Senate File 2264 - Introduced SENATE FILE 2264 BY COMMITTEE ON LOCAL GOVERNMENT (SUCCESSOR TO SF 2177) A BILL FOR An Act relating to the use of construction managers for certain 1 public improvement projects. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5863SV (1) 85 je/rj

S.F. 2264 Section 1. NEW SECTION . 72.6 Requirements for use of 1 construction managers. 2 1. For purposes of this section, unless the context 3 otherwise requires: 4 a. “Construction” means the same as defined in section 5 103A.3. 6 b. “Construction manager” means a person with substantial 7 discretion and authority to plan, coordinate, manage, and 8 direct all phases of a construction project, but does not mean 9 a person who provides architectural, landscape architectural, 10 or engineering design services, or who actually performs 11 construction work on the project. 12 c. “General contractor” means a person who engages in the 13 business of construction, but does not include a construction 14 manager. 15 d. “Governing body” means a city council, county board of 16 supervisors, or school district board of directors. 17 e. “Governmental entity” means a city, county, or school 18 district. 19 f. “Public improvement” means a building or construction 20 work which is constructed under the control of a governmental 21 entity and is paid for in whole or in part with funds of the 22 governmental entity, including a building or improvement 23 constructed or operated jointly with any other public or 24 private agency. 25 2. If the governing body of a governmental entity is 26 considering the use of a construction manager to administer 27 the construction of a public improvement, before the governing 28 body begins the process of selecting a construction manager for 29 the project, the governing body shall hold a public hearing 30 for the purpose of determining the relative advantages and 31 disadvantages in cost and other aspects of the project that 32 may result from using a construction manager to administer 33 the project instead of a general contractor. Notice of the 34 hearing must be published as provided in section 362.3. At 35 -1- LSB 5863SV (1) 85 je/rj 1/ 3

S.F. 2264 the time and place fixed for the public hearing, the governing 1 body shall give all individuals who appear at the hearing an 2 opportunity to express their views on the subject at issue. If 3 the governing body decides to use a construction manager to 4 administer the project subsequent to the hearing, the governing 5 body shall publicly adopt a resolution to that effect. If 6 such a resolution is adopted, the governing body may use a 7 construction manager to administer the project. If such a 8 resolution is not adopted, the governing body shall use a 9 general contractor to administer the project. 10 EXPLANATION 11 The inclusion of this explanation does not constitute agreement with 12 the explanation’s substance by the members of the general assembly. 13 This bill requires the governing body of a governmental 14 entity considering the use of a construction manager to 15 administer the construction of a public improvement to hold 16 a public hearing before beginning the process of selecting a 17 construction manager for the project. 18 The purpose of the public hearing is to determine the 19 relative advantages and disadvantages in cost and other aspects 20 of the project that may result from using a construction 21 manager to administer the project instead of a general 22 contractor. At the hearing, the governing body shall give all 23 individuals who appear at the hearing an opportunity to express 24 their views. 25 If the governing body decides to use a construction manager 26 to administer the project subsequent to the hearing, the 27 governing body shall publicly adopt a resolution to that 28 effect. If such a resolution is adopted, the governing body 29 may use a construction manager to administer the project. If 30 such a resolution is not adopted, the governing body shall use 31 a general contractor to administer the project. 32 The bill defines “governmental entity” as a city, county, 33 or school district. The bill defines “construction manager” 34 as a person with substantial discretion and authority to plan, 35 -2- LSB 5863SV (1) 85 je/rj 2/ 3

S.F. 2264 coordinate, manage, and direct all phases of a construction 1 project, but not a person who provides architectural, landscape 2 architectural, or engineering design services, or who actually 3 performs construction work on the project. The bill defines 4 “general manager” as a person who engages in the business of 5 construction who is not a construction manager. The bill 6 defines “public improvement” as a building or construction 7 work which is constructed under the control of a governmental 8 entity and is paid for in whole or in part with funds of the 9 governmental entity, including a building or improvement 10 constructed or operated jointly with any other public or 11 private agency. The bill defines “construction” as the 12 construction, erection, reconstruction, alteration, conversion, 13 repair, equipping of buildings, structures or facilities, and 14 requirements or standards relating to or affecting materials 15 used in connection therewith, including provisions for safety 16 and sanitary conditions. 17 -3- LSB 5863SV (1) 85 je/rj 3/ 3