House File 2572 H-8311 Amend the amendment, H-8307, to House File 2572 as follows: 1 1. By striking page 1, line 1, through page 8, line 7, and 2 inserting: 3 < ___. By striking everything after the enacting clause and 4 inserting: 5 < DIVISION I 6 PUBLIC CONSTRUCTION BIDDING REQUIREMENTS 7 Sec. ___. Section 26.2, subsection 3, paragraph b, 8 subparagraph (5), Code 2020, is amended to read as follows: 9 (5) Construction or repair or maintenance work performed 10 for a city utility under chapter 388 when such work is 11 performed by its employees or when such work relates to 12 existing utility infrastructure or to establishing connections 13 to existing utility systems. 14 (6) Construction or repair or maintenance work performed 15 for a rural water district under chapter 357A by its employees. 16 Sec. ___. Section 26.4, Code 2020, is amended to read as 17 follows: 18 26.4 Exemptions from competitive bids and quotations 19 Architectural and engineering services —— exemptions —— 20 prohibitions . 21 1. Architectural, landscape architectural, or engineering 22 design services procured for a public improvement are not 23 subject to sections 26.3 and 26.14 . 24 2. Fee-based selection of an architect, landscape 25 architect, or engineer for a public improvement shall be 26 prohibited. 27 DIVISION II 28 GUARANTEED MAXIMUM PRICE CONTRACTS 29 Sec. ___. NEW SECTION . 26A.1 Definitions. 30 As used in this chapter, unless the context clearly 31 indicates otherwise: 32 1. “Construction manager-at-risk” means a sole 33 proprietorship, partnership, corporation, or other legal entity 34 that assumes the risk for the construction, rehabilitation, 35 -1- H8307.4496 (3) 88 ec/rn 1/ 7 #1.
alteration, or repair of a project and provides consultant 1 services to the government entity in the development and design 2 phases, working collaboratively with the design professionals 3 involved. 4 2. “ Governmental entity” means the state, political 5 subdivisions of the state, public school corporations, and all 6 officers, boards, or commissions empowered by law to enter 7 into contracts for the construction of public improvements, 8 including the state board of regents. 9 3. “Guaranteed maximum price contract” means the agreed 10 to fixed or guaranteed maximum price pursuant to a contract 11 entered into by the construction manager-at-risk and the 12 governmental entity. 13 4. “Public improvement” means as defined in section 26.2. 14 5. “Repair or maintenance work” means as defined in section 15 26.2. 16 Sec. ___. NEW SECTION . 26A.2 Authorization. 17 Notwithstanding any other law to the contrary, a 18 governmental entity shall be authorized to enter into a 19 guaranteed maximum price contract for the construction of a 20 public improvement pursuant to this chapter. 21 Sec. ___. NEW SECTION . 26A.3 Guaranteed maximum price 22 contract —— process. 23 1. A governmental entity shall publicly disclose the 24 governmental entity’s intent to enter into a guaranteed 25 maximum price contract and the governmental entity’s selection 26 criteria at least fourteen days prior to publishing a request 27 for statements of qualifications. Public disclosure shall 28 be in a relevant contractor plan room service with statewide 29 circulation, a relevant construction lead generating service 30 with statewide circulation, and on an internet site sponsored 31 by either a governmental entity or a statewide association that 32 represents the governmental entity. 33 2. The governmental entity shall select or designate an 34 engineer licensed under chapter 542B, a landscape architect 35 -2- H8307.4496 (3) 88 ec/rn 2/ 7
licensed under chapter 544B, or an architect licensed 1 under chapter 544A by utilizing a quality-based selection 2 process. Fee-based selection of the engineer, landscape 3 architect, or architect shall be prohibited. The engineer, 4 landscape architect, or architect selected or designated by 5 the government entity under this subsection shall have the 6 responsibility of preparing construction documents for the 7 project and shall review the construction for conformance with 8 design intent. 9 3. a. (1) The governmental entity shall prepare a request 10 for statements of qualifications. The request shall include 11 general information on the project site, project scope, 12 schedule, selection criteria, and the time and place for 13 receipt of statements of qualifications. Selection criteria 14 and general information included in the request for statements 15 of qualifications may be developed in coordination with 16 the engineer, landscape architect, or architect selected or 17 designated by the governmental entity as provided under this 18 section. 19 (2) Selection criteria may include the contractor’s 20 experience undertaking projects of similar size and scope 21 in either the public or private sector, past performance, 22 safety record, proposed personnel, and proposed methodology. 23 Selection criteria shall include experience in both the public 24 and the private sector. Selection criteria shall not include 25 specific delivery methods, including guaranteed maximum price 26 projects. 27 (3) A request for statements of qualifications under this 28 subsection shall be subject to the requirements of section 29 73A.28. 30 b. The request for statements of qualifications shall be 31 posted not less than thirteen and not more than forty-five days 32 before the date for response in a relevant contractor plan room 33 service with statewide circulation, in a relevant construction 34 lead generating service with statewide circulation, and on an 35 -3- H8307.4496 (3) 88 ec/rn 3/ 7
internet site sponsored by either a governmental entity or a 1 statewide association that represents the governmental entity. 2 If circumstances beyond the control of the governmental 3 entity require postponement and there are no changes to the 4 project’s contract documents, a notice of the revised date 5 shall be posted not less than four and not more than forty-five 6 days before the revised date for answering the request for 7 proposals and statements of qualifications in a relevant 8 contractor plan room service with statewide circulation, in a 9 relevant construction lead generating service with statewide 10 circulation, and on an internet site sponsored by either a 11 government entity or a statewide association that represents 12 the governmental entity. 13 c. The governmental entity shall receive, publicly open, and 14 read aloud the names of the contractors submitting statements 15 of qualifications. Within forty-five days after the date of 16 opening the statements of qualifications submissions, the 17 governmental entity shall evaluate each proposal or statement 18 of qualifications submission in relation to the criteria set 19 forth in the request. 20 4. a. After considering the proposals based upon 21 qualifications, the governmental entity shall issue a request 22 for proposals to each contractor who meets the qualifications 23 which shall include selection and evaluation criteria. Each 24 contractor issued a request for proposals shall be permitted 25 to submit a proposal and each proposal submitted shall include 26 the construction manager-at-risk’s proposed fees. The request 27 for proposals shall be subject to the requirements of section 28 73A.28. 29 b. The governmental entity shall receive, publicly open, and 30 read aloud the names of the contractors submitting proposals. 31 Within forty-five days after the date of opening the proposals, 32 the governmental entity shall evaluate and rank each proposal 33 in relation to the criteria set forth in the applicable 34 request. 35 -4- H8307.4496 (3) 88 ec/rn 4/ 7
c. The governmental entity or its representative shall 1 select the construction manager-at-risk that submits the 2 proposal that offers the best value for the governmental 3 entity based on the published selection criteria and on 4 its ranking evaluation. The governmental entity shall 5 first attempt to negotiate a contract with the selected 6 construction manager-at-risk. If the governmental entity 7 is unable to negotiate a satisfactory contract with the 8 selected construction manager-at-risk, the governmental entity 9 shall, formally and in writing, end negotiations with that 10 construction manager-at-risk and proceed to negotiate with the 11 next construction manager-at-risk in the order of the selection 12 ranking until a contract is reached or negotiations with all 13 ranked construction managers-at-risk end. 14 d. The governmental entity shall make available to the 15 public the final scoring and ranking evaluation of the request 16 for proposals received. 17 5. a. If the estimated total cost of trade contract work 18 and materials packages is in excess of the adjusted competitive 19 bid threshold established in section 314.1B, the construction 20 manager-at-risk shall advertise for competitive bids, receive 21 bids, prepare bid analyses, and award contracts to qualified 22 firms on trade contract work and materials packages in 23 accordance with all of the following: 24 (1) Prior to advertising for competitive bids and awarding 25 contracts on trade contract work and materials packages, the 26 construction manager-at-risk shall provide public notice of the 27 opportunity to submit bids on trade contract work and materials 28 packages in a relevant contractor plan room service with 29 statewide circulation, a relevant construction lead generating 30 service with statewide circulation, and on an internet site 31 sponsored by either a governmental entity or a statewide 32 association that represents the governmental entity. 33 (2) (a) The construction manager-at-risk shall utilize 34 objective prequalification criteria to develop a list of 35 -5- H8307.4496 (3) 88 ec/rn 5/ 7
qualified firms who may bid and be awarded a contract on a 1 particular trade contract work and materials package. All 2 firms who meet the objective prequalification criteria as 3 a qualified firm shall be allowed to submit a bid for the 4 relevant trade contract work and materials package. In 5 addition, a firm that is prequalified with the state department 6 of transportation pursuant to section 314.1 shall be considered 7 to meet the objective prequalification criteria as a qualified 8 firm and shall be allowed to submit a bid for purposes of work 9 related to parking lots, streets, site development, or bridge 10 structure components. 11 (b) Prequalification criteria shall be limited to a 12 firm’s experience as a contractor, capacity of key personnel, 13 technical competence, capability to perform, the past 14 performance of the firm and the firm’s employees to include 15 the firm’s safety record and compliance with state and federal 16 law, and availability to and familiarity with the location of 17 the project subject to bid. Prequalification criteria shall 18 be reasonably and materially related to the relevant trade 19 contract work and materials package. Prequalification criteria 20 shall be subject to the requirements of section 73A.28. 21 (3) The governmental entity and the construction 22 manager-at-risk shall participate in the bid review and 23 evaluation process. After the bids have been tabulated, 24 the contracts shall be awarded to the lowest responsive, 25 responsible bidder. All awards shall be made available to the 26 public. 27 (4) Notwithstanding any provision of this paragraph to 28 the contrary, a construction manager-at-risk shall not be 29 required to bid work that will be self-performed pursuant to 30 the contract with the governmental entity. If the construction 31 manager-at-risk intends to self-perform, the construction 32 manager-at-risk must notify the governmental entity in writing 33 of the construction manager-at-risk’s intent to do so and 34 identify the trade contract work and material packages that 35 -6- H8307.4496 (3) 88 ec/rn 6/ 7
will be self-performed. A construction manager-at-risk shall 1 not be required to comply with bidding requirements for general 2 conditions as provided in the contract with the governmental 3 entity. 4 b. If a selected trade contractor materially defaults in 5 the performance of its work or fails to execute a contract, 6 the construction manager-at-risk may, without advertising, 7 fulfill the contract requirements or select a replacement trade 8 contractor to fulfill the contract requirements. 9 Sec. ___. NEW SECTION . 26A.4 Prohibited contracts. 10 1. Notwithstanding any other provision of law to the 11 contrary, a governmental entity, excluding the state board of 12 regents, shall not be authorized to enter into a design-build 13 contract for the construction of a public improvement. For 14 purposes of this subsection, “design-build contract” means 15 a single contract providing for both design services and 16 construction services that may include maintenance, operations, 17 preconstruction, and other related services. 18 2. A governmental entity shall not be authorized to 19 enter into a guaranteed maximum price contract for public 20 improvements relating to highway and bridge construction. >> 21 ______________________________ HUNTER of Polk -7- H8307.4496 (3) 88 ec/rn 7/ 7