Legislative Bulletin January 31, 2023 – Action AlertTuesday, January 31, 2023 - 05:49pm
Oppose: Bill would limit ability of localities to decide construction method for projects
SB954 (Petersen) likely to be heard tomorrow in Senate General Laws and Technology
SB954 (Petersen) – Virginia Public Procurement Act; construction management; construction manager allowed to bid on certain contracts. This legislation would remove the authority of localities to use design-build or construction management at risk contracts (CM) for construction projects costing under $125 million. Current law allows their use for projects over $26 million and for complex projects below that amount. While most local projects are constructed using the design-bid-build method of construction, there are certain projects where a locality would prefer to use design-build for construction management.
VML strongly opposes this bill as a limitation on the ability of localities to make the decision as to which construction method is best suited to an individual project and has requested that the bill be referred to the Procurement Study Group for a more complete study of the issues.
Under the current law (2.2-4382), a local public body can choose to use CM if the project is more than $26 million (cost threshold established by Secretary of Administration in DGS regs) without any other requirements other than making a determination that competitive sealed bidding is not practicable or not fiscally advantageous and having an architect or engineer advise the locality regarding the use of CM. For projects under $26 million, it additionally must be a “complex project” and the local governing body must specifically approve using CM.
Under the proposed language, that $26 million dollar limit would go to $125 million! Also, a new section is added just for localities which states: “For all projects less than $125 million…a local public body that enters into a contract for construction management shall conduct a two-step process beginning with a preconstruction contract. Upon completion of the preconstruction contract, the local public body shall then obtain construction services for the project through competitive sealed bidding.”
- Localities should retain their authority to use design-build or construction management at risk contracts for construction projects costing under $125 million.
- Current law allows for their use for projects over $26 million and for complex projects below that amount – Please support leaving these thresholds as is.
- This legislation limits the ability of a locality to decide what procurement method fits each individual project.
Please contact the members of the Senate General Laws and Technology Committee to oppose SB954.
Senate General Laws and Technology Committee members:
|Ebbin (Chair)||email@example.com||(804) 698-7530|
VML Contact: Michelle Gowdy, firstname.lastname@example.org