Bill Text: IA SF2364 | 2019-2020 | 88th General Assembly | Amended
Bill Title: A bill for an act relating to a construction manager-at-risk commercial construction alternative delivery method and prohibiting certain other alternative delivery methods in the public sector and including effective date and applicability provisions. (Formerly SSB 3153.)
Spectrum: Committee Bill
Status: (Engrossed - Dead) 2020-06-10 - Fiscal note. [SF2364 Detail]
Download: Iowa-2019-SF2364-Amended.html
Senate
File
2364
-
Reprinted
SENATE
FILE
2364
BY
COMMITTEE
ON
STATE
GOVERNMENT
(SUCCESSOR
TO
SSB
3153)
(As
Amended
and
Passed
by
the
Senate
June
4,
2020
)
A
BILL
FOR
An
Act
relating
to
a
construction
manager-at-risk
commercial
1
construction
alternative
delivery
method
and
prohibiting
2
certain
other
alternative
delivery
methods
in
the
public
3
sector
and
including
effective
date
and
applicability
4
provisions.
5
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
6
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2364
(2)
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2364
DIVISION
I
1
PUBLIC
CONSTRUCTION
BIDDING
REQUIREMENTS
2
Section
1.
Section
26.2,
subsection
3,
paragraph
b,
3
subparagraph
(5),
Code
2020,
is
amended
to
read
as
follows:
4
(5)
Construction
or
repair
or
maintenance
work
performed
5
for
a
city
utility
under
chapter
388
when
such
work
is
6
performed
by
its
employees
or
performed
for
a
rural
water
7
district
under
chapter
357A
by
its
employees
when
such
work
8
relates
to
existing
utility
infrastructure
or
establishing
9
connections
to
existing
utility
infrastructure.
For
purposes
10
of
this
subparagraph,
“utility
infrastructure”
includes
11
facilities
used
for
the
storage,
collection,
disposal,
12
treatment,
generation,
transmission,
or
distribution
of
water,
13
sewage,
waste,
electricity,
gas,
or
telecommunications
service
.
14
Sec.
2.
Section
26.2,
subsection
3,
paragraph
b,
Code
2020,
15
is
amended
by
adding
the
following
new
subparagraph:
16
NEW
SUBPARAGRAPH
.
(6)
Construction
or
repair
or
17
maintenance
work
performed
for
a
rural
water
district
under
18
chapter
357A
by
its
employees.
19
Sec.
3.
Section
26.4,
Code
2020,
is
amended
to
read
as
20
follows:
21
26.4
Exemptions
from
competitive
bids
and
quotations
22
Architectural
and
engineering
services
——
exemptions
——
23
prohibitions
.
24
1.
Architectural,
landscape
architectural,
or
engineering
25
design
services
procured
for
a
public
improvement
are
not
26
subject
to
sections
26.3
and
26.14
.
27
2.
Fee-based
selection
of
an
architect,
landscape
28
architect,
or
engineer
for
a
public
improvement
shall
be
29
prohibited.
30
Sec.
4.
Section
262.34,
Code
2020,
is
amended
by
adding
the
31
following
new
subsection:
32
NEW
SUBSECTION
.
6.
Notwithstanding
any
provision
of
this
33
chapter
to
the
contrary,
the
state
board
of
regents
shall
34
not
be
authorized
to
enter
into
a
design-build
contract
to
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construct,
repair,
or
improve
buildings
or
grounds.
For
1
purposes
of
this
subsection,
“design-build
contract”
means
2
a
single
contract
providing
for
both
design
services
and
3
construction
services
that
may
include
maintenance,
operations,
4
preconstruction,
and
other
related
services.
5
Sec.
5.
EFFECTIVE
DATE.
The
following,
being
deemed
of
6
immediate
importance,
takes
effect
upon
enactment:
7
The
section
of
this
division
of
this
Act
amending
section
8
262.34.
9
Sec.
6.
APPLICABILITY.
The
section
of
this
division
of
10
this
Act
amending
section
262.34
does
not
apply
to
projects
11
using
design-build
if
an
architect
has
entered
into
a
contract
12
to
work
with
the
state
board
of
regents
on
a
project
using
13
design-build
prior
to
the
effective
date
of
the
section
of
this
14
division
of
this
Act
amending
section
262.34.
15
DIVISION
II
16
GUARANTEED
MAXIMUM
PRICE
CONTRACTS
17
Sec.
7.
NEW
SECTION
.
26A.1
Definitions.
18
As
used
in
this
chapter,
unless
the
context
clearly
19
indicates
otherwise:
20
1.
“Construction
manager-at-risk”
means
a
sole
21
proprietorship,
partnership,
corporation,
or
other
legal
entity
22
that
assumes
the
risk
for
the
construction,
rehabilitation,
23
alteration,
or
repair
of
a
project
and
provides
consultant
24
services
to
the
government
entity
in
the
development
and
design
25
phases,
working
collaboratively
with
the
design
professionals
26
involved.
27
2.
“General
conditions”
means
work
which
will
not
be
28
incorporated
into
the
completed
project.
This
work
includes
29
but
is
not
limited
to
job
site
cleaning
and
temporary
30
structures.
31
3.
“
Governmental
entity”
means
the
state,
political
32
subdivisions
of
the
state,
public
school
corporations,
and
all
33
officers,
boards,
or
commissions
empowered
by
law
to
enter
34
into
contracts
for
the
construction
of
public
improvements,
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including
the
state
board
of
regents.
1
4.
“Guaranteed
maximum
price
contract”
means
the
agreed
2
to
fixed
or
guaranteed
maximum
price
pursuant
to
a
contract
3
entered
into
by
the
construction
manager-at-risk
and
the
4
governmental
entity.
5
5.
“Public
improvement”
means
as
defined
in
section
26.2.
6
6.
“Repair
or
maintenance
work”
means
as
defined
in
section
7
26.2.
8
7.
“Self-perform”
means
work
that
is
executed
by
9
the
construction
manager-at-risk
without
the
use
of
a
10
subcontractor.
Electrical,
mechanical,
fire
suppression,
and
11
plumbing
work
may
not
be
self-performed.
12
Sec.
8.
NEW
SECTION
.
26A.2
Authorization.
13
Notwithstanding
any
other
law
to
the
contrary,
a
14
governmental
entity
shall
be
authorized
to
enter
into
a
15
guaranteed
maximum
price
contract
for
the
construction
of
a
16
public
improvement
pursuant
to
this
chapter.
17
Sec.
9.
NEW
SECTION
.
26A.3
Guaranteed
maximum
price
18
contract
——
process.
19
1.
A
governmental
entity
shall
publicly
disclose
the
20
governmental
entity’s
intent
to
enter
into
a
guaranteed
21
maximum
price
contract
and
the
governmental
entity’s
selection
22
criteria
at
least
fourteen
days
prior
to
publishing
a
request
23
for
statements
of
qualifications.
Public
disclosure
shall
24
be
in
a
relevant
contractor
plan
room
service
with
statewide
25
circulation,
a
relevant
construction
lead
generating
service
26
with
statewide
circulation,
and
on
an
internet
site
sponsored
27
by
either
a
governmental
entity
or
a
statewide
association
that
28
represents
the
governmental
entity.
29
2.
The
governmental
entity
shall
select
or
designate
an
30
engineer
licensed
under
chapter
542B,
a
landscape
architect
31
licensed
under
chapter
544B,
or
an
architect
licensed
32
under
chapter
544A
by
utilizing
a
quality-based
selection
33
process.
Fee-based
selection
of
the
engineer,
landscape
34
architect,
or
architect
shall
be
prohibited.
The
engineer,
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landscape
architect,
or
architect
selected
or
designated
by
1
the
government
entity
under
this
subsection
shall
have
the
2
responsibility
of
preparing
construction
documents
for
the
3
project
and
shall
review
the
construction
for
conformance
with
4
design
intent.
5
3.
a.
(1)
The
governmental
entity
shall
prepare
a
request
6
for
statements
of
qualifications.
The
request
shall
include
7
general
information
on
the
project
site,
project
scope,
8
schedule,
selection
criteria,
and
the
time
and
place
for
9
receipt
of
statements
of
qualifications.
Selection
criteria
10
and
general
information
included
in
the
request
for
statements
11
of
qualifications
may
be
developed
in
coordination
with
12
the
engineer,
landscape
architect,
or
architect
selected
or
13
designated
by
the
governmental
entity
as
provided
under
this
14
section.
15
(2)
Selection
criteria
may
include
the
contractor’s
16
experience
undertaking
projects
of
similar
size
and
scope
17
in
either
the
public
or
private
sector,
past
performance,
18
safety
record,
proposed
personnel,
and
proposed
methodology.
19
Selection
criteria
shall
include
experience
in
both
the
public
20
and
the
private
sector.
Selection
criteria
shall
not
include
21
specific
delivery
methods,
including
guaranteed
maximum
price
22
projects.
In
addition,
selection
criteria
shall
not
include
23
training,
testing,
or
other
certifications
that
may
only
24
be
obtained
through
organized
labor
affiliations
or
other
25
limited-membership
organizations.
26
(3)
A
request
for
statements
of
qualifications
under
this
27
subsection
shall
be
subject
to
the
requirements
of
section
28
73A.28.
In
addition,
a
governmental
entity
shall
not
by
29
ordinance,
rule,
or
any
other
action
relating
to
the
request
30
for
qualifications
stipulate
criteria
that
would
directly
31
or
indirectly
restrict
the
selection
of
a
construction
32
manager-at-risk
to
any
predetermined
class
of
providers
based
33
on
labor
organization
affiliation
or
any
other
criteria
other
34
than
that
allowed
pursuant
to
this
paragraph.
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b.
The
request
for
statements
of
qualifications
shall
be
1
posted
not
less
than
thirteen
and
not
more
than
forty-five
days
2
before
the
date
for
response
in
a
relevant
contractor
plan
room
3
service
with
statewide
circulation,
in
a
relevant
construction
4
lead
generating
service
with
statewide
circulation,
and
on
an
5
internet
site
sponsored
by
either
a
governmental
entity
or
a
6
statewide
association
that
represents
the
governmental
entity.
7
If
circumstances
beyond
the
control
of
the
governmental
8
entity
require
postponement
and
there
are
no
changes
to
the
9
project’s
contract
documents,
a
notice
of
the
revised
date
10
shall
be
posted
not
less
than
four
and
not
more
than
forty-five
11
days
before
the
revised
date
for
answering
the
request
for
12
proposals
and
statements
of
qualifications
in
a
relevant
13
contractor
plan
room
service
with
statewide
circulation,
in
a
14
relevant
construction
lead
generating
service
with
statewide
15
circulation,
and
on
an
internet
site
sponsored
by
either
a
16
government
entity
or
a
statewide
association
that
represents
17
the
governmental
entity.
18
c.
The
governmental
entity
shall
receive,
publicly
open,
and
19
read
aloud
the
names
of
the
contractors
submitting
statements
20
of
qualifications.
Within
forty-five
days
after
the
date
of
21
opening
the
statements
of
qualifications
submissions,
the
22
governmental
entity
shall
evaluate
each
proposal
or
statement
23
of
qualifications
submission
in
relation
to
the
criteria
set
24
forth
in
the
request.
25
4.
a.
After
considering
the
statements
of
qualifications,
26
the
governmental
entity
shall
issue
a
request
for
proposals
27
to
each
contractor
who
meets
the
qualifications
which
shall
28
include
selection
and
evaluation
criteria.
Each
contractor
29
issued
a
request
for
proposals
shall
be
permitted
to
submit
30
a
proposal
and
each
proposal
submitted
shall
include
the
31
construction
manager-at-risk’s
proposed
fees.
The
request
32
for
proposals
shall
be
subject
to
the
requirements
of
section
33
73A.28
and
the
same
limitations
applied
to
selection
criteria
34
for
the
request
for
statements
of
qualifications
in
this
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chapter.
1
b.
The
governmental
entity
shall
receive,
publicly
open,
and
2
read
aloud
the
names
of
the
contractors
submitting
proposals.
3
Within
forty-five
days
after
the
date
of
opening
the
proposals,
4
the
governmental
entity
shall
evaluate
and
rank
each
proposal
5
in
relation
to
the
criteria
set
forth
in
the
applicable
6
request.
7
c.
The
governmental
entity
or
its
representative
shall
8
select
the
construction
manager-at-risk
that
submits
the
9
proposal
that
offers
the
best
value
for
the
governmental
10
entity
based
on
the
published
selection
criteria
and
on
11
its
ranking
evaluation.
The
governmental
entity
shall
12
first
attempt
to
negotiate
a
contract
with
the
selected
13
construction
manager-at-risk.
If
the
governmental
entity
14
is
unable
to
negotiate
a
satisfactory
contract
with
the
15
selected
construction
manager-at-risk,
the
governmental
entity
16
shall,
formally
and
in
writing,
end
negotiations
with
that
17
construction
manager-at-risk
and
proceed
to
negotiate
with
the
18
next
construction
manager-at-risk
in
the
order
of
the
selection
19
ranking
until
a
contract
is
reached
or
negotiations
with
all
20
ranked
construction
managers-at-risk
end.
21
d.
The
governmental
entity
shall
make
available
to
the
22
public
the
final
scoring
and
ranking
evaluation
of
the
request
23
for
proposals
received.
24
5.
a.
If
the
estimated
total
cost
of
trade
contract
work
25
and
materials
packages
is
in
excess
of
the
adjusted
competitive
26
bid
threshold
established
in
section
314.1B,
the
construction
27
manager-at-risk
shall
advertise
for
competitive
bids,
receive
28
bids,
prepare
bid
analyses,
and
award
contracts
to
qualified
29
firms
on
trade
contract
work
and
materials
packages
in
30
accordance
with
all
of
the
following:
31
(1)
The
construction
manager-at-risk
shall
prepare
a
32
request
for
statements
of
qualifications.
The
request
shall
33
include
general
information
on
the
project
site,
project
34
scope,
schedule,
selection
criteria,
and
the
time
and
place
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for
receipt
of
statements
of
qualifications.
The
construction
1
manager-at-risk
shall
provide
public
notice
of
the
request
for
2
statements
of
qualifications
in
a
relevant
contractor
plan
room
3
service
with
statewide
circulation,
a
relevant
construction
4
lead
generating
service
with
statewide
circulation,
and
on
an
5
internet
site
sponsored
by
either
a
governmental
entity
or
a
6
statewide
association
that
represents
the
governmental
entity.
7
The
request
for
statements
of
qualifications
shall
be
posted
8
not
less
than
thirteen
and
not
more
than
forty-five
days
before
9
the
date
for
response.
10
(2)
(a)
The
construction
manager-at-risk
shall
utilize
11
objective
prequalification
criteria
in
the
request
for
12
statements
of
qualifications.
All
firms
who
meet
the
13
objective
prequalification
criteria
as
a
qualified
firm
14
shall
be
allowed
to
submit
a
bid
for
the
relevant
trade
15
contract
work
and
materials
package.
Upon
determining
which
16
firms
meet
the
prequalification
criteria,
the
construction
17
manager-at-risk
shall
notify
all
firms
who
responded
to
the
18
request
for
qualifications
whether
they
successfully
meet
the
19
prequalification
criteria.
The
notification
shall
include
a
20
list
of
all
firms
who
were
deemed
to
have
successfully
met
the
21
prequalification
criteria.
Notification
shall
be
given
no
22
less
than
fifteen
days
prior
to
the
subcontractor
bids
being
23
due.
Subcontractors
who
failed
to
meet
the
prequalification
24
standards
shall
also
be
provided
with
information
regarding
25
which
prequalification
criteria
were
not
met.
In
addition,
26
a
firm
that
is
prequalified
with
the
state
department
of
27
transportation
pursuant
to
section
314.1
shall
be
considered
28
to
meet
the
objective
prequalification
criteria
as
a
qualified
29
firm
and
shall
be
allowed
to
submit
a
bid
for
purposes
of
work
30
related
to
parking
lots,
streets,
site
development,
or
bridge
31
structure
components.
32
(b)
Prequalification
criteria
shall
be
limited
to
a
33
firm’s
experience
as
a
contractor,
capacity
of
key
personnel,
34
technical
competence,
capability
to
perform,
the
past
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performance
of
the
firm
and
the
firm’s
employees
to
include
1
the
firm’s
safety
record
and
compliance
with
state
and
federal
2
law,
and
availability
to
and
familiarity
with
the
location
of
3
the
project
subject
to
bid.
Prequalification
criteria
shall
4
be
reasonably
and
materially
related
to
the
relevant
trade
5
contract
work
and
materials
package.
The
prequalification
6
criteria
shall
not
include
training,
testing,
or
other
7
certifications
that
may
only
be
obtained
through
organized
8
labor
affiliated
organizations
or
other
limited-membership
9
organizations.
10
(3)
The
governmental
entity
and
the
construction
11
manager-at-risk
shall
participate
in
the
bid
review
and
12
evaluation
process.
The
governmental
entity
and
the
13
construction
manager-at-risk
shall
open,
announce
the
name
14
of
the
contractor
submitting
a
bid,
and
file
all
proposals
15
received,
at
the
time
and
place
specified
in
the
notice
to
16
bidders.
After
the
bids
have
been
opened,
reviewed,
and
17
tabulated,
the
contracts
shall
be
awarded
to
the
lowest
18
responsive,
responsible
bidder.
All
awards
and
bids
shall
be
19
made
available
to
the
public.
20
(4)
Notwithstanding
any
other
provisions
of
this
paragraph
21
to
the
contrary,
the
construction
manager-at-risk
may
22
self-perform
work
for
a
trade
package
that
is
below
the
23
adjusted
competitive
bid
threshold
established
in
section
24
314.1B.
If
a
trade
package
is
in
excess
of
the
adjusted
25
competitive
bid
threshold
established
in
section
314.1B,
the
26
construction
manager-at-risk
shall
notify
the
governmental
27
entity
in
writing
of
its
intent
to
submit
a
bid
proposal
for
28
a
trade
package.
In
submission
of
a
bid,
the
construction
29
manager-at-risk
shall
comply
with
the
requirements
of
this
30
paragraph.
The
governmental
entity
shall
receive
the
bids,
31
participate
in,
and
provide
oversight
of
all
bid
analyses
32
pertinent
to
the
award
of
subcontracts
or
rejection
of
bids
on
33
any
trade
package
for
which
the
construction
manager-at-risk
34
submits
a
bid
to
self-perform.
Where
the
construction
35
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manager-at-risk
is
not
the
apparent
low
bidder,
the
government
1
shall
be
responsible
for
determining
whether
a
recommendation
2
of
award
to
the
construction
manager-at-risk
is
in
the
best
3
interests
of
the
project.
A
construction
manager-at-risk
shall
4
not
be
required
to
comply
with
bidding
requirements
for
general
5
conditions
as
provided
in
the
contract
with
the
governmental
6
entity.
If
the
construction
manager-at-risk
self-performs
7
the
construction
work,
it
shall
adhere
to
any
agreement
it
8
may
have
with
one
or
more
labor
organizations.
However,
the
9
construction
manager-at-risk
shall
not
be
obligated
to
adhere
10
to
any
terms
and
conditions
of
any
labor
agreement
with
one
or
11
more
labor
organizations
for
those
trade
contracts
that
are
12
not
self-performed
by
the
construction
manager-at-risk
for
the
13
public
improvement,
and
such
terms
shall
be
deemed
void
and
14
unenforceable.
15
b.
If
a
selected
trade
contractor
materially
defaults
in
16
the
performance
of
its
work
or
fails
to
execute
a
contract,
17
the
construction
manager-at-risk
may,
without
advertising,
18
fulfill
the
contract
requirements
or
select
a
replacement
trade
19
contractor
to
fulfill
the
contract
requirements.
20
Sec.
10.
NEW
SECTION
.
26A.4
Prohibited
contracts.
21
1.
Notwithstanding
any
other
provision
of
law
to
the
22
contrary,
a
governmental
entity
shall
not
be
authorized
23
to
enter
into
a
design-build
contract
for
the
construction
24
of
a
public
improvement.
For
purposes
of
this
subsection,
25
“design-build
contract”
means
a
single
contract
providing
for
26
both
design
services
and
construction
services
that
may
include
27
maintenance,
operations,
preconstruction,
and
other
related
28
services.
29
2.
A
governmental
entity
shall
not
be
authorized
to
30
enter
into
a
guaranteed
maximum
price
contract
for
public
31
improvements
relating
to
highway,
bridge,
or
culvert
32
construction.
33
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