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Staff recommends establishing GMP before construction allocations for alternate delivery projects
Summary
Workshop staff said proposed guideline language would require a guaranteed maximum price (GMP) before a construction‑phase allocation for projects using design‑build or progressive design‑build, with program‑specific caveats for programs that fund preconstruction.
Commission staff told attendees the draft language would require a guaranteed maximum price before approving a construction‑phase allocation for projects delivered through design‑build, progressive design‑build or CMGC.
"A guaranteed maximum price must be established before the construction phase allocation," Naveen Habib said when walking through proposed programming and allocation language. Staff clarified that requiring a GMP does not grant or restrict contracting authority — implementing agencies must operate under their own statutory authority.
During Q&A, agency representatives raised scenarios where a GMP is not reached until design advances beyond the environmental document in progressive design‑build sequencing. Staff and technical staff (including John Prey) responded that some SB 1 programs (for example, the Solutions for Congested Corridors Program and the Local Partnership Competitive program) typically fund only construction and therefore the GMP requirement is most relevant in those programs, while the Local Partnership Formulaic program and the Trade Corridor Enhancement Program can fund preconstruction (design) and can therefore program design separately without a GMP prior to a design allocation.
Staff urged agencies to coordinate with commission staff early in project development so allocation sequencing and packaging can be worked through on a case‑by‑case basis.
