Bill Text: IA SSB1018 | 2021-2022 | 89th General Assembly | Introduced
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.(See SF 183.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2021-01-27 - Committee report approving bill, renumbered as SF 183. [SSB1018 Detail]
Download: Iowa-2021-SSB1018-Introduced.html
Senate
Study
Bill
1018
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
STATE
GOVERNMENT
BILL
BY
CHAIRPERSON
SMITH)
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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DIVISION
I
1
PUBLIC
CONSTRUCTION
BIDDING
REQUIREMENTS
2
Section
1.
Section
26.4,
Code
2021,
is
amended
to
read
as
3
follows:
4
26.4
Exemptions
from
competitive
bids
and
quotations
5
Architectural
and
engineering
services
——
exemptions
——
6
prohibitions
.
7
1.
Architectural,
landscape
architectural,
or
engineering
8
design
services
procured
for
a
public
improvement
are
not
9
subject
to
sections
26.3
and
26.14
.
10
2.
Fee-based
selection
of
an
architect,
landscape
11
architect,
or
engineer
for
a
public
improvement
shall
be
12
prohibited.
13
Sec.
2.
Section
262.34,
Code
2021,
is
amended
by
adding
the
14
following
new
subsection:
15
NEW
SUBSECTION
.
6.
Notwithstanding
any
provision
of
this
16
chapter
to
the
contrary,
the
state
board
of
regents
shall
17
not
be
authorized
to
enter
into
a
design-build
contract
to
18
construct,
repair,
or
improve
buildings
or
grounds.
For
19
purposes
of
this
subsection,
“design-build
contract”
means
20
a
single
contract
providing
for
both
design
services
and
21
construction
services
that
may
include
maintenance,
operations,
22
preconstruction,
and
other
related
services.
23
Sec.
3.
EFFECTIVE
DATE.
The
following,
being
deemed
of
24
immediate
importance,
takes
effect
upon
enactment:
25
The
section
of
this
division
of
this
Act
amending
section
26
262.34.
27
Sec.
4.
APPLICABILITY.
The
section
of
this
division
of
28
this
Act
amending
section
262.34
does
not
apply
to
projects
29
using
design-build
if
an
architect
has
entered
into
a
contract
30
to
work
with
the
state
board
of
regents
on
a
project
using
31
design-build
prior
to
the
effective
date
of
the
section
of
this
32
division
of
this
Act
amending
section
262.34.
33
DIVISION
II
34
GUARANTEED
MAXIMUM
PRICE
CONTRACTS
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Sec.
5.
NEW
SECTION
.
26A.1
Definitions.
1
As
used
in
this
chapter,
unless
the
context
clearly
2
indicates
otherwise:
3
1.
“Construction
manager-at-risk”
means
a
sole
4
proprietorship,
partnership,
corporation,
or
other
legal
entity
5
that
assumes
the
risk
for
the
construction,
rehabilitation,
6
alteration,
or
repair
of
a
project
and
provides
consultant
7
services
to
the
government
entity
in
the
development
and
design
8
phases,
working
collaboratively
with
the
design
professionals
9
involved.
10
2.
“General
conditions”
means
work
which
will
not
be
11
incorporated
into
the
completed
project.
This
work
includes
12
but
is
not
limited
to
job
site
cleaning
and
temporary
13
structures.
14
3.
“
Governmental
entity”
means
the
state,
political
15
subdivisions
of
the
state,
public
school
corporations,
and
all
16
officers,
boards,
or
commissions
empowered
by
law
to
enter
17
into
contracts
for
the
construction
of
public
improvements,
18
including
the
state
board
of
regents.
19
4.
“Guaranteed
maximum
price
contract”
means
the
agreed
20
to
fixed
or
guaranteed
maximum
price
pursuant
to
a
contract
21
entered
into
by
the
construction
manager-at-risk
and
the
22
governmental
entity.
23
5.
“Public
improvement”
means
as
defined
in
section
26.2.
24
6.
“Repair
or
maintenance
work”
means
as
defined
in
section
25
26.2.
26
7.
“Self-perform”
means
work
that
is
executed
by
27
the
construction
manager-at-risk
without
the
use
of
a
28
subcontractor.
Electrical,
mechanical,
fire
suppression,
and
29
plumbing
work
may
not
be
self-performed.
30
Sec.
6.
NEW
SECTION
.
26A.2
Authorization.
31
Notwithstanding
any
other
law
to
the
contrary,
a
32
governmental
entity
shall
be
authorized
to
enter
into
a
33
guaranteed
maximum
price
contract
for
the
construction
of
a
34
public
improvement
pursuant
to
this
chapter.
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Sec.
7.
NEW
SECTION
.
26A.3
Guaranteed
maximum
price
1
contract
——
process.
2
1.
A
governmental
entity
shall
publicly
disclose
the
3
governmental
entity’s
intent
to
enter
into
a
guaranteed
4
maximum
price
contract
and
the
governmental
entity’s
selection
5
criteria
at
least
fourteen
days
prior
to
publishing
a
request
6
for
statements
of
qualifications.
Public
disclosure
shall
7
be
in
a
relevant
contractor
plan
room
service
with
statewide
8
circulation,
a
relevant
construction
lead
generating
service
9
with
statewide
circulation,
and
on
an
internet
site
sponsored
10
by
either
a
governmental
entity
or
a
statewide
association
that
11
represents
the
governmental
entity.
12
2.
The
governmental
entity
shall
select
or
designate
an
13
engineer
licensed
under
chapter
542B,
a
landscape
architect
14
licensed
under
chapter
544B,
or
an
architect
licensed
15
under
chapter
544A
by
utilizing
a
quality-based
selection
16
process.
Fee-based
selection
of
the
engineer,
landscape
17
architect,
or
architect
shall
be
prohibited.
The
engineer,
18
landscape
architect,
or
architect
selected
or
designated
by
19
the
government
entity
under
this
subsection
shall
have
the
20
responsibility
of
preparing
construction
documents
for
the
21
project
and
shall
review
the
construction
for
conformance
with
22
design
intent.
23
3.
a.
(1)
The
governmental
entity
shall
prepare
a
request
24
for
statements
of
qualifications.
The
request
shall
include
25
general
information
on
the
project
site,
project
scope,
26
schedule,
selection
criteria,
and
the
time
and
place
for
27
receipt
of
statements
of
qualifications.
Selection
criteria
28
and
general
information
included
in
the
request
for
statements
29
of
qualifications
may
be
developed
in
coordination
with
30
the
engineer,
landscape
architect,
or
architect
selected
or
31
designated
by
the
governmental
entity
as
provided
under
this
32
section.
33
(2)
Selection
criteria
may
include
the
contractor’s
34
experience
undertaking
projects
of
similar
size
and
scope
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in
either
the
public
or
private
sector,
past
performance,
1
safety
record,
proposed
personnel,
and
proposed
methodology.
2
Selection
criteria
shall
include
experience
in
both
the
public
3
and
the
private
sector.
Selection
criteria
shall
not
include
4
specific
delivery
methods,
including
guaranteed
maximum
price
5
projects.
In
addition,
selection
criteria
shall
not
include
6
training,
testing,
or
other
certifications
that
may
only
7
be
obtained
through
organized
labor
affiliations
or
other
8
limited-membership
organizations.
9
(3)
A
request
for
statements
of
qualifications
under
this
10
subsection
shall
be
subject
to
the
requirements
of
section
11
73A.28.
In
addition,
a
governmental
entity
shall
not
by
12
ordinance,
rule,
or
any
other
action
relating
to
the
request
13
for
qualifications
stipulate
criteria
that
would
directly
14
or
indirectly
restrict
the
selection
of
a
construction
15
manager-at-risk
to
any
predetermined
class
of
providers
based
16
on
labor
organization
affiliation
or
any
other
criteria
other
17
than
that
allowed
pursuant
to
this
paragraph.
18
b.
The
request
for
statements
of
qualifications
shall
be
19
posted
not
less
than
thirteen
and
not
more
than
forty-five
days
20
before
the
date
for
response
in
a
relevant
contractor
plan
room
21
service
with
statewide
circulation,
in
a
relevant
construction
22
lead
generating
service
with
statewide
circulation,
and
on
an
23
internet
site
sponsored
by
either
a
governmental
entity
or
a
24
statewide
association
that
represents
the
governmental
entity.
25
If
circumstances
beyond
the
control
of
the
governmental
26
entity
require
postponement
and
there
are
no
changes
to
the
27
project’s
contract
documents,
a
notice
of
the
revised
date
28
shall
be
posted
not
less
than
four
and
not
more
than
forty-five
29
days
before
the
revised
date
for
answering
the
request
for
30
proposals
and
statements
of
qualifications
in
a
relevant
31
contractor
plan
room
service
with
statewide
circulation,
in
a
32
relevant
construction
lead
generating
service
with
statewide
33
circulation,
and
on
an
internet
site
sponsored
by
either
a
34
government
entity
or
a
statewide
association
that
represents
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the
governmental
entity.
1
c.
The
governmental
entity
shall
receive,
publicly
open,
and
2
read
aloud
the
names
of
the
contractors
submitting
statements
3
of
qualifications.
Within
forty-five
days
after
the
date
of
4
opening
the
statements
of
qualifications
submissions,
the
5
governmental
entity
shall
evaluate
each
proposal
or
statement
6
of
qualifications
submission
in
relation
to
the
criteria
set
7
forth
in
the
request.
8
4.
a.
After
considering
the
statements
of
qualifications,
9
the
governmental
entity
shall
issue
a
request
for
proposals
10
to
each
contractor
who
meets
the
qualifications
which
shall
11
include
selection
and
evaluation
criteria.
Each
contractor
12
issued
a
request
for
proposals
shall
be
permitted
to
submit
13
a
proposal
and
each
proposal
submitted
shall
include
the
14
construction
manager-at-risk’s
proposed
fees.
The
request
15
for
proposals
shall
be
subject
to
the
requirements
of
section
16
73A.28
and
the
same
limitations
applied
to
selection
criteria
17
for
the
request
for
statements
of
qualifications
in
this
18
chapter.
19
b.
The
governmental
entity
shall
receive,
publicly
open,
and
20
read
aloud
the
names
of
the
contractors
submitting
proposals.
21
Within
forty-five
days
after
the
date
of
opening
the
proposals,
22
the
governmental
entity
shall
evaluate
and
rank
each
proposal
23
in
relation
to
the
criteria
set
forth
in
the
applicable
24
request.
25
c.
The
governmental
entity
or
its
representative
shall
26
select
the
construction
manager-at-risk
that
submits
the
27
proposal
that
offers
the
best
value
for
the
governmental
28
entity
based
on
the
published
selection
criteria
and
on
29
its
ranking
evaluation.
The
governmental
entity
shall
30
first
attempt
to
negotiate
a
contract
with
the
selected
31
construction
manager-at-risk.
If
the
governmental
entity
32
is
unable
to
negotiate
a
satisfactory
contract
with
the
33
selected
construction
manager-at-risk,
the
governmental
entity
34
shall,
formally
and
in
writing,
end
negotiations
with
that
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construction
manager-at-risk
and
proceed
to
negotiate
with
the
1
next
construction
manager-at-risk
in
the
order
of
the
selection
2
ranking
until
a
contract
is
reached
or
negotiations
with
all
3
ranked
construction
managers-at-risk
end.
4
d.
The
governmental
entity
shall
make
available
to
the
5
public
the
final
scoring
and
ranking
evaluation
of
the
request
6
for
proposals
received.
7
5.
a.
If
the
estimated
total
cost
of
trade
contract
work
8
and
materials
packages
is
in
excess
of
the
adjusted
competitive
9
bid
threshold
established
in
section
314.1B,
the
construction
10
manager-at-risk
shall
advertise
for
competitive
bids,
receive
11
bids,
prepare
bid
analyses,
and
award
contracts
to
qualified
12
firms
on
trade
contract
work
and
materials
packages
in
13
accordance
with
all
of
the
following:
14
(1)
The
construction
manager-at-risk
shall
prepare
a
15
request
for
statements
of
qualifications.
The
request
shall
16
include
general
information
on
the
project
site,
project
17
scope,
schedule,
selection
criteria,
and
the
time
and
place
18
for
receipt
of
statements
of
qualifications.
The
construction
19
manager-at-risk
shall
provide
public
notice
of
the
request
for
20
statements
of
qualifications
in
a
relevant
contractor
plan
room
21
service
with
statewide
circulation,
a
relevant
construction
22
lead
generating
service
with
statewide
circulation,
and
on
an
23
internet
site
sponsored
by
either
a
governmental
entity
or
a
24
statewide
association
that
represents
the
governmental
entity.
25
The
request
for
statements
of
qualifications
shall
be
posted
26
not
less
than
thirteen
and
not
more
than
forty-five
days
before
27
the
date
for
response.
28
(2)
(a)
The
construction
manager-at-risk
shall
utilize
29
objective
prequalification
criteria
in
the
request
for
30
statements
of
qualifications.
All
firms
who
meet
the
31
objective
prequalification
criteria
as
a
qualified
firm
32
shall
be
allowed
to
submit
a
bid
for
the
relevant
trade
33
contract
work
and
materials
package.
Upon
determining
which
34
firms
meet
the
prequalification
criteria,
the
construction
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manager-at-risk
shall
notify
all
firms
who
responded
to
the
1
request
for
qualifications
whether
they
successfully
meet
the
2
prequalification
criteria.
The
notification
shall
include
a
3
list
of
all
firms
who
were
deemed
to
have
successfully
met
the
4
prequalification
criteria.
Notification
shall
be
given
no
5
less
than
fifteen
days
prior
to
the
subcontractor
bids
being
6
due.
Subcontractors
who
failed
to
meet
the
prequalification
7
standards
shall
also
be
provided
with
information
regarding
8
which
prequalification
criteria
were
not
met.
In
addition,
9
a
firm
that
is
prequalified
with
the
state
department
of
10
transportation
pursuant
to
section
314.1
shall
be
considered
11
to
meet
the
objective
prequalification
criteria
as
a
qualified
12
firm
and
shall
be
allowed
to
submit
a
bid
for
purposes
of
work
13
related
to
parking
lots,
streets,
site
development,
or
bridge
14
structure
components.
15
(b)
Prequalification
criteria
shall
be
limited
to
a
16
firm’s
experience
as
a
contractor,
capacity
of
key
personnel,
17
technical
competence,
capability
to
perform,
the
past
18
performance
of
the
firm
and
the
firm’s
employees
to
include
19
the
firm’s
safety
record
and
compliance
with
state
and
federal
20
law,
and
availability
to
and
familiarity
with
the
location
of
21
the
project
subject
to
bid.
Prequalification
criteria
shall
22
be
reasonably
and
materially
related
to
the
relevant
trade
23
contract
work
and
materials
package.
The
prequalification
24
criteria
shall
not
include
training,
testing,
or
other
25
certifications
that
may
only
be
obtained
through
organized
26
labor
affiliated
organizations
or
other
limited-membership
27
organizations.
28
(3)
The
governmental
entity
and
the
construction
29
manager-at-risk
shall
participate
in
the
bid
review
and
30
evaluation
process.
The
governmental
entity
and
the
31
construction
manager-at-risk
shall
open,
announce
the
name
32
of
the
contractor
submitting
a
bid,
and
file
all
proposals
33
received,
at
the
time
and
place
specified
in
the
notice
to
34
bidders.
After
the
bids
have
been
opened,
reviewed,
and
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tabulated,
the
contracts
shall
be
awarded
to
the
lowest
1
responsive,
responsible
bidder.
All
awards
and
bids
shall
be
2
made
available
to
the
public.
3
(4)
Notwithstanding
any
other
provisions
of
this
paragraph
4
to
the
contrary,
the
construction
manager-at-risk
may
5
self-perform
work
for
a
trade
package
that
is
below
the
6
adjusted
competitive
bid
threshold
established
in
section
7
314.1B.
If
a
trade
package
is
in
excess
of
the
adjusted
8
competitive
bid
threshold
established
in
section
314.1B,
the
9
construction
manager-at-risk
shall
notify
the
governmental
10
entity
in
writing
of
its
intent
to
submit
a
bid
proposal
for
11
a
trade
package.
In
submission
of
a
bid,
the
construction
12
manager-at-risk
shall
comply
with
the
requirements
of
this
13
paragraph.
The
governmental
entity
shall
receive
the
bids,
14
participate
in,
and
provide
oversight
of
all
bid
analyses
15
pertinent
to
the
award
of
subcontracts
or
rejection
of
bids
on
16
any
trade
package
for
which
the
construction
manager-at-risk
17
submits
a
bid
to
self-perform.
Where
the
construction
18
manager-at-risk
is
not
the
apparent
low
bidder,
the
government
19
shall
be
responsible
for
determining
whether
a
recommendation
20
of
award
to
the
construction
manager-at-risk
is
in
the
best
21
interests
of
the
project.
A
construction
manager-at-risk
shall
22
not
be
required
to
comply
with
bidding
requirements
for
general
23
conditions
as
provided
in
the
contract
with
the
governmental
24
entity.
If
the
construction
manager-at-risk
self-performs
25
the
construction
work,
it
shall
adhere
to
any
agreement
it
26
may
have
with
one
or
more
labor
organizations.
However,
the
27
construction
manager-at-risk
shall
not
be
obligated
to
adhere
28
to
any
terms
and
conditions
of
any
labor
agreement
with
one
or
29
more
labor
organizations
for
those
trade
contracts
that
are
30
not
self-performed
by
the
construction
manager-at-risk
for
the
31
public
improvement,
and
such
terms
shall
be
deemed
void
and
32
unenforceable.
33
b.
If
a
selected
trade
contractor
materially
defaults
in
34
the
performance
of
its
work
or
fails
to
execute
a
contract,
35
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the
construction
manager-at-risk
may,
without
advertising,
1
fulfill
the
contract
requirements
or
select
a
replacement
trade
2
contractor
to
fulfill
the
contract
requirements.
3
Sec.
8.
NEW
SECTION
.
26A.4
Prohibited
contracts.
4
1.
Notwithstanding
any
other
provision
of
law
to
the
5
contrary,
a
governmental
entity
shall
not
be
authorized
6
to
enter
into
a
design-build
contract
for
the
construction
7
of
a
public
improvement.
For
purposes
of
this
subsection,
8
“design-build
contract”
means
a
single
contract
providing
for
9
both
design
services
and
construction
services
that
may
include
10
maintenance,
operations,
preconstruction,
and
other
related
11
services.
12
2.
A
governmental
entity
shall
not
be
authorized
to
13
enter
into
a
guaranteed
maximum
price
contract
for
public
14
improvements
relating
to
highway,
bridge,
or
culvert
15
construction.
16
EXPLANATION
17
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
18
the
explanation’s
substance
by
the
members
of
the
general
assembly.
19
This
bill
concerns
public
construction
and
improvement
20
contracts.
21
DIVISION
I
——
PUBLIC
CONSTRUCTION
BIDDING
REQUIREMENTS.
22
Code
section
26.4,
relating
to
architectural
and
engineering
23
services,
is
amended
to
prohibit
fee-based
selection
of
an
24
architect,
landscape
architect,
or
engineer
for
a
public
25
improvement.
26
Code
section
262.34
is
amended
to
prohibit
the
state
board
27
of
regents
from
entering
into
a
design-build
contract
to
28
construct,
repair,
or
improve
buildings
or
grounds.
This
29
provision
takes
effect
upon
enactment.
However,
the
provision
30
does
not
apply
if
an
architect
entered
into
a
design-build
31
contract
with
the
state
board
of
regents
prior
to
the
effective
32
date
of
the
provision.
33
DIVISION
II
——
GUARANTEED
MAXIMUM
PRICE
CONTRACTS.
This
34
division
allows
a
governmental
entity
to
use
a
guaranteed
35
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maximum
price
contract
for
purposes
of
public
improvement
1
contracts.
2
New
Code
section
26A.1
defines,
among
other
terms,
3
“construction
manager-at-risk”,
“governmental
entity”,
4
“guaranteed
maximum
price
contract”
and
“public
improvement”.
5
“Guaranteed
maximum
price
contract”
is
defined
to
mean
the
6
agreed
to
fixed
or
guaranteed
maximum
price
pursuant
to
a
7
contract
entered
into
by
the
construction
manager-at-risk
and
8
the
governmental
entity.
“Construction
manager-at-risk”
means
9
a
legal
entity
that
assumes
the
risk
for
the
construction,
10
rehabilitation,
alteration,
or
repair
of
a
project
and
11
provides
consultant
services
to
the
governmental
entity
in
the
12
development
and
design
phases,
working
collaboratively
with
13
the
design
professionals
involved.
“Governmental
entity”
is
14
defined
to
mean
the
state,
political
subdivisions
of
the
state,
15
and
public
school
corporations,
and
is
specifically
defined
to
16
include
the
state
board
of
regents.
“Public
improvement”
is
17
defined
to
mean
the
same
as
for
purposes
of
Code
chapter
26
18
governing
public
construction
bidding.
19
New
Code
section
26A.2
authorizes
a
governmental
entity
to
20
enter
into
a
guaranteed
maximum
price
contract
for
a
public
21
improvement,
notwithstanding
any
provision
of
law
to
the
22
contrary.
23
New
Code
section
26A.3
establishes
the
process
for
entering
24
into
a
guaranteed
maximum
price
contract.
The
new
Code
section
25
provides
procedures
governing
public
disclosure
of
an
intent
to
26
enter
into
a
guaranteed
maximum
price
contract,
selection
of
27
an
engineer,
landscape
architect,
or
architect,
a
request
for
28
qualifications
process,
a
request
for
proposals
and
selection
29
process,
and
selection
of
trade
contractors
and
material
30
packages.
31
New
Code
section
26A.4
prohibits
a
governmental
entity
from
32
entering
into
a
design-build
contract
for
the
construction
of
a
33
public
improvement
and
entering
into
a
guaranteed
maximum
price
34
contract
for
public
improvements
relating
to
highway
and
bridge
35
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11
