Bill Text: IA HF2572 | 2019-2020 | 88th 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. (Formerly HSB 674.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2020-06-13 - Amendments H-8307, H-8310 and H-8311 filed. H.J. 766. [HF2572 Detail]
Download: Iowa-2019-HF2572-Introduced.html
House
File
2572
-
Introduced
HOUSE
FILE
2572
BY
COMMITTEE
ON
LOCAL
GOVERNMENT
(SUCCESSOR
TO
HSB
674)
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.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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5829HV
(2)
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H.F.
2572
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
when
such
work
relates
to
7
existing
utility
infrastructure
or
to
establishing
connections
8
to
existing
utility
systems.
9
(6)
Construction
or
repair
or
maintenance
work
performed
10
for
a
rural
water
district
under
chapter
357A
by
its
employees.
11
Sec.
2.
Section
26.4,
Code
2020,
is
amended
to
read
as
12
follows:
13
26.4
Exemptions
from
competitive
bids
and
quotations
14
Architectural
and
engineering
services
——
exemptions
——
15
prohibitions
.
16
1.
Architectural,
landscape
architectural,
or
engineering
17
design
services
procured
for
a
public
improvement
are
not
18
subject
to
sections
26.3
and
26.14
.
19
2.
Fee-based
selection
of
an
architect,
landscape
20
architect,
or
engineer
for
a
public
improvement
shall
be
21
prohibited.
22
Sec.
3.
Section
262.34,
Code
2020,
is
amended
by
adding
the
23
following
new
subsection:
24
NEW
SUBSECTION
.
6.
Notwithstanding
any
provision
of
this
25
chapter
to
the
contrary,
the
state
board
of
regents
shall
26
not
be
authorized
to
enter
into
a
design-build
contract
to
27
construct,
repair,
or
improve
buildings
or
grounds.
For
28
purposes
of
this
subsection,
“design-build
contract”
means
29
a
single
contract
providing
for
both
design
services
and
30
construction
services
that
may
include
maintenance,
operations,
31
preconstruction,
and
other
related
services.
32
DIVISION
II
33
GUARANTEED
MAXIMUM
PRICE
CONTRACTS
34
Sec.
4.
NEW
SECTION
.
26A.1
Definitions.
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As
used
in
this
chapter,
unless
the
context
clearly
1
indicates
otherwise:
2
1.
“Construction
manager-at-risk”
means
a
sole
3
proprietorship,
partnership,
corporation,
or
other
legal
entity
4
that
assumes
the
risk
for
the
construction,
rehabilitation,
5
alteration,
or
repair
of
a
project
and
provides
consultant
6
services
to
the
government
entity
in
the
development
and
design
7
phases,
working
collaboratively
with
the
design
professionals
8
involved.
9
2.
“
Governmental
entity”
means
the
state,
political
10
subdivisions
of
the
state,
public
school
corporations,
and
all
11
officers,
boards,
or
commissions
empowered
by
law
to
enter
12
into
contracts
for
the
construction
of
public
improvements,
13
including
the
state
board
of
regents.
14
3.
“Guaranteed
maximum
price
contract”
means
the
agreed
15
to
fixed
or
guaranteed
maximum
price
pursuant
to
a
contract
16
entered
into
by
the
construction
manager-at-risk
and
the
17
governmental
entity.
18
4.
“Public
improvement”
means
as
defined
in
section
26.2.
19
5.
“Repair
or
maintenance
work”
means
as
defined
in
section
20
26.2.
21
Sec.
5.
NEW
SECTION
.
26A.2
Authorization.
22
Notwithstanding
any
other
law
to
the
contrary,
a
23
governmental
entity
shall
be
authorized
to
enter
into
a
24
guaranteed
maximum
price
contract
for
the
construction
of
a
25
public
improvement
pursuant
to
this
chapter.
26
Sec.
6.
NEW
SECTION
.
26A.3
Guaranteed
maximum
price
27
contract
——
process.
28
1.
A
governmental
entity
shall
publicly
disclose
the
29
governmental
entity’s
intent
to
enter
into
a
guaranteed
30
maximum
price
contract
and
the
governmental
entity’s
selection
31
criteria
at
least
fourteen
days
prior
to
publishing
a
request
32
for
statements
of
qualifications.
Public
disclosure
shall
33
be
in
a
relevant
contractor
plan
room
service
with
statewide
34
circulation,
a
relevant
construction
lead
generating
service
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with
statewide
circulation,
and
on
an
internet
site
sponsored
1
by
either
a
governmental
entity
or
a
statewide
association
that
2
represents
the
governmental
entity.
3
2.
The
governmental
entity
shall
select
or
designate
an
4
engineer
licensed
under
chapter
542B,
a
landscape
architect
5
licensed
under
chapter
544B,
or
an
architect
licensed
6
under
chapter
544A
by
utilizing
a
quality-based
selection
7
process.
Fee-based
selection
of
the
engineer,
landscape
8
architect,
or
architect
shall
be
prohibited.
The
engineer,
9
landscape
architect,
or
architect
selected
or
designated
by
10
the
government
entity
under
this
subsection
shall
have
the
11
responsibility
of
preparing
construction
documents
for
the
12
project
and
shall
review
the
construction
for
conformance
with
13
design
intent.
14
3.
a.
(1)
The
governmental
entity
shall
prepare
a
request
15
for
statements
of
qualifications.
The
request
shall
include
16
general
information
on
the
project
site,
project
scope,
17
schedule,
selection
criteria,
and
the
time
and
place
for
18
receipt
of
statements
of
qualifications.
Selection
criteria
19
and
general
information
included
in
the
request
for
statements
20
of
qualifications
may
be
developed
in
coordination
with
21
the
engineer,
landscape
architect,
or
architect
selected
or
22
designated
by
the
governmental
entity
as
provided
under
this
23
section.
24
(2)
Selection
criteria
may
include
the
contractor’s
25
experience
undertaking
projects
of
similar
size
and
scope
26
in
either
the
public
or
private
sector,
past
performance,
27
safety
record,
proposed
personnel,
and
proposed
methodology.
28
Selection
criteria
shall
include
experience
in
both
the
public
29
and
the
private
sector.
Selection
criteria
shall
not
include
30
specific
delivery
methods,
including
guaranteed
maximum
price
31
projects.
In
addition,
selection
criteria
shall
not
include
32
training,
testing,
or
other
certifications
that
may
only
be
33
obtained
through
limited-membership
organizations.
34
(3)
A
request
for
statements
of
qualifications
under
this
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subsection
shall
be
subject
to
the
requirements
of
section
1
73A.28.
In
addition,
a
governmental
entity
shall
not
by
2
ordinance,
rule,
or
any
other
action
relating
to
the
request
3
for
qualifications
stipulate
criteria
that
would
directly
4
or
indirectly
restrict
the
selection
of
a
construction
5
manager-at-risk
to
any
predetermined
class
of
providers
or
6
any
other
criteria
other
than
that
allowed
pursuant
to
this
7
paragraph.
8
b.
The
request
for
statements
of
qualifications
shall
be
9
posted
not
less
than
thirteen
and
not
more
than
forty-five
days
10
before
the
date
for
response
in
a
relevant
contractor
plan
room
11
service
with
statewide
circulation,
in
a
relevant
construction
12
lead
generating
service
with
statewide
circulation,
and
on
an
13
internet
site
sponsored
by
either
a
governmental
entity
or
a
14
statewide
association
that
represents
the
governmental
entity.
15
If
circumstances
beyond
the
control
of
the
governmental
16
entity
require
postponement
and
there
are
no
changes
to
the
17
project’s
contract
documents,
a
notice
of
the
revised
date
18
shall
be
posted
not
less
than
four
and
not
more
than
forty-five
19
days
before
the
revised
date
for
answering
the
request
for
20
proposals
and
statements
of
qualifications
in
a
relevant
21
contractor
plan
room
service
with
statewide
circulation,
in
a
22
relevant
construction
lead
generating
service
with
statewide
23
circulation,
and
on
an
internet
site
sponsored
by
either
a
24
government
entity
or
a
statewide
association
that
represents
25
the
governmental
entity.
26
c.
The
governmental
entity
shall
receive,
publicly
open,
and
27
read
aloud
the
names
of
the
contractors
submitting
statements
28
of
qualifications.
Within
forty-five
days
after
the
date
of
29
opening
the
statements
of
qualifications
submissions,
the
30
governmental
entity
shall
evaluate
each
proposal
or
statement
31
of
qualifications
submission
in
relation
to
the
criteria
set
32
forth
in
the
request.
33
4.
a.
After
considering
the
proposals
based
upon
34
qualifications,
the
governmental
entity
shall
issue
a
request
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for
proposals
to
each
contractor
who
meets
the
qualifications
1
which
shall
include
selection
and
evaluation
criteria.
Each
2
contractor
issued
a
request
for
proposals
shall
be
permitted
3
to
submit
a
proposal
and
each
proposal
submitted
shall
include
4
the
construction
manager-at-risk’s
proposed
fees.
The
request
5
for
proposals
shall
be
subject
to
the
requirements
of
section
6
73A.28.
7
b.
The
governmental
entity
shall
receive,
publicly
open,
and
8
read
aloud
the
names
of
the
contractors
submitting
proposals.
9
Within
forty-five
days
after
the
date
of
opening
the
proposals,
10
the
governmental
entity
shall
evaluate
and
rank
each
proposal
11
in
relation
to
the
criteria
set
forth
in
the
applicable
12
request.
13
c.
The
governmental
entity
or
its
representative
shall
14
select
the
construction
manager-at-risk
that
submits
the
15
proposal
that
offers
the
best
value
for
the
governmental
16
entity
based
on
the
published
selection
criteria
and
on
17
its
ranking
evaluation.
The
governmental
entity
shall
18
first
attempt
to
negotiate
a
contract
with
the
selected
19
construction
manager-at-risk.
If
the
governmental
entity
20
is
unable
to
negotiate
a
satisfactory
contract
with
the
21
selected
construction
manager-at-risk,
the
governmental
entity
22
shall,
formally
and
in
writing,
end
negotiations
with
that
23
construction
manager-at-risk
and
proceed
to
negotiate
with
the
24
next
construction
manager-at-risk
in
the
order
of
the
selection
25
ranking
until
a
contract
is
reached
or
negotiations
with
all
26
ranked
construction
managers-at-risk
end.
27
d.
The
governmental
entity
shall
make
available
to
the
28
public
the
final
scoring
and
ranking
evaluation
of
the
request
29
for
proposals
received.
30
5.
a.
If
the
estimated
total
cost
of
trade
contract
work
31
and
materials
packages
is
in
excess
of
the
adjusted
competitive
32
bid
threshold
established
in
section
314.1B,
the
construction
33
manager-at-risk
shall
advertise
for
competitive
bids,
receive
34
bids,
prepare
bid
analyses,
and
award
contracts
to
qualified
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firms
on
trade
contract
work
and
materials
packages
in
1
accordance
with
all
of
the
following:
2
(1)
Prior
to
advertising
for
competitive
bids
and
awarding
3
contracts
on
trade
contract
work
and
materials
packages,
the
4
construction
manager-at-risk
shall
provide
public
notice
of
the
5
opportunity
to
submit
bids
on
trade
contract
work
and
materials
6
packages
in
a
relevant
contractor
plan
room
service
with
7
statewide
circulation,
a
relevant
construction
lead
generating
8
service
with
statewide
circulation,
and
on
an
internet
site
9
sponsored
by
either
a
governmental
entity
or
a
statewide
10
association
that
represents
the
governmental
entity.
11
(2)
(a)
The
construction
manager-at-risk
shall
utilize
12
objective
prequalification
criteria
to
develop
a
list
of
13
qualified
firms
who
may
bid
and
be
awarded
a
contract
on
a
14
particular
trade
contract
work
and
materials
package.
All
15
firms
who
meet
the
objective
prequalification
criteria
as
16
a
qualified
firm
shall
be
allowed
to
submit
a
bid
for
the
17
relevant
trade
contract
work
and
materials
package.
In
18
addition,
a
firm
that
is
prequalified
with
the
state
department
19
of
transportation
pursuant
to
section
314.1
shall
be
considered
20
to
meet
the
objective
prequalification
criteria
as
a
qualified
21
firm
and
shall
be
allowed
to
submit
a
bid
for
purposes
of
work
22
related
to
parking
lots,
streets,
site
development,
or
bridge
23
structure
components.
24
(b)
Prequalification
criteria
shall
be
limited
to
a
25
firm’s
experience
as
a
contractor,
capacity
of
key
personnel,
26
technical
competence,
capability
to
perform,
the
past
27
performance
of
the
firm
and
the
firm’s
employees
to
include
28
the
firm’s
safety
record
and
compliance
with
state
and
29
federal
law,
and
availability
to
and
familiarity
with
the
30
location
of
the
project
subject
to
bid.
Prequalification
31
criteria
shall
be
reasonably
and
materially
related
to
the
32
relevant
trade
contract
work
and
materials
package.
The
33
prequalification
criteria
shall
not
include
training,
testing,
34
or
other
certifications
that
may
only
be
obtained
through
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limited-membership
organizations.
Prequalification
criteria
1
shall
be
subject
to
the
requirements
of
section
73A.28.
2
(3)
The
governmental
entity
and
the
construction
3
manager-at-risk
shall
participate
in
the
bid
review
and
4
evaluation
process.
After
the
bids
have
been
tabulated,
5
the
contracts
shall
be
awarded
to
the
lowest
responsive,
6
responsible
bidder.
All
awards
shall
be
made
available
to
the
7
public.
8
(4)
Notwithstanding
any
provision
of
this
paragraph
to
9
the
contrary,
a
construction
manager-at-risk
shall
not
be
10
required
to
bid
work
that
will
be
self-performed
pursuant
to
11
the
contract
with
the
governmental
entity.
If
the
construction
12
manager-at-risk
intends
to
self-perform,
the
construction
13
manager-at-risk
must
notify
the
governmental
entity
in
writing
14
of
the
construction
manager-at-risk’s
intent
to
do
so
and
15
identify
the
trade
contract
work
and
material
packages
that
16
will
be
self-performed.
A
construction
manager-at-risk
shall
17
not
be
required
to
comply
with
bidding
requirements
for
general
18
conditions
as
provided
in
the
contract
with
the
governmental
19
entity.
20
b.
If
a
selected
trade
contractor
materially
defaults
in
21
the
performance
of
its
work
or
fails
to
execute
a
contract,
22
the
construction
manager-at-risk
may,
without
advertising,
23
fulfill
the
contract
requirements
or
select
a
replacement
trade
24
contractor
to
fulfill
the
contract
requirements.
25
Sec.
7.
NEW
SECTION
.
26A.4
Prohibited
contracts.
26
1.
Notwithstanding
any
other
provision
of
law
to
the
27
contrary,
a
governmental
entity
shall
not
be
authorized
28
to
enter
into
a
design-build
contract
for
the
construction
29
of
a
public
improvement.
For
purposes
of
this
subsection,
30
“design-build
contract”
means
a
single
contract
providing
for
31
both
design
services
and
construction
services
that
may
include
32
maintenance,
operations,
preconstruction,
and
other
related
33
services.
34
2.
A
governmental
entity
shall
not
be
authorized
to
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2572
enter
into
a
guaranteed
maximum
price
contract
for
public
1
improvements
relating
to
highway
and
bridge
construction.
2
EXPLANATION
3
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
4
the
explanation’s
substance
by
the
members
of
the
general
assembly.
5
This
bill
concerns
public
construction
and
improvement
6
contracts.
7
DIVISION
I
——
PUBLIC
CONSTRUCTION
BIDDING
REQUIREMENTS.
8
Code
section
26.2
is
amended
to
provide
that
the
term
9
“public
improvement”
excludes
construction
work
and
repair
10
or
maintenance
work
performed
for
a
city
utility
under
11
Code
chapter
388
when
such
work
relates
to
existing
utility
12
infrastructure
or
to
establishing
connections
to
existing
13
utility
systems.
14
Code
section
26.4,
relating
to
architectural
and
engineering
15
services,
is
amended
to
prohibit
fee-based
selection
of
an
16
architect,
landscape
architect,
or
engineer
for
a
public
17
improvement.
18
Code
section
262.34
is
amended
to
prohibit
the
state
board
19
of
regents
from
entering
into
a
design-build
contract
to
20
construct,
repair,
or
improve
buildings
or
grounds.
21
DIVISION
II
——
GUARANTEED
MAXIMUM
PRICE
CONTRACTS.
This
22
division
allows
a
governmental
entity
to
use
a
guaranteed
23
maximum
price
contract
for
purposes
of
public
improvement
24
contracts.
25
New
Code
section
26A.1
defines,
among
other
terms,
26
“construction
manager-at-risk”,
“governmental
entity”,
27
“guaranteed
maximum
price
contract”
and
“public
improvement”.
28
“Guaranteed
maximum
price
contract”
is
defined
to
mean
the
29
agreed
to
fixed
or
guaranteed
maximum
price
pursuant
to
a
30
contract
entered
into
by
the
construction
manager-at-risk
and
31
the
governmental
entity.
“Construction
manager-at-risk”
means
32
a
legal
entity
that
assumes
the
risk
for
the
construction,
33
rehabilitation,
alteration,
or
repair
of
a
project
and
34
provides
consultant
services
to
the
governmental
entity
in
the
35
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development
and
design
phases,
working
collaboratively
with
1
the
design
professionals
involved.
“Governmental
entity”
is
2
defined
to
mean
the
state,
political
subdivisions
of
the
state,
3
and
public
school
corporations,
and
is
specifically
defined
to
4
include
the
state
board
of
regents.
“Public
improvement”
is
5
defined
to
mean
the
same
as
for
purposes
of
Code
chapter
26
6
governing
public
construction
bidding.
7
New
Code
section
26A.2
authorizes
a
governmental
entity
to
8
enter
into
a
guaranteed
maximum
price
contract
for
a
public
9
improvement,
notwithstanding
any
provision
of
law
to
the
10
contrary.
11
New
Code
section
26A.3
establishes
the
process
for
entering
12
into
a
guaranteed
maximum
price
contract.
The
new
Code
section
13
provides
procedures
governing
public
disclosure
of
an
intent
to
14
enter
into
a
guaranteed
maximum
price
contract,
selection
of
15
an
engineer,
landscape
architect,
or
architect,
a
request
for
16
qualifications
process,
a
request
for
proposals
and
selection
17
process,
and
selection
of
trade
contractors
and
material
18
packages.
19
New
Code
section
26A.4
prohibits
a
governmental
entity
from
20
entering
into
a
design-build
contract
for
the
construction
of
a
21
public
improvement
and
entering
into
a
guaranteed
maximum
price
22
contract
for
public
improvements
relating
to
highway
and
bridge
23
construction.
24
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