HB3551 EngrossedLRB103 30888 HLH 57616 b HB3551 Engrossed LRB103 30888 HLH 57616 b HB3551 Engrossed LRB103 30888 HLH 57616 b 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by 5 changing Sections 1-15.93, 30-30, 33-5, and 45-105 as follows: 6 (30 ILCS 500/1-15.93) 7 (Section scheduled to be repealed on January 1, 2026) 8 Sec. 1-15.93.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 This Section is 18 repealed on January 1, 2026. 19 (Source: P.A. 101-369, eff. 12-15-19; 101-645, eff. 6-26-20; 20 102-671, eff. 11-30-21; 102-1119, eff. 1-23-23.) 21 (30 ILCS 500/30-30)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. HB3551 Engrossed LRB103 30888 HLH 57616 b HB3551 Engrossed- 2 -LRB103 30888 HLH 57616 b HB3551 Engrossed - 2 - LRB103 30888 HLH 57616 b HB3551 Engrossed - 2 - LRB103 30888 HLH 57616 b 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 HB3551 Engrossed - 2 - LRB103 30888 HLH 57616 b HB3551 Engrossed- 3 -LRB103 30888 HLH 57616 b HB3551 Engrossed - 3 - LRB103 30888 HLH 57616 b HB3551 Engrossed - 3 - LRB103 30888 HLH 57616 b 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 HB3551 Engrossed - 3 - LRB103 30888 HLH 57616 b HB3551 Engrossed- 4 -LRB103 30888 HLH 57616 b HB3551 Engrossed - 4 - LRB103 30888 HLH 57616 b HB3551 Engrossed - 4 - LRB103 30888 HLH 57616 b 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 HB3551 Engrossed - 4 - LRB103 30888 HLH 57616 b HB3551 Engrossed- 5 -LRB103 30888 HLH 57616 b HB3551 Engrossed - 5 - LRB103 30888 HLH 57616 b HB3551 Engrossed - 5 - LRB103 30888 HLH 57616 b 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 HB3551 Engrossed - 5 - LRB103 30888 HLH 57616 b HB3551 Engrossed- 6 -LRB103 30888 HLH 57616 b HB3551 Engrossed - 6 - LRB103 30888 HLH 57616 b HB3551 Engrossed - 6 - LRB103 30888 HLH 57616 b 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 HB3551 Engrossed - 6 - LRB103 30888 HLH 57616 b HB3551 Engrossed- 7 -LRB103 30888 HLH 57616 b HB3551 Engrossed - 7 - LRB103 30888 HLH 57616 b HB3551 Engrossed - 7 - LRB103 30888 HLH 57616 b 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 HB3551 Engrossed - 7 - LRB103 30888 HLH 57616 b HB3551 Engrossed- 8 -LRB103 30888 HLH 57616 b HB3551 Engrossed - 8 - LRB103 30888 HLH 57616 b HB3551 Engrossed - 8 - LRB103 30888 HLH 57616 b 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 HB3551 Engrossed - 8 - LRB103 30888 HLH 57616 b HB3551 Engrossed- 9 -LRB103 30888 HLH 57616 b HB3551 Engrossed - 9 - LRB103 30888 HLH 57616 b HB3551 Engrossed - 9 - LRB103 30888 HLH 57616 b 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 HB3551 Engrossed - 9 - LRB103 30888 HLH 57616 b HB3551 Engrossed- 10 -LRB103 30888 HLH 57616 b HB3551 Engrossed - 10 - LRB103 30888 HLH 57616 b HB3551 Engrossed - 10 - LRB103 30888 HLH 57616 b 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 HB3551 Engrossed - 10 - LRB103 30888 HLH 57616 b HB3551 Engrossed- 11 -LRB103 30888 HLH 57616 b HB3551 Engrossed - 11 - LRB103 30888 HLH 57616 b HB3551 Engrossed - 11 - LRB103 30888 HLH 57616 b 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 HB3551 Engrossed - 11 - LRB103 30888 HLH 57616 b HB3551 Engrossed- 12 -LRB103 30888 HLH 57616 b HB3551 Engrossed - 12 - LRB103 30888 HLH 57616 b HB3551 Engrossed - 12 - LRB103 30888 HLH 57616 b 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 HB3551 Engrossed - 12 - LRB103 30888 HLH 57616 b HB3551 Engrossed- 13 -LRB103 30888 HLH 57616 b HB3551 Engrossed - 13 - LRB103 30888 HLH 57616 b HB3551 Engrossed - 13 - LRB103 30888 HLH 57616 b 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 HB3551 Engrossed - 13 - LRB103 30888 HLH 57616 b HB3551 Engrossed- 14 -LRB103 30888 HLH 57616 b HB3551 Engrossed - 14 - LRB103 30888 HLH 57616 b HB3551 Engrossed - 14 - LRB103 30888 HLH 57616 b 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 HB3551 Engrossed - 14 - LRB103 30888 HLH 57616 b HB3551 Engrossed- 15 -LRB103 30888 HLH 57616 b HB3551 Engrossed - 15 - LRB103 30888 HLH 57616 b HB3551 Engrossed - 15 - LRB103 30888 HLH 57616 b 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 HB3551 Engrossed - 15 - LRB103 30888 HLH 57616 b HB3551 Engrossed- 16 -LRB103 30888 HLH 57616 b HB3551 Engrossed - 16 - LRB103 30888 HLH 57616 b HB3551 Engrossed - 16 - LRB103 30888 HLH 57616 b 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. HB3551 Engrossed - 16 - LRB103 30888 HLH 57616 b HB3551 Engrossed- 17 -LRB103 30888 HLH 57616 b HB3551 Engrossed - 17 - LRB103 30888 HLH 57616 b HB3551 Engrossed - 17 - LRB103 30888 HLH 57616 b 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. HB3551 Engrossed - 17 - LRB103 30888 HLH 57616 b