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Senate File 442 - IntroducedA Bill ForAn Act 1related to guaranteed maximum price contracts.
2BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 26A.3, subsection 3, paragraph a,
2subparagraphs (1) and (2), Code 2023, are amended to read as
3follows:
4(1) The governmental entity shall prepare a request for
5statements of qualifications. The request shall include
6general information on the project site, project scope,
7schedule, selection criteria, selection process, and the time
8and place for receipt of statements of qualifications. The
9selection process shall include an interview phase, minimum
10qualification thresholds for a contractor advancing to
11the interview phase, and a requirement that at least three
12contractors who meet the minimum qualification threshold
13shall advance to the interview phase. Selection criteria and
14general information included in the request for statements
15of qualifications may be developed in coordination with
16the engineer, landscape architect, or architect selected or
17designated by the governmental entity as provided under this
18section.
19(2) Selection criteria may shall include the contractor’s
20experience undertaking projects of similar size and scope
21in either the public or private sector, past performance,
22safety record, proposed personnel, and proposed methodology.
23Selection criteria shall include experience in both the public
24and the private sector. Selection criteria shall not include
25specific delivery methods, including guaranteed maximum price
26projects. In addition, selection criteria shall not include
27training, testing, or other certifications that may only
28be obtained through organized labor affiliations or other
29limited-membership organizations.
30 Sec. 2. Section 26A.3, subsection 3, paragraph c, Code 2023,
31is amended to read as follows:
32c. The governmental entity shall receive, publicly open, and
33read aloud the names of the contractors submitting statements
34of qualifications. Within forty-five days after the date of
35opening the statements of qualifications submissions, the
-1-1governmental entity shall conduct interviews of contractors as
2required by the selection process and evaluate each proposal
3or statement of qualifications submission in relation to the
4criteria set forth in the request.
5 Sec. 3. Section 26A.3, subsection 4, paragraph a, Code 2023,
6is amended to read as follows:
7a. After considering the statements of qualifications and
8completing the interview phase as specified in the request of
9qualifications, the governmental entity shall issue a request
10for proposals to each contractor who meets the qualifications
11which shall include selection and evaluation criteria. Each
12contractor issued a request for proposals shall be permitted to
13submit a proposal and each proposal submitted shall include the
14construction manager-at-risk’s proposed fees fee methodology
15and personnel schedule required to manage the requirements
16of the contract. Except as provided by this paragraph,
17fee-based selection of the construction manager-at-risk shall
18be prohibited. The request for proposals shall be subject to
19the requirements of section 73A.28 and the same limitations
20applied to selection criteria for the request for statements of
21qualifications in this chapter.
22 Sec. 4. Section 26A.3, subsection 5, paragraph a,
23unnumbered paragraph 1, Code 2023, is amended to read as
24follows:
25If the estimated total cost of trade contract work and
26materials packages is in excess of the adjusted competitive
27bid threshold established in section 314.1B, the construction
28manager-at-risk shall advertise for competitive bids, receive
29bids, prepare bid analyses, and award contracts to qualified
30firms on trade contract work and materials packages in
31accordance with the competitive bidding requirements of chapter
3226 and all of the following:
33 Sec. 5. Section 26A.3, subsection 5, paragraph a,
34subparagraphs (1) and (2), Code 2023, are amended by striking
35the subparagraphs and inserting in lieu thereof the following:
-2- 1(1) A firm that is prequalified with the state department of
2transportation pursuant to section 314.1 shall be considered
3as a qualified firm and shall be allowed to submit a bid
4for purposes of work related to parking lots, streets, site
5development, or bridge structure components.
6EXPLANATION
7The inclusion of this explanation does not constitute agreement with
8the explanation’s substance by the members of the general assembly.
9This bill concerns the process for entering into a
10guaranteed maximum price contract as provided in Code chapter
1126A.
12The bill provides, as part of the selection process of a
13construction manager-at-risk, that a request for statements
14of qualifications shall include information on the selection
15process, which shall include an interview phase, minimum
16qualification thresholds for a contractor advancing to
17the interview phase, and a requirement that at least three
18contractors who meet the minimum qualification threshold shall
19advance to the interview phase. The bill further provides
20that the interview phase be conducted and completed prior to
21issuing a request for proposals from each qualified contractor.
22The bill also provides that selection criteria relating to
23the contractor’s experience, past performance, safety record,
24proposed personnel, and proposed methodology shall be required
25to be included in the selection criteria.
26The bill provides that each proposal submitted by a
27contractor shall include the construction manager-at-risk’s
28proposed fee methodology and personnel schedule required to
29manage the requirements of the contract. Current law only
30requires the construction manager to include proposed fees. In
31addition, except as provided in the bill relating to proposed
32fee methodology, the bill provides that fee-based selection of
33the construction manager-at-risk shall be prohibited.
34The bill also provides that the construction
35manager-at-risk, in awarding contracts for work on the
-3-1project, shall follow the competitive bidding requirements
2provided in Code chapter 26 and not a request for statements of
3qualifications process.
-4-ec/rn
2BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 26A.3, subsection 3, paragraph a,
2subparagraphs (1) and (2), Code 2023, are amended to read as
3follows:
4(1) The governmental entity shall prepare a request for
5statements of qualifications. The request shall include
6general information on the project site, project scope,
7schedule, selection criteria, selection process, and the time
8and place for receipt of statements of qualifications. The
9selection process shall include an interview phase, minimum
10qualification thresholds for a contractor advancing to
11the interview phase, and a requirement that at least three
12contractors who meet the minimum qualification threshold
13shall advance to the interview phase. Selection criteria and
14general information included in the request for statements
15of qualifications may be developed in coordination with
16the engineer, landscape architect, or architect selected or
17designated by the governmental entity as provided under this
18section.
19(2) Selection criteria may shall include the contractor’s
20experience undertaking projects of similar size and scope
21in either the public or private sector, past performance,
22safety record, proposed personnel, and proposed methodology.
23Selection criteria shall include experience in both the public
24and the private sector. Selection criteria shall not include
25specific delivery methods, including guaranteed maximum price
26projects. In addition, selection criteria shall not include
27training, testing, or other certifications that may only
28be obtained through organized labor affiliations or other
29limited-membership organizations.
30 Sec. 2. Section 26A.3, subsection 3, paragraph c, Code 2023,
31is amended to read as follows:
32c. The governmental entity shall receive, publicly open, and
33read aloud the names of the contractors submitting statements
34of qualifications. Within forty-five days after the date of
35opening the statements of qualifications submissions, the
-1-1governmental entity shall conduct interviews of contractors as
2required by the selection process and evaluate each proposal
3or statement of qualifications submission in relation to the
4criteria set forth in the request.
5 Sec. 3. Section 26A.3, subsection 4, paragraph a, Code 2023,
6is amended to read as follows:
7a. After considering the statements of qualifications and
8completing the interview phase as specified in the request of
9qualifications, the governmental entity shall issue a request
10for proposals to each contractor who meets the qualifications
11which shall include selection and evaluation criteria. Each
12contractor issued a request for proposals shall be permitted to
13submit a proposal and each proposal submitted shall include the
14construction manager-at-risk’s proposed fees fee methodology
15and personnel schedule required to manage the requirements
16of the contract. Except as provided by this paragraph,
17fee-based selection of the construction manager-at-risk shall
18be prohibited. The request for proposals shall be subject to
19the requirements of section 73A.28 and the same limitations
20applied to selection criteria for the request for statements of
21qualifications in this chapter.
22 Sec. 4. Section 26A.3, subsection 5, paragraph a,
23unnumbered paragraph 1, Code 2023, is amended to read as
24follows:
25If the estimated total cost of trade contract work and
26materials packages is in excess of the adjusted competitive
27bid threshold established in section 314.1B, the construction
28manager-at-risk shall advertise for competitive bids, receive
29bids, prepare bid analyses, and award contracts to qualified
30firms on trade contract work and materials packages in
31accordance with the competitive bidding requirements of chapter
3226 and all of the following:
33 Sec. 5. Section 26A.3, subsection 5, paragraph a,
34subparagraphs (1) and (2), Code 2023, are amended by striking
35the subparagraphs and inserting in lieu thereof the following:
-2- 1(1) A firm that is prequalified with the state department of
2transportation pursuant to section 314.1 shall be considered
3as a qualified firm and shall be allowed to submit a bid
4for purposes of work related to parking lots, streets, site
5development, or bridge structure components.
6EXPLANATION
7The inclusion of this explanation does not constitute agreement with
8the explanation’s substance by the members of the general assembly.
9This bill concerns the process for entering into a
10guaranteed maximum price contract as provided in Code chapter
1126A.
12The bill provides, as part of the selection process of a
13construction manager-at-risk, that a request for statements
14of qualifications shall include information on the selection
15process, which shall include an interview phase, minimum
16qualification thresholds for a contractor advancing to
17the interview phase, and a requirement that at least three
18contractors who meet the minimum qualification threshold shall
19advance to the interview phase. The bill further provides
20that the interview phase be conducted and completed prior to
21issuing a request for proposals from each qualified contractor.
22The bill also provides that selection criteria relating to
23the contractor’s experience, past performance, safety record,
24proposed personnel, and proposed methodology shall be required
25to be included in the selection criteria.
26The bill provides that each proposal submitted by a
27contractor shall include the construction manager-at-risk’s
28proposed fee methodology and personnel schedule required to
29manage the requirements of the contract. Current law only
30requires the construction manager to include proposed fees. In
31addition, except as provided in the bill relating to proposed
32fee methodology, the bill provides that fee-based selection of
33the construction manager-at-risk shall be prohibited.
34The bill also provides that the construction
35manager-at-risk, in awarding contracts for work on the
-3-1project, shall follow the competitive bidding requirements
2provided in Code chapter 26 and not a request for statements of
3qualifications process.
-4-ec/rn