SF 2264 (LSB 5863SV (1) 85)

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 public improvement projects.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  72.6  Requirements for use of construction managers.
   1.  For purposes of this section, unless the context otherwise requires:
   a.  “Construction” means the same as defined in section 103A.3.
   b.  “Construction manager” means a person with substantial discretion and authority to plan, coordinate, manage, and direct all phases of a construction project, but does not mean a person who provides architectural, landscape architectural, or engineering design services, or who actually performs construction work on the project.
   c.  “General contractor” means a person who engages in the business of construction, but does not include a construction manager.
   d.  “Governing body” means a city council, county board of supervisors, or school district board of directors.
   e.  “Governmental entity” means a city, county, or school district.
   f.  “Public improvement” means a building or construction work which is constructed under the control of a governmental entity and is paid for in whole or in part with funds of the governmental entity, including a building or improvement constructed or operated jointly with any other public or private agency.
   2.  If the governing body of a governmental entity is considering the use of a construction manager to administer the construction of a public improvement, before the governing body begins the process of selecting a construction manager for the project, the governing body shall hold a public hearing for the purpose of determining the relative advantages and disadvantages in cost and other aspects of the project that may result from using a construction manager to administer the project instead of a general contractor. Notice of the hearing must be published as provided in section 362.3. At the time and place fixed for the public hearing, the governing body shall give all individuals who appear at the hearing an opportunity to express their views on the subject at issue. If the governing body decides to use a construction manager to administer the project subsequent to the hearing, the governing body shall publicly adopt a resolution to that effect. If such a resolution is adopted, the governing body may use a construction manager to administer the project. If such a resolution is not adopted, the governing body shall use a general contractor to administer the project.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill requires the governing body of a governmental entity considering the use of a construction manager to administer the construction of a public improvement to hold a public hearing before beginning the process of selecting a construction manager for the project. 
   The purpose of the public hearing is to determine the relative advantages and disadvantages in cost and other aspects of the project that may result from using a construction manager to administer the project instead of a general contractor. At the hearing, the governing body shall give all individuals who appear at the hearing an opportunity to express their views. 
   If the governing body decides to use a construction manager to administer the project subsequent to the hearing, the governing body shall publicly adopt a resolution to that effect. If such a resolution is adopted, the governing body may use a construction manager to administer the project. If such a resolution is not adopted, the governing body shall use a general contractor to administer the project.
   The bill defines “governmental entity” as a city, county, or school district. The bill defines “construction manager” as a person with substantial discretion and authority to plan, coordinate, manage, and direct all phases of a construction project, but not a person who provides architectural, landscape architectural, or engineering design services, or who actually performs construction work on the project. The bill defines “general manager” as a person who engages in the business of construction who is not a construction manager. The bill defines “public improvement” as a building or construction work which is constructed under the control of a governmental entity and is paid for in whole or in part with funds of the governmental entity, including a building or improvement constructed or operated jointly with any other public or private agency. The bill defines “construction” as the construction, erection, reconstruction, alteration, conversion, repair, equipping of buildings, structures or facilities, and requirements or standards relating to or affecting materials used in connection therewith, including provisions for safety and sanitary conditions.