Construction Manager/General Contractor project delivery method: Department of Transportation.
The enactment of SB 1262 is anticipated to significantly alter how the DOT approaches project management and delivery. By expanding the scope for utilizing the CM/GC method, the bill enables a more flexible and responsive project procurement approach. This flexibility allows projects that are more complex or have challenging constructability to benefit from contractor involvement during the early stages, potentially leading to increased cost efficiencies and improved project outcomes. Furthermore, the requirement for the DOT to utilize its employees or contracted consultants for project design and engineering services on at least two-thirds of the projects aims to ensure the department maintains a significant level of oversight and expertise within its ranks while reducing dependency on outside contractors.
Senate Bill 1262, titled the Construction Manager/General Contractor project delivery method, is designed to amend Sections 6700 and 6701 of the Public Contract Code, focusing on how the Department of Transportation (DOT) can manage infrastructure projects such as highways, bridges, and tunnels. The bill removes the previous limitations on the number of projects for which the DOT could employ the Construction Manager/General Contractor (CM/GC) method, allowing it to use this procurement strategy on an unlimited number of projects. The CM/GC method is intended to enhance the DOT's ability to engage a construction manager during the design phase, providing crucial input related to design, scheduling, and pricing, which is expected to result in more efficiently designed and delivered projects, reducing overall costs and expediting completion times.
The sentiment surrounding SB 1262 appears supportive, particularly among stakeholders who believe in the value of innovative procurement methods to enhance project delivery. Proponents argue that this legislation is a progressive step towards improving the state's infrastructure development process, allowing for timely and cost-effective completion of critical projects. However, there may be concern about the increased risk of project management liability that comes with the broader use of CM/GC methods, and the potential erosion of competitive bidding principles traditionally associated with public contracts, which could lead to pushback from more traditional stakeholders in the contracting space.
While SB 1262 has garnered overall positive responses for its potential to streamline project delivery and increase efficiency, it does raise questions regarding oversight and accountability. The bill specifically extends the authority of the DOT but does not mandate extensive oversight processes or competitive assessments compared to traditional bid methods. Some industry experts caution that this shift could lead to cost overruns or mismanagement without proper checks and balances. Additionally, as the bill expands the scope of the crime of perjury related to project reporting requirements, it could impose new responsibilities on local agencies and contractors, making compliance and fulfillment a point of contention as various stakeholders adjust to the updated requirements.