Fiscal impact
reports (FIRs) are prepared by the Legislative
Finance Committee (LFC) for standing finance committees of the NM Legislature. The
LFC does not assume responsibility for the accuracy of these reports if they
are used for other purposes.
Current FIRs (in HTML & Adobe PDF formats) are available on the
NM Legislative Website (legis.state.nm.us). Adobe PDF versions include all attachments,
whereas HTML versions may not.
Previously issued FIRs and attachments may
also be obtained from the LFC in
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SPONSOR |
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DATE TYPED |
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HB |
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SHORT
TITLE |
Lower Minimum Design & Build Project Costs |
SB |
479 |
||||
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ANALYST |
Geisler |
|||||
APPROPRIATION
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Appropriation
Contained |
Estimated
Additional Impact |
Recurring or
Non-Rec |
Fund Affected |
||
|
FY04 |
FY05 |
FY04 |
FY05 |
||
|
|
|
|
Unknown |
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|
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(Parenthesis
( ) Indicate Expenditure Decreases)
Conflicts with:
HB 561 and SB 522 (Section 13-1-119.1 NMSA 1978)
Regulation and Licensing Department Construction
Industries Division (CID)
General Services Department (GSD)
State Department of Public Education (PED)
SUMMARY
Synopsis of Bill
This bill would amend Section 13-1-119.1 NMSA
1978 to authorized design and build projects for public works with a maximum
allowable construction cost of more than $500 thousand. The statute currently authorizes design and
build for public works projects with construction costs of more than $10
million. The bill also clarifies that it
is a state purchasing agent, not the state purchasing office, who
determines whether or not design and build system is appropriate on any given
public works project.
Significant Issues
A design and build project delivery system is defined as a procurement
process by which an agency contracts with one firm who has a responsibility for
the design, construction and delivery of a project under a single contract with
the agency. Under
current law, two types of projects qualify for design and build project delivery: projects larger than $10 million,
and projects costing less than $400,000 that are for site improvements or
adapting a pre-fabricated building. Only
projects less than $500,000 that involve more than site-adapt or site
improvements would not be eligible for this delivery method.
FISCAL IMPLICATIONS
PED provides that there may be a reduction in
the costs associated with the designing and engineering portions of projects
due to the use of design and build project delivery systems. However, some have expressed concerns about
the ability of smaller governments to properly manage design and build projects
without the involvement of a professional engineer, architect, or
construction
manager.
ADMINISTRATIVE IMPLICATIONS
The General Services
Department (GSD) views this initiative as an opportunity to streamline and
improve customer service by lowering the high project threshold from $10
million to a practical amount of $500,000.
This proposal would reduce red tape, administrative costs and allow for
shorter turnaround times for needed projects.
RELATIONSHIP
GSD provides that HB 516 and SB 522 also propose changes to Section 13-1-119.1 of the Procurement
Code.
AMENDMENTS
CID states that there appears to be an internal
inconsistency in the language of the statute that the proposed amendment does
not address. Section A (line 25 on page
1) uses the term “maximum allowable construction cost,” while Section F (line
16 on page 4) uses the term “minimum construction cost of Subsection A.” CID suggests adding language that will
resolve the internal
inconsistency if one exists.
GGG/lg:yr