- An owner must advertise for sealed bids before entering into any contract for a public works project in excess of $50,000.00. §39-2-2(a)
- Any person or entity being paid $50,000.00 or more for construction work in Alabama on one project must have an Alabama General Contractor’s
- If a public works project under DCM’s jurisdiction has a construction budget of $50,000.00 or less, see Public Works
Projects Costing $50,000.00 or Less webpage for allowed DCM Manual of Procedures exceptions.
- If an owner intends to hire licensed and insured contractors (instead of the owner’s staff self-performing all work) note that although an advertisement
for bids is not required by state law for public works projects costing $50,000.00 or less, the Alabama Division of Construction
Management requires solicitation of at least three bids for such projects to assure that fair and reasonable prices are being paid.
Documentation must show that a minimum of three proposals were sought even if a lesser number respond. The bid tab must be included with either
the self-performance letter or any subsequent prepared construction contract documents.
- If no bids or only one bid is received, or if all bids received are unreasonable, see
Code of Alabama, 1975, as amended,
Section 39-2-6(b-d) for guidance.
- Municipal and County School Boards, and ACCS Institutions may purchase materials or equipment through a purchasing cooperative of
the Alabama Department of Examiners of Public Accounts, but the installation labor must be considered separately. The installation labor may
be self-performed, and if the owner intends to hire licensed and insured contractors see the above five Bidding bullet points in this section.
Send a copy of all such paperwork to DCM including the estimated Project Cost (owner’s expected outlay for labor and materials) so that the
project can be accurately documented.
Sales and Use Tax Certificate of Exemption
- The construction self-performance letter must be on the owner’s letterhead, addressed to DCM Director Lee Desmond, and include the following:
DCM project # if known, project name and location, the estimated Project Cost (owner’s expected outlay for labor and materials), a description
of the project scope, and the name of the architectural or engineering firm involved with the project. The bid tab and Permit fee are due with
DCM's receipt of the construction self-performance letter (exception: fully locally-funded K-12 and four-year public University projects for capital improvements, HVAC or roofing,
with both an estimated cost of $750,000.00 or Less and a contract awarded on or after 10/01/22, are
exempt from DCM Fees; such projects are still subject to DCM inspections). A construction self-performance project’s Permit fee is based on Owner’s expected
outlay for labor and materials. If the Permit fee was paid online, email the letter, bid tab, and payment receipt to
firstname.lastname@example.org. If a physical check is issued to pay the
Permit fee, mail the letter, bid tab, check and completed Permit Fee Worksheet to DCM’s office. Download a
construction self-performance letter template (updated November 2022).
- Owners must consult their insurance carrier and verify the insurance carried is adequate for the proposed project to cover all parties.
- Inspections by a DCM Inspector are required. The Permit fee must be paid before scheduling the required pre-construction conference with a
DCM Inspector. Benchmarks must then be met for required inspections as listed in the
Pre-Construction Conference Checklist. Exception: fully locally-funded public K-12 and four-year public University projects
for capital improvements, HVAC or roofing, with both an estimated cost of $750,000.00 or Less and a contract awarded on or after 10/01/22, are exempt from DCM Fees; such projects are still subject to DCM inspections.
- A Sales and Use Tax Certificate of Exemption for a Government Entity Project administered by the Alabama Department of Revenue must be
acquired separately by the Owner, General Contractor and Subcontractors per Act 2013-205 for each government entity owned project. The only projects within DCM's jurisdiction to which this does not
apply are privately owned hotels/motels and movie theaters.
- If a project is finished as a construction self-performance project, the two front-end documents which must be submitted to DCM at project
close-out are the completed Certificate of Substantial Completion and the proof of Advertisement for Completion.
- Final Reconciliation of User Fees: At the close of construction, the final reconciliation process recalculates each applicable basic User
Fee using the actual final construction cost to determine whether any amount is due from/to the owner. As soon as the final construction
self-performance Project Cost (owner’s outlay for labor and materials) is determined, the owner or the design professional must report the
amount to email@example.com or on DCM’s
payment portal, before the year-end inspection.