Local agency contracts: construction manager at-risk construction contracts.
The passage of SB 914 impacts state laws by granting broader authority to both counties and public entities pertaining to construction contracts. This means that more local agencies can engage in construction management under a risk-sharing framework that promotes better project planning and risk management. The legislation encourages local agencies to adopt innovative procurement practices which could lead to improved accountability and potentially more timely project completion, given the flexibility provided in selecting contractors based on best value rather than strictly lowest bids.
Senate Bill 914, introduced by Senator Dodd, amends Section 20146 of the Public Contract Code to expand the provisions under which counties and public entities can utilize construction manager at-risk (CMAR) construction contracts. Previously, only counties were authorized to employ such contracts for projects exceeding $1,000,000 for construction, alteration, repairing, or improvements of buildings. The new provisions allow public entities, under certain conditions and with the approval of their governing bodies, to leverage CMAR contracts for a wider range of infrastructure projects, including utility and flood control improvements, excluding roads. This expansion is aimed at enhancing the ability of local governments to manage construction projects efficiently.
Sentiment around SB 914 appeared generally supportive among local government officials and associations pushing for more flexible contracting mechanisms. Proponents argue that the ability to use CMAR contracts can lead to better project outcomes and cost-effectiveness. However, there may be concerns among certain stakeholders regarding oversight and accountability, particularly about how these new contracting methods will maintain fairness in bidding and ensure quality workmanship. Overall, the mood seems to reflect a desire for modernization of public contracting processes without compromising the standards that govern construction quality.
One notable point of contention regarding SB 914 is the requirement that construction manager at-risk entities must use a 'skilled and trained workforce' for apprenticeable occupations, which aims to uphold labor quality. While this provision seeks to protect employment standards and ensure skilled labor, it has the potential to complicate the bidding process and introduce additional compliance measures. Critics may argue that such stipulations could inadvertently limit competition among contractors who might not meet all labor requirements, thus leading to fewer bids and possibly higher project costs.