Public contracts: progressive design-build: local agencies.
The implications of SB 706 on state laws include a significant alteration in how public contracts are awarded and executed at the local level. By permitting local agencies to use the progressive design-build method for a greater number of projects and not restricting this to water-related projects, the bill is set to facilitate more efficient project delivery. Local agencies will also have to report on their usage of this method to the Legislature by December 31, 2028, indicating a degree of accountability in its implementation. This new legislation aims to streamline processes and potentially reduce project costs and delays.
Senate Bill 706, also known as the 'Public Contracts: Progressive Design-Build: Local Agencies' act, aims to enhance the authority of local agencies in California to utilize a progressive design-build procurement process for public works projects. This method permits local agencies, encompassing cities, counties, and special districts, to procure both the design and construction of public works from a single entity. The bill specifically allows local agencies to undertake up to ten public works projects exceeding $5 million from 2023 until January 1, 2030, thereby expanding their capacity to manage construction without being limited to water-related projects as previously mandated.
General sentiment regarding the bill appears supportive among local governmental entities who wish to utilize modern procurement processes to enhance project efficiency. Proponents believe that the broadened scope of the progressive design-build process will lead to better project outcomes and cost-effectiveness. Conversely, there could be concerns from those wary of expanding procurement authority without sufficient state oversight, leading to potential mismanagement or lack of transparency in how these public projects are awarded and completed.
Notably, the bill expands the scope of perjury, as it requires penalties for verified information submitted by those using the design-build process. There are discussions surrounding the potential burden this could place on smaller local agencies or contractors. Moreover, some stakeholders may argue about the need for adequate checks and balances against possible overreach in local agency authorities regarding such financial commitments and project oversight.