BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SB 328|
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THIRD READING
Bill No: SB 328
Author: Knight (R)
Amended: 4/9/13
Vote: 21
SENATE GOVERNANCE & FINANCE COMMITTEE : 6-0, 4/3/13
AYES: Wolk, Knight, Beall, DeSaulnier, Emmerson, Hernandez
NO VOTE RECORDED: Liu
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SUBJECT : Counties: public works contracts
SOURCE : County of San Bernardino
DIGEST : This bill, until January 1, 2021, allows a county,
with the board of supervisors' approval, to use construction
manager at-risk construction contracts for erecting,
constructing, altering, repairing, or improving buildings owned
or leased by the county. This bill provides that a county may
use a construction manager at-risk construction contract only
for projects in the county in excess of $1,000,000, and allows a
county to award the construction manager at-risk construction
contract using either the lowest responsible bidder or best
value method.
ANALYSIS :
Existing law allows local officials to contract with private
construction project management firms for professional
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management, and supervision services for construction projects.
Construction project management firms provide expertise and
experience in construction project design review and evaluation,
construction mobilization and supervision, bid evaluation,
project scheduling, cost benefit analysis, claims review and
negotiation, and general management and administration of a
construction project. Local officials award contracts based on
demonstrated competence and qualifications. Construction
project management services can be used with any project
delivery method.
This bill defines "best value" as 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.
This bill defines "construction manager at-risk contract" as 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, preparation and coordination of bid
packages, scheduling, cost control, value engineering,
evaluation, preconstruction services, and construction
administration.
Subcontractors that are not listed by a construction manager
at-risk entity, as specified, shall be awarded by the
construction manager at-risk entity in accordance with the
process set forth by the county. The construction manager
at-risk shall do both of the following:
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.
2.Provide a fixed date and time on which the subcontracted work
will be awarded in accordance with the procedure established
pursuant to this bill.
This bill requires counties to submit a copy of every contract
they enter into, subject to this bill's provisions, to the
Controller's Office, in electronic format, to be posted on its
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Internet Web site. This bill sunsets counties' ability to use
construction manager at-risk contracting on January 1, 2021.
Comments
According to the Senate Governance and Finance Committee
analysis, a method known as construction manager at-risk is
another approach to public works construction and delivery which
combines elements of the design-bid-build and design-build
methods, and uses construction project management services. The
construction manager at-risk method allows the owner of a
project to retain a "construction manager," who provides
pre-construction services during the design period and later
becomes the general contractor during the construction process.
The owner has separate contracts for design and construction
services (the construction manager), similar to the
design-bid-build method. The owner may establish the separate
contracts at the same time, however, thereby allowing the design
party and the construction manager to work together, similar to
the design-build method. Before construction can begin on a
project, the owner and construction manager must agree on either
a fixed price or "guaranteed maximum price" for the project.
The construction manager is responsible for delivering the
project within the agreed upon price, thereby assuming the risk
for cost-overruns. The California Administrative Office of the
Courts, University of California, California State University
System, school districts, and some cities have used the
construction manager at-risk method for building construction
projects.
Under the construction manager at-risk method, project delivery
can occur in sequential or concurrent phases. Projects that
have multiple components lend themselves to this method because
the design and construction of different aspects of the project
can occur at different times. In effect, the overall project
can be broken into multiple components, which the construction
manager must bid to subcontractors.
State law does not authorize counties to use the construction
manager at-risk method for county construction projects.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
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SUPPORT : (Verified 4/22/13)
County of San Bernardino (source)
County of Stanislaus
Rural County Representatives of California
Urban Counties Caucus
AB:ej 4/23/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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