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Senate keeps construction‑manager‑at‑risk authority for public universities, adds vetting requirements
Summary
The Senate approved language allowing institutions of higher learning to use construction manager at risk contracts on large projects, with provisions to vet subcontractors and permit the construction manager to self‑perform limited work.
The Senate approved a substitute amendment that applies construction‑manager‑at‑risk (CMAR) contracting to institutions of higher learning for large capital projects, while adding procedural safeguards allowing agencies to vet subcontractors and review proposals.
Senator Harkins and others described the substitute as the chamber’s earlier CMAR language. The approach permits universities to select a construction manager who provides a guaranteed maximum price and to prequalify subcontractors by published standards. Proponents said the change prevents situations in which the lowest bidder lacks capacity and causes delays and extra costs. “Right now they have to take the lowest bid. That contractor was not able to do the work. It caused a lot of problems,” an author said on the floor.
The bill keeps CMAR limited to Institutions of Higher Learning (IHL) projects and preserves requirements to publish qualifications and compare proposals. The CMAR or its affiliates may self‑perform work so long as such proposals are evaluated by the agency and the award is deemed in the best interest of the project; the governing authority retains discretion to reject a self‑performance award.
Questions on the floor focused on potential conflicts of interest, the permissible amount of work a construction manager may self‑perform (floor discussion referenced $6 million as an illustrative cap on self‑performance for projects exceeding $25 million), and oversight roles for the Bureau of Buildings and agencies. Sponsors said the risk and cost overrun liability rests with the construction manager, not the university.
Senators adopted the substitute amendment and passed the bill on roll call. Supporters framed the measure as a tool to protect taxpayers and allow universities to secure experienced construction managers; critics warned about possible conflicts when a construction manager both oversees subcontractors and bids to self‑perform work.
