Bill Text: CA SB1457 | 2009-2010 | Regular Session | Amended

California Senate Bill 1457 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: State facilities: alternative project delivery methods.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2010-06-24 - Placed on inactive file on request of Senator Cogdill. [SB1457 Detail]

Download: California-2009-SB1457-Amended.html

BILL NUMBER: SB 1457	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 28, 2010
	AMENDED IN SENATE  MARCH 23, 2010

INTRODUCED BY   Senator Cogdill

                        FEBRUARY 19, 2010

   An act to add Section 14661.2 to the Government Code, relating to
public contracts.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1457, as amended, Cogdill. State facilities: alternative
project delivery methods.
   Existing law establishes procedures governing design-bid-build
methods of procurement, but permits the Director of General Services,
when authorized by the Legislature, to use the design-build
procurement process for state office facilities, other buildings,
structures, and related facilities. Existing law further requires the
director, prior to contracting for the procurement of state office
facilities and other state buildings and structures, to prepare a
program setting forth the scope of the project and to establish a
competitive prequalification process, as provided.
   This bill would authorize the Director of General Services to
undertake public works of improvement by using  other
alternative methods   an   alternative method
 of procurement, as prescribed. The bill would authorize the
director, whenever a public works appropriation is made  for
acquisition, preliminary plans, working drawings, or the construction
phase of a project  , to determine the most appropriate
delivery method for that project. The bill would require the
department to follow specified criteria for those contracts and would
set forth the applicable labor and contracting standards, including
payment procedures, delivery methods, and remedies in case of
default.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) It is in the best interest of the State of California to
construct state offices and other necessary program facilities in a
cost-efficient manner that represents the best overall value to the
taxpayers and has the greatest benefit to our state's economy.
   (b) Alternative project delivery methods can be an attractive
option to departments in comparison to the existing three-step
(design-bid-build) process.
   (c) The State of California should be able to utilize
cost-effective options for the delivery of public works projects, in
accordance with the national trend, which include authorizations in
California to allow public entities to utilize alternative delivery
methods.
  SEC. 2.  Section 14661.2 is added to the Government Code, to read:
   14661.2.  (a) Notwithstanding any other law, the Department of
General Services may undertake public works of improvement by using
 any of the methods   the method  set forth
in this section. The availability of  these alternative
methods   this method  shall not preclude the use
of other methods of project delivery.
   (b) For purposes of this section, the following definitions apply:

   (1) "Construction manager at risk contract" means a competitively
bid contract by a department with an individual, partnership, joint
venture, corporation, or other recognized legal entity, which is
appropriately licensed in this state and which guarantees the cost of
a project and furnishes construction management services, including,
but not limited to, preparation and coordination of bid packages,
scheduling, cost control, value engineering, evaluation,
preconstruction services, and construction administration. 

   (2) 
    (1)  "Department" means the Department of General
Services as to any project under the jurisdiction of that department,
or its successor department or agency. 
   (3) 
    (2)  "Director" means the Director of General Services.

   (4) 
    (3)  "Job order contract" means a competitively bid,
fixed priced, indefinite quantity procurement contract issued by a
department to a job order contractor for a definite project or work,
as compiled from a catalog of construction tasks to be performed
pursuant to a job order contract. Each job order under a job order
contract shall not exceed the total cost limit established by the
Director of Finance pursuant to subdivision (b) of Section 10105 of
the Public Contract Code.
   (c) Whenever an appropriation for a public works project is
 made for acquisition, preliminary plans, working drawings,
or the construction phase   made  , the director
shall determine the most appropriate delivery method for that
project. The director shall consider the following criteria:
   (1) The nature of the project.
   (2) The project delivery schedules.
   (3) Overall project cost, including life cycle costs during the
operational phase following construction.
   (4) The ability to achieve  design,  construction
 ,  or operational features not achievable through
the design-bid-build method. 
   (5) Shifting owner risk from the department to the design or
contracting entities.  
   (6) 
    (5)  Minimizing change orders. 
   (7) 
    (6)  Other criteria determined by the director to be
critical to the project based on specific facility program.
   (d) Contracts entered into using  an  alternative
delivery  methods   method  pursuant to
this section are subject to all of the following:
   (1) Any entity entering into such a contract shall not be exempt
from the provisions of the Labor Code.
   (2) Public notice of a project shall be provided in accordance
with Sections 10140 and 10141 of the Public Contract Code.
   (3) The contract shall provide for the filing of separate
performance and payment bonds by the contractor in accordance with
Sections 3247, 3248, 3249, 3250, 3251, and 3252 of the Civil Code,
and Sections 7103 and 7200 of the Public Contract Code.
   (4) Each bond shall be in a sum as provided in Section 3248 of the
Civil Code.
   (5) The payment bond shall secure the payment of the claims of
laborers, mechanics, or material men employed on the work under the
contract and shall contain all other provisions required by law.
   (6) Any payment or performance bond written for the purpose of
alternative delivery methods shall be written using a bond form
developed by the department pursuant to subdivision (g) of Section
14661.1 of the Government Code. The purpose of this subdivision is to
promote uniformity of bond forms to be used for alternative delivery
system projects throughout the state. The performance bond shall
guarantee the faithful performance of the contract by the contractor.
In lieu of payment and performance bonds the director may elect to
purchase separate insurance to cover the performance of the
contractor.
   (7) No payment shall be made upon the contract to the contractor
or any assignee of the contractor until any order by the director
that a sufficient surety be substituted on the bond or that a new,
additional, or supplemental bond be given, is satisfied. No
cancellation of or withdrawal of a surety from a bond is effective
unless approved by the director.
   (8) The contract shall contain a provision regarding the time when
the whole or any specified portion of the work contemplated shall be
completed, and shall provide that for each day completion is delayed
beyond the specified time, the contractor shall forfeit and pay to
the state a specified sum of money to be deducted from any payments
due or to become due to the contractor. The sum so specified is valid
as liquidated damages, unless manifestly unreasonable under the
circumstances existing at the time the contract was made. 
Any contract pursuant to this section may also provide for the
payment of extra compensation to the contractor as a bonus for
completion prior to the specified time. The provision for extra
compensation, if used, shall be included in the specifications, which
shall clearly set forth the basis for the payment. Inclusion of a
bonus for early completion clause shall not be used as a reason for
augmentation of the public work appropriation. 
   (9) Contract payments shall be made as prescribed in Sections
10261 and 10261.5 of the Public Contract Code.
   (10) Any contractor or subcontractor shall pay his or her
subcontractors in accordance with Sections 10262 and 10262.5 of the
Public Contract Code.
   (11) (A) If the director determines that a contractor has failed
to supply an adequate workforce or material of proper quality, or has
failed to comply with Section 10262 of the Public Contract Code, or
has failed in any other respect to complete the work with the
diligence and force specified by the contract, the director may do
either of the following:
   (i) After written notice of at least five days to the contractor
specifying the defaults to be remedied, provide any necessary labor
or materials and deduct the cost from any money due or to become due
to the contractor under the contract.
   (ii) If the director considers that the failure is sufficient
ground for termination, the director may give written notice of at
least five days to the contractor and the contractor's sureties, that
if the defaults are not remedied, the contractor's control over the
work shall be terminated.
   (B) If the defaults are not remedied within the time specified in
the notice, the contractor's control shall terminate as of the
expiration of that time.
   (12) A contract entered into pursuant to this section shall comply
with Section 10263 of the Public Contract Code with respect to the
substitution of securities for any moneys withheld by a public agency
to ensure performance under a contract.
   (e) Before entering into a contract for a project pursuant to this
section, the director shall make arrangements for preparation of
 the following:  
   (1) Complete plans and specifications setting forth the directions
needed to enable a competent mechanic or other builder to implement
them.  
   (2) The necessary documents for the solicitation of bids for the
construction manager at risk contract method, including
prequalification standards, schematic plans, and outline
specifications indicating the general scope of the project and the
designation of fees and other fixed costs upon which prequalified
contractors shall be invited to submit competitive bids, which shall
serve as the basis for selection. 
    (3)     The 
 the  necessary documents for the solicitation of bids for
the job order contract method, including prequalification standards,
schematic plans, and outline specifications indicating the general
scope of the project and the designation of fees and other fixed
costs upon which prequalified contractors shall be invited to submit
bids, which shall serve as the basis for selection.
   (f) Notwithstanding any provision of the Public Contract Code,
Chapter 3 (commencing with Section 15815) of Part 10b of Division 3
of this code, or any other law, the department shall establish
policies and procedures to implement this section. 
   (g) Contracts awarded pursuant to this section shall not include
services defined in Chapter 10 (commencing with Section 4525) of
Division 5 of Title 1.