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SPONSOR: |
Larranaga |
DATE TYPED: |
|
HB |
428/aHGUAC |
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SHORT TITLE: |
Design and Build Project Eligibility |
SB |
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ANALYST: |
Geisler |
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APPROPRIATION
Appropriation
Contained |
Estimated
Additional Impact |
Recurring or
Non-Rec |
Fund Affected |
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FY03 |
FY04 |
FY03 |
FY04 |
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NFI |
NFI |
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(Parenthesis
( ) Indicate Expenditure Decreases)
General Services
Department (GSD)
Department of Finance
and Administration (DFA)
Board of Architects
(BOA)
SUMMARY
Synopsis of HGUAC Amendment
The House Government
and Urban Affairs Committee amendment to subsection F lowers the maximum
allowable cost of a design-build project (which is exempt from the requirements
of Subsections C and D of the statute and the minimum cost requirements of
subsection A) from $500,000 to $400,000.
The intent of the amendment was to address concerns that the $500,000 limit
in the bill would cause confusion with interpretation of other regulations that
impact design build projects.
Synopsis of Original Bill
House Bill 428 would
allow a design-build approach to construction projects for site improvement and
adapting pre-engineered buildings and systems when the maximum allowable construction
cost is between $200,000 and $500,000.
Significant Issues
The current use of the
design-build approach is for projects with an estimated construction cost of
over $10 million or less than $200,000.
The projects of less than $200,000 are limited to site improvements and
adapting a pre-engineered building or system.
This bill will increase the limit to $500,000 and continue the exemption
from a two phase procedure for awarding design and build contracts that mandates
participation by either a registered engineer or architect.
Some
have expressed concerns about the ability of smaller governments to properly
manage design and build projects without the involvement of a professional
engineer or architects.
Without the expertise of an engineer or architect in developing
the scope & requirements of the project, the entity may end up paying much
more for the construction if the project is not designed properly by the
contractor or there are excessive change orders.
Others point out that although agencies may be exempt from the two
phase process for certain types of projects, section A of the regulation still
requires a decision criteria for design and build projects that takes into
account the suitability of the project for the design and build process
and the capability of the agency to
oversee the project.
It is conceivable that some confusion could arise in the
interpretation
of the proposed
new threshold of $500,000 contained in HB 428 by various regulatory entities.
Reducing
this threshold to $400,000 would
then
make the dollar amount consistent with
what
design professionals and building code officials have experienced for the past
several years.
ALTERNATIVES
Amend Section f, paragraph 2, to clearly
identify when the services of architects and engineers are required (or not)
for projects exempted from the two phase procedure for design and build
projects.
GG/yr:njw