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Senate Study Bill 3153 - IntroducedA Bill ForAn Act 1relating to a construction manager-at-risk commercial
2construction alternative delivery method and prohibiting
3certain other alternative delivery methods in the public
4sector.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2PUBLIC CONSTRUCTION BIDDING REQUIREMENTS
3 Section 1. Section 26.2, subsection 3, paragraph b,
4subparagraph (5), Code 2020, is amended to read as follows:
5(5) Construction or repair or maintenance work performed
6for a city utility under chapter 388 when such work is
7performed by its employees or when such work relates to
8existing utility infrastructure or to establishing connections
9to existing utility systems.
10(6) Construction or repair or maintenance workperformed
11for a rural water district under chapter 357A by its employees.
12 Sec. 2. Section 26.4, Code 2020, is amended to read as
13follows:
1426.4 Exemptions from competitive bids and quotations
15 Architectural and engineering services — exemptions —
16prohibitions.
171. Architectural, landscape architectural, or engineering
18design services procured for a public improvement are not
19subject to sections 26.3 and 26.14.
202. Fee-based selection of an architect, landscape
21architect, or engineer for a public improvement shall be
22prohibited.
23 Sec. 3. Section 262.34, Code 2020, is amended by adding the
24following new subsection:
25 NEW SUBSECTION. 6. Notwithstanding any provision of this
26chapter to the contrary, the state board of regents shall
27not be authorized to enter into a design-build contract to
28construct, repair, or improve buildings or grounds. For
29purposes of this subsection, “design-build contract” means
30a single contract providing for both design services and
31construction services that may include maintenance, operations,
32preconstruction, and other related services.
33DIVISION II
34GUARANTEED MAXIMUM PRICE CONTRACTS
35 Sec. 4. NEW SECTION. 26A.1 Definitions.
-1- 1As used in this chapter, unless the context clearly
2indicates otherwise:
31. “Construction manager-at-risk” means a sole
4proprietorship, partnership, corporation, or other legal entity
5that assumes the risk for the construction, rehabilitation,
6alteration, or repair of a project and provides consultant
7services to the government entity in the development and design
8phases, working collaboratively with the design professionals
9involved.
102. “Governmental entity” means the state, political
11subdivisions of the state, public school corporations, and all
12officers, boards, or commissions empowered by law to enter
13into contracts for the construction of public improvements,
14including the state board of regents.
153. “Guaranteed maximum price contract” means the agreed
16to fixed or guaranteed maximum price pursuant to a contract
17entered into by the construction manager-at-risk and the
18governmental entity.
194. “Public improvement” means as defined in section 26.2.
205. “Repair or maintenance work” means as defined in section
2126.2.
22 Sec. 5. NEW SECTION. 26A.2 Authorization.
23Notwithstanding any other law to the contrary, a
24governmental entity shall be authorized to enter into a
25guaranteed maximum price contract for the construction of a
26public improvement pursuant to this chapter.
27 Sec. 6. NEW SECTION. 26A.3 Guaranteed maximum price
28contract — process.
291. A governmental entity shall publicly disclose the
30governmental entity’s intent to enter into a guaranteed
31maximum price contract and the governmental entity’s selection
32criteria at least fourteen days prior to publishing a request
33for statements of qualifications. Public disclosure shall
34be in a relevant contractor plan room service with statewide
35circulation, a relevant construction lead generating service
-2-1with statewide circulation, and on an internet site sponsored
2by either a governmental entity or a statewide association that
3represents the governmental entity.
42. The governmental entity shall select or designate an
5engineer licensed under chapter 542B, a landscape architect
6licensed under chapter 544B, or an architect licensed
7under chapter 544A by utilizing a quality-based selection
8process. Fee-based selection of the engineer, landscape
9architect, or architect shall be prohibited. The engineer,
10landscape architect, or architect selected or designated by
11the government entity under this subsection shall have the
12responsibility of preparing construction documents for the
13project and shall review the construction for conformance with
14design intent.
153. a. (1) The governmental entity shall prepare a request
16for statements of qualifications. The request shall include
17general information on the project site, project scope,
18schedule, selection criteria, and the time and place for
19receipt of statements of qualifications. Selection criteria
20and general information included in the request for statements
21of qualifications may be developed in coordination with
22the engineer, landscape architect, or architect selected or
23designated by the governmental entity as provided under this
24section.
25(2) Selection criteria may include the contractor’s
26experience undertaking projects of similar size and scope
27in either the public or private sector, past performance,
28safety record, proposed personnel, and proposed methodology.
29Selection criteria shall include experience in both the public
30and the private sector. Selection criteria shall not include
31specific delivery methods, including guaranteed maximum price
32projects. In addition, selection criteria shall not include
33training, testing, or other certifications that may only be
34obtained through organized labor affiliated organizations or
35other limited-membership organizations.
-3- 1(3) A request for statements of qualifications under this
2subsection shall be subject to the requirements of section
373A.28. In addition, a governmental entity shall not by
4ordinance, rule, or any other action relating to the request
5for qualifications stipulate criteria that would directly
6or indirectly restrict the selection of a construction
7manager-at-risk to any predetermined class of providers based
8on labor organization affiliation or any other criteria other
9than that allowed pursuant to this paragraph.
10b. The request for statements of qualifications shall be
11posted not less than thirteen and not more than forty-five days
12before the date for response in a relevant contractor plan room
13service with statewide circulation, in a relevant construction
14lead generating service with statewide circulation, and on an
15internet site sponsored by either a governmental entity or a
16statewide association that represents the governmental entity.
17If circumstances beyond the control of the governmental
18entity require postponement and there are no changes to the
19project’s contract documents, a notice of the revised date
20shall be posted not less than four and not more than forty-five
21days before the revised date for answering the request for
22proposals and statements of qualifications in a relevant
23contractor plan room service with statewide circulation, in a
24relevant construction lead generating service with statewide
25circulation, and on an internet site sponsored by either a
26government entity or a statewide association that represents
27the governmental entity.
28c. The governmental entity shall receive, publicly open, and
29read aloud the names of the contractors submitting statements
30of qualifications. Within forty-five days after the date of
31opening the statements of qualifications submissions, the
32governmental entity shall evaluate each proposal or statement
33of qualifications submission in relation to the criteria set
34forth in the request.
354. a. After considering the proposals based upon
-4-1qualifications, the governmental entity shall issue a request
2for proposals to each contractor who meets the qualifications
3which shall include selection and evaluation criteria. Each
4contractor issued a request for proposals shall be permitted
5to submit a proposal and each proposal submitted shall include
6the construction manager-at-risk’s proposed fees. The request
7for proposals shall be subject to the requirements of section
873A.28.
9b. The governmental entity shall receive, publicly open, and
10read aloud the names of the contractors submitting proposals.
11Within forty-five days after the date of opening the proposals,
12the governmental entity shall evaluate and rank each proposal
13in relation to the criteria set forth in the applicable
14request.
15c. The governmental entity or its representative shall
16select the construction manager-at-risk that submits the
17proposal that offers the best value for the governmental
18entity based on the published selection criteria and on
19its ranking evaluation. The governmental entity shall
20first attempt to negotiate a contract with the selected
21construction manager-at-risk. If the governmental entity
22is unable to negotiate a satisfactory contract with the
23selected construction manager-at-risk, the governmental entity
24shall, formally and in writing, end negotiations with that
25construction manager-at-risk and proceed to negotiate with the
26next construction manager-at-risk in the order of the selection
27ranking until a contract is reached or negotiations with all
28ranked construction managers-at-risk end.
29d. The governmental entity shall make available to the
30public the final scoring and ranking evaluation of the request
31for proposals received.
325. a. If the estimated total cost of trade contract work
33and materials packages is in excess of the adjusted competitive
34bid threshold established in section 314.1B, the construction
35manager-at-risk shall advertise for competitive bids, receive
-5-1bids, prepare bid analyses, and award contracts to qualified
2firms on trade contract work and materials packages in
3accordance with all of the following:
4(1) Prior to advertising for competitive bids and awarding
5contracts on trade contract work and materials packages, the
6construction manager-at-risk shall provide public notice of the
7opportunity to submit bids on trade contract work and materials
8packages in a relevant contractor plan room service with
9statewide circulation, a relevant construction lead generating
10service with statewide circulation, and on an internet site
11sponsored by either a governmental entity or a statewide
12association that represents the governmental entity.
13(2) (a) The construction manager-at-risk shall utilize
14objective prequalification criteria to develop a list of
15qualified firms who may bid and be awarded a contract on a
16particular trade contract work and materials package. All
17firms who meet the objective prequalification criteria as
18a qualified firm shall be allowed to submit a bid for the
19relevant trade contract work and materials package. In
20addition, a firm that is prequalified with the state department
21of transportation pursuant to section 314.1 shall be considered
22to meet the objective prequalification criteria as a qualified
23firm and shall be allowed to submit a bid for purposes of work
24related to parking lots, streets, site development, or bridge
25structure components.
26(b) Prequalification criteria shall be limited to a
27firm’s experience as a contractor, capacity of key personnel,
28technical competence, capability to perform, the past
29performance of the firm and the firm’s employees to include
30the firm’s safety record and compliance with state and federal
31law, and availability to and familiarity with the location of
32the project subject to bid. Prequalification criteria shall
33be reasonably and materially related to the relevant trade
34contract work and materials package. The prequalification
35criteria shall not include training, testing, or other
-6-1certifications that may only be obtained through organized
2labor affiliated organizations or other limited-membership
3organizations. Prequalification criteria shall be subject to
4the requirements of section 73A.28.
5(3) The governmental entity and the construction
6manager-at-risk shall participate in the bid review and
7evaluation process. After the bids have been tabulated,
8the contracts shall be awarded to the lowest responsive,
9responsible bidder. All awards shall be made available to the
10public.
11(4) Notwithstanding any provision of this paragraph to
12the contrary, a construction manager-at-risk shall not be
13required to bid work that will be self-performed pursuant to
14the contract with the governmental entity. If the construction
15manager-at-risk intends to self-perform, the construction
16manager-at-risk must notify the governmental entity in writing
17of the construction manager-at-risk’s intent to do so and
18identify the trade contract work and material packages that
19will be self-performed. A construction manager-at-risk shall
20not be required to comply with bidding requirements for general
21conditions as provided in the contract with the governmental
22entity.
23b. If a selected trade contractor materially defaults in
24the performance of its work or fails to execute a contract,
25the construction manager-at-risk may, without advertising,
26fulfill the contract requirements or select a replacement trade
27contractor to fulfill the contract requirements.
28 Sec. 7. NEW SECTION. 26A.4 Prohibited contracts.
291. Notwithstanding any other provision of law to the
30contrary, a governmental entity shall not be authorized
31to enter into a design-build contract for the construction
32of a public improvement. For purposes of this subsection,
33“design-build contract” means a single contract providing for
34both design services and construction services that may include
35maintenance, operations, preconstruction, and other related
-7-1services.
22. A governmental entity shall not be authorized to
3enter into a guaranteed maximum price contract for public
4improvements relating to highway and bridge construction.
5EXPLANATION
6The inclusion of this explanation does not constitute agreement with
7the explanation’s substance by the members of the general assembly.
8This bill concerns public construction and improvement
9contracts.
10DIVISION I — PUBLIC CONSTRUCTION BIDDING REQUIREMENTS.
11 Code section 26.2 is amended to provide that the term
12“public improvement” excludes construction work and repair
13or maintenance work performed for a city utility under
14Code chapter 388 when such work relates to existing utility
15infrastructure or to establishing connections to existing
16utility systems.
17Code section 26.4, relating to architectural and engineering
18services, is amended to prohibit fee-based selection of an
19architect, landscape architect, or engineer for a public
20improvement.
21Code section 262.34 is amended to prohibit the state board
22of regents from entering into a design-build contract to
23construct, repair, or improve buildings or grounds.
24DIVISION II — GUARANTEED MAXIMUM PRICE CONTRACTS. This
25division allows a governmental entity to use a guaranteed
26maximum price contract for purposes of public improvement
27contracts.
28New Code section 26A.1 defines, among other terms,
29“construction manager-at-risk”, “governmental entity”,
30“guaranteed maximum price contract” and “public improvement”.
31“Guaranteed maximum price contract” is defined to mean the
32agreed to fixed or guaranteed maximum price pursuant to a
33contract entered into by the construction manager-at-risk and
34the governmental entity. “Construction manager-at-risk” means
35a legal entity that assumes the risk for the construction,
-8-1rehabilitation, alteration, or repair of a project and
2provides consultant services to the governmental entity in the
3development and design phases, working collaboratively with
4the design professionals involved. “Governmental entity” is
5defined to mean the state, political subdivisions of the state,
6and public school corporations, and is specifically defined to
7include the state board of regents. “Public improvement” is
8defined to mean the same as for purposes of Code chapter 26
9governing public construction bidding.
10New Code section 26A.2 authorizes a governmental entity to
11enter into a guaranteed maximum price contract for a public
12improvement, notwithstanding any provision of law to the
13contrary.
14New Code section 26A.3 establishes the process for entering
15into a guaranteed maximum price contract. The new Code section
16provides procedures governing public disclosure of an intent to
17enter into a guaranteed maximum price contract, selection of
18an engineer, landscape architect, or architect, a request for
19qualifications process, a request for proposals and selection
20process, and selection of trade contractors and material
21packages.
22New Code section 26A.4 prohibits a governmental entity from
23entering into a design-build contract for the construction of a
24public improvement and entering into a guaranteed maximum price
25contract for public improvements relating to highway and bridge
26construction.
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2construction alternative delivery method and prohibiting
3certain other alternative delivery methods in the public
4sector.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2PUBLIC CONSTRUCTION BIDDING REQUIREMENTS
3 Section 1. Section 26.2, subsection 3, paragraph b,
4subparagraph (5), Code 2020, is amended to read as follows:
5(5) Construction or repair or maintenance work performed
6for a city utility under chapter 388 when such work is
7performed by its employees or when such work relates to
8existing utility infrastructure or to establishing connections
9to existing utility systems.
10(6) Construction or repair or maintenance workperformed
11for a rural water district under chapter 357A by its employees.
12 Sec. 2. Section 26.4, Code 2020, is amended to read as
13follows:
1426.4 Exemptions from competitive bids and quotations
15 Architectural and engineering services — exemptions —
16prohibitions.
171. Architectural, landscape architectural, or engineering
18design services procured for a public improvement are not
19subject to sections 26.3 and 26.14.
202. Fee-based selection of an architect, landscape
21architect, or engineer for a public improvement shall be
22prohibited.
23 Sec. 3. Section 262.34, Code 2020, is amended by adding the
24following new subsection:
25 NEW SUBSECTION. 6. Notwithstanding any provision of this
26chapter to the contrary, the state board of regents shall
27not be authorized to enter into a design-build contract to
28construct, repair, or improve buildings or grounds. For
29purposes of this subsection, “design-build contract” means
30a single contract providing for both design services and
31construction services that may include maintenance, operations,
32preconstruction, and other related services.
33DIVISION II
34GUARANTEED MAXIMUM PRICE CONTRACTS
35 Sec. 4. NEW SECTION. 26A.1 Definitions.
-1- 1As used in this chapter, unless the context clearly
2indicates otherwise:
31. “Construction manager-at-risk” means a sole
4proprietorship, partnership, corporation, or other legal entity
5that assumes the risk for the construction, rehabilitation,
6alteration, or repair of a project and provides consultant
7services to the government entity in the development and design
8phases, working collaboratively with the design professionals
9involved.
102. “Governmental entity” means the state, political
11subdivisions of the state, public school corporations, and all
12officers, boards, or commissions empowered by law to enter
13into contracts for the construction of public improvements,
14including the state board of regents.
153. “Guaranteed maximum price contract” means the agreed
16to fixed or guaranteed maximum price pursuant to a contract
17entered into by the construction manager-at-risk and the
18governmental entity.
194. “Public improvement” means as defined in section 26.2.
205. “Repair or maintenance work” means as defined in section
2126.2.
22 Sec. 5. NEW SECTION. 26A.2 Authorization.
23Notwithstanding any other law to the contrary, a
24governmental entity shall be authorized to enter into a
25guaranteed maximum price contract for the construction of a
26public improvement pursuant to this chapter.
27 Sec. 6. NEW SECTION. 26A.3 Guaranteed maximum price
28contract — process.
291. A governmental entity shall publicly disclose the
30governmental entity’s intent to enter into a guaranteed
31maximum price contract and the governmental entity’s selection
32criteria at least fourteen days prior to publishing a request
33for statements of qualifications. Public disclosure shall
34be in a relevant contractor plan room service with statewide
35circulation, a relevant construction lead generating service
-2-1with statewide circulation, and on an internet site sponsored
2by either a governmental entity or a statewide association that
3represents the governmental entity.
42. The governmental entity shall select or designate an
5engineer licensed under chapter 542B, a landscape architect
6licensed under chapter 544B, or an architect licensed
7under chapter 544A by utilizing a quality-based selection
8process. Fee-based selection of the engineer, landscape
9architect, or architect shall be prohibited. The engineer,
10landscape architect, or architect selected or designated by
11the government entity under this subsection shall have the
12responsibility of preparing construction documents for the
13project and shall review the construction for conformance with
14design intent.
153. a. (1) The governmental entity shall prepare a request
16for statements of qualifications. The request shall include
17general information on the project site, project scope,
18schedule, selection criteria, and the time and place for
19receipt of statements of qualifications. Selection criteria
20and general information included in the request for statements
21of qualifications may be developed in coordination with
22the engineer, landscape architect, or architect selected or
23designated by the governmental entity as provided under this
24section.
25(2) Selection criteria may include the contractor’s
26experience undertaking projects of similar size and scope
27in either the public or private sector, past performance,
28safety record, proposed personnel, and proposed methodology.
29Selection criteria shall include experience in both the public
30and the private sector. Selection criteria shall not include
31specific delivery methods, including guaranteed maximum price
32projects. In addition, selection criteria shall not include
33training, testing, or other certifications that may only be
34obtained through organized labor affiliated organizations or
35other limited-membership organizations.
-3- 1(3) A request for statements of qualifications under this
2subsection shall be subject to the requirements of section
373A.28. In addition, a governmental entity shall not by
4ordinance, rule, or any other action relating to the request
5for qualifications stipulate criteria that would directly
6or indirectly restrict the selection of a construction
7manager-at-risk to any predetermined class of providers based
8on labor organization affiliation or any other criteria other
9than that allowed pursuant to this paragraph.
10b. The request for statements of qualifications shall be
11posted not less than thirteen and not more than forty-five days
12before the date for response in a relevant contractor plan room
13service with statewide circulation, in a relevant construction
14lead generating service with statewide circulation, and on an
15internet site sponsored by either a governmental entity or a
16statewide association that represents the governmental entity.
17If circumstances beyond the control of the governmental
18entity require postponement and there are no changes to the
19project’s contract documents, a notice of the revised date
20shall be posted not less than four and not more than forty-five
21days before the revised date for answering the request for
22proposals and statements of qualifications in a relevant
23contractor plan room service with statewide circulation, in a
24relevant construction lead generating service with statewide
25circulation, and on an internet site sponsored by either a
26government entity or a statewide association that represents
27the governmental entity.
28c. The governmental entity shall receive, publicly open, and
29read aloud the names of the contractors submitting statements
30of qualifications. Within forty-five days after the date of
31opening the statements of qualifications submissions, the
32governmental entity shall evaluate each proposal or statement
33of qualifications submission in relation to the criteria set
34forth in the request.
354. a. After considering the proposals based upon
-4-1qualifications, the governmental entity shall issue a request
2for proposals to each contractor who meets the qualifications
3which shall include selection and evaluation criteria. Each
4contractor issued a request for proposals shall be permitted
5to submit a proposal and each proposal submitted shall include
6the construction manager-at-risk’s proposed fees. The request
7for proposals shall be subject to the requirements of section
873A.28.
9b. The governmental entity shall receive, publicly open, and
10read aloud the names of the contractors submitting proposals.
11Within forty-five days after the date of opening the proposals,
12the governmental entity shall evaluate and rank each proposal
13in relation to the criteria set forth in the applicable
14request.
15c. The governmental entity or its representative shall
16select the construction manager-at-risk that submits the
17proposal that offers the best value for the governmental
18entity based on the published selection criteria and on
19its ranking evaluation. The governmental entity shall
20first attempt to negotiate a contract with the selected
21construction manager-at-risk. If the governmental entity
22is unable to negotiate a satisfactory contract with the
23selected construction manager-at-risk, the governmental entity
24shall, formally and in writing, end negotiations with that
25construction manager-at-risk and proceed to negotiate with the
26next construction manager-at-risk in the order of the selection
27ranking until a contract is reached or negotiations with all
28ranked construction managers-at-risk end.
29d. The governmental entity shall make available to the
30public the final scoring and ranking evaluation of the request
31for proposals received.
325. a. If the estimated total cost of trade contract work
33and materials packages is in excess of the adjusted competitive
34bid threshold established in section 314.1B, the construction
35manager-at-risk shall advertise for competitive bids, receive
-5-1bids, prepare bid analyses, and award contracts to qualified
2firms on trade contract work and materials packages in
3accordance with all of the following:
4(1) Prior to advertising for competitive bids and awarding
5contracts on trade contract work and materials packages, the
6construction manager-at-risk shall provide public notice of the
7opportunity to submit bids on trade contract work and materials
8packages in a relevant contractor plan room service with
9statewide circulation, a relevant construction lead generating
10service with statewide circulation, and on an internet site
11sponsored by either a governmental entity or a statewide
12association that represents the governmental entity.
13(2) (a) The construction manager-at-risk shall utilize
14objective prequalification criteria to develop a list of
15qualified firms who may bid and be awarded a contract on a
16particular trade contract work and materials package. All
17firms who meet the objective prequalification criteria as
18a qualified firm shall be allowed to submit a bid for the
19relevant trade contract work and materials package. In
20addition, a firm that is prequalified with the state department
21of transportation pursuant to section 314.1 shall be considered
22to meet the objective prequalification criteria as a qualified
23firm and shall be allowed to submit a bid for purposes of work
24related to parking lots, streets, site development, or bridge
25structure components.
26(b) Prequalification criteria shall be limited to a
27firm’s experience as a contractor, capacity of key personnel,
28technical competence, capability to perform, the past
29performance of the firm and the firm’s employees to include
30the firm’s safety record and compliance with state and federal
31law, and availability to and familiarity with the location of
32the project subject to bid. Prequalification criteria shall
33be reasonably and materially related to the relevant trade
34contract work and materials package. The prequalification
35criteria shall not include training, testing, or other
-6-1certifications that may only be obtained through organized
2labor affiliated organizations or other limited-membership
3organizations. Prequalification criteria shall be subject to
4the requirements of section 73A.28.
5(3) The governmental entity and the construction
6manager-at-risk shall participate in the bid review and
7evaluation process. After the bids have been tabulated,
8the contracts shall be awarded to the lowest responsive,
9responsible bidder. All awards shall be made available to the
10public.
11(4) Notwithstanding any provision of this paragraph to
12the contrary, a construction manager-at-risk shall not be
13required to bid work that will be self-performed pursuant to
14the contract with the governmental entity. If the construction
15manager-at-risk intends to self-perform, the construction
16manager-at-risk must notify the governmental entity in writing
17of the construction manager-at-risk’s intent to do so and
18identify the trade contract work and material packages that
19will be self-performed. A construction manager-at-risk shall
20not be required to comply with bidding requirements for general
21conditions as provided in the contract with the governmental
22entity.
23b. If a selected trade contractor materially defaults in
24the performance of its work or fails to execute a contract,
25the construction manager-at-risk may, without advertising,
26fulfill the contract requirements or select a replacement trade
27contractor to fulfill the contract requirements.
28 Sec. 7. NEW SECTION. 26A.4 Prohibited contracts.
291. Notwithstanding any other provision of law to the
30contrary, a governmental entity shall not be authorized
31to enter into a design-build contract for the construction
32of a public improvement. For purposes of this subsection,
33“design-build contract” means a single contract providing for
34both design services and construction services that may include
35maintenance, operations, preconstruction, and other related
-7-1services.
22. A governmental entity shall not be authorized to
3enter into a guaranteed maximum price contract for public
4improvements relating to highway and bridge construction.
5EXPLANATION
6The inclusion of this explanation does not constitute agreement with
7the explanation’s substance by the members of the general assembly.
8This bill concerns public construction and improvement
9contracts.
10DIVISION I — PUBLIC CONSTRUCTION BIDDING REQUIREMENTS.
11 Code section 26.2 is amended to provide that the term
12“public improvement” excludes construction work and repair
13or maintenance work performed for a city utility under
14Code chapter 388 when such work relates to existing utility
15infrastructure or to establishing connections to existing
16utility systems.
17Code section 26.4, relating to architectural and engineering
18services, is amended to prohibit fee-based selection of an
19architect, landscape architect, or engineer for a public
20improvement.
21Code section 262.34 is amended to prohibit the state board
22of regents from entering into a design-build contract to
23construct, repair, or improve buildings or grounds.
24DIVISION II — GUARANTEED MAXIMUM PRICE CONTRACTS. This
25division allows a governmental entity to use a guaranteed
26maximum price contract for purposes of public improvement
27contracts.
28New Code section 26A.1 defines, among other terms,
29“construction manager-at-risk”, “governmental entity”,
30“guaranteed maximum price contract” and “public improvement”.
31“Guaranteed maximum price contract” is defined to mean the
32agreed to fixed or guaranteed maximum price pursuant to a
33contract entered into by the construction manager-at-risk and
34the governmental entity. “Construction manager-at-risk” means
35a legal entity that assumes the risk for the construction,
-8-1rehabilitation, alteration, or repair of a project and
2provides consultant services to the governmental entity in the
3development and design phases, working collaboratively with
4the design professionals involved. “Governmental entity” is
5defined to mean the state, political subdivisions of the state,
6and public school corporations, and is specifically defined to
7include the state board of regents. “Public improvement” is
8defined to mean the same as for purposes of Code chapter 26
9governing public construction bidding.
10New Code section 26A.2 authorizes a governmental entity to
11enter into a guaranteed maximum price contract for a public
12improvement, notwithstanding any provision of law to the
13contrary.
14New Code section 26A.3 establishes the process for entering
15into a guaranteed maximum price contract. The new Code section
16provides procedures governing public disclosure of an intent to
17enter into a guaranteed maximum price contract, selection of
18an engineer, landscape architect, or architect, a request for
19qualifications process, a request for proposals and selection
20process, and selection of trade contractors and material
21packages.
22New Code section 26A.4 prohibits a governmental entity from
23entering into a design-build contract for the construction of a
24public improvement and entering into a guaranteed maximum price
25contract for public improvements relating to highway and bridge
26construction.
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