SLS 15RS-516 REENGROSSED
2015 Regular Session
SENATE BILL NO. 162
BY SENATOR GARY SMITH
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
PUBLIC CONTRACTS. Authorizes construction management at risk pilot program.
(8/1/15)
1 AN ACT
2 To amend and reenact R.S. 38:2225.2.4(A)(3), (F)(5), and (G)(5), relative to public
3 contracts; to authorize a construction management at risk pilot program; to provide
4 for selection of a construction management at risk contractor; to provide for entry
5 into a construction management at risk contract by an owner; and to provide for
6 related matters.
7 Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 38:2225.2.4(A)(3), (F)(5), and (G)(5) are hereby amended and
9 reenacted to read as follows:
10 ยง2225.2.4. Construction management at risk; public entity
11 A. * * *
12 (3) CMAR shall not be used for any project that is estimated to cost less than
13 twenty-five million dollars. except for any project in the CMAR pilot program.
14 A pilot program is hereby established that authorizes a public entity to use
15 CMAR for only one project which is estimated to cost three million dollars or
16 more, provided that the CMAR pilot program is limited to no more than ten
17 projects on a first-come, first-served basis. Prior to proceeding to use CMAR,
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 162
SLS 15RS-516 REENGROSSED
1 a public entity shall submit a proposed CMAR pilot project by name, together
2 with the reason to use CMAR, to the House and Senate transportation,
3 highways, and public works committees for review and approval.
4 * * *
5 F. * * *
6 (5) If the The benefits of using the CMAR method reduce as the design
7 process progresses, the. The owner shall select the CMAR contractor either before,
8 but not later than, when the in the professional opinion of the owner's design
9 professional, the design professional's design of the project is not more than thirty
10 percent complete.
11 G. After award and execution of the contract with the CMAR contractor, the
12 following actions shall proceed:
13 * * *
14 (5) Once a guaranteed maximum price is agreed upon, the owner may
15 authorize contract with the CMAR contractor to undertake construction services.
16 Additionally, the owner may determine and authorize contract with the CMAR
17 contractor to undertake specific items of construction services prior to agreement
18 upon a GMP for such items, provided such undertaking is for the benefit of the
19 project and a GMP for the undertaking can be agreed upon between the owner and
20 CMAR contractor. Such items may benefit the project, including but not limited to
21 items that require a long lead time, may further the understanding of unknown site
22 conditions, or other items.
23 * * *
The original instrument was prepared by Sharon F. Lyles. The following
digest, which does not constitute a part of the legislative instrument, was
prepared by McHenry Lee.
DIGEST
SB 162 Reengrossed 2015 Regular Session Gary Smith
Present law authorizes an owner who is a public entity to use the construction management
at risk (CMAR) project delivery method. The owner engages a design professional for
predesign or design services, or both. The owner contracts separately with a CMAR
contractor to engage in the preconstruction phase who may also provide construction
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 162
SLS 15RS-516 REENGROSSED
services to build the project. Use of CMAR is limited to projects estimated to cost $25
million dollars or more.
Proposed law establishes a CMAR pilot program that is limited to ten projects, each
estimated to cost three million dollars or more. Pilot projects must be submitted by name
for review and approval by the House and Senate committees on transportation, highways,
and public works. A public entity is allowed only one CMAR pilot project.
Present law requires the owner to select the CMAR contractor either before, but not later
than, when design is not more than 30% complete if the benefits of the CMAR method
reduce as the design process progresses.
Proposed law declares that the benefits of using the CMAR method reduce as project design
progresses and provides that determination of the design completion percentage is based on
the professional opinion of the owner's design professional.
Present law provides that, if the owner and CMAR contractor are able to negotiate, establish,
and agree upon a guaranteed maximum price 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 changes "authorize" to "contract with".
Effective August 1, 2015.
(Amends R.S. 38:2225.2.4(A)(3), (F)(5), and (G)(5))
Summary of Amendments Adopted by Senate
Senate Floor Amendments to reengrossed bill
1. Makes technical changes.
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.