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House File 2572 - 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 limited-membership organizations.
35(3) A request for statements of qualifications under this
-3-1subsection shall be subject to the requirements of section
273A.28. In addition, a governmental entity shall not by
3ordinance, rule, or any other action relating to the request
4for qualifications stipulate criteria that would directly
5or indirectly restrict the selection of a construction
6manager-at-risk to any predetermined class of providers or
7any other criteria other than that allowed pursuant to this
8paragraph.
9b. The request for statements of qualifications shall be
10posted not less than thirteen and not more than forty-five days
11before the date for response in a relevant contractor plan room
12service with statewide circulation, in a relevant construction
13lead generating service with statewide circulation, and on an
14internet site sponsored by either a governmental entity or a
15statewide association that represents the governmental entity.
16If circumstances beyond the control of the governmental
17entity require postponement and there are no changes to the
18project’s contract documents, a notice of the revised date
19shall be posted not less than four and not more than forty-five
20days before the revised date for answering the request for
21proposals and statements of qualifications in a relevant
22contractor plan room service with statewide circulation, in a
23relevant construction lead generating service with statewide
24circulation, and on an internet site sponsored by either a
25government entity or a statewide association that represents
26the governmental entity.
27c. The governmental entity shall receive, publicly open, and
28read aloud the names of the contractors submitting statements
29of qualifications. Within forty-five days after the date of
30opening the statements of qualifications submissions, the
31governmental entity shall evaluate each proposal or statement
32of qualifications submission in relation to the criteria set
33forth in the request.
344. a. After considering the proposals based upon
35qualifications, the governmental entity shall issue a request
-4-1for proposals to each contractor who meets the qualifications
2which shall include selection and evaluation criteria. Each
3contractor issued a request for proposals shall be permitted
4to submit a proposal and each proposal submitted shall include
5the construction manager-at-risk’s proposed fees. The request
6for proposals shall be subject to the requirements of section
773A.28.
8b. The governmental entity shall receive, publicly open, and
9read aloud the names of the contractors submitting proposals.
10Within forty-five days after the date of opening the proposals,
11the governmental entity shall evaluate and rank each proposal
12in relation to the criteria set forth in the applicable
13request.
14c. The governmental entity or its representative shall
15select the construction manager-at-risk that submits the
16proposal that offers the best value for the governmental
17entity based on the published selection criteria and on
18its ranking evaluation. The governmental entity shall
19first attempt to negotiate a contract with the selected
20construction manager-at-risk. If the governmental entity
21is unable to negotiate a satisfactory contract with the
22selected construction manager-at-risk, the governmental entity
23shall, formally and in writing, end negotiations with that
24construction manager-at-risk and proceed to negotiate with the
25next construction manager-at-risk in the order of the selection
26ranking until a contract is reached or negotiations with all
27ranked construction managers-at-risk end.
28d. The governmental entity shall make available to the
29public the final scoring and ranking evaluation of the request
30for proposals received.
315. a. If the estimated total cost of trade contract work
32and materials packages is in excess of the adjusted competitive
33bid threshold established in section 314.1B, the construction
34manager-at-risk shall advertise for competitive bids, receive
35bids, prepare bid analyses, and award contracts to qualified
-5-1firms on trade contract work and materials packages in
2accordance with all of the following:
3(1) Prior to advertising for competitive bids and awarding
4contracts on trade contract work and materials packages, the
5construction manager-at-risk shall provide public notice of the
6opportunity to submit bids on trade contract work and materials
7packages in a relevant contractor plan room service with
8statewide circulation, a relevant construction lead generating
9service with statewide circulation, and on an internet site
10sponsored by either a governmental entity or a statewide
11association that represents the governmental entity.
12(2) (a) The construction manager-at-risk shall utilize
13objective prequalification criteria to develop a list of
14qualified firms who may bid and be awarded a contract on a
15particular trade contract work and materials package. All
16firms who meet the objective prequalification criteria as
17a qualified firm shall be allowed to submit a bid for the
18relevant trade contract work and materials package. In
19addition, a firm that is prequalified with the state department
20of transportation pursuant to section 314.1 shall be considered
21to meet the objective prequalification criteria as a qualified
22firm and shall be allowed to submit a bid for purposes of work
23related to parking lots, streets, site development, or bridge
24structure components.
25(b) Prequalification criteria shall be limited to a
26firm’s experience as a contractor, capacity of key personnel,
27technical competence, capability to perform, the past
28performance of the firm and the firm’s employees to include
29the firm’s safety record and compliance with state and
30federal law, and availability to and familiarity with the
31location of the project subject to bid. Prequalification
32criteria shall be reasonably and materially related to the
33relevant trade contract work and materials package. The
34prequalification criteria shall not include training, testing,
35or other certifications that may only be obtained through
-6-1limited-membership organizations. Prequalification criteria
2shall be subject to the requirements of section 73A.28.
3(3) The governmental entity and the construction
4manager-at-risk shall participate in the bid review and
5evaluation process. After the bids have been tabulated,
6the contracts shall be awarded to the lowest responsive,
7responsible bidder. All awards shall be made available to the
8public.
9(4) Notwithstanding any provision of this paragraph to
10the contrary, a construction manager-at-risk shall not be
11required to bid work that will be self-performed pursuant to
12the contract with the governmental entity. If the construction
13manager-at-risk intends to self-perform, the construction
14manager-at-risk must notify the governmental entity in writing
15of the construction manager-at-risk’s intent to do so and
16identify the trade contract work and material packages that
17will be self-performed. A construction manager-at-risk shall
18not be required to comply with bidding requirements for general
19conditions as provided in the contract with the governmental
20entity.
21b. If a selected trade contractor materially defaults in
22the performance of its work or fails to execute a contract,
23the construction manager-at-risk may, without advertising,
24fulfill the contract requirements or select a replacement trade
25contractor to fulfill the contract requirements.
26 Sec. 7. NEW SECTION. 26A.4 Prohibited contracts.
271. Notwithstanding any other provision of law to the
28contrary, a governmental entity shall not be authorized
29to enter into a design-build contract for the construction
30of a public improvement. For purposes of this subsection,
31“design-build contract” means a single contract providing for
32both design services and construction services that may include
33maintenance, operations, preconstruction, and other related
34services.
352. A governmental entity shall not be authorized to
-7-1enter into a guaranteed maximum price contract for public
2improvements relating to highway and bridge construction.
3EXPLANATION
4The inclusion of this explanation does not constitute agreement with
5the explanation’s substance by the members of the general assembly.
6This bill concerns public construction and improvement
7contracts.
8DIVISION I — PUBLIC CONSTRUCTION BIDDING REQUIREMENTS.
9 Code section 26.2 is amended to provide that the term
10“public improvement” excludes construction work and repair
11or maintenance work performed for a city utility under
12Code chapter 388 when such work relates to existing utility
13infrastructure or to establishing connections to existing
14utility systems.
15Code section 26.4, relating to architectural and engineering
16services, is amended to prohibit fee-based selection of an
17architect, landscape architect, or engineer for a public
18improvement.
19Code section 262.34 is amended to prohibit the state board
20of regents from entering into a design-build contract to
21construct, repair, or improve buildings or grounds.
22DIVISION II — GUARANTEED MAXIMUM PRICE CONTRACTS. This
23division allows a governmental entity to use a guaranteed
24maximum price contract for purposes of public improvement
25contracts.
26New Code section 26A.1 defines, among other terms,
27“construction manager-at-risk”, “governmental entity”,
28“guaranteed maximum price contract” and “public improvement”.
29“Guaranteed maximum price contract” is defined to mean the
30agreed to fixed or guaranteed maximum price pursuant to a
31contract entered into by the construction manager-at-risk and
32the governmental entity. “Construction manager-at-risk” means
33a legal entity that assumes the risk for the construction,
34rehabilitation, alteration, or repair of a project and
35provides consultant services to the governmental entity in the
-8-1development and design phases, working collaboratively with
2the design professionals involved. “Governmental entity” is
3defined to mean the state, political subdivisions of the state,
4and public school corporations, and is specifically defined to
5include the state board of regents. “Public improvement” is
6defined to mean the same as for purposes of Code chapter 26
7governing public construction bidding.
8New Code section 26A.2 authorizes a governmental entity to
9enter into a guaranteed maximum price contract for a public
10improvement, notwithstanding any provision of law to the
11contrary.
12New Code section 26A.3 establishes the process for entering
13into a guaranteed maximum price contract. The new Code section
14provides procedures governing public disclosure of an intent to
15enter into a guaranteed maximum price contract, selection of
16an engineer, landscape architect, or architect, a request for
17qualifications process, a request for proposals and selection
18process, and selection of trade contractors and material
19packages.
20New Code section 26A.4 prohibits a governmental entity from
21entering into a design-build contract for the construction of a
22public improvement and entering into a guaranteed maximum price
23contract for public improvements relating to highway and bridge
24construction.
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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 limited-membership organizations.
35(3) A request for statements of qualifications under this
-3-1subsection shall be subject to the requirements of section
273A.28. In addition, a governmental entity shall not by
3ordinance, rule, or any other action relating to the request
4for qualifications stipulate criteria that would directly
5or indirectly restrict the selection of a construction
6manager-at-risk to any predetermined class of providers or
7any other criteria other than that allowed pursuant to this
8paragraph.
9b. The request for statements of qualifications shall be
10posted not less than thirteen and not more than forty-five days
11before the date for response in a relevant contractor plan room
12service with statewide circulation, in a relevant construction
13lead generating service with statewide circulation, and on an
14internet site sponsored by either a governmental entity or a
15statewide association that represents the governmental entity.
16If circumstances beyond the control of the governmental
17entity require postponement and there are no changes to the
18project’s contract documents, a notice of the revised date
19shall be posted not less than four and not more than forty-five
20days before the revised date for answering the request for
21proposals and statements of qualifications in a relevant
22contractor plan room service with statewide circulation, in a
23relevant construction lead generating service with statewide
24circulation, and on an internet site sponsored by either a
25government entity or a statewide association that represents
26the governmental entity.
27c. The governmental entity shall receive, publicly open, and
28read aloud the names of the contractors submitting statements
29of qualifications. Within forty-five days after the date of
30opening the statements of qualifications submissions, the
31governmental entity shall evaluate each proposal or statement
32of qualifications submission in relation to the criteria set
33forth in the request.
344. a. After considering the proposals based upon
35qualifications, the governmental entity shall issue a request
-4-1for proposals to each contractor who meets the qualifications
2which shall include selection and evaluation criteria. Each
3contractor issued a request for proposals shall be permitted
4to submit a proposal and each proposal submitted shall include
5the construction manager-at-risk’s proposed fees. The request
6for proposals shall be subject to the requirements of section
773A.28.
8b. The governmental entity shall receive, publicly open, and
9read aloud the names of the contractors submitting proposals.
10Within forty-five days after the date of opening the proposals,
11the governmental entity shall evaluate and rank each proposal
12in relation to the criteria set forth in the applicable
13request.
14c. The governmental entity or its representative shall
15select the construction manager-at-risk that submits the
16proposal that offers the best value for the governmental
17entity based on the published selection criteria and on
18its ranking evaluation. The governmental entity shall
19first attempt to negotiate a contract with the selected
20construction manager-at-risk. If the governmental entity
21is unable to negotiate a satisfactory contract with the
22selected construction manager-at-risk, the governmental entity
23shall, formally and in writing, end negotiations with that
24construction manager-at-risk and proceed to negotiate with the
25next construction manager-at-risk in the order of the selection
26ranking until a contract is reached or negotiations with all
27ranked construction managers-at-risk end.
28d. The governmental entity shall make available to the
29public the final scoring and ranking evaluation of the request
30for proposals received.
315. a. If the estimated total cost of trade contract work
32and materials packages is in excess of the adjusted competitive
33bid threshold established in section 314.1B, the construction
34manager-at-risk shall advertise for competitive bids, receive
35bids, prepare bid analyses, and award contracts to qualified
-5-1firms on trade contract work and materials packages in
2accordance with all of the following:
3(1) Prior to advertising for competitive bids and awarding
4contracts on trade contract work and materials packages, the
5construction manager-at-risk shall provide public notice of the
6opportunity to submit bids on trade contract work and materials
7packages in a relevant contractor plan room service with
8statewide circulation, a relevant construction lead generating
9service with statewide circulation, and on an internet site
10sponsored by either a governmental entity or a statewide
11association that represents the governmental entity.
12(2) (a) The construction manager-at-risk shall utilize
13objective prequalification criteria to develop a list of
14qualified firms who may bid and be awarded a contract on a
15particular trade contract work and materials package. All
16firms who meet the objective prequalification criteria as
17a qualified firm shall be allowed to submit a bid for the
18relevant trade contract work and materials package. In
19addition, a firm that is prequalified with the state department
20of transportation pursuant to section 314.1 shall be considered
21to meet the objective prequalification criteria as a qualified
22firm and shall be allowed to submit a bid for purposes of work
23related to parking lots, streets, site development, or bridge
24structure components.
25(b) Prequalification criteria shall be limited to a
26firm’s experience as a contractor, capacity of key personnel,
27technical competence, capability to perform, the past
28performance of the firm and the firm’s employees to include
29the firm’s safety record and compliance with state and
30federal law, and availability to and familiarity with the
31location of the project subject to bid. Prequalification
32criteria shall be reasonably and materially related to the
33relevant trade contract work and materials package. The
34prequalification criteria shall not include training, testing,
35or other certifications that may only be obtained through
-6-1limited-membership organizations. Prequalification criteria
2shall be subject to the requirements of section 73A.28.
3(3) The governmental entity and the construction
4manager-at-risk shall participate in the bid review and
5evaluation process. After the bids have been tabulated,
6the contracts shall be awarded to the lowest responsive,
7responsible bidder. All awards shall be made available to the
8public.
9(4) Notwithstanding any provision of this paragraph to
10the contrary, a construction manager-at-risk shall not be
11required to bid work that will be self-performed pursuant to
12the contract with the governmental entity. If the construction
13manager-at-risk intends to self-perform, the construction
14manager-at-risk must notify the governmental entity in writing
15of the construction manager-at-risk’s intent to do so and
16identify the trade contract work and material packages that
17will be self-performed. A construction manager-at-risk shall
18not be required to comply with bidding requirements for general
19conditions as provided in the contract with the governmental
20entity.
21b. If a selected trade contractor materially defaults in
22the performance of its work or fails to execute a contract,
23the construction manager-at-risk may, without advertising,
24fulfill the contract requirements or select a replacement trade
25contractor to fulfill the contract requirements.
26 Sec. 7. NEW SECTION. 26A.4 Prohibited contracts.
271. Notwithstanding any other provision of law to the
28contrary, a governmental entity shall not be authorized
29to enter into a design-build contract for the construction
30of a public improvement. For purposes of this subsection,
31“design-build contract” means a single contract providing for
32both design services and construction services that may include
33maintenance, operations, preconstruction, and other related
34services.
352. A governmental entity shall not be authorized to
-7-1enter into a guaranteed maximum price contract for public
2improvements relating to highway and bridge construction.
3EXPLANATION
4The inclusion of this explanation does not constitute agreement with
5the explanation’s substance by the members of the general assembly.
6This bill concerns public construction and improvement
7contracts.
8DIVISION I — PUBLIC CONSTRUCTION BIDDING REQUIREMENTS.
9 Code section 26.2 is amended to provide that the term
10“public improvement” excludes construction work and repair
11or maintenance work performed for a city utility under
12Code chapter 388 when such work relates to existing utility
13infrastructure or to establishing connections to existing
14utility systems.
15Code section 26.4, relating to architectural and engineering
16services, is amended to prohibit fee-based selection of an
17architect, landscape architect, or engineer for a public
18improvement.
19Code section 262.34 is amended to prohibit the state board
20of regents from entering into a design-build contract to
21construct, repair, or improve buildings or grounds.
22DIVISION II — GUARANTEED MAXIMUM PRICE CONTRACTS. This
23division allows a governmental entity to use a guaranteed
24maximum price contract for purposes of public improvement
25contracts.
26New Code section 26A.1 defines, among other terms,
27“construction manager-at-risk”, “governmental entity”,
28“guaranteed maximum price contract” and “public improvement”.
29“Guaranteed maximum price contract” is defined to mean the
30agreed to fixed or guaranteed maximum price pursuant to a
31contract entered into by the construction manager-at-risk and
32the governmental entity. “Construction manager-at-risk” means
33a legal entity that assumes the risk for the construction,
34rehabilitation, alteration, or repair of a project and
35provides consultant services to the governmental entity in the
-8-1development and design phases, working collaboratively with
2the design professionals involved. “Governmental entity” is
3defined to mean the state, political subdivisions of the state,
4and public school corporations, and is specifically defined to
5include the state board of regents. “Public improvement” is
6defined to mean the same as for purposes of Code chapter 26
7governing public construction bidding.
8New Code section 26A.2 authorizes a governmental entity to
9enter into a guaranteed maximum price contract for a public
10improvement, notwithstanding any provision of law to the
11contrary.
12New Code section 26A.3 establishes the process for entering
13into a guaranteed maximum price contract. The new Code section
14provides procedures governing public disclosure of an intent to
15enter into a guaranteed maximum price contract, selection of
16an engineer, landscape architect, or architect, a request for
17qualifications process, a request for proposals and selection
18process, and selection of trade contractors and material
19packages.
20New Code section 26A.4 prohibits a governmental entity from
21entering into a design-build contract for the construction of a
22public improvement and entering into a guaranteed maximum price
23contract for public improvements relating to highway and bridge
24construction.
-9-ec/rn