Text: SF02201 Text: SF02203 Text: SF02200 - SF02299 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. NEW SECTION. 73A.22 CONSTRUCTION MANAGEMENT
1 2 SERVICES.
1 3 1. DEFINITIONS. As used in this section:
1 4 a. "Construction management services" means the business
1 5 of consulting, advising, or making recommendations to a public
1 6 entity or to an agent of a public entity, including an
1 7 architect, engineer, or designer, that is responsible for the
1 8 construction of a public improvement, regarding planning for
1 9 the construction of the public improvement, including but not
1 10 limited to any of the following:
1 11 (1) Availability of materials and labor.
1 12 (2) Time requirements for procurement of materials and
1 13 labor.
1 14 (3) Time requirements for construction.
1 15 (4) Projected costs for soliciting bids for all other
1 16 services involved in the construction.
1 17 (5) Analysis of bids.
1 18 (6) Award of contracts.
1 19 (7) Methods of monitoring progress of the construction
1 20 process during any phase of the design or construction of the
1 21 public improvement.
1 22 For the purposes of this section, "construction management
1 23 services" does not include the provision of construction,
1 24 architectural, or engineering services for construction of a
1 25 public improvement.
1 26 b. "Construction management services provider" or
1 27 "provider" means a person or entity in the business of
1 28 providing construction management services.
1 29 c. "Public entity" as used in this section means the
1 30 state, a state agency, a political subdivision, or public
1 31 organization.
1 32 d. "Public improvement" or "public improvement project" as
1 33 used in this section means a building or other construction
1 34 work to be paid for in whole or in part by the use of funds of
1 35 the state, a state agency, or any political subdivision of the
2 1 state.
2 2 e. "Public organization" means the same as defined in
2 3 section 15F.302.
2 4 2. REQUIREMENTS.
2 5 a. Prior to retaining a construction management services
2 6 provider for a public improvement project subject to
2 7 competitive bidding requirements, a public entity responsible
2 8 for the public improvement shall, as set forth in the
2 9 competitive bidding requirements applicable to that public
2 10 entity, give notice and hold a public hearing to determine
2 11 whether utilization of construction management services will
2 12 result in either substantial improvement in the quality of the
2 13 public improvement or substantial cost savings to the total
2 14 capital cost budget and construction cost budget for the
2 15 public improvement. The public entity shall determine whether
2 16 the public improvement is of sufficient size and complexity to
2 17 require close monitoring of the budget and scheduling and
2 18 coordination of consultants and subcontractors such that these
2 19 services cannot be satisfactorily performed by the general
2 20 contractor or architect on the public improvement.
2 21 b. If the estimated total cost of utilizing construction
2 22 management services for a public improvement is twenty-five
2 23 thousand dollars or more, a public entity shall comply with
2 24 the competitive bidding requirements applicable to the public
2 25 entity. A bid to provide construction management services
2 26 shall be accompanied by a performance bond or proof of
2 27 insurance that includes professional liability coverage and
2 28 umbrella coverage securing the performance of the construction
2 29 management services provider in addition to any other bid
2 30 security requirements contained in competitive bidding
2 31 provisions applicable to the public entity.
2 32 c. A construction management services provider shall not
2 33 perform construction work on a public improvement.
2 34 d. Construction management services shall not be utilized
2 35 for a public improvement subject to competitive bidding
3 1 requirements unless the construction management services
3 2 provider demonstrates that construction management services
3 3 provided by the construction management services provider will
3 4 result in either substantial improvement in the quality of the
3 5 public improvement or substantial cost savings on the public
3 6 improvement.
3 7 e. A contract for construction management services shall
3 8 provide all of the following:
3 9 (1) That the provider is responsible for timely completion
3 10 of the public improvement.
3 11 (2) That the provider shall not provide duplicative
3 12 services that are normally provided by other project
3 13 participants including but not limited to general contractors,
3 14 architects, or engineers.
3 15 (3) That other public improvement project participants
3 16 have meaningful involvement in the construction management of
3 17 the public improvement.
3 18 (4) A full, written disclosure of total fees and charges
3 19 for the construction management services.
3 20 3. CONFLICTS PROHIBITED. A construction management
3 21 services contract for a public improvement shall not be
3 22 awarded to a provider that controls, is controlled by, or
3 23 shares common ownership or control of the general contractor
3 24 of the public improvement; that guarantees, warrants, or
3 25 otherwise assumes financial responsibility for the work of
3 26 others on the public improvement; that guarantees a maximum
3 27 price for the work of others on the public improvement; or
3 28 that furnishes or guarantees a performance or payment bond for
3 29 other contractors on the public improvement.
3 30 4. SELECTION OF PROVIDER. When selecting a construction
3 31 management services provider for a public improvement, a
3 32 public entity shall consider all of the following:
3 33 a. The provider's overhead costs and profit margin.
3 34 b. The provider's costs for items for which the provider
3 35 will be reimbursed by the public entity.
4 1 c. The provider's qualifications.
4 2 d. The provider's demonstrated ability to manage projects
4 3 of comparable design, scope, and complexity.
4 4 e. The provider's demonstrated good faith efforts to
4 5 achieve compliance with federal, state, and local affirmative
4 6 action requirements.
4 7 f. The provider's references from other public entities
4 8 for whom the provider has performed construction management
4 9 services.
4 10 g. The provider's financial condition.
4 11 h. The qualifications of the provider's personnel who will
4 12 be assigned to the public improvement project.
4 13 i. The provider's demonstrated use of successful
4 14 management systems to perform estimating, scheduling, and cost
4 15 controls.
4 16 5. APPLICABILITY. This section shall not prohibit or
4 17 restrict the use of construction management services for
4 18 private projects. This section applies to public improvement
4 19 projects that are subject to competitive bidding requirements
4 20 under this chapter or chapter 18, 331, or 384.
4 21 Sec. 2. IMPLEMENTATION OF ACT. Section 25B.2, subsection
4 22 3, shall not apply to this Act.
4 23 EXPLANATION
4 24 This bill regulates contracts for construction management
4 25 services for public improvement projects subject to
4 26 competitive bidding requirements. "Construction management
4 27 services" consist of consulting, advising, and making
4 28 recommendations to a public entity, or an agent of a public
4 29 entity, during any phase of the design, planning, or
4 30 construction of a public improvement.
4 31 The bill provides that before contracting for construction
4 32 management services on a public improvement subject to
4 33 competitive bidding requirements, a public entity must, as set
4 34 forth in the competitive bidding requirement applicable to
4 35 that public entity, give notice and hold a hearing to
5 1 determine whether utilization of construction management
5 2 services will result in substantial improvement in either the
5 3 quality of or cost savings for the public improvement.
5 4 The bill also provides that when the estimated cost of
5 5 utilizing construction management services is $25,000 or more,
5 6 the contract for such services must be awarded pursuant to
5 7 applicable competitive bidding requirements.
5 8 The bill provides that a contract shall not be awarded to a
5 9 construction management services provider that controls, or is
5 10 controlled by, or otherwise has financial responsibility or
5 11 makes guarantees for other participants on the public
5 12 improvement.
5 13 The bill enumerates considerations that a public entity
5 14 shall make when selecting a construction management services
5 15 provider.
5 16 The construction management services contract restrictions
5 17 contained in this bill do not apply to the use of such
5 18 services for private projects and apply only to public
5 19 improvement projects that are subject to competitive bidding
5 20 requirements. For purposes of this bill, a "public
5 21 improvement" or "public improvement project" means a building
5 22 or other construction work that is to be paid for in whole or
5 23 in part by the use of funds of a public entity. For purposes
5 24 of the bill, a "public entity" is the state, a state agency, a
5 25 political subdivision, or a public organization, as defined in
5 26 section 15F.302.
5 27 This bill may include a state mandate as defined in Code
5 28 section 25B.3. This bill makes inapplicable Code section
5 29 25B.2, subsection 3, which would relieve a political
5 30 subdivision from complying with a state mandate if funding for
5 31 the cost of the state mandate is not provided or specified.
5 32 Therefore, political subdivisions are required to comply with
5 33 any state mandate included in the bill.
5 34 LSB 6340SS 79
5 35 av/cls/14
Text: SF02201 Text: SF02203 Text: SF02200 - SF02299 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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