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| SPONSOR: | Kissner | DATE TYPED: | 02/04/99 | HB | 180 | ||
| SHORT TITLE: | Design & Build Projects Authorization | SB | |||||
| ANALYST: | Carrillo | ||||||
| Recurring
or Non-Rec |
Fund
Affected | ||||
| FY99 | FY2000 | FY99 | FY2000 | ||
(Parenthesis ( ) Indicate Expenditure Decreases)
Relates to HB320, SB255, SB279
SOURCES OF INFORMATION
General Services Department
LFC Files
SUMMARY
Synopsis of Bill
House Bill 180 proposes to amend Section 13-1-119-1 NMSA 1978 to allow a design-build team to be used for any public works project. The current statute provides for the design-build project delivery system on projects with a maximum allowable construction cost in excess of $10 million.
Significant Issues
According to General Services Department staff:
Removing the $10 million requirement would expose smaller governmental entities to hidden liabilities, unless they are required to have independent expertise.
Smaller companies might be encouraged to compete, with risks greater than their experience and financial backing could tolerate.
Unless the owner's ability to reduce bonding up to 50% is prohibited, inexperienced governmental entities might jeopardize their bonding and financial position.
GSD knows of no project conducted under design-build since the law was passed, so there is no track record of how this delivery system works in the public sector.
FISCAL IMPLICATIONS
According to GSD staff:
While there could be initial savings, especially related to a shorter construction time and specification of less expensive components, there could be significant increases in operations, maintenance, and a shorter life span for materials and equipment.
RELATIONSHIP
House Bill 180 relates to HB320, SB255, SB279.
OTHER SUBSTANTIVE ISSUES
The GSD staff has provided comments, see attachment A.
AMENDMENTS
The GSD staff has provided comments, see attachment B.
WJC/njw