Amended in Senate April 9, 2013

Amended in Senate April 1, 2013

Senate Bill No. 328

Introduced by Senator Knight

February 19, 2013

An act to add begin insert and repeal end insert Section 20146 begin delete to end delete begin insert of end insert the Public Contract Code, relating to public works contracts.

LEGISLATIVE COUNSEL’S DIGEST

SB 328, as amended, Knight. Counties: public works contracts.

Existing law provides that if the estimated cost of construction of any county building or the cost of any painting, or repairs thereto exceeds a specified sum, the work shall be done by contract and that any such contract not let pursuant to specified provisions is void. Existing law requires a board of supervisors to award the contract to the lowest responsible bidder. Existing law also authorizes a county, with approval of the board of supervisors, to utilize an alternative procedure for bidding on construction projects in the county in excess of $2,500,000 and to award the project using either the lowest responsible bidder or by best value, as specified.

This bill would authorize a county, begin insert until January 1, 2021, end insert with approval of the board of supervisors, to utilize construction manager at-risk construction contracts for the erection, construction, alteration, repair, or improvement of any building owned or leased by the county. The bill would provide that a construction manager at-risk contract may only be used for projects in the county in excess of $1,000,000 and may be awarded using either the lowest responsible bidder or best value method, as defined. begin insert This bill would require that subcontractors that were not listed by a construction manager at-risk entity as partners, general partners, or association members in a partnership, limited partnership, or association in the entity’s construction manager at-risk bid submission, be awarded certain work by the construction manager at-risk entity in accordance with the process set forth by the county, as provided. end insert

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This bill would require a county that elects to use a construction manager at-risk contract to submit to the office of the State Controller a copy of the construction manager at-risk contract, and would require the office of the State Controller to make the copies of the contract available for public inspection on its Internet Web site.

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Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 20146 is added to the Public Contract
Code, to read:

20146.  

(a) A county, with approval of the board of supervisors,
may utilize construction manager at-risk construction contracts
for the erection, construction, alteration, repair, or improvement
of any building owned or leased by the county. A construction
manager at-risk construction contract may only be used for projects
in the county in excess of one million dollars ($1,000,000) and
may be awarded using either the lowest responsible bidder or best
value method.

(b) For purposes of this section, the following definitions apply:

(1) “Best value” means a value determined by objective criteria
related to the experience of the entity and project personnel, project
plan, financial strength of the entity, safety record of the entity,
and price.

(2) “Construction manager at-risk contract” means a
competitively procured contract by a county with an individual,
partnership, joint venture, corporation, or other recognized legal
entity, that is appropriately licensed in this state and that guarantees
the cost of a project and furnishes construction management
services, including, but not limited to, preparation and coordination
of bid packages, scheduling, cost control, value engineering,
evaluation, preconstruction services, and construction
administration.

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(c) Subcontractors that were not listed by a construction
manager at-risk entity as partners, general partners, or association
members in a partnership, limited partnership, or association in
the entity’s construction manager at-risk bid submission shall be
awarded by the construction manager at-risk entity in accordance
with the process set forth by the county. All subcontractors bidding
on contracts pursuant to this section shall be afforded the
protections contained in Chapter 4 (commencing with Section
4100) of Part 1. The construction manager at-risk entity shall do
both of the following:

end insert begin insert

(1) Provide public notice of the availability of work to be
subcontracted in accordance with the publication requirements
applicable to the competitive bidding process of the county.

end insert begin insert

(2) Provide a fixed date and time on which the subcontracted
work will be awarded in accordance with the procedure established
pursuant to this section.

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(d) A county that elects to proceed under this section and uses
a construction manager at-risk contract for a building project
shall submit to the office of the State Controller, in electronic
format, a copy of the construction manager at-risk contract. The
office of the State Controller shall make the copies of contracts it
receives pursuant to this subdivision available for public inspection
on its Internet Web site.

end insert begin insert

(e) This section shall remain in effect only until January 1, 2021,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2021, deletes or extends that date.

end insert