Bill Text: IA HSB586 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act relating to public construction bidding.
Spectrum: Committee Bill
Status: (N/A - Dead) 2020-02-10 - Subcommittee recommends passage. [HSB586 Detail]
Download: Iowa-2019-HSB586-Introduced.html
House
Study
Bill
586
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
STATE
GOVERNMENT
BILL
BY
CHAIRPERSON
KAUFMANN)
A
BILL
FOR
An
Act
relating
to
public
construction
bidding.
1
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
2
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H.F.
_____
DIVISION
I
1
PUBLIC
CONSTRUCTION
BIDDING
DEFINITIONS
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
DIVISION
II
12
ALTERNATIVE
PROJECT
DELIVERY
CONTRACTS
13
Sec.
2.
NEW
SECTION
.
26.17
Alternative
project
delivery
14
contracts.
15
1.
As
used
in
this
section,
unless
the
context
otherwise
16
requires:
17
a.
“Alternative
project
delivery
contract”
means
either
a
18
design-build
or
construction
manager-at-risk
contract.
19
b.
“Bridging
criteria
professional”
means
a
person,
20
corporation,
partnership,
or
other
legal
entity
that
is
21
employed
by
or
contracted
by
a
government
entity
to
assist
22
the
government
entity
in
the
development
of
project
design
23
criteria,
requests
for
proposals,
and
any
additional
services
24
requested
by
the
government
entity
to
represent
its
interests
25
in
relation
to
a
project
and
who
meets
either
of
the
following
26
requirements:
27
(1)
Is
duly
licensed
to
practice
architecture
within
the
28
state
and
can
demonstrate
specific
knowledge
of
the
project
29
type
where
alternative
project
delivery
services
are
being
30
sought.
31
(2)
Is
duly
licensed
as
a
professional
engineer
within
the
32
state
and
can
demonstrate
specific
knowledge
of
the
project
33
type
where
alternative
project
delivery
services
are
being
34
sought.
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c.
“Construction
manager-at-risk”
means
a
sole
1
proprietorship,
partnership,
corporation,
or
other
legal
entity
2
that
acts
as
a
consultant
to
the
government
entity
in
the
3
development
and
design
phases
and
then
assumes
the
risk
for
4
the
construction,
rehabilitation,
alteration,
or
repair
of
a
5
project
at
the
contracted
fixed
or
guaranteed
maximum
price,
6
similar
to
a
general
contractor
during
the
construction
phase.
7
A
project
using
a
construction
manager-at-risk
does
not
include
8
the
construction,
reconstruction,
or
improvement
of
a
highway,
9
bridge,
or
culvert.
10
d.
“Design-build”
means
a
project
delivery
method
subject
to
11
a
two
or
three-phase
selection
process
for
which
the
design
and
12
construction
services
are
furnished
under
one
contract.
13
e.
“Design-build
contract”
means
a
contract
between
14
a
government
entity
and
a
design-builder
to
furnish
the
15
architecture
of
record,
engineering
of
record,
and
related
16
services
as
required
for
a
given
public
project,
and
to
17
furnish
the
labor,
materials,
and
other
construction
services
18
for
the
same
public
project.
A
design-build
contract
may
be
19
conditioned
upon
subsequent
refinements
in
scope
and
price,
and
20
may
permit
the
government
entity
to
make
changes
in
the
scope
21
of
the
project
without
invalidating
the
design-build
contract.
22
f.
“Design-build
project”
means
the
design,
construction,
23
alteration,
addition,
remodeling,
or
improvement
of
any
24
buildings,
infrastructure,
or
facilities
under
contract
with
a
25
government
entity.
“Design-build
project”
does
not
include
a
26
project
for
the
construction,
reconstruction,
or
improvement
of
27
a
highway,
bridge,
or
culvert.
28
g.
“Design-builder”
means
any
individual,
partnership,
29
joint
venture,
or
corporation
subject
to
a
best-value
or
30
qualification-based
selection
that
offers
to
provide
or
31
provides
design
services
and
general
contracting
services
32
through
a
design-build
contract
in
which
services
within
33
the
scope
of
the
practice
of
professional
architecture
or
34
engineering
are
performed
respectively
by
a
licensed
architect
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or
licensed
engineer
and
in
which
services
within
the
scope
of
1
general
contracting
are
performed
by
a
general
contractor
or
2
other
legal
entity
that
furnishes
architecture
or
engineering
3
services
and
construction
services
either
directly
or
through
4
subcontracts
or
joint
ventures.
5
h.
“Design
bridging
criteria
package”
means
the
6
performance-oriented
program,
scope,
design,
and
performance
7
specifications
for
the
design-build
project
sufficient
to
8
permit
a
design-builder
to
prepare
a
response
to
a
government
9
entity’s
request
for
proposals
for
a
design-build
project.
10
i.
“Government
entity”
means
the
same
as
“governmental
11
entity”
defined
in
section
26.2
including,
for
the
purpose
of
12
this
section,
the
state
board
of
regents.
13
j.
“Proposal”
means
an
offer
by
a
design-builder
in
response
14
to
a
request
for
proposals
to
enter
into
a
design-build
15
contract.
16
k.
“Request
for
proposals”
means
the
document
by
which
17
a
government
entity
solicits
proposals
for
a
design-build
18
contract.
19
l.
“Stipend”
means
a
payment
to
a
design-builder
who
did
not
20
score
the
highest
number
of
points
at
the
conclusion
of
phase
21
three
of
the
best-value
selection
process
to
defray
the
cost
of
22
participating
in
phase
two
of
the
selection
process,
and
for
23
the
use
of
any
intellectual
properties
obtained.
24
2.
Notwithstanding
any
other
law
to
the
contrary,
a
25
government
entity
shall
be
authorized
to
enter
into
an
26
alternative
project
delivery
contract.
27
3.
Construction
manager-at-risk
contracts.
28
a.
A
government
entity
shall
publicly
disclose
its
intent
to
29
use
the
construction
manager-at-risk
method
and
its
selection
30
criteria
at
least
one
week
prior
to
publishing
the
request
31
for
proposals
and
request
for
statements
of
qualifications.
32
The
government
entity
shall
publish
its
request
for
proposals
33
and
statements
of
qualifications.
Before
or
concurrently
34
with
selecting
a
construction
manager-at-risk,
the
government
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entity
shall
select
or
designate
an
engineer
or
architect
1
who
shall
prepare
the
construction
documents
for
the
project
2
and
who
shall
comply
with
all
state
laws,
as
applicable.
If
3
the
engineer
or
architect
is
not
a
full-time
employee
of
the
4
government
entity,
the
government
entity
shall
select
the
5
engineer
or
architect
on
a
basis
of
demonstrated
competence
and
6
qualifications.
The
government
entity’s
engineer
or
architect
7
for
a
project
may
not
serve,
alone
or
in
combination
with
8
another,
as
the
construction
manager-at-risk.
This
paragraph
9
does
not
prohibit
a
government
entity’s
engineer
or
architect
10
from
providing
customary
construction-phase
services
under
11
the
engineer’s
or
architect’s
original
professional
service
12
agreement
in
accordance
with
applicable
licensing
laws.
13
b.
The
government
entity
may
provide
or
contract
for,
14
independently
of
the
construction
manager-at-risk,
inspection
15
services,
testing
of
construction
materials,
engineering,
and
16
verification
of
testing
services
necessary
for
acceptance
of
17
the
project
by
the
government
entity.
18
c.
The
government
entity
shall
select
the
construction
19
manager-at-risk
in
a
two-phase
process.
20
(1)
Phase
one.
The
government
entity
shall
prepare
a
21
request
for
statements
of
qualifications
for
the
first
phase.
22
The
request
shall
include
general
information
on
the
project
23
site,
project
scope,
schedule,
selection
criteria,
the
time
24
and
place
for
receipt
of
statements
of
qualifications,
and
25
other
information
that
may
assist
the
government
entity
in
its
26
selection
of
a
construction
manager-at-risk.
The
selection
27
criteria
may
include
the
construction
manager-at-risk’s
28
experience,
past
performance,
safety
record,
proposed
personnel
29
and
methodology,
and
other
appropriate
factors
that
demonstrate
30
the
capability
of
the
construction
manager-at-risk.
The
31
government
entity
shall
not
request
fees
or
prices
in
phase
32
one.
33
(2)
Phase
two.
In
phase
two,
the
government
entity
34
shall
issue
a
request
for
proposals.
The
government
entity
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may
request
that
no
more
than
five
nor
fewer
than
two
1
construction
managers-at-risk,
selected
solely
on
the
basis
2
of
qualifications,
provide
additional
information,
including
3
the
construction
manager-at-risk’s
project
proposal,
proposed
4
fee,
its
price
for
fulfilling
the
general
conditions,
and
its
5
distribution
plan
for
sharing
any
cost
savings
after
completion
6
of
said
project.
Qualifications
shall
account
for
a
minimum
7
of
forty
percent
of
the
evaluation.
Cost
shall
account
for
a
8
maximum
of
sixty
percent
of
the
evaluation.
9
d.
For
each
phase,
the
government
entity
shall
receive,
10
publicly
open,
and
read
aloud
the
names
of
the
construction
11
managers
submitting
proposals
or
statements
of
qualifications,
12
respectively.
Within
forty-five
days
after
the
date
of
opening
13
the
proposals
or
statements
of
qualification
submissions,
the
14
government
entity
or
its
representative
shall
evaluate
and
rank
15
each
proposal
or
statement
of
qualifications
submission
in
16
relation
to
the
criteria
set
forth
in
the
applicable
request.
17
e.
The
government
entity
or
its
representative
shall
18
select
the
construction
manager-at-risk
that
submits
the
19
proposal
that
offers
the
best
value
for
the
government
entity
20
based
on
the
published
selection
criteria
and
on
its
ranking
21
evaluation.
The
government
entity
or
its
representative
22
shall
first
attempt
to
negotiate
a
contract
with
the
selected
23
construction
manager-at-risk.
If
the
government
entity
or
its
24
representative
is
unable
to
negotiate
a
satisfactory
contract
25
with
the
selected
construction
manager-at-risk,
the
government
26
entity
or
its
representative
shall,
formally
and
in
writing,
27
end
negotiations
with
that
construction
manager-at-risk
and
28
proceed
to
negotiate
with
the
next
construction
manager-at-risk
29
in
the
order
of
the
selection
ranking
until
a
contract
30
is
reached
or
negotiations
with
all
ranked
construction
31
managers-at-risk
end.
32
f.
The
selected
construction
manager-at-risk
shall
publicly
33
advertise
and
receive
bids
or
proposals
from
trade
contractors
34
or
subcontractors
for
the
performance
of
all
major
elements
of
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the
work
other
than
the
minor
work
that
may
be
included
in
the
1
general
conditions.
A
construction
manager-at-risk
submits
2
its
sealed
bid
or
sealed
proposal
in
the
same
manner
as
all
3
other
trade
contractors
or
subcontractors.
All
sealed
bids
4
or
proposals
shall
be
submitted
at
the
time
and
location
as
5
specified
in
the
advertisement
for
bids
or
proposals
and
shall
6
be
publicly
opened
and
the
identity
of
each
bidder
and
their
7
bid
amount
shall
be
read
aloud.
8
g.
The
construction
manager-at-risk
and
the
government
9
entity
or
its
representative
shall
review
all
trade
contractor,
10
subcontractor,
or
construction
manager-at-risk
bids
or
11
proposals
in
a
manner
that
does
not
disclose
the
contents
of
12
the
bid
or
proposal
during
the
selection
process
to
a
person
13
not
employed
by
the
construction
manager-at-risk,
engineer,
14
architect,
or
government
entity
involved
with
the
project.
If
15
the
construction
manager-at-risk
submitted
bids
or
proposals,
16
the
government
entity
shall
determine
if
the
construction
17
manager-at-risk’s
bid
or
proposal
offers
the
best
value
for
the
18
government
entity.
After
all
proposals
have
been
evaluated
and
19
clarified,
the
award
of
all
contracts
shall
be
made
public.
20
h.
If
the
construction
manager-at-risk
reviews,
evaluates,
21
and
recommends
to
the
government
entity
a
bid
or
proposal
from
22
a
trade
contractor
or
subcontractor
but
the
government
entity
23
requires
another
bid
or
proposal
to
be
accepted,
the
government
24
entity
shall
compensate
the
construction
manager-at-risk
by
25
a
change
in
price,
time,
or
guaranteed
maximum
cost
for
any
26
additional
cost
and
risk
that
the
construction
manager-at-risk
27
may
incur
because
of
the
government
entity’s
requirement
that
28
another
bid
or
proposal
be
accepted.
29
i.
If
a
selected
trade
contractor
materially
defaults
in
the
30
performance
of
its
work
or
fails
to
execute
a
contract
with
a
31
construction
manager-at-risk
after
being
selected
in
accordance
32
with
this
subsection,
the
construction
manager-at-risk
may
33
itself,
without
advertising,
fulfill
the
contract
requirements
34
or
select
a
replacement
trade
contractor
to
fulfill
the
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contract
requirements.
1
4.
In
soliciting
proposals
for
a
design-build
contract,
2
a
government
entity
shall
determine
the
scope
and
level
of
3
detail
required
to
permit
design-builders
to
submit
proposals
4
in
accordance
with
the
request
for
proposals
given
the
nature
5
of
the
project.
6
5.
a.
A
bridging
criteria
professional
may
be
retained
by
7
the
government
entity
as
the
government
entity’s
representative
8
to
advise
the
government
entity
on
design-build
matters.
The
9
use
of
the
bridging
criteria
professional
shall
be
strictly
10
to
guide
and
administer
the
government’s
needs
through
the
11
process.
The
bridging
criteria
professional
shall
have
12
demonstrated
sufficient
previous
experience
in
rules
and
13
procedures
specific
to
the
design-build
process.
The
bridging
14
criteria
professional
shall,
along
with
the
government
15
entity,
be
authorized
to
make
recommendations
or
influence
16
the
acceptance
of
any
material,
process,
or
procedure
used
17
during
the
design
and
construction
processes
in
accordance
18
with
the
criteria
established
for
the
project
for
the
purpose
19
of
evaluating
compliance
of
the
work.
The
bridging
criteria
20
professional
may
be
employed
or
contracted
by
the
government
21
entity
to
act
on
behalf
of
the
government
entity
for
the
sole
22
purpose
of
administrative
procedures
and
may
not
be
connected
23
in
any
means
to
the
design-build
team.
The
duration
of
24
bridging
criteria
professional
services,
prior
to
the
issuance
25
of
a
design-build
contract,
may
begin
when
establishing
26
the
government
entity’s
program
requirements
through
design
27
development
if
the
complexity
of
the
project
with
the
28
governmental
entity
merits
this
level
of
bridging
information.
29
b.
The
design
bridging
criteria
package
developed
by
the
30
bridging
criteria
professional,
which
may
include
preliminary
31
designs
for
the
project,
may
extend
to
the
design
development
32
level
of
detail,
including
design
expectations,
capacity,
33
durability,
standards,
ingress
and
egress
requirements,
34
international
building
code
considerations,
performance
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requirements,
the
government
entity’s
operational
expectations,
1
requirements
for
interior
and
exterior
spaces,
material
and
2
building
system
quality
standards,
and
design
and
construction
3
schedule
timelines.
Longevity
of
materials
and
system
4
performance
requirements
shall
be
identified
in
the
design
5
bridging
criteria
package
to
identify
materials
and
systems
6
that
have
the
potential
to
exceed
the
length
of
time
the
7
project
is
funded.
The
design
bridging
criteria
package
may
8
include
site
development
requirements,
description
of
the
9
site,
surveys,
soil
and
environmental
information
concerning
10
the
site,
provisions
for
utilities,
storm
water
retention
11
and
disposal,
parking
requirements,
requirements
related
12
to
applicable
local
laws,
local
permitting
requirements,
13
preliminary
designs
for
the
project
or
portions
thereof,
and
14
other
criteria
for
the
intended
use
of
the
project.
15
6.
A
government
entity
shall
publicly
disclose
its
intent
to
16
solicit
proposals
for
a
design-build
contract
and
its
project
17
design
bridging
criteria
package
in
the
same
manner
that
it
18
would
post
notice
for
the
competitive
bidding
process
in
19
section
26.3.
20
7.
In
soliciting
proposals
for
a
design-build
contract,
a
21
government
entity
shall
establish
in
the
request
for
proposals
22
a
time,
place,
and
other
specific
instructions
for
the
receipt
23
of
proposals.
Proposals
not
submitted
in
strict
accordance
24
with
the
instructions
may
be
subject
to
rejection.
Minor
25
irregularities
may
be
waived
by
the
government
entity.
26
8.
A
request
for
proposals
shall
be
prepared
for
each
27
design-build
contract
and
shall
contain,
at
minimum,
the
28
following
elements:
29
a.
The
procedures
to
be
followed
for
submitting
proposals,
30
the
criteria
for
evaluating
proposals
and
their
relative
31
weight,
and
the
procedure
for
making
awards.
32
b.
The
proposed
terms
and
conditions
for
the
design-build
33
contract,
if
available.
34
c.
The
design
bridging
criteria
package.
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d.
A
description
of
the
drawings,
specifications,
or
other
1
information
to
be
submitted
with
the
proposal,
with
guidance
2
as
to
the
form
and
level
of
completeness
of
the
drawings,
3
specifications,
or
other
information
that
will
be
acceptable.
4
e.
A
schedule
for
planned
commencement
and
completion
of
the
5
design-build
contract,
if
available.
6
f.
Budget
limits
for
the
design-build
contract,
if
any.
7
g.
Requirements
including
any
available
ratings
for
8
performance
bonds,
payment
bonds,
and
insurance,
if
any.
9
h.
If
using
a
three-phase,
best-value
selection
process,
the
10
amount
of
the
stipend
that
will
be
available.
11
i.
Any
other
information
that
the
government
entity
in
12
its
discretion
chooses
to
request
including
but
not
limited
13
to
surveys,
soil
reports,
drawings
of
existing
structures,
14
environmental
studies,
photographs,
references
to
public
15
records,
or
affirmative
action
and
minority
business
enterprise
16
requirements
consistent
with
state
and
federal
law.
17
9.
A
government
entity
seeking
to
enter
a
design-build
18
contract
shall
solicit
design-build
proposals
either
by
19
using
a
three-phase,
best-value
process
or
a
two-phase,
20
qualifications-based
process.
21
a.
When
solicitations
require
a
three-phase,
best-value
22
selection
process,
the
process
shall
be
conducted
as
follows:
23
(1)
Phase
one.
Request
for
statements
of
qualifications
of
24
design-builders.
25
(a)
The
government
entity
shall
review
submitted
statements
26
of
the
qualifications
and
assign
points
to
each
in
accordance
27
with
this
section
and
as
set
out
in
the
instructions
of
the
28
request
for
qualifications.
29
(b)
All
design-builders
shall
submit
a
statement
of
30
qualifications
that
shall
include
but
not
be
limited
to:
31
(i)
Demonstrated
ability
to
perform
projects
comparable
in
32
design,
scope,
and
complexity.
33
(ii)
References
of
owners
for
whom
design-build
projects,
34
construction
projects,
or
design
projects
have
been
performed.
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(iii)
Qualifications
of
personnel
who
will
manage
the
1
design
and
construction
aspects
of
the
project.
2
(iv)
The
names
and
qualifications
of
the
primary
design
3
consultants
and
the
primary
trade
contractors
with
whom
the
4
design-builder
proposes
to
subcontract
or
joint
venture.
The
5
design-builder
may
not
replace
an
identified
contractor,
6
subcontractor,
design
consultant,
or
subconsultant
without
the
7
written
approval
of
the
government
entity.
8
(c)
The
government
entity
shall
evaluate
the
qualifications
9
of
all
the
design-builders
who
submitted
statements
of
10
qualifications
in
accordance
with
the
instructions
of
the
11
request
for
qualifications.
Qualified
design-builders
12
selected
by
the
government
entity
may
proceed
to
phase
two
13
of
the
selection
process.
The
evaluation
shall
narrow
the
14
number
of
qualified
design-builders
submitting
statements
of
15
qualifications
to
not
fewer
than
two
nor
more
than
five.
Under
16
no
circumstances
shall
price
or
fees
be
a
part
of
the
request
17
for
statements
of
qualifications
criteria.
Design-builders
may
18
be
interviewed
in
either
phase
one
or
phase
two
of
the
process.
19
Points
assigned
in
phase
one
of
the
evaluation
process
shall
20
not
carry
forward
to
phase
two
or
phase
three
of
the
process.
21
All
qualified
design-builders
shall
be
ranked
on
points
given
22
in
phases
two
and
three
only.
23
(d)
Once
no
fewer
than
two
and
no
more
than
five
qualified
24
design-builders
have
been
selected,
the
government
entity
shall
25
issue
its
request
for
proposals
and
provide
the
design-builders
26
a
specified
amount
of
time
in
which
to
concurrently
assemble
27
phase
two
and
phase
three
proposals.
28
(2)
Phase
two.
Solicitation
of
technical
proposals,
29
including
conceptual
design
for
the
project.
30
(a)
A
design-builder
shall
submit
its
design
for
the
project
31
to
the
level
of
detail
required
for
the
proposal
along
with
32
such
other
information
the
government
entity
requests,
which
33
may
include
a
schedule,
qualifications,
and
experience.
34
(b)
The
ability
of
the
design-builder
to
meet
the
schedule
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for
completing
a
project
as
specified
by
the
government
entity
1
may
be
considered
as
an
element
of
evaluation
in
phase
two.
2
(c)
Under
no
circumstances
shall
the
design
proposal
3
contain
any
reference
to
the
cost
of
the
proposal.
4
(d)
The
submitted
designs
shall
be
evaluated
and
assigned
5
points
in
accordance
with
the
requirements
of
the
request
for
6
proposals.
Phase
two
shall
account
for
not
less
than
forty
7
percent
and
no
more
than
sixty
percent
of
the
total
point
score
8
as
specified
in
the
request
for
proposals.
9
(3)
Phase
three.
Proposal
of
construction
costs.
10
(a)
The
government
entity
shall
invite
the
selected
11
design-builders
to
participate
in
phase
three.
The
12
design-builders
shall
provide
a
fixed
cost
of
design
and
13
construction.
The
proposal
shall
be
accompanied
by
bid
14
security
and
any
other
items,
such
as
statements
of
minority
15
participation,
as
required
by
the
request
for
proposals.
16
(b)
Cost
proposals
shall
be
submitted
in
accordance
with
17
the
instructions
in
the
request
for
proposals.
The
government
18
entity
shall
reject
any
proposal
that
is
not
submitted
within
19
the
required
time
frame.
Phase
three
shall
account
for
not
20
less
than
forty
percent
and
no
more
than
sixty
percent
of
the
21
total
point
score
as
specified
in
the
request
for
proposals.
22
(c)
Proposals
for
phase
two
and
phase
three
shall
be
23
submitted
concurrently
at
the
time
and
place
specified
in
the
24
request
for
proposals,
but
in
separate
envelopes
or
other
means
25
of
submission.
The
phase
three
cost
proposals
shall
be
opened
26
and
read
aloud
only
after
phase
two
design
proposals
have
been
27
evaluated
and
assigned
points,
ranked
in
order,
and
posted.
28
Cost
proposals
shall
be
opened
and
read
aloud
at
the
time
and
29
place
specified
in
the
request
for
proposals.
At
the
same
time
30
and
place,
the
evaluation
team
shall
make
public
its
scoring
31
of
phase
two.
Cost
proposals
shall
be
evaluated
in
accordance
32
with
the
requirements
of
the
request
for
proposals.
33
(d)
If
the
government
entity
determines
that
it
is
not
in
34
the
best
interest
of
the
government
entity
to
proceed
with
the
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project
pursuant
to
the
proposal
offered
by
the
design-builder
1
with
the
highest
total
number
of
points,
the
government
entity
2
shall
reject
all
proposals.
In
this
event,
all
design-builders
3
with
lower
point
totals
in
phases
two
and
three
shall
receive
4
a
stipend
and
the
responsive
design-builder
with
the
highest
5
point
total
shall
receive
an
amount
equal
to
two
times
the
6
stipend.
If
the
government
entity
decides
to
award
the
7
project,
the
responsive
design-builder
with
the
highest
point
8
total
shall
be
awarded
the
contract.
9
(e)
As
an
inducement
to
qualified
design-builders,
the
10
government
entity
shall
pay
a
stipend,
the
amount
of
which
11
shall
be
established
in
the
request
for
proposals,
to
each
12
design-builder
who
submitted
a
proposal
but
was
not
accepted.
13
Such
stipend
shall
be
no
less
than
one-half
of
one
percent
14
of
the
total
project
budget.
Upon
payment
of
the
stipend
to
15
such
a
design-builder,
the
government
entity
shall
acquire
16
a
nonexclusive
right
to
use
the
design
submitted
by
the
17
design-builder,
and
the
design-builder
shall
have
no
further
18
liability
for
the
use
of
the
design
by
the
government
entity
in
19
any
manner.
If
the
design-builder
desires
to
retain
all
rights
20
and
interests
in
the
design
proposed,
the
design-builder
shall
21
forfeit
the
stipend.
22
b.
When
solicitations
require
a
two-phase,
23
qualifications-based
selection
process,
the
process
shall
be
24
conducted
as
follows:
25
(1)
Phase
one.
Request
for
statements
of
qualifications
of
26
design-builders.
27
(a)
The
government
entity
must
prepare
a
request
for
28
statements
of
qualifications.
The
request
shall
include
29
general
information
on
the
project
site,
project
scope,
30
schedule,
selection
criteria,
the
time
and
place
for
receipt
31
of
statements
of
qualifications,
and
other
information
32
that
may
assist
the
government
entity
in
its
selection
of
a
33
design-builder.
34
(b)
The
government
entity
shall
state
the
selection
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criteria
in
the
request
for
statements
of
qualifications.
The
1
selection
criteria
may
include
the
design-builder’s
experience,
2
past
performance,
safety
record,
proposed
personnel
and
3
methodology,
and
other
appropriate
factors
that
demonstrate
the
4
capability
of
the
design-builder.
5
(c)
Selection
criteria
will
be
ranked
and
assigned
points
6
for
each
category.
Point
assignments
shall
be
included
as
a
7
part
of
the
request
for
statements
of
qualifications.
8
(d)
The
government
entity
shall
not
request
fees
or
prices
9
in
phase
one.
Any
submissions
with
disclosed
fees
or
prices
10
will
be
disqualified
and
removed
from
consideration.
11
(2)
Phase
two.
Negotiations.
12
(a)
Negotiations
shall
be
conducted,
beginning
with
the
13
design-builder
ranked
first.
If
a
contract
satisfactory
14
and
advantageous
to
the
government
entity
can
be
negotiated
15
at
a
price
considered
fair
and
reasonable
and
pursuant
to
16
contractual
terms
and
conditions
acceptable
to
the
government
17
entity,
the
award
shall
be
made
to
that
design-builder.
18
(b)
In
the
event
that
a
contract
cannot
be
negotiated
19
with
the
design-builder
ranked
first,
negotiations
with
that
20
design-builder
shall
be
formally
terminated.
The
government
21
entity
shall
conduct
negotiations
with
the
next-highest-ranked
22
design-builder
and
continue
this
process
until
a
contract
can
23
be
negotiated
that
meets
the
terms
of
subparagraph
division
(a)
24
of
this
subparagraph.
25
Sec.
3.
Section
262.34,
subsection
1,
Code
2020,
is
amended
26
to
read
as
follows:
27
1.
a.
When
the
estimated
cost
of
construction,
repairs,
28
or
improvement
of
buildings
or
grounds
under
charge
of
the
29
state
board
of
regents,
including
construction,
renovation,
or
30
repairs
by
a
private
party
of
a
property
to
be
lease-purchased
31
by
the
board,
exceeds
one
hundred
thousand
dollars,
the
board
32
shall
advertise
for
bids
for
the
contemplated
improvement
or
33
construction
and
shall
let
the
work
to
the
lowest
responsible
34
bidder.
However,
if
in
the
judgment
of
the
board
bids
received
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are
not
acceptable,
the
board
may
reject
all
bids
and
proceed
1
with
the
construction,
repair,
or
improvement
by
a
method
as
2
the
board
may
determine.
All
plans
and
specifications
for
3
repairs
or
construction,
together
with
bids
on
the
plans
or
4
specifications,
shall
be
filed
by
the
board
and
be
open
for
5
public
inspection.
All
bids
submitted
under
this
section
shall
6
be
accompanied
by
a
deposit
of
money,
a
certified
check,
or
a
7
credit
union
certified
share
draft
in
an
amount
as
the
board
8
may
prescribe.
9
b.
The
state
board
of
regents
may
proceed
with
a
10
construction,
repair,
or
improvement
by
using
an
alternative
11
project
delivery
contract
in
accordance
with
the
provisions
of
12
section
26.17.
13
EXPLANATION
14
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
15
the
explanation’s
substance
by
the
members
of
the
general
assembly.
16
This
bill
concerns
public
construction
bidding.
17
DIVISION
I
——
PUBLIC
CONSTRUCTION
BIDDING
DEFINITIONS.
18
Code
section
26.2
is
amended
to
provide
that
the
term
19
“public
improvement”
excludes
construction
work
and
repair
20
or
maintenance
work
performed
for
a
city
utility
under
21
Code
chapter
388
when
such
work
relates
to
existing
utility
22
infrastructure
or
to
establishing
connections
to
existing
23
utility
systems.
24
DIVISION
II
——
ALTERNATIVE
PROJECT
DELIVERY
CONTRACTS.
25
Division
II
of
the
bill
allows
a
government
entity
to
use
an
26
alternative
project
delivery
contract
in
circumstances
that
27
normally
require
the
government
entity
to
use
competitive
28
bidding
procedures.
Currently,
most
government
entities
must
29
use
a
competitive
bidding
process
for
a
construction
project
30
when
that
project
is
estimated
to
cost
at
least
as
much
as
a
31
threshold
defined
in
Code
section
26.3.
The
bill
defines
a
32
government
entity
to
include
the
state
board
of
regents.
33
The
bill
creates
two
types
of
alternative
project
delivery
34
contracts,
each
with
specified
requirements.
The
first
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alternative
is
the
construction
manager-at-risk
contract.
If
a
1
government
entity
opts
to
use
a
construction
manager-at-risk
2
contract,
the
government
entity
shall
select
an
engineer
3
or
architect
to
prepare
the
construction
documents
for
4
the
project.
That
engineer
or
architect
cannot
serve
as
5
the
construction
manager-at-risk.
The
government
entity
6
shall
use
a
two-phase
process
in
selecting
the
construction
7
manager-at-risk.
The
first
phase
shall
include
a
request
for
8
qualifications
and
the
government
entity’s
selection
criteria.
9
The
government
entity
may
select
at
least
two
but
no
more
10
than
five
of
the
construction
managers-at-risk
who
submitted
11
qualifications
to
participate
in
the
second
phase,
based
solely
12
on
the
qualifications
of
those
construction
managers-at-risk.
13
In
phase
two,
the
construction
managers-at-risk
that
the
14
government
entity
selects
will
provide
additional
information,
15
including
the
project
proposal,
costs,
and
fees.
The
16
government
entity
shall
rank
the
construction
managers-at-risk
17
in
a
manner
in
which
qualifications
account
for
at
least
40
18
percent
of
the
evaluation
and
cost
accounts
for
no
more
than
60
19
percent
of
the
evaluation.
The
government
entity
shall
select
20
the
construction
manager-at-risk
that
offers
the
best
value
21
based
on
the
evaluation
criteria.
If
the
two
parties
do
not
22
reach
an
agreement,
the
government
entity
shall
proceed
with
23
the
next
highest-ranked
construction
manager-at-risk
and
follow
24
this
process
until
the
government
entity
reaches
a
contract
25
with
a
construction
manager-at-risk.
The
selected
construction
26
manager-at-risk
shall
advertise
for
and
receive
sealed
bids
27
for
proposals
from
trade
contractors
or
subcontractors
and
28
publicly
review
those
bids
with
the
government
entity
in
a
29
manner
that
does
not
disclose
the
contents
of
the
bid
or
30
proposal
during
the
selection
process
to
a
person
not
employed
31
by
the
construction
manager-at-risk,
engineer,
architect,
or
32
government
entity
involved
with
the
project.
The
construction
33
manager-at-risk
will
select
a
bid
in
consultation
with
the
34
government
entity.
35
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H.F.
_____
The
second
type
of
alternative
project
delivery
method
is
1
the
design-build
contract,
which
allows
for
the
selection
of
2
design-builders
in
either
a
three-phase
or
two-phase
process.
3
Under
the
design-build
process,
a
government
entity
may
retain
4
a
bridging
criteria
professional
to
advise
the
government
5
entity
on
design-build
matters.
In
the
three-phase
process,
6
the
government
entity
shall
first
request
statements
of
7
qualifications
from
design-builders.
The
government
entity
8
shall
select
at
least
two
but
no
more
than
five
qualified
9
design-builders
to
move
on
to
phases
two
and
three.
In
10
the
second
phase,
the
government
entity
shall
solicit
11
technical
proposals
and
conceptual
designs
from
the
remaining
12
design-builders.
The
government
entity
shall
pay
a
stipend
13
to
any
design-builder
that
participates
in
phase
two
but
14
whose
contract
the
entity
does
not
select.
The
third
phase
15
involves
the
design-builders
submitting
construction
costs.
16
The
government
entity
shall
award
points
for
each
proposal.
If
17
the
government
entity
chooses
to
award
a
contract,
it
shall
18
award
the
contract
to
the
design-builder
with
the
highest
point
19
total.
20
If
the
government
entity
uses
the
two-phase
process,
the
21
government
entity
will
request
qualifications
and
include
22
its
selection
criteria.
The
government
entity
will
rank
the
23
qualifications
of
a
design-builder.
In
the
second
phase,
the
24
government
entity
shall
negotiate
with
the
highest-ranked
25
design-builder.
If
the
two
parties
cannot
agree
to
a
contract
26
with
terms
and
conditions
acceptable
to
the
government
27
entity,
those
negotiations
shall
be
formally
terminated
28
and
the
government
entity
shall
negotiate
with
the
next
29
highest-ranked
design-builder.
That
process
shall
continue
30
until
the
government
entity
can
negotiate
a
contract
with
a
31
design-builder
with
terms
and
conditions
acceptable
to
the
32
government
entity.
33
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16
