Authorizes use of construction management at risk method for public contracts. (8/1/14)
By enacting SB 680, the state alters the manner in which public works projects are executed, enhancing the flexibility and efficiency of project delivery. The legislation emphasizes collaboration between owners, designers, and contractors, aligning their goals and minimizing construction risks through proactive management. Moreover, the bill mandates that public entities justify the use of this method and ensure compliance with already established state laws governing public contracts.
Senate Bill 680 seeks to authorize the utilization of the construction management at risk (CMAR) approach for public contracts within Louisiana. This legislative move allows public entities to engage in this alternative project delivery method, enabling greater collaboration during the construction process, improved cost control, and minimizing disputes. The act outlines specific criteria and conditions under which the CMAR method can be used, including a minimum project cost threshold of twenty-five million dollars.
The sentiment surrounding the bill appears to be broadly supportive among legislators and stakeholders interested in efficient project delivery methods. Proponents argue that the CMAR approach could significantly benefit public construction projects by expediting timelines and improving cost-effectiveness. Nonetheless, there may be concerns about transparency in the contractor selection process and potential impacts on smaller contractors who may not be as competitive in this environment.
Despite its favorable reception, potential points of contention exist regarding the selection process of CMAR contractors. The legislation stipulates that contractor selection will be based on specific qualifications per request, which could favor larger, more established firms over smaller contractors. Furthermore, the lack of legal challenges against contractor selection decisions—beyond cases of fraud or bias—might raise questions about accountability and transparency in awarding public contracts, highlighting the need for oversight.