BILL NUMBER: AB 1171 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Linder
FEBRUARY 27, 2015
An act to add Chapter 6.7 (commencing with Section 6970) to Part 1
of Division 2 of the Public Contract Code, relating to public
contracts.
LEGISLATIVE COUNSEL'S DIGEST
AB 1171, as introduced, Linder. Construction Manager/General
Contractor method: regional transportation agencies: projects on
expressways.
Existing law generally sets forth the requirements for the
solicitation and evaluation of bids and the awarding of contracts by
local agencies for public works contracts. Existing law authorizes
the Department of Transportation, the Santa Clara County Valley
Transportation Authority, and the San Diego Association of
Governments to use the Construction Manager/General Contractor
project delivery method for transit projects within their respective
jurisdictions, subject to certain conditions and requirements.
This bill would authorize regional transportation agencies, as
defined, to use the Construction Manager/General Contractor project
delivery method, as specified, to design and construct certain
projects on expressways that are not on the state highway system if
the projects are developed in accordance with an expenditure plan
approved by voters as of January 1, 2014. The bill would require
specified information provided to a regional transportation agency to
be verified under oath. By expanding the scope of an existing crime,
the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Chapter 6.7 (commencing with Section 6970) is added to
Part 1 of Division 2 of the Public Contract Code, to read:
CHAPTER 6.7. CONSTRUCTION MANAGER/GENERAL CONTRACTOR METHOD:
REGIONAL PROJECTS ON EXPRESSWAYS
6970. (a) This chapter provides for an alternative procurement
procedure for certain transportation projects performed by a regional
transportation agency.
(b) The Construction Manager/General Contractor method allows the
regional transportation agency to engage a construction manager
during the design process to provide input on the design. During the
design phase, the construction manager provides advice including, but
not limited to, scheduling, pricing, and phasing to assist the
agency to design a more constructible project.
(c) The Legislature finds and declares that utilizing a
Construction Manager/General Contractor method requires a clear
understanding of the roles and responsibilities of each participant
in the process. The Legislature also finds and declares that
cost-effective benefits are achieved by shifting the liability and
risk for cost containment and project schedule to the construction
manager and by permitting the coherent phasing of projects into
discrete contract increments.
6971. For purposes of this chapter, the following definitions
apply:
(a) "Construction manager" means a partnership, corporation, or
other legal entity that is able to provide appropriately licensed
contracting and engineering services as needed pursuant to a
Construction Manager/General Contractor method contract.
(b) "Construction Manager/General Contractor method" means a
project delivery method in which a construction manager is procured
to provide preconstruction services during the design phase of the
project and construction services during the construction phase of
the project. The contract for construction services may be entered
into at the same time as the contract for preconstruction services,
or at a later time. The execution of the design and the construction
of the project may be in sequential phases or concurrent phases.
(c) "Preconstruction services" means advice during the design
phase, including, but not limited to, scheduling, pricing, and
phasing to assist the regional transportation agency to design a more
constructible project.
(d) "Project" means the construction of a highway, bridge, or
tunnel.
(e) "Regional transportation agency" means an entity as designated
pursuant to paragraph (4) of subdivision (i) of Section 6820.
6972. (a) A regional transportation agency may utilize the
Construction Manager/General Contractor method of procurement to
design and construct projects on expressways that are not on the
state highway system if the projects are developed in accordance with
an expenditure plan approved by voters as of January 1, 2014.
(b) The entity responsible for the maintenance of the local
streets and roads within the jurisdiction of the expressway shall be
responsible for the maintenance of the expressway.
6973. (a) Construction Manager/General Contractor method projects
shall progress as set forth in subdivision (a) of Section 6703,
except that any references to "department" shall mean the regional
transportation agency.
(b) For each request for qualifications (RFQ), the regional
transportation agency shall generate a final list of qualified
persons or firms that participated in the RFQ prior to entering into
negotiations on the contract or contracts to which the RFQ applies.
(c) (1) For each contract included in the RFQ, the regional
transportation agency shall enter into separate negotiations for the
contract with the highest qualified person or firm on the final list
for that contract. However, if the RFQ is for multiple contracts and
specifies that all of the multiple contracts will be awarded to a
single construction manager, there may be a single negotiation for
all of the multiple contracts. The negotiations shall include
consideration of compensation and other contract terms that the
regional transportation agency determines to be fair and reasonable
to the department. In making this decision, the regional
transportation agency shall take into account the estimated value,
the scope, the complexity, and the nature of the professional
services or construction services to be rendered. If the regional
transportation agency is not able to negotiate a satisfactory
contract with the highest qualified person or firm on the final list,
regarding compensation and on other contract terms the regional
transportation agency determines to be fair and reasonable, the
regional transportation agency shall formally terminate negotiations
with that person or firm. The regional transportation agency may
undertake negotiations with the next most qualified person or firm on
the final list in sequence until an agreement is reached or a
determination is made to reject all persons or firms on the final
list.
(2) If a contract for construction services is entered into
pursuant to this chapter and includes preconstruction services by the
construction manager, the regional transportation agency shall enter
into a written contract with the construction manager for
preconstruction services under which contract the regional
transportation agency shall pay the construction manager a fee for
preconstruction services in an amount agreed upon by the regional
transportation agency and the construction manager. The
preconstruction services contract may include fees for services to be
performed during the contract period provided, however, the regional
transportation agency shall not request or obtain a fixed price or a
guaranteed maximum price for the construction contract from the
construction manager or enter into a construction contract with the
construction manager until after the regional transportation agency
has entered into a services contract. A preconstruction services
contract shall provide for the subsequent negotiation for
construction of all or any discreet phase or phases of the project.
(3) A contract for construction services shall be awarded after
the plans have been sufficiently developed and either a fixed price
or a guaranteed maximum price has been successfully negotiated. In
the event that a fixed price or a guaranteed maximum price is not
negotiated, the regional transportation agency shall not award the
contract for construction services.
(4) The regional transportation agency is not required to award
the construction services contract.
(5) Construction shall not commence on any phase, package, or
element until the regional transportation agency and construction
manager agree in writing on either a fixed price that the regional
transportation agency will pay for the construction to be commenced
or a guaranteed maximum price for the construction to be commenced
and construction schedule for the project. The construction manager
shall perform not less than 30 percent of the work covered by the
fixed price or guaranteed maximum price agreement reached. Work that
is not performed directly by the construction manager shall be bid to
subcontractors pursuant to Section 6705, except that any references
to "department" shall mean the regional transportation agency.
6974. Contracts awarded pursuant to this chapter shall be valid
until the project is completed.
SEC. 2. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.