Missouri 2022 2022 Regular Session

Missouri Senate Bill SB758 Introduced / Bill

Filed 12/06/2021

                     
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34.217, and 34.218, RSMo, are repealed and fifteen new sections 3 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 
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