Texas 2025 - 89th Regular

Texas House Bill HB2148 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R6375 JCG-D
2	2	By: Gervin-Hawkins H.B. No. 2148
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the construction manager-at-risk and design-build
10	10	methods of project delivery for a public work contract.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 2269.253, Government Code, is amended by
13	13	amending Subsections (d) and (e) and adding Subsection (e-1) to
14	14	read as follows:
15	15	(d) If a one-step process is used, the governmental entity
16	16	shall [may] request, as part of the offeror's proposal:
17	17	(1)[,] proposed fees and prices for fulfilling the
18	18	general conditions; and
19	19	(2) proposed prices and methods for preventing and
20	20	managing the risk of default by a trade contractor or
21	21	subcontractor.
22	22	(e) If a two-step process is used, the governmental entity
23	23	may not request fees or prices in step one. In step two, the
24	24	governmental entity shall [may] request that five or fewer
25	25	offerors, selected solely on the basis of qualifications, provide
26	26	additional information, including the construction
27	27	manager-at-risk's:
28	28	(1) proposed fee and prices for fulfilling the general
29	29	conditions; and
30	30	(2) proposed prices and methods for preventing and
31	31	managing the risk of default by a trade contractor or
32	32	subcontractor.
33	33	(e-1) A governmental entity's request for proposals in a
34	34	one-step process or request for qualifications in a two-step
35	35	process must clearly provide that the proposed prices for
36	36	fulfilling the general conditions and the proposed prices for
37	37	preventing and managing risk of default by a trade contractor or
38	38	subcontractor are allowable costs for all purposes of the
39	39	construction contract, including for the purpose of calculating the
40	40	construction manager-at-risk's fee. A provision of a request for
41	41	proposals, a request for qualifications, or a construction contract
42	42	entered into under this subchapter that conflicts with the
43	43	requirements of this subsection has no effect.
44	44	SECTION 2. Section 2269.255, Government Code, is amended by
45	45	adding Subsections (c), (d), (e), (f), and (g) to read as follows:
46	46	(c) Except as provided by Subsection (d), if the
47	47	governmental entity determines that the construction
48	48	manager-at-risk's bid or proposal provides the best value under
49	49	Subsection (b)(2) and that bid or proposal is selected, the
50	50	governmental entity shall compensate the construction
51	51	manager-at-risk for the performance of that work in the same manner
52	52	that the governmental entity would have compensated one of the
53	53	other competing trade contractors or subcontractors that submitted
54	54	a bid or proposal for the work, as determined by the governmental
55	55	entity.
56	56	(d) If one or more bids or proposals received under this
57	57	section offer to provide services under a stipulated sum contract
58	58	and the construction manager-at-risk's bid or proposal is selected
59	59	as described by Subsection (c):
60	60	(1) the construction manager-at-risk shall be
61	61	compensated for the work in the manner that a stipulated sum
62	62	contract would provide; and
63	63	(2) the price proposed by the construction
64	64	manager-at-risk may not be audited.
65	65	(e) A construction manager-at-risk's compensation for the
66	66	performance of work under Subsection (b) is considered an allowable
67	67	trade contractor or subcontractor cost for all purposes of the
68	68	construction contract, including for purposes of calculating the
69	69	construction manager-at-risk's fee.
70	70	(f) For purposes of Subsection (d), a "stipulated sum
71	71	contract" is a contract in which the contractor agrees to provide
72	72	services for a fixed price resulting in the contractor bearing
73	73	substantial risk for any underestimated costs to provide the
74	74	services and is also known as a lump sum contract.
75	75	(g) A provision of a request for proposals, an advertisement
76	76	for bids or proposals, or a construction contract entered into
77	77	under this subchapter that conflicts with the requirements of
78	78	Subsection (c), (d), or (e) has no effect.
79	79	SECTION 3. Section 2269.307, Government Code, is amended by
80	80	amending Subsection (e) and adding Subsection (e-1) to read as
81	81	follows:
82	82	(e) Except as provided by Subsection (e-1), the [The]
83	83	governmental entity may request additional information regarding
84	84	demonstrated competence and qualifications, considerations of the
85	85	safety and long-term durability of the project, the feasibility of
86	86	implementing the project as proposed, the ability of the offeror to
87	87	meet schedules, or costing methodology. As used in this
88	88	subsection, "costing methodology" means an offeror's policies on
89	89	subcontractor markup, definition of general conditions, range of
90	90	cost for general conditions, policies on retainage, policies on
91	91	contingencies, discount for prompt payment, policies and pricing
92	92	for preventing and managing the risk of default by a trade
93	93	contractor or subcontractor, and expected staffing for
94	94	administrative duties. The term does not include a guaranteed
95	95	maximum price or bid for overall design or construction.
96	96	(e-1) The governmental entity may not request a guaranteed
97	97	maximum price or bid for overall design or construction.
98	98	SECTION 4. Subchapter G, Chapter 2269, Government Code, is
99	99	amended by adding Section 2269.3065 to read as follows:
100	100	Sec. 2269.3065. PRICES AND METHODS FOR PREVENTING AND
101	101	MANAGING RISK OF DEFAULT BY TRADE CONTRACTOR OR SUBCONTRACTOR. (a)
102	102	Any request for proposals, request for qualifications, or
103	103	construction contract entered into under this subchapter must
104	104	clearly provide that:
105	105	(1) the selected design-build firm may implement the
106	106	firm's proposed methods of preventing and managing the risk of
107	107	default by a trade contractor or subcontractor; and
108	108	(2) the proposed prices for the methods described by
109	109	Subdivision (1) are allowable costs for all purposes of the
110	110	construction contract, including for purposes of calculating the
111	111	selected design-build firm's fee.
112	112	(b) A provision of a request for proposals, a request for
113	113	qualifications, or a construction contract entered into under this
114	114	subchapter that conflicts with the requirements of Subsection (a)
115	115	has no effect.
116	116	SECTION 5. Subchapter G, Chapter 2269, Government Code, is
117	117	amended by adding Section 2269.312 to read as follows:
118	118	Sec. 2269.312. PERFORMANCE OF WORK. (a) A contract entered
119	119	into under this subchapter must allow the design-build firm to
120	120	perform portions of the construction work required by the contract
121	121	instead of contracting with another person to perform that work.
122	122	(b) The governmental entity may select the design-build
123	123	firm to perform portions of the construction work required by the
124	124	contract if:
125	125	(1) the design-build firm publicly advertises for bids
126	126	or proposals for the performance of the construction work required
127	127	by the contract;
128	128	(2) the design-build firm receives bids or proposals
129	129	from trade contractors or subcontractors for that work;
130	130	(3) the design-build firm submits a bid or proposal
131	131	for that work; and
132	132	(4) the governmental entity determines that the
133	133	design-build firm provides the best value for the governmental
134	134	entity.
135	135	(c) Sections 2269.255(c), (d), (e), (f), and (g) apply to
136	136	the compensation of the design-build firm and the construction
137	137	contract entered into under this subchapter in the same manner as
138	138	those laws apply to a construction manager-at-risk's compensation
139	139	and a construction contract entered into under Subchapter F.
140	140	(d) A provision of a request for proposals, an advertisement
141	141	for bids or proposals, or a construction contract entered into
142	142	under this subchapter that conflicts with this section has no
143	143	effect.
144	144	SECTION 6. Subchapters F and G, Chapter 2269, Government
145	145	Code, as amended by this Act, apply only to a request for
146	146	qualifications or proposals first advertised on or after the
147	147	effective date of this Act. A request for qualifications or
148	148	proposals first advertised before the effective date of this Act is
149	149	governed by the law in effect on the date the request for
150	150	qualifications or proposals was first advertised, and the former
151	151	law is continued in effect for that purpose.
152	152	SECTION 7. This Act takes effect September 1, 2025.