Relating to contracts for the construction of public improvements

This bill relates to contracts for the construction of a public improvement. The bill allows a governmental entity to reject the lowest responsive bidder for the construction of a public improvement under Code chapter or the lowest cost construction manager-at-risk for a guaranteed maximum price contract under Code chapter 26A due to the bidder’s or construction manager-at-risk’s experience, number of employees, or ability to finance the cost of the public improvement. A rejected bidder or construction manager-at-risk may maintain an action against the governmental entity, challenging the governmental entity’s action as fraudulent, arbitrary, in bad faith, or an abuse of discretion. Under current law, a governmental entity is authorized to enter into a guaranteed maximum price contract for the construction of a public improvement. The bill allows a governmental entity to enter into such a contract only if the estimated cost of the project exceeds $150 million. The bill requires each proposal submitted by a construction manager-at-risk to include the proposed costs for general conditions. The proposed fees and costs may not contain a contingency. A bid containing a contingent amount must be rejected. The bill provides that a governmental entity or representative must select the construction manager-at-risk that submits the lowest cost proposal, based on the published selection criteria and its ranking evaluation, rather than the proposal that offers the best value. The bill strikes a requirement that the governmental entity consider whether awarding a contract to the construction manager-at-risk who was not the apparent lowest bidder is in the best interest of the project. If the estimated cost of trade contract work and materials packages exceeds the adjusted competitive bid threshold, the bill requires the construction manager-at-risk to direct the designated licensed engineer, architect, or landscape architect to prepare and make available plans and specifications for the public improvement project.