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Committee amends construction-manager-at-risk bill, raises self-performance cap to 20%
Summary
A Senate committee voted to amend a construction-manager-at-risk bill to raise an affiliate self-performance limit from 10% to 20% for projects above $25,000,000, and to accept other House changes including adding community and junior colleges and lengthening prequalification notice to four weeks.
A Senate committee amended and reported a construction-manager-at-risk bill that applies to public projects with a proposed threshold of $25,000,000 and higher.
The House version accepted by the committee added community and junior colleges to the list of entities eligible for the exemption, lengthened the required notice period for prequalification criteria from two weeks to four weeks, required that a project be set only after final construction drawings are complete, and included a provision limiting a construction manager or its affiliates to self-perform up to 10% of total construction work if the proposal is deemed fair and reasonable. The committee adopted an amendment increasing that self-performance cap from 10% to 20%.
Senator Hobson asked whether the proposal would remove Department of Finance and Administration (DFA) control over community college construction projects; the presenter said the bill applies only to projects exceeding $25,000,000 and that, in practice, no community college project currently meets that threshold, so the provision would be most relevant to Institutions of Higher Learning (IHL). Senator Hobson: “Is this a proposal to take out of DFA the control over the construction projects at community colleges?”
Senator Blunt said the staffing and oversight capacity differs between IHL and community college boards and urged further review before extending the exemption to community colleges. “The IHL has folks on staff who for years have been involved in overseeing building projects on the university campuses. And, the community college board does not have that infrastructure or people in place,” Blunt said.
The committee chair proposed and the committee adopted the amendment changing the self-performance cap to 20%. A motion to report the bill passed in committee sub by voice vote; the transcript records the committee’s action but does not provide a roll-call tally.
The presenter said he would consult further with Senator Harkins, the bill’s original sponsor, and provide answers to questions before floor action. Committee members asked staff to gather additional information about whether any community college projects have reached the $25,000,000 threshold.
