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Supporters urge raising pre‑engineered‑building threshold to $1 million; architects, contractors warn of safety and procurement risks
Summary
Representative Mike Brandenburg asked the committee to raise the public‑improvement threshold for pre‑engineered structures from $200,000 to $1,000,000 so state and local agencies can use manufacturer‑engineered buildings without duplicate design fees.
Representative Mike Brandenburg (District 28) asked the committee to update a statutory threshold that determines when project design must be procured through licensed architects and engineers. Brandenburg said the $200,000 limit in current law is out of date; “what we did 10 years ago at 200,000 is not adequate for today,” he said, and proposed raising the threshold for pre‑engineered public improvements to $1,000,000 so agencies can use off‑the‑shelf, manufacturer‑engineered designs for smaller projects without duplicative design fees.
Supporters included North Dakota Parks and Recreation (Cole Garman, outreach engagement chief, speaking for the agency) and parks deputy director Paul Taylor, who described operational benefits and faster construction windows for park cabins, comfort stations and small storage buildings. Garman noted the bill was reworked after the prior session and said the final language is narrowly defined and designed to preserve code compliance; he cited existing statutes that require fire marshal and Department of Public Instruction review for many school projects (testimony cited North Dakota Century Code sections for review and approval processes).
County and municipal representatives asked the committee to consider the rising cost of materials and the administrative burden of retaining architects and engineers for low‑complexity structures. Association of Counties representative Aaron Burst and others argued the present thresholds require design work that often doubles the cost of small projects.
Architects, engineers and contractor groups opposed the bill. Mike Crumwoody (American Institute of Architects of North Dakota and American Council of Engineering Companies of North Dakota) and Russ Hanson (Associated General Contractors) warned that raising a dollar threshold for “design‑procurement” would create inconsistent procurement rules and increase risk to public safety because pre‑engineered manufacturers do not always supply complete, code‑compliant systems for every site. Crumwoody told the committee that code conflicts and foundation and life‑safety requirements are frequently found only after a manufacturer’s submittal is reviewed by a licensed professional. Jolene Reek (licensed landscape architect) and mechanical‑trade representatives also urged the committee to retain current thresholds and keep procurement and design thresholds aligned.
Witnesses described two practical tradeoffs: pre‑engineered kits can speed delivery and reduce duplication of schematic design, but they still require licensed professionals to verify site work, foundations, utilities, and mechanical/electrical/plumbing and to coordinate life‑safety systems. Several witnesses recommended keeping uniform thresholds across bidding, bonding and design procurement or pursuing a separate, carefully circumscribed carve‑out instead of a large, dollar‑value increase. The committee closed the hearing on HB 1445 with no recorded vote.
