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 anybegin delete painting,end deletebegin insert paintingend insert or repairs theretobegin insert,end insert 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,begin delete 2021,end deletebegin insert 2018,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 be used only 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 definedbegin insert, to a construction manager at-risk entity that possesses or that obtains sufficient bondingend insert.
The 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 to make a copy of the contract available for public inspection on its Internet Web site and to notify the appropriate policy committees of the Legislature with instructions on finding and accessing the stored contract.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 20146 is added to the Public Contract
2Code, to read:
(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 may be used only for projects
8in the county in excess of one million dollars ($1,000,000) and
9may be awarded using either the lowest responsible bidder or best
10value methodbegin insert to a construction manager at-risk entity that
11possesses or that obtains sufficient bonding to cover the contract
12amount for construction services and risk and liability insurance
13as may be required by the county. Any payment or performance
14bond written for the purposes of this
section shall be written using
15a bond form developed by the countyend insert.
16(b) For purposes of this section, the following definitions apply:
17(1) “Best value” means a value determined by objective criteria
18related to the experience of the entity and project personnel, project
19plan, financial strength of the entity, safety record of the entity,
20and price.
P3 1(2) “Construction manager at-risk contract” means a
2competitively procured contract by a county with an individual,
3partnership, joint venture, corporation, or other recognized legal
4entity, that is appropriately licensed in this statebegin insert, including a
5contractor’s license issued by the Contractors’ State License
6Board,end insert and that guarantees the
cost of a project and furnishes
7construction management services, including, but not limited to,
8preparation and coordination of bid packages, scheduling, cost
9control, value engineering, evaluation, preconstruction services,
10and construction administration.
11(c) Subcontractors that were not listed by a construction manager
12at-risk entity as partners, general partners, or association members
13in a partnership, limited partnership, or association in the entity’s
14construction manager at-risk bid submission shall be awarded by
15the construction manager at-risk entity in accordance with the
16process set forth by the county. All subcontractors bidding on
17contracts pursuant to this section shall be afforded the protections
18contained in Chapter 4 (commencing with Section 4100) of Part
191. The construction manager at-risk entity shall do both of the
20following:
21(1) Provide public notice of the
availability of work to be
22subcontracted in accordance with the publication requirements
23applicable to the competitive bidding process of the county.
24(2) Provide a fixed date and time on which the subcontracted
25work will be awarded in accordance with the procedure established
26pursuant to this section.
27(d) A county that elects to proceed under this section and uses
28a construction manager at-risk contract for a building project shall
29make a copy of the contract available for public inspection on its
30Internet Web site and notify the appropriate policy committees of
31the Legislature with instructions on finding and accessing the
32stored contract.
33(e) (1) If the county elects to award a project pursuant to this
34section,
retention proceeds withheld by the county from the
35construction manager at-risk entity shall not exceed 5 percent if
36a performance and payment bond issued by an admitted surety
37insurer is required in the solicitation of bids.
38(2) In a contract between the construction manager at-risk entity
39and any subcontractor, and in a contract between a subcontractor
40and any subcontractor thereunder, the percentage of the retention
P4 1proceeds withheld may not exceed the percentage specified in the
2contract between the county and the construction manager at-risk
3entity. If the construction manager at-risk entity provides written
4notice to any subcontractor that is not a member of the construction
5manager at-risk entity, prior to or at the time the bid is requested,
6that a bond may be required and the subcontractor subsequently
7is unable or refuses to
furnish a bond to the construction manager
8at-risk entity, then the construction manager at-risk entity may
9withhold retention proceeds in excess of the percentage specified
10in the contract between the county and the construction manager
11at-risk entity from any payment made by the construction manager
12at-risk entity to the subcontractor.
13(f) If the county elects to award a project pursuant to this
14section, the contract between the county and construction manager
15at-risk entity shall be subject to the provisions of subdivision (b)
16of Section 2782 of the Civil Code. Any contract between the
17construction manager at-risk entity and a contractor or
18subcontractor shall be subject to provisions of Section 2782.05 of
19the Civil Code.
29 20(e)
end delete
21begin insert(g)end insert This section shall remain in effect only until January 1,begin delete 2021,end delete
22begin insert
2018,end insert and as of that date is repealed, unless a later enacted statute,
23that is enacted before January 1,begin delete 2021,end deletebegin insert 2018,end insert deletes or extends
24that date.
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