LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7532 NOTE PREPARED: Mar 24, 2025
BILL NUMBER: HB 1559 BILL AMENDED: Mar 20, 2025
SUBJECT: Construction Manager as Constructor.
FIRST AUTHOR: Rep. VanNatter BILL STATUS: 2
nd
Reading - 2
nd
House
FIRST SPONSOR: Sen. Baldwin
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: The bill provides that when a public agency chooses to employ a construction
manager as constructor (CMc) on a public works project, the applicable contract award standard for the
project is "lowest and best".
The bill increases the maximum amount of work a CMc may perform on a project from 20% of the total
value of a project to 30% of the total value of a project.
Effective Date: July 1, 2025.
Explanation of State Expenditures: The Public Works Division of the Indiana Department of
Administration may need to update information and forms regarding CMc contracting. It is likely that the
Department would be able to accomplish the administrative changes to contracting standards within their
existing staff and resource levels.
Any change in contracting costs for CMc services is indeterminable under the bill’s proposed changes. Any
change in state expenditures would depend on future contract terms reached between state agencies and
potential contractors.
Explanation of State Revenues:
Explanation of Local Expenditures: Any changes in contracting costs for CMc services is indeterminable
under the bill’s proposed changes. Any change in local expenditures would depend on future contract terms
reached between local government agencies and potential contractors.
Explanation of Local Revenues:
State Agencies Affected: Public Works Division, Indiana Department of Administration; any state agency
contracting for CMc services.
HB 1559 1 Local Agencies Affected: Any local government agency contracting for CMc services.
Information Sources: https://www.in.gov/idoa/files/construction_manager_as_constructor_contract.pdf
Fiscal Analyst: Chris Baker, 317-232-9851.
HB 1559 2