Page 1 of 6
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2013 ENROLLED
SENATE BILL NO. 65
BY SENATOR MURRAY
AN ACT1
To enact R.S. 38:2225.2.3, relative to the utilization of the construction manager at risk2
method by the New Orleans Aviation Board; to permit the New Orleans Aviation3
Board to construct certain projects utilizing the construction manager at risk method;4
and to provide for related matters.5
Notice of intention to introduce this Act has been published.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 38:2225.2.3 is hereby enacted to read as follows:8
ยง2225.2.3. Construction management at risk9
A.(1) Notwithstanding any provisions of law to the contrary, the New10
Orleans Aviation Board, hereinafter referred to as the board, may award a11
public works contract for the initial construction of an airport terminal and12
related support facility, aviation facility, or any combination thereof by the13
construction management at risk method as set forth in this Section.14
(2) However, the provisions of this Section shall not apply to the15
construction of any additions or modifications of an airport terminal and16
related support facility, aviation facility, or any combination thereof,17
constructed by the board following the completion of the initial construction of18
such terminal or facility.19
(3) For purposes of this Section, the following terms shall be assigned the20
following definitions:21
(a) "Construction management at risk method" shall mean a delivery22
method by which the board utilizes architects or engineers employed by the23
board or contracts with an architect or engineer for design and construction24
management services and contracts separately with a construction manager at25
ACT No. 119 SB NO. 65 ENROLLED
Page 2 of 6
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
risk to serve as the general contractor and to provide consultation during the1
design and construction of a facility.2
(b) "Construction manager at risk" shall mean a sole proprietorship,3
partnership, corporation, or other legal entity that assumes the risk for the4
initial construction of an airport terminal and related support facility, aviation5
facility, or any combination thereof at the contracted price as a general6
contractor and provides consultation to the board regarding construction of the7
facility.8
B.(1) Should the board choose to award a public works contract by the9
construction management at risk method, prior to the advertisement for such10
services, the board shall prepare a written statement justifying why the11
construction management at risk method is preferred over the design-bid-build,12
the design-build, or public bid methods allowed by statute for the particular13
project in question.14
(2) The written statement shall identify the specific benefits to the public15
which the board determines will result from the use of the construction16
management at risk method.17
(3) This written statement shall be published by the board in the18
advertisement required by Subsection C of this Section.19
C. A request for proposals (RFP) to award a contract for construction20
manager at risk services shall be advertised in the official journal of the board21
and, if one exists, the Internet website of the board. Additionally, the board22
may select other publications deemed appropriate by the board for23
advertisement of the notice. All RFPs shall be advertised two times within a24
thirty-day time period prior to the deadline for receipt of responses.25
D. Construction Management at Risk Services. (1) Construction26
management at risk proposers awarded a contract pursuant to this Section shall27
act as the general contractor for the project and shall be properly licensed,28
bonded, and insured.29
(2) Construction management at risk services shall be for the30 SB NO. 65 ENROLLED
Page 3 of 6
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
performance of the project work and shall guarantee the maximum price for1
the project.2
E. Guaranteed Maximum Price.3
(1) The guaranteed maximum price for the project may be set by the4
board.5
(2) If the board sets the guaranteed maximum price for the project, that6
guaranteed maximum price shall be disclosed in the RFP and shall include the7
maximum number of construction days required to complete the project.8
(3) If the guaranteed maximum price will not be set by the board until9
after the selection of the construction manager at risk, as provided in Paragraph10
(2) of this Subsection, then the advertisement for the RFP shall disclose this fact11
and proposals submitted in response to the RFP shall not be required to include12
a guaranteed maximum price for the project.13
F. Request for Proposals (RFP). (1) The RFP shall include the following14
as well as any other pertinent information that a proposer would need to submit15
to respond to an RFP:16
(a) Requirements for the project.17
(b) Procedures for construction of the project.18
(c) Grading criteria of responses to the RFP.19
(d) Scoring methodology of responses to the RFP.20
(2) The RFP may request that proposers include the following in21
response to the RFP, as well as any other appropriate factors that would22
demonstrate the capability of the proposer to perform the role of construction23
manager at risk for the project:24
(a) Bonding capacity of the proposer.25
(b) Competence of the proposer.26
(c) Construction methodology previously utilized by the proposer on27
other projects.28
(d) Experience of the proposer with the construction management at risk29
method and other methods of project delivery.30 SB NO. 65 ENROLLED
Page 4 of 6
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
(e) Extent to which the proposer intends to self-perform portions of the1
work.2
(f) Financial capacity of the proposer.3
(g) Past performance by the proposer including timely completion of4
other public works projects.5
(h) Proposed management and staffing for the project.6
(i) The proposer's last safety record.7
(3) The responses to the RFPs shall include the following:8
(a) A guaranteed maximum price if required by the advertisement as9
published by the board.10
(b) Total fees and compensation to be paid to the construction manager11
at risk if selected by the board to receive the contract for the project.12
G. (1) The proposals submitted shall be reviewed and graded by a review13
committee comprised of at least five individuals appointed by the board,14
including but not limited to the following:15
(a) One or more representatives of the board.16
(b) One design professional not involved in the project.17
(c) One construction industry representative not involved as a proposer18
on the project.19
(d) One representative of the Department of Transportation and20
Development.21
(e) One representative of the office of facility planning and control.22
(2) The review committee shall evaluate, grade, and score the responses23
to the RFP in the areas set out in the RFP. The portion of the response to the24
RFPs addressing total fees and compensation to be paid to the construction25
manager at risk will be considered by a review committee only after its26
consideration of all other factors contained in the proposals.27
(3) The results of the review committee, inclusive of its findings, grading,28
score sheets and recommendations shall be available for review by all proposers29
and shall also be subject to a public records request.30 SB NO. 65 ENROLLED
Page 5 of 6
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
H. (1) Within forty five days after the deadline for responses to the RFP1
to be submitted, the review committee shall make a recommendation to the2
board as to which proposer it recommends should be awarded the contract. The3
proposer recommended by the committee to serve as the construction manager4
at risk shall work with the board's design professional for the project on5
constructability, the construction phasing and sequencing prior to the board6
awarding the contract.7
I. (1) Any non-recommended proposers shall have the opportunity to8
protest the review committee's recommendation and the board's award.9
(2)(a) Any non-recommended proposer may ask for a hearing before the10
board within ten days following the receipt of the review committee's11
recommendation.12
(b) The board shall then conduct a public hearing to consider any protest13
or protests no later than ten days following the last request for a hearing by a14
non-recommended proposer.15
(c) Following any hearing required by Subparagraph (b) of this16
Paragraph, any non-recommended proposer may seek legal review in the state17
judicial district court where the project is to be constructed.18
J. (1) If the guaranteed maximum price and maximum number of19
construction days required to complete the project were set forth in the RFP20
and the board and the recommended proposer agree on constructability, the21
construction phasing and sequencing, the board shall award the construction22
management at risk contract to the proposer recommended by the committee.23
(2) If the guaranteed maximum price for the project was not set by the24
board in the RFP, then within thirty days of the completion of the plans,25
specifications and scope of the project, the recommended proposer shall furnish26
the board a guaranteed maximum price for the project including the maximum27
number of construction days required for completion of the project.28
(3) If the board and recommended proposer are able to agree upon29
constructability, construction phasing and sequencing, a guaranteed maximum30 SB NO. 65 ENROLLED
Page 6 of 6
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
price for the project, and the maximum number of construction days for1
completion of the project, the board shall then award the construction2
management at risk contract to the proposer recommended by the review3
committee.4
(4) If the guaranteed maximum price provided by the recommended5
proposer exceeds the board's construction budget for the project, then the6
board and recommended proposer shall enter into negotiations to establish an7
agreed upon guaranteed maximum price.8
(5) If the board and the recommended proposer are unable to agree upon9
a guaranteed maximum price for the project, and the maximum number of10
construction days for completion of the project, then the project will be11
re-advertised and publicly bid as per this Section.12
K. The provisions of this Section shall supersede any conflicting13
provisions of any law including but not limited to the requirements of Chapter14
10 of this Title. However, the provisions of this Section shall not relieve the15
board from complying with Federal Aviation Administration guidelines or all16
other applicable provisions of this Title that do not conflict with the provisions17
of this Section.18
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: