Illinois 2023 2023-2024 Regular Session

Illinois House Bill HB3551 Engrossed / Bill

Filed 03/22/2023

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1  AN ACT concerning finance.
2  Be it enacted by the People of the State of Illinois,
3  represented in the General Assembly:
4  Section 5. The Illinois Procurement Code is amended by
5  changing Sections 1-15.93, 30-30, 33-5, and 45-105 as follows:
6  (30 ILCS 500/1-15.93)
7  (Section scheduled to be repealed on January 1, 2026)
8  Sec. 1-15.93. Single prime. "Single prime" means the
9  design-bid-build procurement delivery method for a building
10  construction project in which the Capital Development Board or
11  a public institution of higher education, as defined in
12  Section 1-13 of this Code, is the construction agency
13  procuring 2 or more subdivisions of work enumerated in
14  paragraphs (1) through (5) of subsection (a) of Section 30-30
15  of this Code under a single contract. The provisions of this
16  Section are inoperative for public institutions of higher
17  education on and after January 1, 2026. This Section is
18  repealed on January 1, 2026.
19  (Source: P.A. 101-369, eff. 12-15-19; 101-645, eff. 6-26-20;
20  102-671, eff. 11-30-21; 102-1119, eff. 1-23-23.)
21  (30 ILCS 500/30-30)
22  Sec. 30-30. Design-bid-build construction.

 

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1  (a) The provisions of this subsection are operative
2  through December 31, 2025.
3  Except as provided in subsection (a-5), for building
4  construction contracts in excess of $250,000, separate
5  specifications may be prepared for all equipment, labor, and
6  materials in connection with the following 5 subdivisions of
7  the work to be performed:
8  (1) plumbing;
9  (2) heating, piping, refrigeration, and automatic
10  temperature control systems, including the testing and
11  balancing of those systems;
12  (3) ventilating and distribution systems for
13  conditioned air, including the testing and balancing of
14  those systems;
15  (4) electric wiring; and
16  (5) general contract work.
17  Except as provided in subsection (a-5), the specifications
18  may be so drawn as to permit separate and independent bidding
19  upon each of the 5 subdivisions of work. All contracts awarded
20  for any part thereof may award the 5 subdivisions of work
21  separately to responsible and reliable persons, firms, or
22  corporations engaged in these classes of work. The contracts,
23  at the discretion of the construction agency, may be assigned
24  to the successful bidder on the general contract work or to the
25  successful bidder on the subdivision of work designated by the
26  construction agency before the bidding as the prime

 

 

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1  subdivision of work, provided that all payments will be made
2  directly to the contractors for the 5 subdivisions of work
3  upon compliance with the conditions of the contract.
4  For Beginning on the effective date of this amendatory Act
5  of the 101st General Assembly and through December 31, 2025,
6  for single prime projects: (i) the bid of the successful low
7  bidder shall identify the name of the subcontractor, if any,
8  and the bid proposal costs for each of the 5 subdivisions of
9  work set forth in this Section; (ii) the contract entered into
10  with the successful bidder shall provide that no identified
11  subcontractor may be terminated without the written consent of
12  the Capital Development Board; (iii) the contract shall comply
13  with the disadvantaged business practices of the Business
14  Enterprise for Minorities, Women, and Persons with
15  Disabilities Act and the equal employment practices of Section
16  2-105 of the Illinois Human Rights Act; and (iv) the Capital
17  Development Board shall submit an annual report to the General
18  Assembly and Governor on the bidding, award, and performance
19  of all single prime projects.
20  Until December 31, 2023, for For building construction
21  projects with a total construction cost valued at $5,000,000
22  or less, the Capital Development Board shall not use the
23  single prime procurement delivery method for more than 50% of
24  the total number of projects bid for each fiscal year. Until
25  December 31, 2023, any Any project with a total construction
26  cost valued greater than $5,000,000 may be bid using single

 

 

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1  prime at the discretion of the Executive Director of the
2  Capital Development Board.
3  For contracts entered into on or after January 1, 2024,
4  the Capital Development Board shall determine whether the
5  single prime procurement delivery method is to be pursued.
6  Before electing to use single prime on a project, the Capital
7  Development Board must make a written determination that must
8  include a description as to the particular advantages of the
9  single prime procurement method for that project and an
10  evaluation of the items in paragraphs (1) through (4). The
11  Chief Procurement Officer must review the Capital Development
12  Board's determination and consider the adequacy of information
13  in paragraphs (1) through (4) to determine whether the Capital
14  Development Board may proceed with single prime. Approval by
15  the Chief Procurement Officer shall not be unreasonably
16  withheld. The following factors must be considered by the
17  Chief Procurement Officer in any determination:
18  (1) The benefit that using the single prime
19  procurement method will have on the Capital Development
20  Board's ability to increase participation of
21  minority-owned firms, woman-owned firms, firms owned by
22  persons with a disability, and veteran-owned firms.
23  (2) The likelihood that single prime will be in the
24  best interest of the State by providing a material savings
25  of time or cost over the multiple prime delivery system.
26  The best interest of the State justification must show the

 

 

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1  specific benefits of using the single prime method,
2  including documentation of the estimates or scheduling
3  impacts of any of the following: project complexity and
4  trade coordination required, length of project,
5  availability of skilled workforce, geographical area,
6  project timelines, project budget, ability to secure
7  minority, women, persons with disabilities and veteran
8  participation, or other information.
9  (3) The type and size of the project and its
10  suitability to the single prime procurement method.
11  (4) Whether the project will comply with the
12  disadvantaged business and equal employment practices of
13  the State, as established in the Business Enterprise for
14  Minorities, Women, and Persons with Disabilities Act,
15  Section 45-57 of this Code, and Section 2-105 of the
16  Illinois Human Rights Act.
17  If the Chief Procurement Officer finds that the Capital
18  Development Board's written determination is insufficient, the
19  Capital Development Board shall have the opportunity to cure
20  its determination. Within 15 days of receiving approval from
21  the Chief Procurement Officer, the Capital Development Board
22  shall provide an advisory copy of the written determination to
23  the Procurement Policy Board and the Commission on Equity and
24  Inclusion. The Capital Development Board must maintain the
25  full record of determination for 5 years.
26  (a-5) Beginning on the effective date of this amendatory

 

 

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1  Act of the 102nd General Assembly and through December 31,
2  2025, for single prime projects in which a public institution
3  of higher education is a construction agency awarding building
4  construction contracts in excess of $250,000, separate
5  specifications may be prepared for all equipment, labor, and
6  materials in connection with the 5 subdivisions of work
7  enumerated in subsection (a). Any public institution of higher
8  education contract awarded for any part thereof may award 2 or
9  more of the 5 subdivisions of work together or separately to
10  responsible and reliable persons, firms, or corporations
11  engaged in these classes of work if: (i) the public
12  institution of higher education has submitted to the
13  Procurement Policy Board and the Commission on Equity and
14  Inclusion a written notice that includes the reasons for using
15  the single prime method and an explanation of why the use of
16  that method is in the best interest of the State and arranges
17  to have the notice posted on the institution's online
18  procurement webpage and its online procurement bulletin at
19  least 3 business days following submission to the Procurement
20  Policy Board and the Commission on Equity and Inclusion; (ii)
21  the successful low bidder has prequalified with the public
22  institution of higher education; (iii) the bid of the
23  successful low bidder identifies the name of the
24  subcontractor, if any, and the bid proposal costs for each of
25  the 5 subdivisions of work set forth in subsection (a); (iv)
26  the contract entered into with the successful bidder provides

 

 

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1  that no identified subcontractor may be terminated without the
2  written consent of the public institution of higher education;
3  and (v) the successful low bidder has prequalified with the
4  University of Illinois or with the Capital Development Board.
5  For building construction projects with a total
6  construction cost valued at $20,000,000 or less, public
7  institutions of higher education shall not use the single
8  prime delivery method for more than 50% of the total number of
9  projects bid for each fiscal year. Projects with a total
10  construction cost valued at $20,000,000 or more may be bid
11  using the single prime delivery method at the discretion of
12  the public institution of higher education. With respect to
13  any construction project described in this subsection (a-5),
14  the public institution of higher education shall: (i) specify
15  in writing as a public record that the project shall comply
16  with the Business Enterprise for Minorities, Women, and
17  Persons with Disabilities Act and the equal employment
18  practices of Section 2-105 of the Illinois Human Rights Act;
19  and (ii) report annually to the Governor, General Assembly,
20  Procurement Policy Board, and Auditor General on the bidding,
21  award, and performance of all single prime projects. On and
22  after the effective date of this amendatory Act of the 102nd
23  General Assembly, the public institution of higher education
24  may award in each fiscal year single prime contracts with an
25  aggregate total value of no more than $100,000,000. The Board
26  of Trustees of the University of Illinois may award in each

 

 

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1  fiscal year single prime contracts with an aggregate total
2  value of not more than $300,000,000.
3  (b) For public institutions of higher education, the The
4  provisions of this subsection are operative on and after
5  January 1, 2026. For building construction contracts in excess
6  of $250,000, separate specifications shall be prepared for all
7  equipment, labor, and materials in connection with the
8  following 5 subdivisions of the work to be performed:
9  (1) plumbing;
10  (2) heating, piping, refrigeration, and automatic
11  temperature control systems, including the testing and
12  balancing of those systems;
13  (3) ventilating and distribution systems for
14  conditioned air, including the testing and balancing of
15  those systems;
16  (4) electric wiring; and
17  (5) general contract work.
18  The specifications must be so drawn as to permit separate
19  and independent bidding upon each of the 5 subdivisions of
20  work. All contracts awarded for any part thereof shall award
21  the 5 subdivisions of work separately to responsible and
22  reliable persons, firms, or corporations engaged in these
23  classes of work. The contracts, at the discretion of the
24  construction agency, may be assigned to the successful bidder
25  on the general contract work or to the successful bidder on the
26  subdivision of work designated by the construction agency

 

 

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1  before the bidding as the prime subdivision of work, provided
2  that all payments will be made directly to the contractors for
3  the 5 subdivisions of work upon compliance with the conditions
4  of the contract.
5  (Source: P.A. 101-369, eff. 12-15-19; 101-645, eff. 6-26-20;
6  102-671, eff. 11-30-21; 102-1119, eff. 1-23-23.)
7  (30 ILCS 500/33-5)
8  Sec. 33-5. Definitions.  In this Article:
9  "Construction management services" includes:
10  (1) services provided in the planning and
11  pre-construction phases of a construction project
12  including, but not limited to, consulting with, advising,
13  assisting, and making recommendations to the Board and
14  architect, engineer, or licensed land surveyor on all
15  aspects of planning for project construction; reviewing
16  all plans and specifications as they are being developed
17  and making recommendations with respect to construction
18  feasibility, availability of material and labor, time
19  requirements for procurement and construction, and
20  projected costs; making, reviewing, and refining budget
21  estimates based on the Board's program and other available
22  information; making recommendations to the Board and the
23  architect or engineer regarding the division of work in
24  the plans and specifications to facilitate the bidding and
25  awarding of contracts; soliciting the interest of capable

 

 

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1  contractors and taking bids on the project; analyzing the
2  bids received; and preparing and maintaining a progress
3  schedule during the design phase of the project and
4  preparation of a proposed construction schedule; and
5  (2) services provided in the construction phase of the
6  project including, but not limited to, maintaining
7  competent supervisory staff to coordinate and provide
8  general direction of the work and progress of the
9  contractors on the project; directing the work as it is
10  being performed for general conformance with working
11  drawings and specifications; establishing procedures for
12  coordinating among the Board, architect or engineer,
13  contractors, and construction manager with respect to all
14  aspects of the project and implementing those procedures;
15  maintaining job site records and making appropriate
16  progress reports; implementing labor policy in conformance
17  with the requirements of the public owner; reviewing the
18  safety and equal opportunity programs of each contractor
19  for conformance with the public owner's policy and making
20  recommendations; reviewing and processing all applications
21  for payment by involved contractors and material suppliers
22  in accordance with the terms of the contract; making
23  recommendations and processing requests for changes in the
24  work and maintaining records of change orders; scheduling
25  and conducting job meetings to ensure orderly progress of
26  the work; developing and monitoring a project progress

 

 

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1  schedule, coordinating and expediting the work of all
2  contractors and providing periodic status reports to the
3  owner and the architect or engineer; and establishing and
4  maintaining a cost control system and conducting meetings
5  to review costs.
6  "Construction manager" means any individual, sole
7  proprietorship, firm, partnership, corporation, or other legal
8  entity providing construction management services for the
9  Board and prequalified by the State in accordance with 30 ILCS
10  500/33-10.
11  "Board" means the Capital Development Board or, to the
12  extent that the services are to be procured by for a public
13  institution of higher education, the public institution of
14  higher education.
15  (Source: P.A. 102-1119, eff. 1-23-23.)
16  (30 ILCS 500/45-105)
17  Sec. 45-105. Bid preference for Illinois businesses.
18  (a) (Blank). For the purposes of this Section:
19  "Illinois business" means a contractor that: (i) is
20  headquartered in Illinois and providing, at the time that an
21  invitation for a bid or notice of contract opportunity is
22  first advertised, construction or construction-related
23  professional services for Illinois-based projects; (ii)
24  conducts meaningful day-to-day business operations at a
25  facility in Illinois that is the place of employment for the

 

 

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1  majority of its regular, full-time workforce; (iii) holds all
2  appropriate State licenses; and (iv) is subject to applicable
3  State taxes. "Illinois business" does not include any
4  subcontractors.
5  "Illinois-based project" means an individual project of
6  construction and other construction-related services for a
7  construction agency that will result in the conduct of
8  business within the State or the employment of individuals
9  within the State.
10  (b) It is hereby declared to be the public policy of the
11  State of Illinois to promote the economy of Illinois through
12  the use of Illinois businesses for all State construction
13  contracts.
14  (c) Construction agencies procuring construction and
15  construction-related professional services shall make
16  reasonable efforts to contract with Illinois businesses.
17  (d) Beginning in 2022, each construction agency shall
18  submit a report to the Governor and the General Assembly by
19  September 1 of each year that identifies the Illinois
20  businesses procured by the construction agency, the primary
21  location of the construction project, the percentage of the
22  construction agency's utilization of Illinois businesses on
23  the project as a whole, and the actions that the construction
24  agency has undertaken to increase the use of Illinois
25  businesses.
26  (e) In procuring construction and construction-related

 

 

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1  professional services for projects with a total value that
2  exceeds the small purchase maximum established by Section
3  20-20 of this Code with a total construction cost of more than
4  $100,000, construction agencies shall provide a bid preference
5  to a responsive and responsible bidder that is an Illinois
6  business as defined in this Section. The construction agency
7  shall allocate to the lowest bid by an Illinois business that
8  is responsible and responsive any responsible bidder that is
9  an Illinois business a bid preference of 4% of the contract
10  base bid. This subsection applies only to projects where a
11  business that is not an Illinois business submits a bid.
12  (f) This Section does not apply to any contract for any
13  project for which federal funds are available for expenditure
14  when its provisions may be in conflict with federal law or
15  federal regulation.
16  (g) As used in this Section, "Illinois business" means a
17  contractor that is operating and headquartered in Illinois and
18  providing, at the time that an invitation for a bid or notice
19  of contract opportunity is first advertised, construction or
20  construction-related professional services, and is operating
21  as:
22  (1) a sole proprietor whose primary residence is in
23  Illinois;
24  (2) a business incorporated or organized as a domestic
25  corporation under the Business Corporation Act of 1983;
26  (3) a business organized as a domestic partnership

 

 

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1  under the Uniform Partnership Act of 1997;
2  (4) a business organized as a domestic limited
3  partnership under the Uniform Limited Partnership Act of
4  2001;
5  (5) a business organized under the Limited Liability
6  Company Act; or
7  (6) a business organized under the Professional
8  Limited Liability Company Act.
9  "Illinois business" does not include any subcontractors.
10  (Source: P.A. 102-721, eff. 1-1-23.)
11  Section 10. The Design-Build Procurement Act is amended by
12  changing Section 10 as follows:
13  (30 ILCS 537/10)
14  (Section scheduled to be repealed on January 1, 2026)
15  Sec. 10. Definitions.  As used in this Act:
16  "State construction agency" means the Capital Development
17  Board or, in the case of a design-build procurement by for a
18  public institution of higher education, the public institution
19  of higher education.
20  "Delivery system" means the design and construction
21  approach used to develop and construct a project.
22  "Design-bid-build" means the traditional delivery system
23  used on public projects in this State that incorporates the
24  Architectural, Engineering, and Land Surveying Qualification

 

 

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1  Based Selection Act (30 ILCS 535/) and the principles of
2  competitive selection in the Illinois Procurement Code (30
3  ILCS 500/).
4  "Design-build" means a delivery system that provides
5  responsibility within a single contract for the furnishing of
6  architecture, engineering, land surveying and related services
7  as required, and the labor, materials, equipment, and other
8  construction services for the project.
9  "Design-build contract" means a contract for a public
10  project under this Act between the State construction agency
11  and a design-build entity to furnish architecture,
12  engineering, land surveying, and related services as required,
13  and to furnish the labor, materials, equipment, and other
14  construction services for the project. The design-build
15  contract may be conditioned upon subsequent refinements in
16  scope and price and may allow the State construction agency to
17  make modifications in the project scope without invalidating
18  the design-build contract.
19  "Design-build entity" means any individual, sole
20  proprietorship, firm, partnership, joint venture, corporation,
21  professional corporation, or other entity that proposes to
22  design and construct any public project under this Act. A
23  design-build entity and associated design-build professionals
24  shall conduct themselves in accordance with the laws of this
25  State and the related provisions of the Illinois
26  Administrative Code, as referenced by the licensed design

 

 

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1  professionals Acts of this State.
2  "Design professional" means any individual, sole
3  proprietorship, firm, partnership, joint venture, corporation,
4  professional corporation, or other entity that offers services
5  under the Illinois Architecture Practice Act of 1989 (225 ILCS
6  305/), the Professional Engineering Practice Act of 1989 (225
7  ILCS 325/), the Structural Engineering Licensing Act of 1989
8  (225 ILCS 340/), or the Illinois Professional Land Surveyor
9  Act of 1989 (225 ILCS 330/).
10  "Evaluation criteria" means the requirements for the
11  separate phases of the selection process as defined in this
12  Act and may include the specialized experience, technical
13  qualifications and competence, capacity to perform, past
14  performance, experience with similar projects, assignment of
15  personnel to the project, and other appropriate factors. Price
16  may not be used as a factor in the evaluation of Phase I
17  proposals.
18  "Proposal" means the offer to enter into a design-build
19  contract as submitted by a design-build entity in accordance
20  with this Act.
21  "Public institution of higher education" has the meaning
22  ascribed in subsection (f) of Section 1-13 of the Illinois
23  Procurement Code.
24  "Request for proposal" means the document used by the
25  State construction agency to solicit proposals for a
26  design-build contract.

 

 

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1  "Scope and performance criteria" means the requirements
2  for the public project, including but not limited to, the
3  intended usage, capacity, size, scope, quality and performance
4  standards, life-cycle costs, and other programmatic criteria
5  that are expressed in performance-oriented and quantifiable
6  specifications and drawings that can be reasonably inferred
7  and are suited to allow a design-build entity to develop a
8  proposal.
9  (Source: P.A. 102-1119, eff. 1-23-23.)
10  Section 99. Effective date. This Act takes effect January
11  1, 2024.

 

 

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