Bill Text: TX HB2579 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to the authority of the Texas Department of Transportation to use the construction manager-at-risk project delivery method for state highway improvement projects.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2019-03-11 - Referred to Transportation [HB2579 Detail]
Download: Texas-2019-HB2579-Introduced.html
By: Thompson of Brazoria | H.B. No. 2579 |
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relating to the authority of th | ||
e Texas Department of Transportation | ||
to use the construction manager-at-risk project delivery method for | ||
state highway improvement projects. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Chapter 223, Transportation Code, is amended by | ||
adding Subchapter G to read as follows: | ||
SUBCHAPTER G. CONSTRUCTION MANAGER-AT-RISK METHOD | ||
Sec. 223.301. DEFINITION; FORM OF CONSTRUCTION | ||
MANAGER-AT-RISK. (a) In this subchapter, "construction | ||
manager-at-risk method" means a delivery method by which the | ||
department selects or designates an engineer for design and | ||
construction phase services and separately contracts with a | ||
construction manager to serve as the general contractor and provide | ||
consultation during the design and construction of a state highway. | ||
(b) A construction manager may be a sole proprietorship, | ||
partnership, corporation, or other legal entity. | ||
Sec. 223.302. USE OF CONSTRUCTION MANAGER-AT-RISK METHOD. | ||
The department may use the construction manager-at-risk method in | ||
selecting a general contractor for the construction of a state | ||
highway project as provided by this subchapter. | ||
Sec. 223.303. FUNCTIONS OF CONSTRUCTION MANAGER-AT-RISK. | ||
(a) A construction manager serves as the general contractor for a | ||
state highway project and assumes the risk for the construction or | ||
improvement of the state highway at the contracted price. | ||
(b) A construction manager provides consultation to the | ||
department regarding the construction of a state highway project | ||
during and after the design of the project, including providing | ||
input regarding scheduling, pricing, phasing, and other issues that | ||
will enable the department to design a more constructible project. | ||
(c) The contracted price may be a guaranteed maximum price. | ||
Sec. 223.304. USE OF ENGINEER. (a) On or before the | ||
selection of a construction manager, the department shall select or | ||
designate an engineer to prepare the construction documents for the | ||
project. | ||
(b) The engineer selected or designated for a project may | ||
not serve, alone or in combination with another person, as the | ||
construction manager for that project. | ||
(c) Subsection (b) does not prohibit the engineer from | ||
providing customary construction phase services under the | ||
engineer's agreement with the department in accordance with | ||
applicable licensing laws. | ||
Sec. 223.305. PROCUREMENT PROCESS FOR CONSTRUCTION | ||
MANAGER-AT-RISK. (a) The department may select the construction | ||
manager in a one-step or two-step process. | ||
(b) The department shall prepare a single request for | ||
proposals, in the case of a one-step process, or an initial request | ||
for qualifications, to be followed by a request for proposals, in | ||
the case of a two-step process, that includes: | ||
(1) a statement as to whether the selection process is | ||
a one-step or two-step process; | ||
(2) information regarding the project's location, | ||
scope, and limits; | ||
(3) publicly available cost estimates for the project | ||
and information regarding funding that may be available for the | ||
project; | ||
(4) selection criteria and the relative weight to be | ||
given to the criteria; | ||
(5) the time and place for receipt of qualifications | ||
statements or proposals; and | ||
(6) any other information that may assist the | ||
department in its selection of a construction manager. | ||
(c) A request for proposals shall include any materials | ||
specifications, special material requirements, quality assurance | ||
and quality control requirements, and available geotechnical or | ||
other information related to the project, and the status of any | ||
environmental review of the project. | ||
(d) If a one-step process is used, the department may | ||
request, as part of the offeror's proposal, the offeror's proposed | ||
fees and prices for performing the work. | ||
(e) If a two-step process is used, the department may not | ||
request proposed fees or prices in step one. In step two, the | ||
department may request that five or fewer offerors, selected on the | ||
basis of qualifications, experience, technical competence, and | ||
ability to develop the project, provide additional information, | ||
including the offeror's proposed fees and prices for performing the | ||
work. | ||
Sec. 223.306. SELECTION OF CONSTRUCTION MANAGER-AT-RISK. | ||
(a) The department shall rank the offerors in accordance with the | ||
selection criteria and formula provided in the request for | ||
proposals, and shall select the offeror that submits the proposal | ||
that offers the best value for the department. | ||
(b) The department shall attempt to negotiate a contract | ||
with the selected offeror. | ||
(c) If the department is unable to negotiate a satisfactory | ||
contract with the selected offeror, the department, formally and in | ||
writing, shall end negotiations with that offeror and proceed to | ||
negotiate with the next offeror in the order of the selection | ||
ranking until a contract is reached or negotiations with all ranked | ||
offerors end. | ||
(d) Not later than the seventh day after the date the | ||
contract is awarded, the department shall make public the selection | ||
rankings. | ||
Sec. 223.307. PERFORMANCE OF WORK. (a) A construction | ||
manager shall publicly advertise for bids or proposals and receive | ||
bids or proposals from contractors for the performance of the | ||
construction work. | ||
(b) A construction manager may perform portions of the work | ||
itself if: | ||
(1) the construction manager submits its bid or | ||
proposal for those portions of the work in the same manner as all | ||
other contractors; and | ||
(2) the department determines that the construction | ||
manager's bid or proposal provides the best value for the | ||
department. | ||
Sec. 223.308. REVIEW AND EVALUATION OF BIDS OR PROPOSALS; | ||
SELECTION. (a) The construction manager shall review all | ||
contractor bids or proposals in a manner that does not disclose to a | ||
person that is not employed by the construction manager, the | ||
engineer that prepared the construction documents for the project, | ||
or the department the contents of the bid or proposal during the | ||
selection process. The construction manager shall make all bids or | ||
proposals available to the department on request, and shall make | ||
bids or proposals available to the public after the final contract | ||
is entered into. | ||
(b) The construction manager shall evaluate the bids or | ||
proposals received from contractors, and shall select a bid or | ||
proposal for award. If the construction manager recommends to the | ||
department a bid or proposal but the department requires another | ||
bid or proposal to be selected, the department, through a change in | ||
the contracted price, time, or guaranteed maximum price under the | ||
contract with the construction manager, shall compensate the | ||
construction manager for any additional cost and risk that the | ||
construction manager incurs because of the department's | ||
requirement. | ||
Sec. 223.309. DEFAULT; PERFORMANCE OF WORK. If a | ||
contractor selected under Section 223.308 defaults in the | ||
performance of its work or fails to execute a subcontract, the | ||
construction manager may itself fulfill, without advertising, the | ||
contract requirements or select a replacement contractor to fulfill | ||
the contract requirements. | ||
Sec. 223.310. PERFORMANCE OR PAYMENT BOND. (a) If a fixed | ||
contract amount or guaranteed maximum price has not been determined | ||
at the time the contract is awarded to a contractor selected under | ||
Section 223.308, the penal sum of the performance bond and the | ||
payment bond that are delivered to the department must each be in an | ||
amount equal to the construction cost estimate, as specified in the | ||
request for proposals. | ||
(b) The construction manager shall deliver the bonds not | ||
later than the 10th day after the date the construction manager | ||
executes the contract unless the construction manager furnishes a | ||
bid bond or other financial security acceptable to the department | ||
to ensure that the construction manager will furnish the required | ||
performance and payment bonds when a guaranteed maximum price is | ||
established. | ||
Sec. 223.311. RULES GOVERNING SELECTION PROCESS. (a) The | ||
commission shall adopt rules governing the selection of a | ||
construction manager, including criteria relating to the | ||
qualifications of the offerors and the award of contracts. | ||
SECTION 2. This Act takes effect immediately if it receives | ||
a vote of two-thirds of all the members elected to each house, as | ||
provided by Section 39, Article III, Texas Constitution. If this | ||
Act does not receive the vote necessary for immediate effect, this | ||
Act takes effect September 1, 2019. |