Bills › 88th General Assembly
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
Sponsored by the Senate State Government Committee
Topics:State government
Where it is now
- Done: IntroducedFebruary 12, 2020
- Done: SubcommitteeFebruary 12, 2020
- Done: Senate committeeFebruary 20, 2020
- Done: Passes the SenateJune 4, 202029–20
- Stopped: House committeeDied when the General Assembly ended
- Next: Passes the House
- Next: To the Governor
- Next: Signed into law
Died when the session ended The 2020 session adjourned on June 14, 2020, the General Assembly’s last regular session. Bills that didn’t pass both chambers died. What’s a funnel?
What’s in it
This bill concerns public construction and improvement contracts. DIVISION I —— PUBLIC CONSTRUCTION BIDDING REQUIREMENTS.2 is amended to provide that the term “public improvement” excludes construction work and repair or maintenance work performed for a city utility under Code chapter 388 when such work relates to existing utility infrastructure or to establishing connections to existing utility systems.4, relating to architectural and engineering services, is amended to prohibit fee-based selection of an architect, landscape architect, or engineer for a public improvement.
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34 is amended to prohibit the state board of regents from entering into a design-build contract to construct, repair, or improve buildings or grounds. DIVISION II —— GUARANTEED MAXIMUM PRICE CONTRACTS. This division allows a governmental entity to use a guaranteed maximum price contract for purposes of public improvement contracts.1 defines, among other terms, “construction manager-at-risk”, “governmental entity”, “guaranteed maximum price contract” and “public improvement”. “Guaranteed maximum price contract” is defined to mean the agreed to fixed or guaranteed maximum price pursuant to a contract entered into by the construction manager-at-risk and the governmental entity. “Construction manager-at-risk” means a legal entity that assumes the risk for the construction, rehabilitation, alteration, or repair of a project and provides consultant services to the governmental entity in the development and design phases, working collaboratively with the design professionals involved. “Governmental entity” is defined to mean the state, political subdivisions of the state, and public school corporations, and is specifically defined to include the state board of regents. “Public improvement” is defined to mean the same as for purposes of Code chapter governing public construction bidding.2 authorizes a governmental entity to enter into a guaranteed maximum price contract for a public improvement, notwithstanding any provision of law to the contrary.3 establishes the process for entering into a guaranteed maximum price contract. The new Code section provides procedures governing public disclosure of an intent to enter into a guaranteed maximum price contract, selection of an engineer, landscape architect, or architect, a request for qualifications process, a request for proposals and selection process, and selection of trade contractors and material packages.4 prohibits a governmental entity from entering into a design-build contract for the construction of a public improvement and entering into a guaranteed maximum price contract for public improvements relating to highway and bridge construction.
Changed since by amendment S-5089; see Amendments.
Senate subcommittee
Named February 12, 2020 (as SSB 3153). On February 13, 2020 it recommended passage.
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
Fiscal note
AI summary This bill changes how public improvements are contracted by prohibiting the Board of Regents and other governmental entities from using design-build contracts while allowing certain entities to use guaranteed maximum price contracts. The fiscal impact of prohibiting design-build contracts for Board of Regents projects is unknown. The fiscal impact of allowing all public entities to enter into guaranteed maximum price contracts cannot be determined at this time.2
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Description
Senate File 2364 as amended and passed by the Senate, does the following:
Division I
- The Bill amends the definition of “public improvement” in Iowa Code section 26.2(3).
- Prohibits the Iowa Board of Regents from entering into a design-build contract to construct, repair, or improve buildings or grounds. This prohibition does not apply to projects that are currently under contract. Provisions of Division I that amend Iowa Code section 262.34 are effective immediately.
- Prohibits governmental entities from the fee-based selection of an architect, landscape architect, or engineer for a public improvement.
Division II
- The Bill adopts new definitions for “construction manager-at-risk,” “governmental entity,” and “guaranteed maximum price contract,” and other terms.
- Authorizes a governmental entity to enter into a guaranteed maximum price contract.
- Adopts procedures and requirements for public entities that are pursuing a guaranteed maximum price contract. These procedures include public disclosures, a request for qualifications, a request for proposal, and the selection of bid winners.
- Prohibits all other governmental entities from entering into a design-build contract.
- Prohibits governmental entities from entering into a guaranteed maximum price contract for highway or bridge construction.
Background
With the exception of the Board of Regents, all current public improvement projects are completed using a process that requires governmental entities to bid projects using a design-bid-build contract.
The Board of Regents currently uses design-bid-build and design-build contracts. The Board has completed or initiated a total of 14 contracts using design-build to develop projects. As of February 2020, the Board had completed seven projects using design-build. These projects are listed in the table below.
Board of Regents Projects Completed Under Design-Build The Board is also planning or currently working on seven additional projects that will use design-build. These projects are reflected in the table below.
Ongoing Board of Regents Projects Under Design-Build (DB)
Assumptions
- Allowing public entities to enter into guaranteed maximum price contracts may allow additional flexibility when designing public improvement projects. The extent to which governmental entities may use these agreements and the impact of them is unknown.
- Prohibiting the use of design-build may increase expenses for future Regents projects by an unknown amount. The extent to which the Board of Regents may use guaranteed maximum price contracts and the impact of them is unknown.
Fiscal Impact
Prohibiting the use of design-build will have an unknown impact on Board of Regents building projects. The fiscal impact of allowing all public entities to enter into guaranteed maximum price contracts cannot be determined at this time.Institution Project Completion Budget Iowa Hawkeye Tennis and Recreation Complex Dec. 2014 15,000,000$ Iowa Biomedical Research Support Facility Dec. 2015 33,868,000 Iowa Elizabeth Catlett Residence Hall Jun. 2017 95,000,000 Iowa Chilled Water Plant 2 (West) Jul. 2018 5,200,000 Iowa Hancher Footbridge Aug. 2018 3,200,000 Iowa State Gregory L. Geoffroy Hall Dec. 2016 49,500,000 Northern Iowa McElroy Hall Aug. 2001 2,000,000Institution Project
Scheduled
Completion Phase Budget
Iowa Oakdale Studio Dec. 2021 Construction 2,500,000$ Iowa State Poultry Farm Spring 2020 Construction 5,750,000 Iowa State Gerdin Business Building Fall 2020 Construction 28,000,000 Iowa State Curtiss Farm-Feed Mill and Grain Science Summer 2021 Select DB 21,200,000 Iowa State Veterinary Diagnostic Lab Summer 2023 RPF for DB 75,000,000 Iowa State Industrial and Manufacturings Sys. Engin. Fall 2022 Programming 40,000,000 Iowa State LeBaron Hall Summer 2024 Programming 55,000,000
Sources
- Iowa Board of Regents
- Legislative Services Agency
- Public Improvements, Guaranteed Maximum Price Contracts · June 10, 2020
- Public Improvements, Guaranteed Maximum Price Contracts · March 4, 2020
- Public Improvements, Guaranteed Maximum Price Contracts · March 3, 2020
Iowa Code it changes
Lobbying
13 for · 16 against · 23 undecided · Who →
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88th General Assembly
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