Amended in Assembly August 5, 2013

Amended in Senate April 9, 2013

Amended in Senate April 1, 2013

Senate BillNo. 328


Introduced by Senator Knight

February 19, 2013


An act to add and repeal Section 20146 of 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, until January 1, 2021, 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 maybegin delete onlyend delete be usedbegin insert onlyend insert 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 delete Thisend deletebegin insert Theend insert 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.

This bill would require a county that elects to use a construction manager at-risk contract tobegin delete 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 toend delete makebegin delete the copiesend deletebegin insert a copyend insert of the contract available for public inspection on its Internet Web sitebegin insert and to notify the appropriate policy committees of the Legislature with instructions on finding and accessing the stored contractend insert.

Vote: majority. Appropriation: no. Fiscal committee: begin deleteyes end deletebegin insertnoend insert. State-mandated local program: no.

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

P2    1

SECTION 1.  

Section 20146 is added to the Public Contract
2Code
, to read:

3

20146.  

(a) A county, with approval of the board of supervisors,
4may utilize construction manager at-risk construction contracts
5for the erection, construction, alteration, repair, or improvement
6of any building owned or leased by the county. A construction
7manager at-risk construction contract maybegin delete onlyend delete be usedbegin insert onlyend insert for
8projects in the county in excess of one million dollars ($1,000,000)
9and may be awarded using either the lowest responsible bidder or
10best value method.

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

12(1) “Best value” means a value determined by objective criteria
13related to the experience of the entity and project personnel, project
14plan, financial strength of the entity, safety record of the entity,
15and price.

16(2) “Construction manager at-risk contract” means a
17competitively procured contract by a county with an individual,
18partnership, joint venture, corporation, or other recognized legal
19entity, that is appropriately licensed in this state and that guarantees
20the cost of a project and furnishes construction management
21services, including, but not limited to, preparation and coordination
P3    1of bid packages, scheduling, cost control, value engineering,
2evaluation, preconstruction services, and construction
3administration.

4(c) Subcontractors that were not listed by a construction manager
5at-risk entity as partners, general partners, or association members
6in a partnership, limited partnership, or association in the entity’s
7construction manager at-risk bid submission shall be awarded by
8the construction manager at-risk entity in accordance with the
9process set forth by the county. All subcontractors bidding on
10contracts pursuant to this section shall be afforded the protections
11contained in Chapter 4 (commencing with Section 4100) of Part
121. The construction manager at-risk entity shall do both of the
13following:

14(1) Provide public notice of the availability of work to be
15subcontracted in accordance with the publication requirements
16applicable to the competitive bidding process of the county.

17(2) Provide a fixed date and time on which the subcontracted
18 work will be awarded in accordance with the procedure established
19pursuant to this section.

20(d) A county that elects to proceed under this section and uses
21a construction manager at-risk contract for a building project shall
22begin delete submit to the office of the State Controller, in electronic format,
23a copy of the construction manager at-risk contract. The office of
24the State Controller shall make the copies of contracts it receives
25pursuant to this subdivisionend delete
begin insert make a copy of the contractend insert available
26for public inspection on its Internet Web sitebegin insert and notify the
27appropriate policy committees of the Legislature with instructions
28on finding and accessing the stored contractend insert
.

29(e) This section shall remain in effect only until January 1, 2021,
30and as of that date is repealed, unless a later enacted statute, that
31is enacted before January 1, 2021, deletes or extends that date.



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