Committee advances measure to make CMGC alternate delivery method permanent, caps single-project spending

Senator Joshua Bridal and representatives from the Department of Transportation described House Bill 1605 as a move to make the construction manager–general contractor (CMGC) alternate project delivery method permanent rather than pilot.

"What it would do is no longer call it a pilot program," Bridal said, recounting the program's pilot history (2017 start, amendment in 2019) and asserting that the department has promulgated rules and controls and had multiple successes with the method. He said the bill retains a state-imposed cap so that no single project could exceed $300,000,000 under the CMGC process.

Jared Wiley, director of RDOT, testified that many larger projects include federal funds and therefore must follow federal Disadvantaged Business Enterprise (DBE) requirements. Wiley explained how the CMGC process brings a potential general contractor into the design phase to reduce risk and time, with the department maintaining prequalification and bonding checks. He said the department maintains a prequalified list of contractors and that five CMGC projects have been awarded to different firms to date.

Several senators voiced concern that a small number of large contractors might capture most of the work, reducing opportunities for smaller contractors to grow. Wiley said the prequalification, rating and bonding processes, along with subcontracting opportunities, are intended to distribute work and limit over-extension by any single contractor.

The committee voted to do pass the bill. Supporters — including the Associated General Contractors and asphalt paving association, according to Wiley — told the committee they support making the program permanent under the stated controls.