Related to guaranteed maximum price contracts for the construction of public improvements

This bill relates to guaranteed maximum price contracts for the construction of a public improvement. 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. _____ 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.