Alabama 2025 Regular Session

Alabama Senate Bill SB332 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	SB332INTRODUCED
2	2	Page 0
3	3	SB332
4	4	I3N2Q66-1
5	5	By Senator Givhan
6	6	RFD: Fiscal Responsibility and Economic Development
7	7	First Read: 17-Apr-25
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12	12	5 I3N2Q66-1 04/17/2025 TRP (L)bm 2025-1689
13	13	Page 1
14	14	First Read: 17-Apr-25
15	15	SYNOPSIS:
16	16	In existing law public owners are authorized to
17	17	let public works projects through the design-bid-build
18	18	project delivery method.
19	19	This bill would provide for new alternative
20	20	means for procuring design and construction services
21	21	for public contracts by authorizing the use of
22	22	Construction Manager at Risk (CMAR), Design-Build,
23	23	Design-Build-Finance-Operate-Maintain,
24	24	Design-Build-Operate-Maintain, and Progressive
25	25	Design-Build, project delivery methods and establish
26	26	the criteria for project approval.
27	27	This bill would provide for the adoption of
28	28	administrative rules to administer this law and
29	29	establish a process to protest a contract award, and
30	30	establish reporting requirements.
31	31	This bill would further provide for the
32	32	establishment of a Public Works Advisory Council.
33	33	A BILL
34	34	TO BE ENTITLED
35	35	AN ACT
36	36	Relating to public works projects; to amend Sections
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64	64	28 SB332 INTRODUCED
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66	66	Relating to public works projects; to amend Sections
67	67	39-1-1, 39-2-1, 39-5-4, and 39-5-6, Code of Alabama 1975; to
68	68	provide for alternative delivery methods for public work
69	69	projects; to further provide for who can file a protest; to
70	70	clarify how these provisions will be construed by the court;
71	71	to add Section 39-2-1.1; to designate Sections 39-2-1 through
72	72	39-2-14, Code of Alabama as Article 1; to add Article 2 to
73	73	Chapter 2 of Title 39, Code of Alabama 1975, commencing with
74	74	Section 39-2-40; to authorize the use of alternative delivery
75	75	methods for public works projects; to provide for the adoption
76	76	of administrative rules to administer this chapter; to provide
77	77	for reporting requirements; and to create a public works
78	78	advisory council.
79	79	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
80	80	Section 1. Sections 39-1-1, 39-2-1, 39-5-4, and 39-5-6,
81	81	Code of Alabama 1975, are amended to read as follows:
82	82	"§39-1-1
83	83	(a) Any person entering into a contract with an
84	84	awarding authority in this state for the prosecution of any
85	85	public works, before commencing the work, shall execute and
86	86	deliver to the awarding authority the following bonds:
87	87	(1) For Design-Bid-Build Contracts issued under Section
88	88	39-2-2:
89	89	a. Aaperformance bond, with penalty equal to 100
90	90	percent of the amount of the contract price. In addition,
91	91	another bond,
92	92	b. A payment bond, payable to the awarding authority
93	93	letting the contract, shall be executed in an amount not less
94	94	than 50 percent of the contract price, with the obligation
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124	124	than 50 percent of the contract price, with the obligation
125	125	that the contractor or contractors shall promptly make
126	126	payments to all persons supplying labor, materials, or
127	127	supplies for or in the prosecution of the work provided in the
128	128	contract and for the payment of reasonable attorney fees
129	129	incurred by successful claimants or plaintiffs in civil
130	130	actions on the bond.
131	131	(2) For alternative delivery methods awarded under this
132	132	chapter:
133	133	a. A performance bond in an amount equal to 100 percent
134	134	of the cost of the construction work. The amount of the bond
135	135	does not include the portion of the contract for the cost of
136	136	design, operation, maintenance, finance, costs of management
137	137	or administration, planning, performance of preliminary
138	138	studies, the acquisition of real property, professional
139	139	preconstruction services, and other nonconstruction work
140	140	costs.
141	141	b. A payment bond, in an amount equal to 100 percent of
142	142	the cost of the construction work, with the obligation that
143	143	the contractor or contractors shall promptly make payments to
144	144	all persons supplying labor, materials, or supplies for or in
145	145	the prosecution of the work provided in the contract and for
146	146	the payment of reasonable attorney fees incurred by successful
147	147	claimants or plaintiffs in civil actions on the bond. The
148	148	amount of the bond does not include that portion of the
149	149	contract for the cost of design, operation, maintenance,
150	150	finance, costs of management or administration, planning,
151	151	performance of preliminary studies, the acquisition of real
152	152	property, or professional preconstruction services, and other
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182	182	property, or professional preconstruction services, and other
183	183	nonconstruction work costs.
184	184	(b) Notwithstanding subsection (a), if the awarding
185	185	authority determines the cost of construction work of the
186	186	public work exceeds one hundred million dollars ($100,000,000)
187	187	and that the amounts established in subsection (a) are
188	188	impractical, or that it is less costly or more advantageous to
189	189	the awarding authority to reduce the amounts of the payment
190	190	and performance bonds to amounts that are adequate for the
191	191	protection of the state and persons supplying labor and
192	192	material to the contractor or its subcontractors, but less
193	193	than amounts of the performance and payment bonds established
194	194	in subsection (a), the awarding authority may reduce the
195	195	performance and payments bonds to such lower amounts. However,
196	196	in no event shall the awarding authority reduce the amount of
197	197	the performance and payment bonds to less than 50 percent of
198	198	the amounts established in subsection (a).
199	199	(c) Nothing in this section shall be construed to limit
200	200	the authority of an awarding authority to require a
201	201	performance bond or other security in addition to such bonds,
202	202	or in circumstances other than specified in this section.
203	203	(b)(d) Any person that has furnished labor, materials,
204	204	or supplies for or in the prosecution of a public work and
205	205	payment has not been made may institute a civil action upon
206	206	the payment bond and have their rights and claims adjudicated
207	207	in a civil action and judgment entered thereon.
208	208	Notwithstanding the foregoing, a civil action shall not be
209	209	instituted on the bond until 45 days after written notice to
210	210	the surety of the amount claimed to be due and the nature of
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240	240	the surety of the amount claimed to be due and the nature of
241	241	the claim. The civil action shall be commenced not later than
242	242	one year from the date of final settlement of the contract.
243	243	The giving of notice by registered or certified mail, postage
244	244	prepaid, addressed to the surety at any of its places of
245	245	business or offices shall be deemed sufficient under this
246	246	section. In the event the surety or contractor fails to pay
247	247	the claim in full within 45 days from the mailing of the
248	248	notice, then the person or persons may recover from the
249	249	contractor and surety, in addition to the amount of the claim,
250	250	a reasonable attorney fee based on the result, together with
251	251	interest on the claim from the date of the notice.
252	252	(c)(e) Every person having a right of action on the
253	253	last described bond as provided in this section, upon written
254	254	application to the authority under the direction of whom the
255	255	work has been prosecuted, indicating that labor, material,
256	256	foodstuffs, or supplies for the work have been supplied and
257	257	that payment has not been made, shall be promptly furnished a
258	258	certified copy of the additional bond and contract. The
259	259	claimant may bring a civil action in the claimant's name on
260	260	the bond against the contractor and the surety, or either of
261	261	them, in the county in which the work is to be or has been
262	262	performed or in any other county where venue is otherwise
263	263	allowed by law.
264	264	(d)(f) In the event a civil action is instituted on the
265	265	payment bond, at any time more than 15 days before the trial
266	266	begins, any party may serve upon the adverse party an offer to
267	267	accept judgment in favor of the offeror or to allow judgment
268	268	to be entered in favor of the offeree for the money or as
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298	298	to be entered in favor of the offeree for the money or as
299	299	otherwise specified in the offer. If within 10 days after the
300	300	service of the offer, the adverse party serves written notice
301	301	that the offer is accepted, either party may then file the
302	302	offer and notice of acceptance together with proof of service
303	303	and the clerk of the court shall enter judgment. An offer not
304	304	accepted shall be deemed withdrawn and evidence of the offer
305	305	shall not be admissible. If the judgment finally obtained by
306	306	the offeree is less favorable than the offer, the offeree
307	307	shall pay the reasonable attorney fees and costs incurred by
308	308	the offeror after the making of the offer. An offer that is
309	309	made but not accepted does not preclude a subsequent offer.
310	310	When the liability of one party to another party has been
311	311	determined by verdict, order, or judgment, but the amount or
312	312	extent of the liability remains to be determined by further
313	313	proceedings, any party may make an offer of judgment, which
314	314	shall have the same effect as an offer made before trial if
315	315	the offer is made no less than 10 days prior to the
316	316	commencement of hearings to determine the amount or extent of
317	317	liability.
318	318	(e)(g) This section shall not require the taking of a
319	319	bond to secure contracts in an amount less than one hundred
320	320	thousand dollars ($100,000).
321	321	(f)(h)(1) The contractor, immediately after the
322	322	completion of the contract, shall give notice of the
323	323	completion by publishing the notice for a minimum of three
324	324	weeks using one or more of the following methods:
325	325	a. In a newspaper of general circulation in the county
326	326	or counties in which the work, or some portion thereof, has
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356	356	or counties in which the work, or some portion thereof, has
357	357	been done.
358	358	b. On a website that is maintained by a newspaper of
359	359	general circulation in the county or counties in which the
360	360	work, or some portion thereof, has been done.
361	361	c. On a website used by the awarding authority for
362	362	publishing notices.
363	363	(2) If no newspaper is published in the county in which
364	364	the work was done, and if the awarding authority does not
365	365	utilizeuse a website for the purpose of publishing notices,
366	366	the notice may be given by posting at the courthouse for 30
367	367	days, and proof of the posting of the notice shall be given by
368	368	the awarding authority and the contractor.
369	369	(3) A final settlement shall not be made upon the
370	370	contract until the expiration of 30 days after the completion
371	371	of the notice. Proof of publication of the notice shall be
372	372	made by the contractor to the authority by whom the contract
373	373	was made by affidavit of the publisher or website owner and a
374	374	printed copy of the notice published.
375	375	(4) For contracts for road resurfacing materials that
376	376	are awarded on an annual basis, where the bid specifications
377	377	include options such as a unit price for materials, a unit
378	378	price for the delivery of materials, or a unit price for
379	379	materials to be laid in place by the bidder, notice of
380	380	completion pursuant to this subsection may be given on an
381	381	annual basis upon completion of the project as a whole, rather
382	382	than at the completion of each proceed order.
383	383	(g)(i) Subsection (f)(h) shall not apply to contractors
384	384	performing contracts of less than one hundred thousand dollars
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414	414	performing contracts of less than one hundred thousand dollars
415	415	($100,000) in amount."
416	416	"§39-2-1
417	417	As used in this title, the following wordsterms have
418	418	the following meanings ascribed to them as follows :
419	419	(1) ALTERNATIVE DELIVERY METHODS (ADM). Any of the
420	420	following project delivery methods: Construction Manager at
421	421	Risk; Design-Build; Design-Build-Finance-Operate-Maintain;
422	422	Design-Build-Operate-Maintain; and Progressive Design-Build.
423	423	(1)(2) AWARDING AUTHORITY. Any governmental board,
424	424	commission, agency, body, authority, instrumentality,
425	425	department, or subdivision of the state, its counties and
426	426	municipalities. This term includes, but shallis not be limited
427	427	to, the Department of Transportation, the Division of Real
428	428	Property Management of the Department of Finance, the State
429	429	Board of Education, and any other entity contracting for
430	430	public works. This term shall exclude the State Docks
431	431	DepartmentAlabama State Port Authority and any entity exempted
432	432	from the competitive bid laws of the state by statute.
433	433	(3) BEST VALUE. A competitive selection process, in
434	434	which proposals contain both pricing and qualitative
435	435	components and award, which is based upon a combination of
436	436	pricing and qualitative considerations to determine the offer
437	437	deemed most advantageous and of the greatest value to the
438	438	awarding authority.
439	439	(4) CONSTRUCTION MANAGER AT RISK (CMAR). A delivery
440	440	method which entails a commitment by the construction manager
441	441	to perform certain preconstruction services during the design
442	442	phase and then to construct the public works for an agreed
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472	472	phase and then to construct the public works for an agreed
473	473	upon lump-sum amount or for certain allowable costs within an
474	474	agreed-upon guaranteed maximum price (GMP).
475	475	(5) DEPARTMENT. The Alabama Department of Finance.
476	476	(6) DESIGN-BID-BUILD. Aprojectdeliverymethodin
477	477	whichtheawardingauthoritysequentially awardsseparate
478	478	contracts, the first for architectural or engineering services
479	479	to design the project and the second for construction of the
480	480	public works project according to the design as provided in
481	481	Section 39-2-2.
482	482	(7) DESIGN-BUILD. A project delivery method in which
483	483	the awarding authority enters into a single contract for
484	484	design and construction of a public works project.
485	485	(8) DESIGN-BUILD-FINANCE-OPERATE-MAINTAIN. Aproject
486	486	deliverymethodinwhichtheawardingauthority enters into a
487	487	single contract for design, construction, finance,
488	488	maintenance, and operation of a public work over a
489	489	contractually defined period.
490	490	(9) DESIGN-BUILD-OPERATE-MAINTAIN. Aprojectdelivery
491	491	methodinwhichtheawardingauthorityentersinto a single
492	492	contract for design, construction, maintenance, and operation
493	493	of a public work over a contractually defined period.
494	494	(10) DESIGN REQUIREMENTS. The written description of
495	495	the public work or service to be procured under this article,
496	496	including required features, functions, characteristics,
497	497	qualities, and properties that are required by the awarding
498	498	authority; theanticipatedschedule,includingthepreferred
499	499	completiondate;and estimated budgets, as applicable to the
500	500	specific procurement, for design, construction, operation, and
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530	530	specific procurement, for design, construction, operation, and
531	531	maintenance.
532	532	(2)(11) FORCE ACCOUNT WORK. Work paid for by
533	533	reimbursing for the actual costs for labor, materials, and
534	534	equipment usage incurred in the performance of the work, as
535	535	directed, including a percentage for overhead and profit,
536	536	where appropriate.
537	537	(3)(12) LIFE CYCLE COSTS. The total cost of ownership
538	538	over the extended life of a public works project, taking into
539	539	consideration the costs of construction, operation, and
540	540	maintenance, less any value obtained from salvage and
541	541	quantifiable environmental benefits, or the sum of all
542	542	recurring and one-time , nonrecurring (non-recurring) costs
543	543	over the full life span or a specified period of a good,
544	544	service, structure, or system, including purchase price,
545	545	installation costs, operating costs, maintenance and upgrade
546	546	costs, and remaining (residual or salvage ) value at the end of
547	547	ownership or its useful life.
548	548	(4)(13) PERSON. Natural persons, partnerships, limited
549	549	liability companies, corporations, and other legal entities.
550	550	(14) PROGRESSIVE DESIGN-BUILD. A project delivery
551	551	method in which the awarding authority enters into a single
552	552	contract for design and construction of the public works via
553	553	qualifications-based selection.
554	554	(5)(15) PUBLIC PROPERTY. Real property that the state,
555	555	county, municipality, or awarding authority thereof owns or
556	556	has a contractual right to own or purchase, including
557	557	easements, rights-of-way, or otherwise.
558	558	(6)(16) PUBLIC WORKS. The construction, installation,
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588	588	(6)(16) PUBLIC WORKS. The construction, installation,
589	589	repair, renovation, or maintenance of public buildings,
590	590	structures, sewers, waterworks, roads, curbs, gutters, side
591	591	walls, bridges, docks, underpasses, and viaducts , as well as
592	592	any other improvement to be constructed, installed, repaired,
593	593	renovated, or maintained on public property and to be paid, in
594	594	whole or in part, with public funds or with financing to be
595	595	retired with public funds in the form of lease payments or
596	596	otherwise.
597	597	(17) PUBLIC WORKS ADVISORY COUNCIL. The advisory body
598	598	established in this chapter. "
599	599	"§39-5-4
600	600	(a) The Attorney General, a bona fide unsuccessful or
601	601	disqualified bidder or offeror, or any interested citizen may
602	602	maintain an action to enjoin the letting or execution of any
603	603	public works contract in violation of or contrary to the
604	604	provisions of this title or any other statute and may enjoin
605	605	payment of any public funds under any such contract. In the
606	606	case of a successful action brought by a bidder or offeror,
607	607	reasonable bid or proposal preparation costs shall be
608	608	recoverable by that bidder or offeror. The action shall be
609	609	commenced within 45 days of the contract award.
610	610	(b) Nothing in this section shall be construed to
611	611	limit, enlarge, or in any way alter the procedures for
612	612	protesting the approval of an alternative delivery method as
613	613	provided in this section. "
614	614	"§39-5-6
615	615	The provisions of this title are mandatory, and shall
616	616	be strictly construed to require strict competitive bidding on
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646	646	be strictly construed to require strict competitive bidding on
647	647	contracts for public works . The courts shall not invoke or
648	648	apply any principle of quantum meruit, estoppel, or any other
649	649	legal or equitable principle which would allow recovery for
650	650	work and labor done or materials furnished under any contract
651	651	let in violation of competitive bidding requirements as
652	652	prescribed by law this title or any other provision of law ."
653	653	Section 2. Sections 39-2-1 through 39-2-14 are
654	654	designated as Article 1 of Chapter 2 of Title 39, Code of
655	655	Alabama 1972.
656	656	Section 3. Article 2 is added to Chapter 2 of Title 39,
657	657	Code of Alabama 1975 commencing with Section 39-2-40, to read
658	658	as follows:
659	659	§39-2-40
660	660	(a) The Design-Bid-Build project delivery method
661	661	authorized in Section 39-2-2 is the traditional and primary
662	662	method of contracting for public works in the state. Subject
663	663	to the limitations in this section, an awarding authority may
664	664	use an alternative project delivery method for public works
665	665	projects of a complex, time sensitive, specialized, or
666	666	technical nature when it determines that the delivery method
667	667	is in the best interest of the state.
668	668	(b) In addition to Design-Bid-Build authorized in
669	669	Section 39-2-2, all of the following alternative project
670	670	delivery methods are authorized for public works projects in
671	671	this state:
672	672	(1) Construction Manager at Risk projects which base
673	673	the agreed upon lump-sum amount and Guaranteed Maximum Price
674	674	(GMP) on the construction documents and specifications. The
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704	704	(GMP) on the construction documents and specifications. The
705	705	GMP shall include all items and tasks necessary to deliver the
706	706	public works.
707	707	(2) Design-Build.
708	708	(3) Design-Build-Finance-Operate-Maintain.
709	709	(4) Design-Build-Operate-Maintain projects which
710	710	include a 70 percent complete set of construction documents
711	711	for the design in accordance with the awarding authority's
712	712	program requirements.
713	713	(5) Progressive Design-Build projects which include a
714	714	70 percent complete set of construction documents for the
715	715	design in accordance with the awarding authority's program
716	716	requirements.
717	717	(c)(1) An awarding authority must receive prior
718	718	approval from the department in order to execute a project via
719	719	alternative delivery methods. No such approval shall be
720	720	required for an awarding authority to execute a project via
721	721	Design-Bid-Build as provided in Section 39-2-2 .
722	722	(2) An awarding authority seeking approval must notify
723	723	the department of each project using alternative delivery
724	724	methods no less than 30 days prior to release of the
725	725	solicitation. The request for approval must include, but is
726	726	not limited to, the following:
727	727	a. A written statement setting forth the facts that led
728	728	to the selection of a particular alternative delivery method
729	729	for the project.
730	730	b. Any procedures the awarding authority has developed
731	731	pursuant to this chapter.
732	732	(3) Prior to approving a project for which an
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762	762	(3) Prior to approving a project for which an
763	763	alternative delivery method will be used, the department shall
764	764	publicly post the proposed project for no less than five
765	765	calendar days. The posted project shall be subject to the
766	766	protest procedures in this chapter.
767	767	(d) An awarding authority, educational institution, or
768	768	state educational institution as defined by Section
769	769	41-4-400(d) may enter into a contract using alternative
770	770	delivery methods as follows:
771	771	(1) If the awarding authority or institution undertakes
772	772	five or fewer public works projects above the bid threshold
773	773	listed in Section 39-2-2(a)(1) during a fiscal year, it may
774	774	enter into no more than one contract per fiscal year using
775	775	alternative delivery methods.
776	776	(2) If the awarding authority or institution undertakes
777	777	more than five public works projects above the bid threshold
778	778	in Section 39-2-2(a)(1) during a fiscal year, it may only
779	779	enter into a contract using alternative delivery methods for
780	780	not more than two of its public works projects each fiscal
781	781	year, or 10 percent of the total number of its public works
782	782	projects each fiscal year, whichever is greater.
783	783	(e) The head of an awarding authority shall require
784	784	offerors to provide errors and omissions insurance in an
785	785	amount and duration consistent with rules adopted under this
786	786	chapter to cover architectural and engineering services for
787	787	alternative delivery method projects.
788	788	(f) For projects using construction manager at risk,
789	789	the general contractor or the general contractor's affiliated
790	790	entities shall not self-perform more than 25 percent of the
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820	820	entities shall not self-perform more than 25 percent of the
821	821	work.
822	822	(g)(1) No more than 30 days following the final
823	823	completion of a public works project using an alternative
824	824	delivery method, the awarding authority shall submit a report
825	825	to the department. The report shall include, but not be
826	826	limited to, the following:
827	827	a. A description of the project.
828	828	b. The contractor that was awarded the project.
829	829	c. The estimated and actual cost of the project.
830	830	d. The estimated and actual schedule for project
831	831	completion.
832	832	e. A description of any changes to the project scope
833	833	and how the changes impacted the schedule and costs.
834	834	f. An assessment of the prequalification process and
835	835	criteria used.
836	836	g. A description of the method used to evaluate the bid
837	837	or proposal, including the weighting of each factor and an
838	838	assessment of the effectiveness of the selected methodology.
839	839	At the discretion of the awarding authority, estimated budgets
840	840	may be excluded from the proposal documents but the awarding
841	841	authority must account for it in writing on internal
842	842	documents. The design requirements may include the drawings
843	843	and other documents illustrating the scale and relationship of
844	844	the features, functions, and characteristics of the project.
845	845	h. A description of any written protests concerning any
846	846	aspect of the solicitation, bid, proposal, or award of the
847	847	project.
848	848	i. A description of any challenges or unexpected
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857	857	401
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878	878	i. A description of any challenges or unexpected
879	879	problems that arose during the project and the solutions that
880	880	were considered, and ultimately implemented, to address those
881	881	challenges and problems.
882	882	j. Recommendations to improve the alternative delivery
883	883	method used for the project.
884	884	(2) The information gathered through the reporting
885	885	process shall be used by the Public Works Advisory Council to
886	886	formulate summary findings on, and recommendations for future
887	887	changes to, alternative delivery methods in the state. Such
888	888	findings and recommendations shall be reported to the
889	889	Legislature.
890	890	(3) Failure to complete a report as required under this
891	891	section shall preclude an awarding authority from using
892	892	alternative delivery methods during the next fiscal year.
893	893	(4) An awarding authority utilizing alternative
894	894	delivery methods shall also file a report for any similar
895	895	project for which it used Design-Bid-Build.
896	896	(h) This section is repealed on October 1, 2031.
897	897	§39-2-41
898	898	(a) For the purposes of implementing the terms of this
899	899	chapter, the department shall adopt administrative rules for
900	900	public works projects in the state using alternative delivery
901	901	methods. In adopting the administrative rules, the department
902	902	shall consult with the Public Works Advisory Council. The
903	903	administrative rules shall include, but are not limited to,
904	904	the following:
905	905	(1) Criteria for all alternative delivery methods
906	906	authorized by law to aid awarding authorities in determining
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936	936	authorized by law to aid awarding authorities in determining
937	937	which alternative delivery method should be used for a
938	938	particular public works project.
939	939	(2) Authorization for an awarding authority within his
940	940	or her discretion, to select an appropriate alternative
941	941	delivery method for a particular public works project
942	942	consistent with this chapter.
943	943	(3) Descriptions of the bond, insurance, and other
944	944	security provisions that apply to each alternative delivery
945	945	method.
946	946	(4) Descriptions of the appropriate solicitation
947	947	provisions, required content of requests for proposals,
948	948	evaluation factors, contract clauses, and fiscal
949	949	responsibility requirements that apply to each alternative
950	950	delivery method.
951	951	(5) A requirement that the awarding authority, or
952	952	designee, shall execute and include in the contract file a
953	953	written statement setting forth the facts that led to the
954	954	selection of a particular alternative delivery method for each
955	955	public works project.
956	956	(6) Descriptions of how an awarding authority shall
957	957	evaluate proposals using the qualifications of participants,
958	958	best value, or both, pursuant to this chapter.
959	959	(7) Timelines to which the department must adhere in
960	960	returning an approval to the awarding authority under this
961	961	chapter.
962	962	(8) The process awarding authorities must use to
963	963	determine whether stipend payments may be paid to finalists
964	964	submitting responsive proposals for an alternative delivery
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973	973	457
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994	994	submitting responsive proposals for an alternative delivery
995	995	methods contract, and under what terms and conditions such
996	996	payments may be made.
997	997	(9) Protest procedures required under this chapter and
998	998	for bona fide prospective bidders who are aggrieved by the
999	999	solicitation or award of a contract.
1000	1000	(b) Consistent with the administrative rules adopted
1001	1001	under subsection (a), an awarding authority, except for a
1002	1002	county commission or an instrumentality of a county
1003	1003	commission, may develop procedures for the procurement of
1004	1004	alternative delivery method contracts.
1005	1005	(c) The Association of County Commissions of Alabama
1006	1006	shall develop the procedures that county commissions and their
1007	1007	instrumentalities shall follow for the procurement of
1008	1008	alternative delivery method contracts. The procedures shall be
1009	1009	consistent with the rules adopted under subsection (a).
1010	1010	(d) Notwithstanding any provision of law to the
1011	1011	contrary, proposals to perform work submitted under this
1012	1012	chapter through alternative delivery methods may be evaluated
1013	1013	and awarded by the awarding authority based on the
1014	1014	qualifications of participants, best value, or both, and
1015	1015	consideration of the best interest of the awarding authority.
1016	1016	(e) This section is repealed on October 1, 2031.
1017	1017	§39-2-42
1018	1018	(a) The awarding authority may include in a request for
1019	1019	proposals one or more of the following forms of security to
1020	1020	assure the timely, faithful, and uninterrupted provision of
1021	1021	operations and maintenance services procured separately, or as
1022	1022	one element of design-build-operate-maintain or
1023	1023	477
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1052	1052	one element of design-build-operate-maintain or
1053	1053	design-build-finance-operate-maintain services:
1054	1054	(1) Operations period surety bonds that secure the
1055	1055	performance of the contractor's operations and maintenance
1056	1056	obligations.
1057	1057	(2) Letters of credit in an amount appropriate to cover
1058	1058	the cost to the awarding authority preventing infrastructure
1059	1059	service interruptions for a period up to 12 months.
1060	1060	(3) Appropriate written guarantees from the contractor,
1061	1061	or depending upon the circumstances, from parent corporations
1062	1062	to secure the recovery of the awarding authorities'
1063	1063	reprocurement cost in the event of a default in performance by
1064	1064	the contractor.
1065	1065	(b) This section is repealed on October 1, 2031.
1066	1066	§39-2-43
1067	1067	(a)(1) During the time period that notice of a proposed
1068	1068	project is posted publicly pursuant to this chapter, a bona
1069	1069	fide prospective bidder or offeror may protest the approval of
1070	1070	an alternative delivery method. The protest shall be filed
1071	1071	with the Division of Construction Management, in writing, and
1072	1072	set forth the grounds of the protest and the relief requested
1073	1073	with enough particularity to give notice of the issues to be
1074	1074	decided. Grounds for a protest are limited to noncompliance
1075	1075	with law, the rules authorized by this chapter, or a perceived
1076	1076	substantial cost differential between the proposed project
1077	1077	utilizing an alternative delivery method versus traditional
1078	1078	Design-Bid-Build.
1079	1079	(2) The Director of the department's Division of
1080	1080	Construction Management shall review the protest and issue a
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1110	1110	Construction Management shall review the protest and issue a
1111	1111	decision on the protest, in writing, within five calendar
1112	1112	days. The response shall include a decision to deny or sustain
1113	1113	the protest, and if sustained, the actions the awarding
1114	1114	authority must take to modify or cancel the proposed project.
1115	1115	A copy of the response shall be furnished immediately to the
1116	1116	protester and awarding authority.
1117	1117	(3) The Director of the Division of Construction
1118	1118	Management's decision regarding a protest shall be final and
1119	1119	conclusive, unless fraudulent, or a party adversely affected
1120	1120	by the decision appeals administratively to the Director of
1121	1121	Finance as provided herein.
1122	1122	(b)(1) A party that receives an adverse decision from
1123	1123	the Director of the Division of Construction Management under
1124	1124	subsection (a) may appeal the decision to the Director of
1125	1125	Finance. An appeal to the Director of Finance shall be made in
1126	1126	writing within five calendar days of receipt of the adverse
1127	1127	decision from the Director of the Division of Construction
1128	1128	Management.
1129	1129	(2) Before making a decision on a protest, the Director
1130	1130	of Finance shall consult with and consider any advice provided
1131	1131	by the Public Works Advisory Council, but a final decision on
1132	1132	a protest is within the sole discretion of the Director of
1133	1133	Finance. The Director of Finance shall hold unlawful and set
1134	1134	aside any decision issued by the Director of the Division of
1135	1135	Construction Management that the Director of Finance finds to
1136	1136	be arbitrary, capricious, an abuse of discretion, or otherwise
1137	1137	not in accordance with law.
1138	1138	(3) The Director of Finance shall issue a written
1139	1139	533
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1144	1144	538
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1168	1168	(3) The Director of Finance shall issue a written
1169	1169	decision within five calendar days of receipt of the appeal
1170	1170	and immediately provide a copy to the protester and awarding
1171	1171	authority.
1172	1172	(4) A decision under this section shall be final and
1173	1173	conclusive unless fraudulent.
1174	1174	(c) The protest procedures and remedies provided in
1175	1175	this chapter shall not be construed as a contested case under
1176	1176	the Alabama Administrative Procedure Act.
1177	1177	(d) This section is repealed on October 1, 2031.
1178	1178	§39-2-44
1179	1179	(a) There is established the State Public Works
1180	1180	Advisory Council. The Public Works Advisory Council shall be
1181	1181	appointed by the director of the department and at a minimum,
1182	1182	must include the following individuals:
1183	1183	(1) A representative of the county commissions,
1184	1184	selected in consultation with the Association of County
1185	1185	Commissions of Alabama .
1186	1186	(2) A representative of municipalities, selected in
1187	1187	consultation with the Alabama League of Municipalities.
1188	1188	(3) Two representatives of public K-12 schools,
1189	1189	selected in consultation with School Superintendents of
1190	1190	Alabama and the Alabama Association of School Boards.
1191	1191	(4) A representative of the Alabama Community College
1192	1192	System, selected in consultation with the Chancellor of the
1193	1193	Alabama Community College System.
1194	1194	(5) A representative of a public four-year institution
1195	1195	of higher education, selected in consultation with the Alabama
1196	1196	Higher Education Partnership, Inc.
1197	1197	561
1198	1198	562
1199	1199	563
1200	1200	564
1201	1201	565
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1203	1203	567
1204	1204	568
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1206	1206	570
1207	1207	571
1208	1208	572
1209	1209	573
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1216	1216	580
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1226	1226	Higher Education Partnership, Inc.
1227	1227	(6) A representative from each of the following public
1228	1228	entities:
1229	1229	a. The Alabama Department of Examiners of Public
1230	1230	Accounts.
1231	1231	b. The Alabama Department of Finance.
1232	1232	c. The Alabama Department of Transportation.
1233	1233	d. Additional state or local governmental entities with
1234	1234	frequent construction projects.
1235	1235	(7) A representative from each of the following private
1236	1236	entities:
1237	1237	a. The Alabama Associated General Contractors.
1238	1238	b. The Associated Builders and Contractors of Alabama.
1239	1239	c. The Alabama Contractors Association.
1240	1240	d. The Alabama Council of the American Institute of
1241	1241	Architects.
1242	1242	e. The American Council of Engineering Companies of
1243	1243	Alabama.
1244	1244	f. The Alabama Road Builders Association.
1245	1245	g. The Subcontractors Association of Alabama.
1246	1246	h. The Design-Build Institute of America, Alabama
1247	1247	Chapter.
1248	1248	i. The Alabama Surety Association.
1249	1249	(b) Members of the advisory council shall serve without
1250	1250	compensation but may be reimbursed for necessary expenses
1251	1251	associated with attending meetings of the advisory council
1252	1252	pursuant to the policies of their respective appointing
1253	1253	authority.
1254	1254	(c) The State Public Works Advisory Council, upon
1255	1255	589
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1257	1257	591
1258	1258	592
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1263	1263	597
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1265	1265	599
1266	1266	600
1267	1267	601
1268	1268	602
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1272	1272	606
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1284	1284	(c) The State Public Works Advisory Council, upon
1285	1285	adequate public notice, shall meet at least once a year to
1286	1286	discuss issues and recommendations for improvements to the
1287	1287	public works process. When requested by the Department of
1288	1288	Finance, the council shall conduct studies, research,
1289	1289	analyses, and make reports and recommendations regarding
1290	1290	public works. The council may conduct hearings and request
1291	1291	records in order to further its purposes.
1292	1292	(d) The State Public Works Advisory Council shall be
1293	1293	administered by the Alabama Department of Finance.
1294	1294	(e) This section is repealed on October 1, 2031.
1295	1295	§39-2-45
1296	1296	(a) Any person may request and obtain from the awarding
1297	1297	authority a certified copy of a bond furnished under this
1298	1298	chapter, upon payment of the cost of reproduction of the bond
1299	1299	and postage, if any. A certified copy of a bond shall be prima
1300	1300	facie evidence of the contents, execution, and delivery of the
1301	1301	original bond.
1302	1302	(b) This section is repealed on October 1, 2031.
1303	1303	§39-2-1.1
1304	1304	(a) Nothing in this chapter is intended to repeal,
1305	1305	modify, expand, define, add, amend, change, or limit any
1306	1306	provision of Section 23-1-40 and Sections 23-2-140 through
1307	1307	23-2-175, Code of Alabama 1975. The Alabama Department of
1308	1308	Transportation, Alabama Toll Road, Bridge and Tunnel Authority
1309	1309	is not subject to this chapter. Further, Article 2 is not
1310	1310	intended to add any new obligations, duties, or
1311	1311	responsibilities not set out in Section 23-1-40 and Sections
1312	1312	23-2-140 through 23-2-175.
1313	1313	617
1314	1314	618
1315	1315	619
1316	1316	620
1317	1317	621
1318	1318	622
1319	1319	623
1320	1320	624
1321	1321	625
1322	1322	626
1323	1323	627
1324	1324	628
1325	1325	629
1326	1326	630
1327	1327	631
1328	1328	632
1329	1329	633
1330	1330	634
1331	1331	635
1332	1332	636
1333	1333	637
1334	1334	638
1335	1335	639
1336	1336	640
1337	1337	641
1338	1338	642
1339	1339	643
1340	1340	644 SB332 INTRODUCED
1341	1341	Page 24
1342	1342	23-2-140 through 23-2-175.
1343	1343	(b) Nothing in this chapter is intended to repeal,
1344	1344	modify, amend, change, or limit Sections 41-4-353 and
1345	1345	41-4-400, with respect to the powers, authority, and
1346	1346	jurisdiction granted to the governing boards of educational
1347	1347	institutions.
1348	1348	(c) This section is repealed on October 1, 2031.
1349	1349	Section 4. This act shall become effective on October
1350	1350	1, 2025.
1351	1351	645
1352	1352	646
1353	1353	647
1354	1354	648
1355	1355	649
1356	1356	650
1357	1357	651
1358	1358	652