EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted and is intended to be omitted in the law. SECOND REGULAR SESSION SENATE BILL NO. 758 101ST GENERAL ASSEMBLY INTRODUCED BY SENATOR HOUGH. 3896S.02I ADRIANE D. CROUSE, Secretary AN ACT To repeal sections 8.250, 8.260, 8.675, 8.677, 8.679, 34.055, 34.057, 34.058, 34.100, 34.203, 34.206, 34.209, 34.212, 34.217, and 34.218, RSMo, and to enact in lieu thereof fifteen new sections relating to public contracts. Be it enacted by the General Assembly of the State of Missouri, as follows: Section A. Sections 8.250, 8.260, 8.675, 8.677, 8.679, 1 34.055, 34.057, 34.058, 34.100, 34.203, 34.206, 34.209, 34.212, 2 34.217, and 34.218, RSMo, are repealed and fifteen new sections 3 enacted in lieu thereof, to be known as sections 8.250, 8.260, 4 8.675, 8.677, 8.679, 8.960, 8.962, 8.964, 8.966, 8.968, 8.970, 5 8.972, 8.974, 34.055, and 34.100, to read as follows:6 8.250. 1. "Project" for the purposes of this chapter 1 means the labor or material necessary for the construction, 2 renovation, or repair of improvements to real property so 3 that the work, when complete, s hall be ready for service for 4 its intended purpose and shall require no other work to be a 5 completed system or component. 6 2. All contracts for projects, the cost of which 7 exceeds twenty-five thousand dollars, entered into by any 8 city containing five hundred thousand inhabitants or more 9 shall be let to the lowest, responsive, responsible bidder 10 or bidders after notice and publication of an advertisement 11 for five days in a daily newspaper in the county where the 12 work is located, or at least twic e over a period of ten days 13 or more in a newspaper in the county where the work is 14 SB 758 2 located, and in two daily newspapers in the state which do 15 not have less than fifty thousand daily circulation, and by 16 such other means as are determined to be most like ly to 17 reach potential bidders. 18 3. All contracts for projects, the cost of which 19 exceeds one hundred thousand dollars, entered into by an 20 officer or agency of this state shall be let to the lowest, 21 responsive, responsible bidder or bidders based o n 22 preestablished criteria after [notice and] publication of an 23 [advertisement] invitation to bid for [five days in a daily 24 newspaper in the county where the work is located, or at 25 least twice over] a period of ten days or more [in a 26 newspaper in the county where the work is located and in one 27 daily newspaper in the state which does not have less than 28 fifty thousand daily circulation and by such other means as 29 determined to be most likely to reach potential bidders ] on 30 the website of the officer or agency or through an 31 electronic procurement system . For all contracts for 32 projects between twenty -five thousand dollars and one 33 hundred thousand dollars, a minimum of three contractors 34 shall be solicited with the award being made to the lowest 35 responsive, responsible bidder based on preestablished 36 criteria. 37 4. The number of such public bids shall not be 38 restricted or curtailed, but shall be open to all persons 39 complying with the terms upon which the bids are requested 40 or solicited unless deb arred for cause. No contract shall 41 be awarded when the amount appropriated for same is not 42 sufficient to complete the work ready for service. 43 5. Dividing a project into component labor or material 44 allocations for the purpose of avoiding bidding o r 45 SB 758 3 advertising provisions required by this section is 46 specifically prohibited. 47 8.260. All appropriations made by the general assembly 1 amounting to one hundred thousand dollars or more for the 2 construction, renovation, or repair of fa cilities shall be 3 expended in the following manner: 4 (1) The agency requesting payment shall provide the 5 commissioner of administration with satisfactory evidence 6 that a bona fide contract, procured in accordance with all 7 applicable procedures, ex ists for the work for which payment 8 is requested; 9 (2) All requests for payment shall be approved by the 10 architect or engineer registered to practice in the state of 11 Missouri who designed the project or who has been assigned 12 to oversee it; 13 (3) In order to guarantee completion of the contract, 14 the agency or officer shall retain a portion of the contract 15 value in accordance with the provisions of section [34.057] 16 8.960; 17 (4) A contractor may be paid for materials delivered 18 to the site or to a storage facility approved by the 19 director of the division of facilities management, design 20 and construction as having adequate safeguards against loss, 21 theft or conversion. 22 In no case shall the amount contracted for exceed the amount 23 appropriated by the general assembly for the purpose. 24 8.675. 1. As used in [sections 8.675 to 8.687 ] this 1 section, the following terms mean: 2 (1) "Construction [management] management-as-agent 3 services" includes: 4 SB 758 4 (a) Services provided in the planning and design 5 phases of the project including, but not limited to, 6 consulting with, advising, assisting and making 7 recommendations to the public owner and architect, engineer 8 or registered landscape architect on all aspects of planning 9 for project construction; reviewing all plans and 10 specifications as they are being developed and making 11 recommendations with respect to construction feasibility, 12 availability of material and labor, time requirements for 13 procurement and construction, a nd projected costs; making, 14 reviewing and refining budget estimates based on the public 15 owner's program and other available information; making 16 recommendations to the public owner and the architect or 17 engineer regarding the division of work in the plan s and 18 specifications to facilitate the bidding and awarding of 19 contracts; soliciting the interest of capable contractors 20 and assisting the owner in taking bids on the project; 21 analyzing the bids received and awarding contracts; and 22 preparing and monitoring a progress schedule during the 23 design phase of the project and preparation of a proposed 24 construction schedule; and 25 (b) Services provided in the construction phase of the 26 project including, but not limited to, maintaining competent 27 supervisory staff to coordinate and provide general 28 direction of the work and progress of the contractors on the 29 project; observing the work as it is being performed for 30 general conformance with working drawings and 31 specifications; establishing procedures for coordinating 32 among the public owner, architect or engineer, contractors 33 and construction [manager] manager-as-agent with respect to 34 all aspects of the project and implementing such procedures; 35 maintaining job site records and making appropriate progres s 36 SB 758 5 reports; implementing labor policy in conformance with the 37 requirements of the public owner; reviewing the safety and 38 equal opportunity programs of each contractor for 39 conformance with the public owner's policy and making 40 recommendations; reviewing and processing all applications 41 for payment by involved contractors and material suppliers 42 in accordance with the terms of the contract; making 43 recommendations for and processing requests for changes in 44 the work and maintaining records of change orders ; 45 scheduling and conducting job meetings to ensure orderly 46 progress of the work; developing and monitoring a project 47 progress schedule, coordinating and expediting the work of 48 all contractors and providing periodic status reports to the 49 owner and the architect or engineer; and, establishing and 50 maintaining a cost control system and conducting meetings to 51 review costs. "Construction management -as-agent services" 52 does not include services provided by a construction manager - 53 at-risk as defined in sect ion 8.677; 54 (2) "Construction [manager] manager-as-agent", any 55 person partnership, corporation, or other legal entity 56 providing construction [management] management-as-agent 57 services for a public owner . "Construction manager -as- 58 agent" does not include a construction manager -at-risk as 59 defined in section 8.677 ; 60 (3) "Public owner", any public body, as defined in 61 section 290.210, authorized by statute to contract for 62 design and construction services. This term shall not 63 include a public body that is subject to another applicable 64 statute regarding the procurement of a construction 65 management-as-agent contract outside of this section . 66 2. The appropriate officer, board, or agency of a 67 public owner may elect to engage the services of a 68 SB 758 6 construction manager -as-agent when planning, designing, and 69 constructing a building or structure or when improving, 70 altering, or repairing a building or structure. 71 Construction management -as-agent services may be used by the 72 public owner in the prec onstruction phase or the 73 construction phase of a public works project or both. 74 3. When, in the discretion of the public owner, it is 75 determined that a public works project shall be performed 76 with a negotiated contract for construction management -as- 77 agent services, such public owner shall solicit proposals 78 from qualified construction managers -as-agent by publishing 79 a request for proposals for a period of ten or more days on 80 the website of the public owner or through an electronic 81 procurement system. The number of such proposals shall not 82 be restricted or curtailed but shall be open to all 83 construction managers -as-agent complying with the terms upon 84 which the proposals are requested. 85 4. When selecting a construction manager -as-agent for 86 a project, the public owner shall consider the following: 87 (1) Fees for overhead and profit; 88 (2) Costs for reimbursable items as defined in the 89 public owner's request for proposal; 90 (3) Qualifications; 91 (4) Demonstration of ability to perform projects 92 comparable in design, scope, and complexity; 93 (5) Demonstration of good faith efforts to achieve 94 compliance with federal, state, and local affirmative action 95 requirements; 96 (6) References from owners for whom construction 97 management has been performed; 98 (7) Financial strength; 99 SB 758 7 (8) Qualifications of in -house personnel who will 100 manage the project; and 101 (9) Demonstration of successful management systems 102 employed for the purposes of estimating, scheduling, and 103 cost controls. 104 5. The public owner may negotiate a contract for 105 construction management -as-agent services with any 106 construction manager -as-agent selected according to the 107 criteria of this section. If the public owner is unable to 108 negotiate a contract for the type of services required with 109 any of the construction managers -as-agent selected for a 110 project at a price determined by the public owner to be fair 111 and reasonable, the public owner shall reevaluate the 112 necessary construction management -as-agent services, 113 including the scope and reasonable fee requirements, and 114 again solicit proposals from construction managers -as-agent 115 complying with the terms of the revised requests for 116 proposal. 117 6. Upon award of a construction management -as-agent 118 services contract, the successful construction manager -as- 119 agent shall contract with the public owner to furnish his or 120 her skill and judgment in cooperation with, and reliance 121 upon, the services of the project architect or engineer. 122 The construction manager-as-agent shall furnish the business 123 administration, management of the construction process, and 124 other specified services to the public owner and shall 125 perform in an expeditious and economical manner consistent 126 with the interest of the pub lic owner. If the public owner 127 determines it to be in the public's best interest, the 128 construction manager -as-agent may provide or perform basic 129 services for which reimbursement is provided in the general 130 conditions to the construction management -as-agent services 131 SB 758 8 contract. The construction manager -as-agent shall not be 132 permitted to bid on or perform any of the actual 133 construction on a public works project in which he or she is 134 acting as construction manager -as-agent, nor shall any 135 construction firm that controls, is controlled by, or shares 136 common ownership or control with the construction manager -as- 137 agent be allowed to bid on or perform work on such project. 138 The actual construction work on the project shall be awarded 139 by competitive bidding as provided by law. All successful 140 bidders shall contract directly with the public owner but 141 shall perform at the direction of the construction manager - 142 as-agent unless otherwise provided in the contract between 143 the construction manager -as-agent and the public owner. All 144 successful bidders shall provide payment and performance 145 bonds to the public owner. All successful bidders shall 146 meet all obligations of a prime contractor to whom a 147 contract is awarded, pertaining to the payment of wages 148 under sections 290.210 to 290.340. In addition, all 149 nonresident employers shall meet the bonding and 150 registration requirements of sections 285.230 to 285.234. 151 7. No contract for construction management -as-agent 152 services shall be awarded by a public own er on a negotiated 153 basis, as provided in this section, if the construction 154 manager-as-agent or a firm that controls, is controlled by, 155 or shares common ownership or control with the construction 156 manager-as-agent guarantees, warrants, or otherwise assum es 157 financial responsibility for the work of others on the 158 project or furnishes or guarantees a performance or payment 159 bond for other contractors on the project. In any such 160 case, the contract shall be let by competitive bidding as in 161 the case of contract for construction work or as provided 162 SB 758 9 for construction management -at-risk services in section 163 8.677, if applicable. 164 8. (1) A construction manager -as-agent shall not be 165 deemed a contractor for the purposes of section 107.170. 166 (2) Nothing in this section shall apply to a public 167 body doing work if the construction is done by employees of 168 the public body. 169 8.677. [The appropriate officer, board or agency of a 1 public owner may elect to engage the construction management 2 services of a construction manager when planning, designing 3 and constructing a building or structure or when improving, 4 altering or repairing a building or structure. Construction 5 management services may be used by the public owner in the 6 preconstruction phase or the construction phase of public 7 works project or in both phases of the project. ] 1. As 8 used in this section, the following terms mean: 9 (1) "Construction manager -at-risk", a person, 10 partnership, corporation, or other legal entity t hat enters 11 into or proposes to enter into a construction management -at- 12 risk contract pursuant to this section; 13 (2) "Construction management -at-risk", a contractual 14 arrangement where the construction manager -at-risk assumes 15 the risk for the constr uction, rehabilitation, alteration, 16 or repair of a project at the contracted price as a general 17 contractor and provides consultation to a public owner 18 regarding construction during and after the design of the 19 project; 20 (3) "Public owner", any publ ic body, as defined in 21 section 290.210, authorized by statute to contract for 22 design and construction services. This term shall not 23 include a public body who is subject to another applicable 24 SB 758 10 statute regarding the procurement of a construction 25 management-at-risk contract outside of this section. 26 2. The public owner may use the construction manager - 27 at-risk method for any project within its authority in 28 excess of three hundred thousand dollars. In using that 29 method and in entering into a contra ct for the services of a 30 construction manager -at-risk, the public owner shall follow 31 the procedures prescribed by this section. 32 3. Before or concurrently with selecting a 33 construction manager -at-risk, the public owner shall select 34 or designate an engineer or architect who shall prepare the 35 construction documents for the project and who shall comply 36 with all state laws, as applicable. If the engineer or 37 architect is not a full -time employee of the public owner, 38 the public owner shall select th e engineer or architect on 39 the basis of demonstrated competence and qualifications as 40 provided by sections 8.285 to 8.291. The public owner's 41 engineer or architect for a project shall not serve, alone 42 or in combination with another, as the constructio n manager- 43 at-risk. This subsection does not prohibit the public 44 owner's engineer or architect from providing customary 45 construction phase services under the engineer's or 46 architect's original professional service agreement in 47 accordance with applicab le licensing laws. 48 4. The public owner may provide or contract for, 49 independently of the construction manager -at-risk, 50 inspection services, testing of construction materials, 51 engineering, and verification of testing services necessary 52 for acceptance of the project by the public owner. 53 5. The public owner shall select the construction 54 manager-at-risk using the following two -step process: 55 SB 758 11 (1) The public owner shall prepare a request for 56 qualifications that includes general information on the 57 project site, project scope, schedule, selection criteria, 58 the time and place for receipt of proposals or 59 qualifications, as applicable, and other information that 60 may assist the public owner in its selection of a 61 construction manager -at-risk. The public owner shall state 62 the selection criteria in the request for proposals or 63 qualifications, as applicable. The selection criteria may 64 include the construction manager's -at-risk experience, past 65 performance, safety record, proposed personnel a nd 66 methodology, and other appropriate factors that demonstrate 67 the capability of the construction manager -at-risk. The 68 public owner shall not request fees or prices in the first 69 step. The public owner may select no more than five nor 70 fewer than two construction managers -at-risk based on the 71 stated selection criteria; and 72 (2) The public owner may request from each selected 73 construction manager -at-risk its proposed fee, its price for 74 fulfilling the general conditions, and other prices, fees, 75 or costs deemed applicable by the public owner. 76 Qualifications shall account for a minimum of forty percent 77 of the evaluation. Cost shall account for a maximum of 78 sixty percent of the evaluation. 79 6. The public owner shall publish the request for 80 proposals or qualifications for a period of ten or more days 81 on the website of the public owner or through an electronic 82 procurement system. 83 7. For each step in subsection 5 of this section, the 84 public owner shall receive and open the names and proposals 85 or qualifications of the construction managers -at-risk at 86 the date and time specified in the request for proposals or 87 SB 758 12 qualifications. The names of the construction managers -at- 88 risk shall be made publicly available. Within forty-five 89 days after the date of opening the proposals or 90 qualification submissions, the public owner or its 91 representative shall evaluate and rank each proposal or 92 qualification submission submitted in relation to the 93 criteria set forth in the request for proposals o r request 94 for qualifications. The public owner shall interview at 95 least two of the top qualified offerors as part of the final 96 selection, provided there are two or more interested parties. 97 8. The public owner or its representative shall select 98 the construction manager -at-risk whose proposal offers the 99 best value for the public owner based on the published 100 selection criteria and on its ranking evaluation. The 101 public owner or its representative shall first attempt to 102 negotiate a contract with the selected construction manager - 103 at-risk. If the public owner or its representative is 104 unable to negotiate a satisfactory contract with the 105 selected construction manager -at-risk, the public owner or 106 its representative shall, formally and in writing, end 107 negotiations with that construction manager -at-risk and 108 proceed to negotiate with the next construction manager -at- 109 risk in the order of the selection ranking until a contract 110 is reached or negotiations with all ranked construction 111 managers-at-risk end. 112 9. The construction manager -at-risk may seek to 113 perform portions of the work itself if the construction 114 manager-at-risk submits its sealed bid or sealed proposal 115 for the portions of the work in the same manner as all other 116 trade contractors or subcontractors. A construction manager - 117 at-risk shall publicly solicit and receive bids or proposals 118 from trade contractors or subcontractors for the performance 119 SB 758 13 of all major elements of the work. The construction manager - 120 at-risk shall solicit bid s from potential contractors or 121 subcontractors by newspaper advertising, by posting a notice 122 on the website of at least one construction trade industry 123 association, or by other solicitation methods agreed to by 124 the public owner that are likely to reach a substantial 125 number of qualified contractors or subcontractors. All 126 sealed bids or proposals shall be submitted at the time and 127 location as specified in the solicitation for bids or 128 proposals and shall be opened and the identity of each 129 bidder and their bid amount shall be made publicly available 130 within fourteen days. 131 10. The construction manager -at-risk and the public 132 owner or its representative shall review all trade 133 contractor, subcontractor, or construction manager -at-risk 134 bids or proposals in a manner that does not disclose the 135 contents of the bid or proposal during the selection process 136 to a person not employed by the construction manager -at- 137 risk, engineer, architect, or public owner involved with the 138 project. After all proposals have been evaluated and 139 clarified, the award of all subcontracts shall be made 140 public. 141 11. If the construction manager -at-risk reviews, 142 evaluates, and recommends to the public owner a bid or 143 proposal from a trade contractor or subcontractor but the 144 public owner requires another bid or proposal to be 145 accepted, the public owner shall compensate the construction 146 manager-at-risk by a change in price, time, or guaranteed 147 maximum cost for any additional cost and risk that the 148 construction manager -at-risk may incur because of the public 149 owner's requirement that another bid or proposal be accepted. 150 SB 758 14 12. If a selected trade contractor or subcontractor 151 materially defaults in the performance of its work or fails 152 to execute a subcontract after be ing selected in accordance 153 with this section, the construction manager -at-risk may 154 itself, without soliciting bids, fulfill the contract 155 requirements or select a replacement trade contractor or 156 subcontractor to fulfill the contract requirements. The 157 penal sums of the performance and payment bonds delivered to 158 the public owner shall each be in an amount equal to the 159 fixed contract amount or guaranteed maximum price. The 160 construction manager -at-risk shall deliver the bonds not 161 later than the tenth day after the date the fixed contract 162 amount or guaranteed maximum price is established. 163 8.679. [When, in the discretion of the public owner, 1 it is determined that a public works project should be 2 performed with a negotiated contract for construction 3 management services, such public owner shall advertise and 4 solicit proposals from qualified construction managers in 5 the following manner: If the total cost for the erection or 6 construction of any building or structure or the 7 improvement, alteration or repair of a building or structure 8 exceeds five hundred thousand dollars, the public owner 9 shall request and solicit proposals by advertising for ten 10 days in one newspaper of general circulation in the county 11 where the work is locat ed. If the cost of the work 12 contemplated exceeds one million five hundred thousand 13 dollars, proposals shall be solicited by advertisement for 14 ten days in two daily newspapers in the state which have not 15 less than fifty thousand daily circulation in ad dition to 16 the advertisement in the county where the work is located. 17 The number of such proposals shall not be restricted or 18 curtailed, but shall be open to all construction managers 19 SB 758 15 complying with the terms upon which the proposals are 20 requested.] 1. As used in this section, the following 21 terms mean: 22 (1) "Design-build", a project delivery method subject 23 to a three-stage, qualifications -based selection for which 24 the design and construction services are furnished under one 25 contract; 26 (2) "Design-build contract", a contract that is 27 subject to a three-stage, qualifications -based selection 28 process between the public owner and a design -builder to 29 furnish the architectural, engineering, and related design 30 services and the labor, material s, supplies, equipment, and 31 other construction services required for a design -build 32 project; 33 (3) "Design-build project", the design, construction, 34 alteration, addition, remodeling, or improvement of any 35 buildings or facilities under contract with the public 36 owner. Such design-build projects include, but are not 37 limited to: 38 (a) Civil works projects such as roads, streets, 39 bridges, utilities, airport runways and taxiways, storm 40 drainage and flood control projects, or transit projects; and 41 (b) Noncivil works projects such as buildings, site 42 improvements, and other structures, habitable or not, 43 commonly designed by architects; 44 (4) "Design-builder", any individual, partnership, 45 joint venture, or corporation subject to a qualifi cation- 46 based selection that offers to provide or provides design 47 services and general contracting services through a design - 48 build contract in which services within the scope of the 49 practice of professional architecture or engineering are 50 performed respectively by a licensed architect or licensed 51 SB 758 16 engineer and in which services within the scope of general 52 contracting are performed by a general contractor or other 53 legal entity that furnishes architecture or engineering 54 services and construction servic es either directly or 55 through subcontracts or joint ventures; 56 (5) "Design criteria consultant", a person, 57 corporation, partnership, or other legal entity duly 58 licensed and authorized to practice architecture or 59 professional engineering in this st ate under chapter 327 who 60 is employed by or contracted by the public owner to assist 61 the public owner in the development of project design 62 criteria, requests for proposals, evaluation of proposals, 63 the evaluation of the construction under a design -build 64 contract to determine adherence to the design criteria, and 65 any additional services requested by the public owner to 66 represent its interests in relation to a project. The 67 design criteria consultant shall not submit a proposal or 68 furnish design or construction services for the design -build 69 contract for which its services were sought; 70 (6) "Design criteria package", a performance -oriented 71 program, scope, and specifications for the design -build 72 project sufficient to permit a design -builder to prepare a 73 response to the public owner's request for proposals for a 74 design-build project, which may include capacity, 75 durability, standards, ingress and egress requirements, 76 performance requirements, description of the site, surveys, 77 soil and environmental information concerning the site, 78 interior space requirements, material quality standards, 79 design and construction schedules, site development 80 requirements, provisions for utilities, storm water 81 retention and disposal, parking requirements, applic able 82 governmental code requirements, preliminary designs for the 83 SB 758 17 project or portions thereof, and other criteria for the 84 intended use of the project; 85 (7) "Design professional services", services that are: 86 (a) Within the practice of architect ure as defined in 87 section 327.091 or within the practice of professional 88 engineering as defined in section 327.181; or 89 (b) Performed by a licensed or authorized architect or 90 professional engineer in connection with the architect's or 91 professional engineer's employment or practice; 92 (8) "Proposal", an offer in response to a request for 93 proposals by a design -builder to enter into a design -build 94 contract for a design -build project under this section; 95 (9) "Public owner", any public body, as defined in 96 section 290.210, authorized by statute to contract for 97 design and construction services. This term shall not 98 include a public body that is subject to another applicable 99 statute regarding the procurement of a design -build contract 100 outside of this section; 101 (10) "Request for proposal", the document by which the 102 public owner solicits proposals for a design -build contract; 103 (11) "Stipend", an amount paid to the unsuccessful but 104 responsive, short-listed design-builders to defray t he cost 105 of participating in phase II of the selection process 106 described in this section. 107 2. A public owner may use the design -build method for 108 any project within its authority in excess of three hundred 109 thousand dollars. In using that method and in entering into 110 a design-build contract, the public owner shall follow the 111 procedures prescribed by this section. In using a design- 112 build contract, the public owner shall determine the scope 113 and level of detail required to permit qualified persons t o 114 SB 758 18 submit proposals in accordance with the request for 115 proposals given the nature of the project. 116 3. A design criteria consultant shall be employed or 117 retained by the public owner to assist in preparation of the 118 design criteria package and request for proposal, perform 119 periodic site visits to observe adherence to the design 120 criteria, prepare progress reports, review and approve 121 progress and final pay applications of the design -builder, 122 review shop drawings and submissions, provide input in 123 disputes, help interpret the construction documents, perform 124 inspections upon substantial and final completion, assist in 125 warranty inspections, and provide any other professional 126 service assisting with the project administration. The 127 design criteria cons ultant may also evaluate construction as 128 to the adherence to the design criteria. The design 129 criteria consultant shall be selected and its contract 130 negotiated in compliance with sections 8.285 to 8.291 unless 131 the consultant is a direct employee of the public owner. 132 4. The public owner shall publish the request for 133 proposals for a period of ten or more days on the website of 134 the public owner or through an electronic procurement system. 135 5. The public owner shall establish in the request for 136 proposal a time, place, and other specific instructions for 137 the receipt of proposals. Proposals not submitted in strict 138 accordance with the instructions shall be subject to 139 rejection. 140 6. A request for proposal shall be prepared for each 141 design-build contract and contain at minimum the following 142 elements: 143 (1) The procedures to be followed for submitting 144 proposals, the criteria for evaluating proposals and their 145 relative weight, and the procedures for making awards; 146 SB 758 19 (2) The proposed terms and conditions for the design - 147 build contract, if available; 148 (3) The design criteria package; 149 (4) A description of the drawings, specifications, or 150 other information to be submitted with the proposal, with 151 guidance as to the form and level of completeness of the 152 drawings, specifications, or other information that will be 153 acceptable; 154 (5) A schedule for planned commencement and completion 155 of the design-build contract, if any; 156 (6) Budget limits for the design -build contract, if 157 any; 158 (7) Requirements including any available ratings for 159 performance bonds, payment bonds, and insurance, if any; 160 (8) The amount of the stipend that will be available; 161 and 162 (9) Any other information that the public owner in its 163 discretion chooses to supply including, but not limited to, 164 surveys, soil reports, drawings of existing structures, 165 environmental studies, photographs, references to public 166 records, or affirmative action and minority business 167 enterprise requirements con sistent with state and federal 168 law. 169 7. The public owner shall solicit proposals in a three - 170 phase process. Phase I shall be the solicitation of 171 qualifications of the design -build team. Phase II shall be 172 the solicitation of a technical proposal, including a 173 conceptual design for the project. Phase III shall be the 174 proposal of the construction cost. 175 8. The public owner shall review the submissions of 176 the proposals and assign points to each proposal in 177 SB 758 20 accordance with this section and as set out in the 178 instructions of the request for proposal. 179 9. Phase I shall require all design -builders to submit 180 a statement of qualification that shall include, but not be 181 limited to: 182 (1) Demonstrated ability to perform projects 183 comparable in design, scope, and complexity; 184 (2) References of owners for whom design -build 185 projects, construction projects, or design projects have 186 been performed; 187 (3) Qualifications of personnel who will manage the 188 design and construction aspects of the project; and 189 (4) The names and qualifications of the primary design 190 consultants and the primary trade contractors with whom the 191 design-builder proposes to subcontract or joint venture. 192 The design-builder shall not replace an identified 193 contractor, subcontractor, design consultant, or 194 subconsultant without the written approval of the public 195 owner. 196 10. The public owner shall evaluate the qualifications 197 of all the design-builders who submitted proposals in 198 accordance with the instructi ons of the request for 199 proposal. Architectural and engineering services on the 200 project shall be evaluated in accordance with the 201 requirements of sections 8.285 and 8.291. Qualified design- 202 builders selected by the evaluation team may proceed to 203 phase II of the selection process. Design-builders lacking 204 the necessary qualifications to perform the work shall be 205 disqualified and shall not proceed to phase II of the 206 process. This process of short listing shall narrow the 207 number of qualified design -builders to not more than five 208 and no fewer than two. Under no circumstances shall price 209 SB 758 21 or fees be a part of the prequalification criteria. Design- 210 builders may be interviewed in either phase I or phase II of 211 the process. Points assigned in phase I o f the evaluation 212 process shall not carry forward to phase II of the process. 213 All qualified design -builders shall be ranked on points 214 given in phases II and III only. 215 11. The public owner shall have discretion to 216 disqualify any design -builder who, in the public owner's 217 opinion, lacks the minimum qualifications required to 218 perform the work. 219 12. Once a sufficient number of no more than five and 220 no fewer than two qualified design -builders have been 221 selected, the design -builders shall have a specified amount 222 of time in which to assemble phase II and phase III 223 proposals. 224 13. Phase II of the process shall be conducted as 225 follows: 226 (1) The public owner shall invite the top qualified 227 design-builders to participate in phase II of th e process; 228 (2) A design-builder shall submit its design for the 229 project to the level of detail required in the request for 230 proposal. The design proposal shall demonstrate compliance 231 with the requirements set out in the request for proposal; 232 (3) The ability of the design -builder to meet the 233 schedule for completing a project as specified by the public 234 owner may be considered as an element of evaluation in phase 235 II; 236 (4) Up to twenty percent of the points awarded to each 237 design-builder in phase II may be based on each design - 238 builder's qualifications and ability to design, contract, 239 and deliver the project on time and within the budget of the 240 public owner; 241 SB 758 22 (5) Under no circumstances shall the design proposal 242 contain any reference to the cost of the proposal; and 243 (6) The submitted designs shall be evaluated and 244 assigned points in accordance with the requirements of the 245 request for proposal. Phase II shall account for not less 246 than forty percent of the total point score as specified in 247 the request for proposal. 248 14. Phase III shall be conducted as follows: 249 (1) The phase III proposal shall provide a firm, fixed 250 cost of design and construction. The proposal shall be 251 accompanied by bid security and any other i tems such as 252 statements of minority participation as required by the 253 request for proposal; 254 (2) Cost proposals shall be submitted in accordance 255 with the instructions of the request for proposal. The 256 public owner shall reject any proposal that is not submitted 257 on time. Phase III shall account for not less than forty 258 percent of the total point score as specified in the request 259 for proposal; 260 (3) Proposals for phase II and phase III shall be 261 submitted concurrently at the time and place spec ified in 262 the request for proposal but in separate envelopes or other 263 means of submission. The phase III cost proposals shall be 264 opened only after the phase II design proposals have been 265 evaluated and assigned points, ranked in order, and posted; 266 (4) Cost proposals shall be opened at the time and 267 place specified in the request for proposal and shall be 268 made publicly available. At the same time and place, the 269 evaluation team shall make public its scoring of phase II. 270 Cost proposals shall be ev aluated in accordance with the 271 requirements of the request for proposal. In evaluating the 272 cost proposals, the lowest responsive bidder shall be 273 SB 758 23 awarded the total number of points assigned to be awarded in 274 phase III. For all other bidders, cost point s shall be 275 calculated by reducing the maximum points available in phase 276 III by at least one percent for each percentage point by 277 which the bidder exceeds the lowest bid and the points 278 assigned shall be added to the points assigned for phase II 279 for each design-builder; 280 (5) If the public owner determines that it is not in 281 the best interest of the public owner to proceed with the 282 project pursuant to the proposal offered by the design - 283 builder with the highest total number of points, the public 284 owner shall reject all proposals. In this event, all 285 qualified and responsive design -builders with lower point 286 totals shall receive a stipend and the responsive design - 287 builder with the highest total number of points shall 288 receive an amount equal to two times the stipend. If the 289 public owner decides to award the project, the responsive 290 design-builder with the highest number of points shall be 291 awarded the contract; and 292 (6) If all proposals are rejected, the public owner 293 may solicit new proposals using different design criteria, 294 budget constraints, or qualifications. 295 15. As an inducement to qualified design -builders, the 296 public owner shall pay a reasonable stipend, the amount of 297 which shall be established in the request for proposal, to 298 each prequalified design -builder whose proposal is 299 responsive but not accepted. Such stipend shall be no less 300 than one-half of one percent of the total project budget. 301 Upon payment of the stipend to any unsuccessful design - 302 builder, the public owner s hall acquire a nonexclusive right 303 to use the design submitted by the design -builder, and the 304 design-builder shall have no further liability for the use 305 SB 758 24 of the design by the public owner in any manner. If the 306 design-builder desires to retain all rights and interest in 307 the design proposed, the design -builder shall forfeit the 308 stipend. 309 16. The payment bond requirements of section 107.170 310 shall apply to a design -build project. All persons 311 furnishing design services shall be deemed to be covered by 312 the payment bond the same as any person furnishing labor and 313 materials. The performance bond for the design -builder 314 shall not cover any damages of the type specified to be 315 covered by the professional liability insurance established 316 by the public owner in the request for proposals. 317 17. Any person or firm performing architectural, 318 engineering, landscape architecture, or land -surveying 319 services for the design -builder on the design -build project 320 shall be duly licensed or authorized in this sta te to 321 provide such services as required by chapter 327. 322 18. Under section 327.465, any design -builder that 323 enters into a design -build contract with the public owner is 324 exempt from the requirement that such person or entity hold 325 a license or that such corporation hold a certificate of 326 authority if the architectural, engineering, or land - 327 surveying services to be performed under the design -build 328 contract are performed through subcontracts or joint 329 ventures with properly licensed or authorized per sons or 330 entities and not performed by the design -builder or its own 331 employees. 332 [34.057.] 8.960. 1. Unless contrary to any federal 1 funding requirements or unless funds from a state grant are 2 not timely received by the contracting pu blic municipality 3 but notwithstanding any other law to the contrary, all 4 public works contracts made and awarded by the appropriate 5 SB 758 25 officer, board or agency of the state or of a political 6 subdivision of the state or of any district therein, 7 including any municipality, county and any board referred to 8 as the public owner, for construction, reconstruction or 9 alteration of any public works project, shall provide for 10 prompt payment by the public owner to the contractor, and 11 any professional engineer, a rchitect, landscape architect, 12 or land surveyor, as well as prompt payment by the 13 contractor to the subcontractor and material supplier in 14 accordance with the following: 15 (1) A public owner shall make progress payments to the 16 contractor and any pr ofessional engineer, architect, 17 landscape architect, or land surveyor on at least a monthly 18 basis as the work progresses, or, on a lump sum basis 19 according to the terms of the lump sum contract. Except in 20 the case of lump sum contracts, payments shall be based upon 21 estimates prepared at least monthly of work performed and 22 material delivered, as determined by the project architect 23 or engineer. Retainage withheld on any construction 24 contract or subcontract for public works projects shall not 25 exceed five percent of the value of the contract or 26 subcontract. If the contractor is not required to obtain a 27 bond under section 107.170 because the cost of the public 28 works contract is not estimated to exceed fifty thousand 29 dollars, the public owner may w ithhold retainage on the 30 public works project in an amount not to exceed ten percent 31 of the value of the contract or subcontract. The public 32 owner shall pay the contractor the amount due, less a 33 retainage, within thirty days following the latter of th e 34 following: 35 (a) The date of delivery of materials or construction 36 services purchased; 37 SB 758 26 (b) The date, as designated by the public owner, upon 38 which the invoice is duly delivered to the person or place 39 designated by the public owner; or 40 (c) In those instances in which the contractor 41 approves the public owner's estimate, the date upon which 42 such notice of approval is duly delivered to the person or 43 place designated by the public owner; 44 (2) Payments shall be considered received wi thin the 45 context of this section when they are duly posted with the 46 United States Postal Service or other agreed upon delivery 47 service or when they are hand -delivered to an authorized 48 person or place as agreed to by the contracting parties; 49 (3) If, in the discretion of the owner and the project 50 architect or engineer and the contractor, it is determined 51 that a subcontractor's performance has been completed and 52 the subcontractor can be released prior to substantial 53 completion of the public works contract without risk to the 54 public owner, the contractor shall request such adjustment 55 in retainage, if any, from the public owner as necessary to 56 enable the contractor to pay the subcontractor in full. The 57 public owner may reduce or eliminate retai nage on any 58 contract payment if, in the public owner's opinion, the work 59 is proceeding satisfactorily. If retainage is released and 60 there are any remaining minor items to be completed, an 61 amount equal to one hundred fifty percent of the value of 62 each item as determined by the public owner's duly 63 authorized representatives shall be withheld until such item 64 or items are completed; 65 (4) The public owner shall pay at least ninety -eight 66 percent of the retainage, less any offsets or deductions 67 authorized in the contract or otherwise authorized by law, 68 to the contractor. The contractor shall pay the 69 SB 758 27 subcontractor or supplier after substantial completion of 70 the contract work and acceptance by the public owner's 71 authorized contract representative, or as may otherwise be 72 provided by the contract specifications for state highway, 73 road or bridge projects administered by the state highways 74 and transportation commission. Such payment shall be made 75 within thirty days after acceptance, and the invoic e and all 76 other appropriate documentation and certifications in 77 complete and acceptable form are provided, as may be 78 required by the contract documents. If the public owner or 79 the owner's representative determines the work is not 80 substantially comple ted and accepted, then the owner or the 81 owner's representative shall provide a written explanation 82 of why the work is not considered substantially completed 83 and accepted within fourteen calendar days to the 84 contractor, who shall then provide such notic e to the 85 subcontractor or suppliers responsible for such work. If 86 such written explanation is not given by the public body, 87 the public body shall pay at least ninety -eight percent of 88 the retainage within thirty calendar days. If at that time 89 there are any remaining minor items to be completed, an 90 amount equal to one hundred fifty percent of the value of 91 each item as determined by the public owner's representative 92 shall be withheld until such items are completed; 93 (5) All estimates or invoices for supplies and 94 services purchased, approved and processed, or final 95 payments, shall be paid promptly and shall be subject to 96 late payment charges provided in this section. Except as 97 provided in subsection 4 of this section, if the contractor 98 has not been paid within thirty days as set forth in 99 subdivision (1) of subsection 1 of this section, the 100 contracting agency shall pay the contractor, in addition to 101 SB 758 28 the payment due him, interest at the rate of one and one - 102 half percent per month calculated from the expiration of the 103 thirty-day period until fully paid; 104 (6) When a contractor receives any payment, the 105 contractor shall pay each subcontractor and material 106 supplier in proportion to the work completed by each 107 subcontractor and material su pplier his application less any 108 retention not to exceed five percent. If the contractor 109 receives less than the full payment due under the public 110 construction contract, the contractor shall be obligated to 111 disburse on a pro rata basis those funds recei ved, with the 112 contractor, subcontractors and material suppliers each 113 receiving a prorated portion based on the amount of 114 payment. When, however, the public owner does not release 115 the full payment due under the contract because there are 116 specific areas of work or materials he is rejecting or 117 because he has otherwise determined such areas are not 118 suitable for payment then those specific subcontractors or 119 suppliers involved shall not be paid for that portion of the 120 work rejected or deemed not suitabl e for payment; provided 121 the public owner or the owner's representative gives a 122 written explanation to the contractor, subcontractor, or 123 supplier involved as to why the work or supplies were 124 rejected or deemed not suitable for payment, and all other 125 subcontractors and suppliers shall be paid in full; 126 (7) If the contractor, without reasonable cause, fails 127 to make any payment to his subcontractors and material 128 suppliers within fifteen days after receipt of payment under 129 the public construction co ntract, the contractor shall pay 130 to his subcontractors and material suppliers, in addition to 131 the payment due them, interest in the amount of one and one - 132 half percent per month, calculated from the expiration of 133 SB 758 29 the fifteen-day period until fully paid. This subdivision 134 shall also apply to any payments made by subcontractors and 135 material suppliers to their subcontractors and material 136 suppliers and to all payments made to lower tier 137 subcontractors and material suppliers throughout the 138 contracting chain; 139 (8) The public owner shall make final payment of all 140 moneys owed to the contractor, including any retainage 141 withheld under subdivision (4) of this subsection, less any 142 offsets or deductions authorized in the contract or 143 otherwise authorized by law, within thirty days of the due 144 date. Final payment shall be considered due upon the 145 earliest of the following events: 146 (a) Completion of the project and filing with the 147 owner of all required documentation and certifications, in 148 complete and acceptable form, in accordance with the terms 149 and conditions of the contract; 150 (b) The project is certified by the architect or 151 engineer authorized to make such certification on behalf of 152 the owner as having been completed, including the filing o f 153 all documentation and certifications required by the 154 contract, in complete and acceptable form; or 155 (c) The project is certified by the contracting 156 authority as having been completed, including the filing of 157 all documentation and certifications required by the 158 contract, in complete and acceptable form. 159 2. Nothing in this section shall prevent the 160 contractor or subcontractor, at the time of application or 161 certification to the public owner or contractor, from 162 withholding such applications or certifications to the owner 163 or contractor for payment to the subcontractor or material 164 supplier. Amounts intended to be withheld shall not be 165 SB 758 30 included in such applications or certifications to the 166 public owner or contractor. Reasons for withholdi ng such 167 applications or certifications shall include, but not be 168 limited to, the following: unsatisfactory job progress; 169 defective construction work or material not remedied; 170 disputed work; failure to comply with other material 171 provisions of the cont ract; third-party claims filed or 172 reasonable evidence that a claim will be filed; failure of 173 the subcontractor to make timely payments for labor, 174 equipment and materials; damage to a contractor or another 175 subcontractor or material supplier; reasonable evidence that 176 the contract cannot be completed for the unpaid balance of 177 the subcontract sum or a reasonable amount for retention, 178 not to exceed the initial percentage retained by the owner. 179 3. Should the contractor determine, after application 180 or certification has been made and after payment has been 181 received from the public owner, or after payment has been 182 received by a contractor based upon the public owner's 183 estimate of materials in place and work performed as 184 provided by contract, that al l or a portion of the moneys 185 needs to be withheld from a specific subcontractor or 186 material supplier for any of the reasons enumerated in this 187 section, and such moneys are withheld from such 188 subcontractor or material supplier, then such undistributed 189 amounts shall be specifically identified in writing and 190 deducted from the next application or certification made to 191 the public owner or from the next estimate by the public 192 owner of payment due the contractor, until a resolution of 193 the matter has been achieved. Disputes shall be resolved in 194 accordance with the terms of the contract documents. Upon 195 such resolution the amounts withheld by the contractor from 196 the subcontractor or material supplier shall be included in 197 SB 758 31 the next application or certific ation made to the public 198 owner or the next estimate by the public owner and shall be 199 paid promptly in accordance with the provisions of this 200 section. This subsection shall also apply to applications 201 or certifications made by subcontractors or material 202 suppliers to the contractor and throughout the various tiers 203 of the contracting chain. 204 4. The contracts which provide for payments to the 205 contractor based upon the public owner's estimate of 206 materials in place and work performed rather than 207 applications or certifications submitted by the contractor, 208 the public owner shall pay the contractor within thirty days 209 following the date upon which the estimate is required by 210 contract to be completed by the public owner, the amount due 211 less a retainage not to exceed five percent. All such 212 estimates by the public owner shall be paid promptly and 213 shall be subject to late payment charges as provided in this 214 subsection. After the thirtieth day following the date upon 215 which the estimate is required by contract to be completed 216 by the public owner, the contracting agency shall pay the 217 contractor, in addition to the payment due him, interest at 218 a rate of one and one -half percent per month calculated from 219 the expiration of the thirty -day period until fully paid. 220 5. The public owner shall pay or cause to be paid to 221 any professional engineer, architect, landscape architect, 222 or land surveyor the amount due within thirty days following 223 the receipt of an invoice prepared and submitted in 224 accordance with the contract terms. In addition to the 225 payment due, the contracting agency shall pay interest at 226 the rate of one and one -half percent per month calculated 227 from the expiration of the thirty -day period until fully 228 paid. 229 SB 758 32 6. Nothing in this section shall prevent the owner 230 from withholding payment or final payment from the 231 contractor, or a subcontractor or material supplier. 232 Reasons for withholding payment or final payment shall 233 include, but not be limited to, the following: liquidated 234 damages; unsatisfactory job progress; defective construction 235 work or material not remedied; disputed work; failure to 236 comply with any material provision of the contract; third 237 party claims filed or reasonable evidence that a claim will 238 be filed; failure to make timely payments for labor, 239 equipment or materials; damage to a contractor, 240 subcontractor or material supplier; reasonable evidence that 241 a subcontractor or material supplier cannot be fully 242 compensated under its contract with the contractor for the 243 unpaid balance of the contract sum; or citation by the 244 enforcing authority for acts of the contractor or 245 subcontractor which do not comply with any material 246 provision of the contract and which result in a violation of 247 any federal, state or local l aw, regulation or ordinance 248 applicable to that project causing additional costs or 249 damages to the owner. 250 7. Nothing in this section shall be construed to 251 require direct payment by a public owner to a subcontractor 252 or supplier, except in the case of the default, as 253 determined by a court, of the contractor on the contract 254 with the public owner where no performance or payment bond 255 is required or where the surety fails to execute its duties, 256 as determined by a court. 257 8. Notwithstanding any o ther provisions in this 258 section to the contrary, no late payment interest shall be 259 due and owing for payments which are withheld in good faith 260 for reasonable cause pursuant to subsections 2, 5, and 6 of 261 SB 758 33 this section. If it is determined by a court of competent 262 jurisdiction that a payment which was withheld pursuant to 263 subsections 2, 5, and 6 of this section was not withheld in 264 good faith for reasonable cause, the court may impose 265 interest at the rate of one and one -half percent per month 266 calculated from the date of the invoice and may, in its 267 discretion, award reasonable attorney fees to the prevailing 268 party. In any civil action or part of a civil action 269 brought pursuant to this section, if a court determines 270 after a hearing for such purpose t hat the cause was 271 initiated, or a defense was asserted, or a motion was filed, 272 or any proceeding therein was done frivolously and in bad 273 faith, the court shall require the party who initiated such 274 cause, asserted such defense, filed such motion, or cau sed 275 such proceeding to be had to pay the other party named in 276 such action the amount of the costs attributable thereto and 277 reasonable expenses incurred by such party, including 278 reasonable attorney fees. 279 [34.058.] 8.962. 1. As used in this section, the term 1 "public works contract" means a contract of the state, 2 county, city and other political subdivisions of the state, 3 except the Missouri transportation department, for the 4 construction, alteration, repair, or maintenance of any 5 building, structure, highway, bridge, viaduct, pipeline, 6 public works, or any other works dealing with construction, 7 which shall include, but need not be limited to, moving, 8 demolition, or excavation performed in conjunction with such 9 work. 10 2. Any clause in a public works contract that purports 11 to waive, release, or extinguish the rights of a contractor 12 to recover costs or damages, or obtain an equitable 13 adjustment, for delays in performing such contract, if such 14 SB 758 34 delay is caused in whole, or in part, by acts or omissions 15 within the control of the contracting public entity or 16 persons acting on behalf thereof, is against public policy 17 and is void and unenforceable. 18 3. Subsection 2 of this section is not intended to 19 render void any cont ract provision of a public works 20 contract that: 21 (1) Precludes a contractor from recovering that 22 portion of delay costs caused by the acts or omissions of 23 the contractor or its agents; 24 (2) Requires notice of any delay by the party 25 responsible for such delay; 26 (3) Provides for reasonable liquidated damages; or 27 (4) Provides for arbitration or any other procedure 28 designed to settle contract disputes. 29 [34.203.] 8.964. The provisions of sections [34.203 to 1 34.216] 8.964 to 8.974 shall be known and may be cited as 2 the "Fairness in Public Construction Act". 3 [34.206.] 8.966. The purpose of sections [34.203 to 1 34.216*] 8.964 to 8.974 is to fulfill the state's 2 proprietary objectives in maintaining and promoting the 3 economical, nondiscriminatory, and efficient expenditures of 4 public funds in connection with publicly funded or assisted 5 construction projects. Nothing in sections [34.203 to 6 34.216*] 8.964 to 8.974 shall prohibit employers or other 7 parties covered by the National Labor Relations Act from 8 entering into agreements or engaging in any other activity 9 arguably protected by law, nor shall any aspect of sections 10 [34.203 to 34.216*] 8.964 to 8.974 be interpreted in such a 11 way as to interfere with the labor relations of parties 12 covered by the National Labor Relations Act. 13 SB 758 35 [34.209.] 8.968. 1. The state, any agency of the 1 state, any political subdivision of the state, or any 2 instrumentality thereof, when engaged in pr ocuring or 3 letting contracts for construction, repair, remodeling, or 4 demolition of a facility shall ensure that bid 5 specification, project agreements, and other controlling 6 documents entered into, required, or subject to approval by 7 the state, agency, political subdivision, or instrumentality 8 do not: 9 (1) Require or prohibit bidders, offerors, 10 contractors, or subcontractors to enter into or adhere to 11 agreements with one or more labor organizations on the same 12 or related projects; or 13 (2) Discriminate against, encourage, or give 14 preferential treatment to bidders, offerors, contractors, or 15 subcontractors for: 16 (a) Entering or refusing to enter agreements with one 17 or more labor organizations on the same or related 18 construction projects; or 19 (b) Remaining or refusing to remain signatory with one 20 or more labor organizations on the same or related 21 construction projects. 22 2. Nothing in this section shall be construed to 23 prohibit the state, any agency of the state, any politi cal 24 subdivision of the state, or any instrumentality thereof 25 from requiring bidders, offerors, contractors, or 26 subcontractors, as a condition of receiving work or 27 submitting a bid, to test its workers and employees for the 28 presence of illegal drugs. 29 [34.212.] 8.970. 1. The state, any agency of the 1 state, any political subdivision of the state, or any 2 instrumentality thereof shall not issue or award grants, tax 3 SB 758 36 abatements, or tax credits or enter into cooperative 4 agreements for construction projects or for the improvement, 5 maintenance, or renovation of real property or fixtures, a 6 condition of which requires that bid specifications, project 7 agreements, or other controlling documents pertaining to the 8 grant, tax abatement, t ax credit, or cooperative agreement 9 contain any of the elements specified in section [34.209] 10 8.968. 11 2. The state, any agency of the state, any political 12 subdivision, or any instrumentality thereof shall exercise 13 such authority as may be required to preclude a grant, tax 14 abatement, or tax credit recipient or party to a cooperative 15 agreement from imposing any of the elements specified in 16 section [34.209] 8.968 in connection with any grant or 17 cooperative agreement awarded or entered into. Nothing in 18 sections [34.203 to 34.217] 8.964 to 8.974 shall prohibit 19 contractors or subcontractors from voluntarily entering into 20 agreements described in section [34.209] 8.968. 21 [34.217.] 8.972. Notwithstanding the provisions of 1 section 1.140, the provisions of sections 290.095 and 2 290.250 and sections [34.203 to 34.216*] 8.964 to 8.974 3 shall not be severable. In the event a court of competent 4 jurisdiction rules that any part of this act is 5 unenforceable, the entire act shall be rend ered null and 6 void. 7 [34.218.] 8.974. 1. Any entity which violates the 1 provisions of sections [34.203 to 34.217] 8.964 to 8.974 2 shall be liable to the person affected for such equitable 3 relief as may be appropriate, including reason able 4 attorney's fees. 5 2. Any entity which violates the provisions of 6 sections [34.203 to 34.217] 8.964 to 8.974 shall not be 7 SB 758 37 eligible for any state funding or tax credits issued by the 8 state for two years. 9 3. The prosecuting attorney or cir cuit attorney with 10 jurisdiction over the location where a violation of sections 11 [34.203 to 34.217] 8.964 to 8.974 occurs, or the attorney 12 general of this state, shall investigate complaints of 13 violation of such sections, and use all means at their 14 command to ensure the effective enforcement of this section. 15 34.055. 1. Except as otherwise provided in section 1 [34.057] 8.960, all invoices for supplies and services 2 purchased by the state, duly approved and processed, shall 3 be subject to interest charges or late payment charges as 4 provided in this section. 5 2. After the forty-fifth day following the later of 6 the date of delivery of the supplies and services or the 7 date upon which the invoice is duly approved and processed, 8 interest retroactive to the thirtieth day shall be paid on 9 any unpaid balance, except balances for services provided by 10 a gas corporation, electrical corporation, water 11 corporation, or sewer corporation which has received 12 authorization from the public se rvice commission to impose 13 late payment charges on delinquent utility bills, upon 14 application of the vendor thereof. The rate of such 15 interest shall be three percentage points above the average 16 predominant prime rate quoted by commercial banks to larg e 17 businesses, as determined by the Board of Governors of the 18 Federal Reserve System. 19 3. The state shall be liable for late payment charges 20 on any delinquent bill for services purchased by the state 21 from a gas corporation, electrical corporation, water 22 corporation, or sewer corporation which has received 23 authorization from the public service commission to impose 24 SB 758 38 late payment charges on delinquent utility bills. The rate 25 of such late payment charges shall be as established for 26 each such corporation by order of the public service 27 commission, but bills rendered to the state shall not be 28 considered delinquent until thirty days after rendition of 29 the bill by the corporation. 30 4. Any such interest charges or late payment charges 31 shall be paid from appropriations which were made for the 32 fiscal year in which the supplies or services were delivered 33 to the respective departments purchasing such supplies or 34 services. The commissioner of administration shall be 35 responsible for the timely impl ementation of this section 36 and all officers, departments, institutions and agencies of 37 state government shall fully cooperate with the commissioner 38 of administration in the implementation of this section. No 39 late payment penalty shall be assessed agai nst, nor payable 40 by, the state unless pursuant to the provisions of this 41 section. 42 5. Notwithstanding any other provision of this 43 section, recipients of funds from the low -income energy 44 assistance program shall be exempt from interest charges 45 imposed by such section for the duration of the recipient's 46 participation in the program. 47 34.100. The commissioner of administration may, when 1 in the commissioner's best judgment it is in the best 2 interests of the state, delegate the co mmissioner's 3 procurement authority pursuant to this chapter to an 4 individual department; provided, however, that each instance 5 of single feasible source purchasing authority in excess of 6 [five] ten thousand dollars under section 34.044 must be 7 specifically delegated by the commissioner. The delegation 8 may allow departments to negotiate in accordance with 9 SB 758 39 section 34.042 the purchase of services for patients, 10 residents or clients with funds appropriated for this 11 purpose. In accepting this delegated authority the 12 department acknowledges its ability to, and agrees to, 13 fulfill all of the requirements of this chapter in making 14 purchases and entering into contracts and keeping records. 15 No claim for payment based upon any purchase under this 16 section shall be certified by the commissioner unless 17 accompanied by such documentation of compliance with the 18 provisions of this chapter as the commissioner may require. 19 Any department that fails to fulfill all such requirements 20 may have its delegated autho rity rescinded by the 21 commissioner of administration. 22 