No. 27603 (Amendment): R23-1. Procurement of Construction  

  • DAR File No.: 27603
    Filed: 12/23/2004, 02:50
    Received by: NL

     

    RULE ANALYSIS

    Purpose of the rule or reason for the change:

    The reason for the amendment is to incorporate changes in the Division's procedures in the procurement of construction that were agreed to by a comprehensive review committee that included legislators, Building Board members, contractors, subcontractors, and state employees.

     

    Summary of the rule or change:

    The amendments make the following changes: 1) modifies the standard (default) procurement methods as follows: the competitive sealed bidding method, which includes the multi-step sealed bidding method, becomes the standard method for procuring construction when the design/bid/build contracting approach is used, clarifies that the competitive sealed proposals method remains the standard method for procuring construction when the construction manager/general contractor contracting approach is used, provides for exceptions approved by the director; 2) modifies provisions related to public access to past performance and reference information relative to contractors; 3) clarifies provisions related to the formal scoring of proposals; 4) provides that the design/bid/build method is the standard construction contracting method for contracts under $1,500,000 and the construction manager/general contractor is the standard method for contracts over $1,500,000. Allows the director to make exceptions to these standards; 5) modifies the descriptions of the construction contracting methods; and 6) makes a number of minor and technical corrections and clarifications.

     

    State statutory or constitutional authorization for this rule:

    Subsection 63-56-14(2) provides for the State Building Board to adopt rules governing the procurement of construction by the division. This rule, including the amendments, implements and interprets Title 63, Chapter 56 (State Procurement Code) and Title 63A, Chapter 5 (State Building Board - Division of Facilities Construction and Management).

     

    Anticipated cost or savings to:

    the state budget:

    The amendments and other procedural changes are expected to reduce the cost for contractors to participate in the procurement process. This will improve the competition for state construction contracts which may result in savings to the state. The identification of standard construction contracting methods for different sizes of contracts reflects the methods that have proven to be most cost effective. The actual savings resulting from these changes depend on the circumstances of a specific project, the condition of the construction market and the volume of construction work being done by the division. As a result, it is not possible to estimate the amount of savings.

     

    local governments:

    This rule does not affect local government. Therefore, there is no anticipated cost or savings to local government.

     

    other persons:

    The changes will reduce the cost for contractors to participate in the procurement process for state building construction. The actual savings resulting from these changes depend on the circumstances of a specific contractor and project and the condition of the construction market. As a result, it is not possible to estimate the amount of savings.

     

    Compliance costs for affected persons:

    The changes in the rule, along with other procedural changes that are being made, will reduce the costs for contractors to participate in the procurement process for state building construction due to the following: 1) the general use of the competitive sealed bidding method, including multi-step sealed bidding, for contracts under $1,500,000. This method is simpler and less expensive for contractors to comply with; and 2) the clarification of scoring and selection under the competitive sealed proposals method will help contractors identify what aspects of their proposal should receive the most attention, thereby allowing them to expend less effort on other aspects of their proposal. It is not possible to quantify the extent of savings that will result.

     

    Comments by the department head on the fiscal impact the rule may have on businesses:

    These rule changes are the product of a review of the division's procurement processes that was performed to address concerns raised by the construction industry, legislators and the division. The changes will improve and simplify the procurement process which will benefit businesses wishing to do business with the division.

     

    The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

    Administrative Services
    Facilities Construction and Management
    Room 4110 STATE OFFICE BLDG
    450 N MAIN ST
    SALT LAKE CITY UT 84114-1201

     

    Direct questions regarding this rule to:

    Kenneth Nye at the above address, by phone at 801-538-3284, by FAX at 801-538-3267, or by Internet E-mail at knye@utah.gov

     

    Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

    02/14/2005

     

    This rule may become effective on:

    02/15/2005

     

    Authorized by:

    Keith Stepan, Director

     

     

    RULE TEXT

    R23. Administrative Services, Facilities Construction and Management.

    R23-1. Procurement of Construction.

    R23-1-5. Competitive Sealed Bidding.

    (1) Use. Competitive sealed bidding, which includes multi-step sealed bidding, [may]shall be used for the procurement of construction if the design-bid-build method of construction contract management described in Subsection R23-1-45(5)(b) is used unless a determination is made by the Director in accordance with Subsection R23-1-115(1)(c) that the competitive sealed proposals procurement method should be used.[:

    (a) the contract is expected to cost $250,000 or less;

    (b) the contract is expected to cost more than $250,000 but less than $1,000,000 and the Director determines in writing that competitive sealed bidding is the most appropriate method for procuring the contract due to one or more of the following circumstances:

    (i) the contract is predominantly for products or materials and it is not necessary to evaluate the features of the products or materials in the selection process; or

    (ii) the contract is for work for which there is not a significant benefit derived from evaluating the past performance, project management plans or other qualification factors of the contractor; or

    (c) the Director determines in writing that other unique and compelling factors exist causing it to be in the best interests of the procuring agencies to use the competitive sealed bidding method.]

    (2) Public Notice of Invitations For Bids.

    (a) Public notice of Invitations For Bids shall be publicized electronically on the Internet; and may be publicized in any or all of the following as determined appropriate:

    (i) In a newspaper having general circulation in the area in which the project is located;

    (ii) In appropriate trade publications;

    (iii) In a newspaper having general circulation in the state;

    (iv) By any other method determined appropriate.

    (b) A copy of the public notice shall be available for public inspection at the principal office of the Division in Salt Lake City, Utah.

     

    . . . . . . .

     

    R23-1-10. Multi-Step Sealed Bidding.

    (1) Description. Multi-step sealed bidding is a two-phase process. In the first phase bidders submit unpriced technical offers to be evaluated. In the second phase, bids submitted by bidders whose technical offers are determined to be acceptable during the first phase are considered. It is designed to obtain the benefits of competitive sealed bidding by award of a contract to the lowest responsive, responsible bidder, and at the same time obtain the benefits of the competitive sealed proposals procedure through the solicitation of technical offers and the conduct of discussions to arrive at technical offers and terms acceptable to the Division and suitable for competitive pricing.

    (2) Use. The multi-step sealed bidding method may be used when the Director deems it to the advantage of the state. Multi-step sealed bidding may be used when it is considered desirable:

    (a) to invite and evaluate technical offers or statements of qualifications to determine their acceptability to fulfill the purchase description requirements;

    (b) to conduct discussions for the purposes of facilitating understanding of the technical offer and purchase description requirements and, where appropriate, obtain supplemental information, permit amendments of technical offers, or amend the purchase description;

    (c) to accomplish (a) or (b) prior to soliciting bids; and

    (d) to award the contract to the lowest responsive and responsible bidder in accordance with the competitive sealed bidding procedures.

    (3) Pre-Bid Conferences In Multi-Step Sealed Bidding. The Division may hold one or more pre-bid conferences prior to the submission of unpriced technical offers or at any time during the evaluation of the unpriced technical offers.

    (4) Procedure for Phase One of Multi-Step Sealed Bidding.

    (a) Public Notice. Multi-step sealed bidding shall be initiated by the issuance of a Public Notice in the form required by Subsections R23-1-5(2) and (3).

    (b) Invitation for Bids. The multi-step Invitation for Bids shall state:

    (i) that unpriced technical offers are requested;

    (ii) when bids are to be submitted (if they are to be submitted at the same time as the unpriced technical offers, the bids shall be submitted in a separate sealed envelope);

    (iii) that it is a multi-step sealed bid procurement, and bids will be considered only in the second phase and only from those bidders whose unpriced technical offers are found acceptable in the first phase;

    (iv) the criteria to be used in the evaluation of the unpriced technical offers;

    (v) that the Division, to the extent the Director finds necessary, may conduct oral or written discussions of the unpriced technical offers;

    (vi) that the item being procured shall be furnished in accordance with the bidders technical offer as found to be finally acceptable and shall meet the requirements of the Invitation for Bids; and

    (vii) that bidders may designate those portions of the unpriced technical offers which contain trade secrets or other proprietary data which are to remain confidential. If the bidder selected for award has requested in writing the non-disclosure of trade secrets and other proprietary data so identified, the Director shall examine the request to determine its validity prior to award of the contract. If the parties do not agree as to the disclosure of data in the contract, the Director shall inform the bidder in writing what portion of the offer will be disclosed and that, unless the bidder withdraws the offer, it will be disclosed.

    (c) Amendments to the Invitation for Bids. After receipt of unpriced technical offers, amendments to the Invitation for Bids shall be distributed only to bidders who submitted unpriced technical offers and they shall be allowed to submit new unpriced technical offers or to amend those submitted. If, in the opinion of the Director, a contemplated amendment will significantly change the nature of the procurement, the Invitation for Bids shall be canceled in accordance with Subsection R23-1-5(12) and a new Invitation for Bids may be issued.

    (d) Receipt and Handling of Unpriced Technical Offers. After the date and time established for the receipt of unpriced technical offers, a register of bidders shall be open to public inspection. Prior to award, unpriced technical offers shall be shown only to those involved with the evaluation of the offers. The unpriced technical offer of the successful bidder shall be open to public inspection for a period of 90 days after award of the contract. Unpriced technical offers of bidders who are not awarded contracts shall not be open to public inspection.

    (e) Evaluation of Unpriced Technical Offers. The unpriced technical offers submitted by bidders shall be evaluated solely in accordance with the criteria set forth in the Invitation for Bids which may include an evaluation of the past performance of the bidder. The unpriced technical offers shall be categorized as acceptable or unacceptable. The Director shall record in writing the basis for finding an offer unacceptable and make it part of the procurement file.

    (f) Discussion of Unpriced Technical Offers. Discussion of technical offers may be conducted with bidders who submit an acceptable technical offer. During the course of discussions, any information derived from one unpriced technical offer shall not be disclosed to any other bidder. Once discussions are begun, any bidder who has not been notified that its offer has been found unacceptable may submit supplemental information modifying or otherwise amending its technical offer until the closing date established by the Director. Submission may be made at the request of the Director or upon the bidder's own initiative.

    (g) Notice of Unacceptable Unpriced Technical Offer. When the Director determines a bidder's unpriced technical offer to be unacceptable, he shall notify the bidder in writing. Such bidders shall not be afforded an additional opportunity to supplement technical offers.

    (h) Confidentiality of Past Performance and Reference Information. Confidentiality of past performance and reference information shall be maintained in accordance with Subsection R23-1-15(10).

    (5) Mistakes During Multi-Step Sealed Bidding. Mistakes may be corrected or bids may be withdrawn during phase one:

    (a) before unpriced technical offers are considered;

    (b) after any discussions have commenced under Subsection R23-1-10(4)(f); or

    (c) when responding to any amendment of the Invitation for Bids. Otherwise mistakes may be corrected or withdrawal permitted in accordance with Subsection R23-1-5(10).

    (6) Carrying Out Phase Two.

    (a) Initiation. Upon the completion of phase one, the Director shall either:

    (i) open bids submitted in phase one (if bids were required to be submitted) from bidders whose unpriced technical offers were found to be acceptable; provided, however, that the offers have remained unchanged, and the Invitation for Bids has not been amended subsequent to the submittal of bids; or

    (ii) invite each acceptable bidder to submit a bid.

    (b) Conduct. Phase two is to be conducted as any other competitive sealed bid procurement except:

    (i) as specifically set forth in Section R23-1-10; and

    (ii) no public notice is given of this invitation to submit.

     

    R23-1-15. Competitive Sealed Proposals.

    (1) Use. [Except as specifically provided for elsewhere in this rule, the Division shall procure construction through the use of competitive sealed proposals. After consideration of the following factors, the Board and Director determine that the use of competitive sealed proposals is generally more advantageous to the state than competitive sealed bidding for the procurement of construction by the Division.

    (a) The Division's experience with competitive sealed bidding and competitive sealed proposals indicates that construction contracts procured under the competitive sealed proposal method tend to have a lower level of change orders while being more likely to be completed on time;

    (b) There is a need to consider other factors such as the skills, experience, and past performance of contractors in addition to the initial cost reflected in the bid amount; and

    (c) It is in the best interests of the state to select the proposal which provides the best value to the procuring agencies after giving due consideration to qualifications, past performance, management plans, cost, and other factors applicable to the project.

    (d) Notwithstanding the above, the procurement of the types of contracts described in Subsection R23-1-5(1) may not warrant the additional effort required for the competitive sealed proposal method.

    (2)]

    (a) Construction Management. The competitive sealed proposals procurement method shall be used in the procurement of a construction manager under the construction manager/general contractor method of construction contract management described in subsection R23-1-45(5)(d) due to the need to consider qualifications, past performance and services offered in addition to the cost of the services and because only a small portion of the ultimate construction cost is typically considered in this selection.

    (b) Design-Build. In order to meet the requirements of Section 63-56-43.1, competitive sealed proposals shall be used to procure design-build contracts.

    (c) Design-Bid-Build. The competitive sealed proposals procurement method may be used for procuring a contractor under the design-bid-build method of construction contract management described in subsection R23-1-45(5)(b) only after the Director makes a determination that it is in the best interests of the state to use the competitive sealed proposals method due to unique aspects of the project that warrant the consideration of qualifications, past performance, schedule or other factors in addition to cost.

    (2) Documentation. The Director's determination made under subsection R23-1-15(1)(c) shall be documented in writing and retained in the project file.

    (3) Public Notice.

    (a) Public notice of the Request for Proposals shall be publicized in the same manner provided for giving public notice of an Invitation for Bids, as provided in Subsection R23-1-5(2).

    (b) The public notice shall include:

    (i) a brief description of the project;

    (ii) directions on how to obtain the Request for Proposal documents;

    (iii) notice of any mandatory pre-proposal meetings; and

    (iv) the closing date and time by which the first submittal of information is required;

    (4) Proposal Preparation Time. Proposal preparation time is the period of time between the date of first publication of the public notice and the date and time set for the receipt of proposals by the Division. In each case, the proposal preparation time shall be set to provide offerors a reasonable time to prepare their proposals. The time between the first publication of the public notice and the earlier of the first required submittal of information or any mandatory pre-proposal meeting shall be not less than ten calendar days, unless a shorter time is deemed necessary for a particular procurement as determined, in writing, by the Director.

    (5) Form of Proposal. The Request for Proposals may state the manner in which proposals are to be submitted, including any forms for that purpose.

    (6) Addenda to Requests for Proposals. Addenda to the requests for proposals may be made in the same manner provided for addenda to the bidding documents in connection with Invitations for Bids set forth in Subsection R23-1-5(6) except that addenda may be issued to qualified offerors until the deadline for best and final offers.

    (7) Modification or Withdrawal of Proposals.

    (a) Proposals may be modified prior to the due dates established in the Request for Proposals.

    (b) Proposals may be withdrawn until the notice of selection is issued.

    (8) Late Proposals, and Late Modifications. Except for modifications allowed pursuant to negotiation, any proposal, or modification received at the location designated for receipt of proposals after the due dates established in the Request for Proposals shall be deemed to be late and shall not be considered unless there are no other offerors.

    (9) Receipt and Registration of Proposals.

    (a) After the date established for the first receipt of proposals or other required information, a register of offerors shall be prepared and open to public inspection. Prior to award, proposals and modifications shall be shown only to procurement and other officials involved with the review and selection of proposals.

    (b) Except as provided in this rule, proposals of the successful offeror shall be open to public inspection after award of the contract. Proposals of offerors who are not awarded contracts shall not be open to public inspection although the amount of each offeror's cost proposal shall be disclosed after the contract is awarded.

    (c) The Request for Proposals may provide that certain information required to be submitted by the offeror shall be considered confidential and classified as protected if such information meets the provisions of Section 63-2-304 of the Government Records Access and Management Act.

    (d) If the offeror selected for award has requested in writing the non-disclosure of trade secrets and other proprietary data so identified, the Director shall examine the request to determine its validity prior to award of the contract. If the parties do not agree as to the disclosure of data in the contract, the Director shall inform the offeror in writing what portion of the proposal will be disclosed and that, unless the offeror withdraws the proposal, it will be disclosed.

    (10) Confidentiality of Past Performance and Reference Information. The Board finds that it is necessary to maintain the confidentiality of [individual responses from persons who are contacted as references]past performance and reference information in order to avoid competitive injury and to encourage those persons providing the information to respond in an open and honest manner without fear of retribution. Accordingly, [responses to requests for references are]records containing past performance and reference information are classified as protected records under the provisions of Subsections 63-2-304(2) and (6) and shall be disclosed only [in summary form ]to those persons involved with the performance evaluation, the contractor that the information addresses and procurement and other officials involved with the review and selection of proposals. The Division may, however, provide reference information to other governmental entities for use in their procurement activities and to other parties when requested by the contractor that is the subject of the information.[This Subsection (10) applies only to responses from references submitted by the offeror.]

    (11) Evaluation of Proposals.

    (a) The evaluation of proposals shall be conducted by an evaluation committee appointed by the Director that may include representatives of the Division, the Board, other procuring agencies, and contractors, architects, engineers, and others of the general public. Each member of the selection committee shall certify as to his lack of conflicts of interest.

    (b) The Request for Proposals shall state all of the evaluation factors and the relative importance of price and other evaluation factors.

    (c) The evaluation shall be based on the evaluation factors set forth in the request for proposals. Numerical rating systems may be used but are not required. Factors not specified in the request for proposals shall not be considered.

    (d) Proposals may be initially classified as potentially acceptable or unacceptable. Offerors whose proposals are unacceptable shall be so notified by the Director in writing and they may not continue to participate in the selection process.

    (e) This classification of proposals may occur at any time during the selection process once sufficient information is received to consider the potential acceptability of the offeror.

    (f) The request for proposals may provide for a limited number of offerors who may be classified as potentially acceptable. In this case, the offerors considered to be most acceptable, up to the number of offerors allowed, shall be considered acceptable.

    (12) Proposal Discussions with Individual Offerors.

    (a) Unless only one proposal is received, proposal discussions with individual offerors, if held, shall be conducted with no less than the offerors submitting the two best proposals.

    (b) Discussions are held to:

    (i) Promote understanding of the procuring agency's requirements and the offerors' proposals; and

    (ii) Facilitate arriving at a contract that will be most advantageous to the procuring agencies taking into consideration price and the other evaluation factors set forth in the request for proposals.

    (c) Offerors shall be accorded fair and equal treatment with respect to any opportunity for discussions and revisions of proposals. In conducting discussions, there shall be no disclosure of any information derived from proposals submitted by competing offerors. Any oral clarification or change of a proposal shall be reduced to writing by the offeror.

    (13) Best and Final Offers. If utilized, the Director shall establish a common time and date to submit best and final offers. Best and final offers shall be submitted only once unless the Director makes a written determination before each subsequent round of best and final offers demonstrating that another round is in the best interest of the procuring agencies and additional discussions will be conducted or the procuring agencies' requirements may be changed. Otherwise, no discussion of, or changes in, the best and final offers shall be allowed prior to award. Offerors shall also be informed that if they do not submit a notice of withdrawal or another best and final offer, their immediate previous offer will be construed as their best and final offer.

    (14) Mistakes in Proposals.

    (a) Mistakes discovered before the established due date. An offeror may correct mistakes discovered before the time and date established in the Request for Proposals for receipt of that information by withdrawing or correcting the proposal as provided in Subsection R23-1-15(7).

    (b) Confirmation of proposal. When it appears from a review of the proposal before award that a mistake has been made, the offeror may be asked to confirm the proposal. Situations in which confirmation may be requested include obvious, apparent errors on the face of the proposal or a proposal amount that is substantially lower than the other proposals submitted. If the offeror alleges mistake, the proposal may be corrected or withdrawn as provided for in this section.

    (c) Minor formalities. Minor formalities, unless otherwise corrected by an offeror as provided in this section, shall be treated as they are under Subsection R23-1-5(10)(c).

    (c) Mistakes discovered after award. Offeror shall be bound to all terms, conditions and statements in offeror's proposal after award of the contract.

    (15) Award.

    (a) Award Documentation. A written determination shall be made showing the basis on which the award was found to be most advantageous to the state based on the evaluation factors set forth in the Request for Proposals. This requirement may be satisfied through documentation of a scoring of the proposals based on the evaluation factors and associated points as identified in the Request for Proposals.

    (b) One proposal received. If only one proposal is received in response to a Request for Proposals, the Director may, as he deems appropriate, make an award or resolicit for the purpose of obtaining additional competitive sealed proposals.

    (16) Publicizing Awards. After a contract is entered into, notice of award shall be available in the principal office of the Division in Salt Lake City, Utah.

     

    R23-1-20. Small Purchases.

    (1) Procurements of $50,000 or Less.

    (a) The Director may make procurements of construction estimated to cost $50,000 or less by soliciting at least two firms to submit written quotations. The award shall be made to the [person]firm offering the lowest acceptable quotation.

    (b) The names of the persons submitting quotations and the date and amount of each quotation shall be recorded and maintained as a public record by the Division.

    (c) If the Director determines that other factors in addition to cost should be considered in a procurement of construction estimated to cost $50,000 or less, the Director shall solicit proposals from at least two firms. The award shall be made to the firm offering the best proposal as determined through application of the procedures provided for in Section R23-1-15 except that a public notice is not required and only invited firms may submit proposals.

    (2) Procurements of $5,000 or Less. The Director may make small purchases of construction of $5,000 or less in any manner that he shall deem to be adequate and reasonable.

    (3) Division of Procurements. Procurements shall not be divided in order to qualify for the procedures outlined in this section.

     

    R23-1-45. Methods of Construction Contract Management.

    (1) Application. This section contains provisions applicable to the selection of the appropriate type of construction contract management.

    (2) Flexibility. The Director shall have sufficient flexibility in formulating the construction contract management method for a particular project to fulfill the needs of the procuring agencies. In each instance consideration commensurate with the project's size and importance should be given to all the appropriate and effective means of obtaining both the design and construction of the project. The methods for achieving the purposes set forth in this rule are not to be construed as an exclusive list.

    (3) Selecting the Method of Construction Contracting. In selecting the construction contracting method, the Director shall consider the results achieved on similar projects in the past, the methods used, and other appropriate and effective methods and how they might be adapted or combined to fulfill the needs of the procuring agencies. The use of the [single prime contractor]design-bid-build method [in conjunction with the sequential design and construction approach ]is an appropriate contracting method for the majority of construction contracts entered into by the Division with a cost equal to or less than $1,500,000 and the construction manager/general contractor method is an appropriate contracting method for the majority of construction contracts entered into by the Division with a cost greater than $1,500,000. The Director shall include a statement in the project file setting forth the basis for using any [other ]construction contracting method other than those suggested in the preceding sentence.

    (4) Criteria for Selecting Construction Contracting Methods. Before choosing the construction contracting method to use, the Director shall consider the factors outlined in Subsection 63-56-36(1)(c).

    (5) General Descriptions.

    (a) Application of Descriptions. The following descriptions are provided for the more common contracting methods. The methods described are not all mutually exclusive and may be combined on a project. These descriptions are not intended to be fixed for all construction projects of the State. In each project, these descriptions may be adapted to fit the circumstances of that project.

    (b) [Single Prime Contractor. The single prime contractor]Design-Bid-Build. The design-bid-build method is typified by one business, acting as a general contractor, contracting with the state to complete [an entire]a construction project in accordance with drawings and specifications provided by the state within a defined time period. Generally the drawings and specifications are prepared by an architectural or engineering firm under contract with the state. Further, while the general contractor may take responsibility for successful completion of the project, much of the work may be performed by specialty contractors with whom the prime contractor has entered into subcontracts.

    (c) [Multiple Prime Contractors. Under the multiple prime contractor method, the Division contracts directly with a number of specialty contractors to complete portions of the project in accordance with the Division's drawings and specifications. The Division may have primary responsibility for successful completion of the entire project, or the contracts may provide that one of the multiple prime contractors has this responsibility.

    (d) ]Design-Build. In a design-build project, a business contracts directly with the Division to meet requirements described in a set of performance specifications. The design-build contractor is responsible for both design and construction. This method can include instances where the design-build contractor supplies the site as part of the package.

    ([e]d) Construction Manager/General Contractor. A construction manager/general contractor is a [person]firm experienced in construction that [has the ability]provides professional services to evaluate and to implement drawings and specifications as they affect time, cost, and quality of construction and the ability to coordinate the construction of the project, including the administration of change orders. The Division may contract with the construction manager/general contractor early in a project to assist in the development of a cost effective design. The construction manager/general contractor will generally become the general contractor for the project and procure subcontract work at a later date.[ may become the single prime contractor, or may guarantee that the project will be completed on time and will not exceed a specified maximum price. This method is frequently used on fast track projects with the construction manager obtaining subcontractors through the issuance of multiple bid packages as the design is developed. A Construction Manager, including a Construction Manager/General Contractor, shall be selected using one of the source selection methods provided for in Sections 63-56-20 through 63-56-35.8.] The procurement of a construction manager/general contractor may be based, among other criteria, on proposals for a management fee which is either a lump sum or a percentage of construction costs with a guaranteed maximum cost. If the design is sufficiently developed prior to the selection of a construction manager/general contractor, the procurement may be based on proposals for a lump sum or guaranteed maximum cost for the construction of the project. The contract with the construction manager/general contractor may provide for a sharing of any savings which are achieved below the guaranteed maximum cost. When entering into any subcontract that was not specifically included in the Construction Manager/General Contractor's cost proposal submitted in the original procurement of the Construction Manager/General Contractor's services, the Construction Manager/General Contractor shall procure that subcontractor by using one of the source selection methods provided for in Sections 63-56-20 through 63-56-35.8 in [the same]a similar manner as if the subcontract work was procured directly by the Division.[

    (f) Sequential Design and Construction. Sequential design and construction denotes a method in which design of substantially the entire structure is completed prior to beginning the construction process.

    (g) Phased Design and Construction. Phased design and construction denotes a method in which construction is begun when appropriate portions have been designed but before design of the entire structure has been completed. This method is also known as fast track construction.]

     

    KEY: contracts, public buildings, procurement

    [May 3, 2002]2005

    Notice of Continuation June 6, 2002

    63A-5-103 et seq.

    63-56-14(2)

    63-56-20(7)

     

     

     

     

Document Information

Effective Date:
2/15/2005
Publication Date:
01/15/2005
Filed Date:
12/23/2004
Agencies:
Administrative Services,Facilities Construction and Management
Rulemaking Authority:

Subsection 63-56-14(2) provides for the State Building Board to adopt rules governing the procurement of construction by the division. This rule, including the amendments, implements and interprets Title 63, Chapter 56 (State Procurement Code) and Title 63A, Chapter 5 (State Building Board - Division of Facilities Construction and Management).

 

Authorized By:
Keith Stepan, Director
DAR File No.:
27603
Related Chapter/Rule NO.: (1)
R23-1. Procurement of Construction.