House File 2572 H-8307 Amend House File 2572 as follows: 1 1. By striking everything after the enacting clause and 2 inserting: 3 < DIVISION I 4 PUBLIC CONSTRUCTION BIDDING REQUIREMENTS 5 Section 1. Section 26.2, subsection 3, paragraph b, 6 subparagraph (5), Code 2020, is amended to read as follows: 7 (5) Construction or repair or maintenance work performed 8 for a city utility under chapter 388 when such work is 9 performed by its employees or when such work relates to 10 existing utility infrastructure or to establishing connections 11 to existing utility systems. 12 (6) Construction or repair or maintenance work performed 13 for a rural water district under chapter 357A by its employees. 14 Sec. 2. Section 26.4, Code 2020, is amended to read as 15 follows: 16 26.4 Exemptions from competitive bids and quotations 17 Architectural and engineering services —— exemptions —— 18 prohibitions . 19 1. Architectural, landscape architectural, or engineering 20 design services procured for a public improvement are not 21 subject to sections 26.3 and 26.14 . 22 2. Fee-based selection of an architect, landscape 23 architect, or engineer for a public improvement shall be 24 prohibited. 25 Sec. 3. Section 262.34, Code 2020, is amended by adding the 26 following new subsection: 27 NEW SUBSECTION . 6. Notwithstanding any provision of this 28 chapter to the contrary, the state board of regents shall 29 not be authorized to enter into a design-build contract to 30 construct, repair, or improve buildings or grounds. For 31 purposes of this subsection, “design-build contract” means 32 a single contract providing for both design services and 33 construction services that may include maintenance, operations, 34 preconstruction, and other related services. 35 -1- HF2572.4477 (2) 88 ec/rn 1/ 8 #1.

DIVISION II 1 GUARANTEED MAXIMUM PRICE CONTRACTS 2 Sec. 4. NEW SECTION . 26A.1 Definitions. 3 As used in this chapter, unless the context clearly 4 indicates otherwise: 5 1. “Construction manager-at-risk” means a sole 6 proprietorship, partnership, corporation, or other legal entity 7 that assumes the risk for the construction, rehabilitation, 8 alteration, or repair of a project and provides consultant 9 services to the government entity in the development and design 10 phases, working collaboratively with the design professionals 11 involved. 12 2. “ Governmental entity” means the state, political 13 subdivisions of the state, public school corporations, and all 14 officers, boards, or commissions empowered by law to enter 15 into contracts for the construction of public improvements, 16 including the state board of regents. 17 3. “Guaranteed maximum price contract” means the agreed 18 to fixed or guaranteed maximum price pursuant to a contract 19 entered into by the construction manager-at-risk and the 20 governmental entity. 21 4. “Public improvement” means as defined in section 26.2. 22 5. “Repair or maintenance work” means as defined in section 23 26.2. 24 Sec. 5. NEW SECTION . 26A.2 Authorization. 25 Notwithstanding any other law to the contrary, a 26 governmental entity shall be authorized to enter into a 27 guaranteed maximum price contract for the construction of a 28 public improvement pursuant to this chapter. 29 Sec. 6. NEW SECTION . 26A.3 Guaranteed maximum price 30 contract —— process. 31 1. A governmental entity shall publicly disclose the 32 governmental entity’s intent to enter into a guaranteed 33 maximum price contract and the governmental entity’s selection 34 criteria at least fourteen days prior to publishing a request 35 -2- HF2572.4477 (2) 88 ec/rn 2/ 8

for statements of qualifications. Public disclosure shall 1 be in a relevant contractor plan room service with statewide 2 circulation, a relevant construction lead generating service 3 with statewide circulation, and on an internet site sponsored 4 by either a governmental entity or a statewide association that 5 represents the governmental entity. 6 2. The governmental entity shall select or designate an 7 engineer licensed under chapter 542B, a landscape architect 8 licensed under chapter 544B, or an architect licensed 9 under chapter 544A by utilizing a quality-based selection 10 process. Fee-based selection of the engineer, landscape 11 architect, or architect shall be prohibited. The engineer, 12 landscape architect, or architect selected or designated by 13 the government entity under this subsection shall have the 14 responsibility of preparing construction documents for the 15 project and shall review the construction for conformance with 16 design intent. 17 3. a. (1) The governmental entity shall prepare a request 18 for statements of qualifications. The request shall include 19 general information on the project site, project scope, 20 schedule, selection criteria, and the time and place for 21 receipt of statements of qualifications. Selection criteria 22 and general information included in the request for statements 23 of qualifications may be developed in coordination with 24 the engineer, landscape architect, or architect selected or 25 designated by the governmental entity as provided under this 26 section. 27 (2) Selection criteria may include the contractor’s 28 experience undertaking projects of similar size and scope 29 in either the public or private sector, past performance, 30 safety record, proposed personnel, and proposed methodology. 31 Selection criteria shall include experience in both the public 32 and the private sector. Selection criteria shall not include 33 specific delivery methods, including guaranteed maximum price 34 projects. In addition, selection criteria shall not include 35 -3- HF2572.4477 (2) 88 ec/rn 3/ 8

training, testing, or other certifications that may only be 1 obtained through organized labor affiliated organizations or 2 other limited-membership organizations. 3 (3) A request for statements of qualifications under this 4 subsection shall be subject to the requirements of section 5 73A.28. In addition, a governmental entity shall not by 6 ordinance, rule, or any other action relating to the request 7 for qualifications stipulate criteria that would directly 8 or indirectly restrict the selection of a construction 9 manager-at-risk to any predetermined class of providers based 10 on labor organization affiliation or any other criteria other 11 than that allowed pursuant to this paragraph. 12 b. The request for statements of qualifications shall be 13 posted not less than thirteen and not more than forty-five days 14 before the date for response in a relevant contractor plan room 15 service with statewide circulation, in a relevant construction 16 lead generating service with statewide circulation, and on an 17 internet site sponsored by either a governmental entity or a 18 statewide association that represents the governmental entity. 19 If circumstances beyond the control of the governmental 20 entity require postponement and there are no changes to the 21 project’s contract documents, a notice of the revised date 22 shall be posted not less than four and not more than forty-five 23 days before the revised date for answering the request for 24 proposals and statements of qualifications in a relevant 25 contractor plan room service with statewide circulation, in a 26 relevant construction lead generating service with statewide 27 circulation, and on an internet site sponsored by either a 28 government entity or a statewide association that represents 29 the governmental entity. 30 c. The governmental entity shall receive, publicly open, and 31 read aloud the names of the contractors submitting statements 32 of qualifications. Within forty-five days after the date of 33 opening the statements of qualifications submissions, the 34 governmental entity shall evaluate each proposal or statement 35 -4- HF2572.4477 (2) 88 ec/rn 4/ 8

of qualifications submission in relation to the criteria set 1 forth in the request. 2 4. a. After considering the proposals based upon 3 qualifications, the governmental entity shall issue a request 4 for proposals to each contractor who meets the qualifications 5 which shall include selection and evaluation criteria. Each 6 contractor issued a request for proposals shall be permitted 7 to submit a proposal and each proposal submitted shall include 8 the construction manager-at-risk’s proposed fees. The request 9 for proposals shall be subject to the requirements of section 10 73A.28. 11 b. The governmental entity shall receive, publicly open, and 12 read aloud the names of the contractors submitting proposals. 13 Within forty-five days after the date of opening the proposals, 14 the governmental entity shall evaluate and rank each proposal 15 in relation to the criteria set forth in the applicable 16 request. 17 c. The governmental entity or its representative shall 18 select the construction manager-at-risk that submits the 19 proposal that offers the best value for the governmental 20 entity based on the published selection criteria and on 21 its ranking evaluation. The governmental entity shall 22 first attempt to negotiate a contract with the selected 23 construction manager-at-risk. If the governmental entity 24 is unable to negotiate a satisfactory contract with the 25 selected construction manager-at-risk, the governmental entity 26 shall, formally and in writing, end negotiations with that 27 construction manager-at-risk and proceed to negotiate with the 28 next construction manager-at-risk in the order of the selection 29 ranking until a contract is reached or negotiations with all 30 ranked construction managers-at-risk end. 31 d. The governmental entity shall make available to the 32 public the final scoring and ranking evaluation of the request 33 for proposals received. 34 5. a. If the estimated total cost of trade contract work 35 -5- HF2572.4477 (2) 88 ec/rn 5/ 8

and materials packages is in excess of the adjusted competitive 1 bid threshold established in section 314.1B, the construction 2 manager-at-risk shall advertise for competitive bids, receive 3 bids, prepare bid analyses, and award contracts to qualified 4 firms on trade contract work and materials packages in 5 accordance with all of the following: 6 (1) Prior to advertising for competitive bids and awarding 7 contracts on trade contract work and materials packages, the 8 construction manager-at-risk shall provide public notice of the 9 opportunity to submit bids on trade contract work and materials 10 packages in a relevant contractor plan room service with 11 statewide circulation, a relevant construction lead generating 12 service with statewide circulation, and on an internet site 13 sponsored by either a governmental entity or a statewide 14 association that represents the governmental entity. 15 (2) (a) The construction manager-at-risk shall utilize 16 objective prequalification criteria to develop a list of 17 qualified firms who may bid and be awarded a contract on a 18 particular trade contract work and materials package. All 19 firms who meet the objective prequalification criteria as 20 a qualified firm shall be allowed to submit a bid for the 21 relevant trade contract work and materials package. In 22 addition, a firm that is prequalified with the state department 23 of transportation pursuant to section 314.1 shall be considered 24 to meet the objective prequalification criteria as a qualified 25 firm and shall be allowed to submit a bid for purposes of work 26 related to parking lots, streets, site development, or bridge 27 structure components. 28 (b) Prequalification criteria shall be limited to a 29 firm’s experience as a contractor, capacity of key personnel, 30 technical competence, capability to perform, the past 31 performance of the firm and the firm’s employees to include 32 the firm’s safety record and compliance with state and federal 33 law, and availability to and familiarity with the location of 34 the project subject to bid. Prequalification criteria shall 35 -6- HF2572.4477 (2) 88 ec/rn 6/ 8

be reasonably and materially related to the relevant trade 1 contract work and materials package. The prequalification 2 criteria shall not include training, testing, or other 3 certifications that may only be obtained through organized 4 labor affiliated organizations or other limited-membership 5 organizations. Prequalification criteria shall be subject to 6 the requirements of section 73A.28. 7 (3) The governmental entity and the construction 8 manager-at-risk shall participate in the bid review and 9 evaluation process. After the bids have been tabulated, 10 the contracts shall be awarded to the lowest responsive, 11 responsible bidder. All awards shall be made available to the 12 public. 13 (4) Notwithstanding any provision of this paragraph to 14 the contrary, a construction manager-at-risk shall not be 15 required to bid work that will be self-performed pursuant to 16 the contract with the governmental entity. If the construction 17 manager-at-risk intends to self-perform, the construction 18 manager-at-risk must notify the governmental entity in writing 19 of the construction manager-at-risk’s intent to do so and 20 identify the trade contract work and material packages that 21 will be self-performed. A construction manager-at-risk shall 22 not be required to comply with bidding requirements for general 23 conditions as provided in the contract with the governmental 24 entity. 25 b. If a selected trade contractor materially defaults in 26 the performance of its work or fails to execute a contract, 27 the construction manager-at-risk may, without advertising, 28 fulfill the contract requirements or select a replacement trade 29 contractor to fulfill the contract requirements. 30 Sec. 7. NEW SECTION . 26A.4 Prohibited contracts. 31 1. Notwithstanding any other provision of law to the 32 contrary, a governmental entity shall not be authorized 33 to enter into a design-build contract for the construction 34 of a public improvement. For purposes of this subsection, 35 -7- HF2572.4477 (2) 88 ec/rn 7/ 8

“design-build contract” means a single contract providing for 1 both design services and construction services that may include 2 maintenance, operations, preconstruction, and other related 3 services. 4 2. A governmental entity shall not be authorized to 5 enter into a guaranteed maximum price contract for public 6 improvements relating to highway and bridge construction. > 7 ______________________________ HUNTER of Polk -8- HF2572.4477 (2) 88 ec/rn 8/ 8