CONSTRUCTION MANAGERS AT-RISK

The act creates the construction manager-risk method which political subdivisions are permitted to use when engaging in certain projects. When entering into contracts for the services of a construction manager at-risk for such projects, subdivisions are required to follow the procedures set forth in the act.

In following the method, a political subdivision is required to select both a construction manager at-risk and an engineer or architect who will prepare the construction documents for the project. The engineer shall not also serve as the construction manager at-risk.

Construction managers at-risk are required to publicly advertise and receive bids or proposals from trade contractors or subcontractors. In the event that the political subdivision has a preference for a subcontractor or trade contractor that differs from the construction manager at-risk, the political subdivision is permitted to compensate the construction manager at-risk by a change in price, time, or guaranteed maximum cost for any additional cost and risk incurred by the construction manager at-risk.

A political subdivision is required to publish a request for proposal or qualifications in a manner prescribed by such political subdivision. Within 45 days, the political subdivision shall evaluate each proposal and interview at least two of the top offerors. The political subdivision is required to select the proposal that offers the best value, as determined by the political subdivision.

Civil works projects contracted for under this provision must be in excess of $2 million. Non-civil works projects must be in excess of $7 million.

This provision does not apply to certain metropolitan sewer districts, charter counties, or charter cities. Moreover, there is a sunset of September 1, 2025 on this provision.

This provision is substantially similar to HCS/HB 1042 (2015) and a provision in SB 388 (2015).

DESIGN-BUILD CONTRACTS

The act further creates new provisions of law relating to design-build contracts entered into between a political subdivision and a design-builder. A design-build contract is one that is entered into for the purpose of furnishing architectural, engineering, and related design services and the labor, materials, supplies, equipment, and other construction services required for a design-build project. Specifically, the act sets forth the process to be followed in requesting proposals for design-build contracts. The political subdivision shall solicit proposals in a three-stage process: Phase I shall be the solicitation of qualifications of the design-build team; Phase II shall be the solicitation of a technical proposal including conceptual design for the project; and Phase III shall be the proposal of the construction cost.

This provision does not apply to certain metropolitan sewer districts, charter counties, or charter cities. The provision has a sunset of September 1, 2025.

This provision is substantially similar to a provision in HCS/HB 1042 (2015) and SB 388 (2015).

SPECIALTY CONSTRUCTION DESIGN CONTRACTS

This act sets forth certain guidelines for political subdivisions entering into specialty construction design contracts for engineering, design, and construction of a wastewater or water treatment project. The Department of Natural Resources is precluded from excluding from consideration specialty construction design contracts for funding provided by the Water and Wastewater Loan Fund. Furthermore, in disbursing community development block grants from certain federal programs, the department of economic development shall not reject wastewater or water treatment projects solely for utilizing specialty construction design contracts.

This provision is substantially similar to HCS/HB 1048 (2015) and a provision in HCS/SB 476 (2015) and HCS/HB 1042 (2015).

SCOTT SVAGERA