The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Sharon F. Lyles.
DIGEST
Adley (SB 680)
Present law prohibits a construction manager or any other third-party consultant employed by a
public entity from managing a construction project as a general contractor or acting in the role of
the general contractor to oversee, direct, or coordinate individual trade contractors on behalf of
the public entity, or accepting bids or itself bid on the public works or components of the public
works with respect to which the manager or consultant is employed or contracted to manage or
consult.
Proposed law authorizes an owner who is a public entity to use the construction management at
risk or CMAR project delivery method to contract for public works.
Proposed law defines the "construction management at risk" or "CMAR" method to mean a
delivery method by which the owner uses a design professional, who is engaged by the owner for
professional predesign or design services, or both. The owner contracts separately with a CMAR
contractor to engage in the preconstruction phase. As specified in proposed law, the same
CMAR contractor may also provide construction services to build the project.
Proposed law defines "CMAR contractor" as a person, sole proprietorship, partnership,
corporation or other legal entity, properly licensed, bonded, and insured, who may assume the
risk to construct the project for a guaranteed maximum price or who provides construction
experience to the owner or its design professional during the preconstruction phase regarding the
constructability of the project, or both.
Proposed law defines "design professional" as an engineer, architect, or landscape architect who
has secured a professional license from a Louisiana registration board as required by state law
and who is selected by an owner in accordance with state law.
Proposed law defines "selection review committee" to mean the committee appointed by the
owner to review the request for qualifications, score the proposers, and recommend award to a
CMAR contractor. The committee shall consist of no more than five individuals as follows:
(1)One design professional in the discipline of but not involved in the project.
(2)One licensed contractor in the discipline of but not involved in the project.
(3)One representative of the owner.
(4)Two members at large from the general public. Proposed law defines "owner" as a public entity as defined in R.S. 38:2211.
Proposed law requires an owner who determines to use the CMAR method to indicate such intent
in the RFQ to procure a CMAR contractor and the reasons it deems such method to be in the
public interest and beneficial to the owner.
Proposed law prohibits challenges by any legal process to the choice of the successful CMAR
contractor except for fraud, bias for pecuniary or personal reasons not related to the taxpayers'
interest, or arbitrary and capricious selection by the owner.
Proposed law requires an owner to select and contract with a design professional for design
services in the manner provided for by law.
Proposed law requires advertisement of the RFQ to award a contract for CMAR services in the
owner's official journal, and on the owner's Internet website, if available. The RFQ shall be
advertised at least two times within the 30 day period prior to the deadline for receipt of
responses.
Proposed law lists specific items the owner shall include in the RFQ. Allows the owner to
include other listed items in the RFQ. Requires review and grading of proposals by a review
committee identified in the RFQ. Provides that the review committee results, inclusive of its
findings, grading, score sheets and recommendations are available for review by all proposers
and shall be deemed public records.
Proposed law requires the review committee to make its recommendations to the owner within
90 days after the deadline for submission of responses to the RFQ. Requires the proposer
recommended by the committee as the CMAR contractor to work with the owner's design
professional for the project on constructability and construction phasing and sequencing prior to
the owner's award to construct the project.
Proposed law requires the owner to select the CMAR contractor either before, but not later than,
when the design professional design is not more than 30% complete if the benefits of the CMAR
method reduce as the design process progresses.
Proposed law requires the owner to obtain an opinion of probable cost from the design
professional and the CMAR contractor when final project design is not more than 60% and again
when final design is not more than 90% complete.
Proposed law requires the CMAR contractor to provide the owner a guaranteed maximum price
or GMP before or upon completion of final design.
Proposed law provides that, if the owner and CMAR contractor are able to negotiate, establish,
and agree upon such GMP for rendering construction services for the project, the owner may
authorize the CMAR contractor to undertake construction services. Further provides that an
owner may determine and authorize a CMAR contractor to undertake specific items provided such undertaking is beneficial to the project, including but not limited to items that require a long
lead time, further understanding of unknown site conditions, or other issues.
Proposed law requires the owner to readvertise and publicly bid utilizing the design-bid-build
delivery method when the owner and the CMAR contractor do not reach a negotiated agreement.
Proposed law provisions do not supersede any conflicting provisions of any law, including but
not limited to the requirements of Chapter 10 of Title 38, but the provisions of such Chapter shall
otherwise apply to such contracts.
Effective August 1, 2014.
(Adds R.S. 38:2225.2.4)