No. 27846 (New Rule): R916-4. Construction Manager/General Contractor Contracts

DAR File No.: 27846
Filed: 04/29/2005, 01:28
Received by: NL

 

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this new rule is to allow the Department to institute a Construction Management/General Contractor (CM/GC) method of contracting for construction.

 

Summary of the rule or change:

This proposal enacts a new rule that creates a method of transportation construction bidding called CM/GC.

 

State statutory or constitutional authorization for this rule:

Sections 63-56-36.1, 63-56-13, and 72-1-201

 

Anticipated cost or savings to:

the state budget:

There should be savings associated from using CM/GC because of an expedited nature of getting projects out for bid, but the savings would be minimal. It is impossible to tell at this time precisely what the savings would be since the Department has never used this method before. There should be no costs since it will simply replace some of the project bidding methods already being used.

 

local governments:

No additional costs. Local governments are not affected by the rule because they never bid for, or work on, Department projects.

 

other persons:

It is possible that members of the construction industry will experience savings from the expedited nature of this contracting method, but since it has never been done before, it is impossible to say.

 

Compliance costs for affected persons:

There are no additional compliance costs for those companies having to respond to CM/GC procurement methods since they merely replace other methods already in use.

 

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

This rule will have no effect on businesses, except possibly a positive one, as discussed above. John R. Njord, Executive Director

 

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

Transportation
Operations, Construction
CALVIN L RAMPTON COMPLEX
4501 S 2700 W
SALT LAKE CITY UT 84119-5998

 

Direct questions regarding this rule to:

James Beadles at the above address, by phone at 801-965-4168, by FAX at 801-965-4796, or by Internet E-mail at [e-mail]

 

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:

06/14/2005

 

This rule may become effective on:

06/15/2005

 

Authorized by:

John R. Njord, Executive Director

 

 

RULE TEXT

R916. Transportation, Operations, Construction.

R916-4. Construction Manager/General Contractor Contracts.

R916-4-1. Purpose.

(1) Pursuant to Utah Code Ann. Section 63-56-13, this rule establishes the Department's ability to procure transportation construction under the Construction Manager/ General Contractor (CM/GC)approach authorized in Utah Code Ann. Section 63-56-36.1. CM/GC seeks to provide: a savings of time, and cost; improved quality expectations as to the end product, schedule, and budget; and risk management savings due to lack of duplication of expenses, early and continuous and coordination of efforts.

 

R916-4-2. Authority.

(1) The provisions of this rule are authorized by the following grants of rulemaking authority and provisions of Utah Code: Title 63, Chapter 56; Title 63, Chapter 46a; and Sections 72-1-201, 72-5-114, and 72-6-105.

 

R916-4-3. Policy.

(1) When the Executive Director or designee determines it appropriate, Department may use CM/GA method of project delivery. CM/GC is not recommended for every project; therefore, the decision to use the method must take into account the individual specific needs of the project.

 

R916-4-4. Request for Proposals (RFP).

(1) The Department will issue a request for proposals (RFP) from interested contractors.

(2) The RFP may require separate technical and price proposals, meeting requirements as stated in the RFP.

(3) The RFP may require a minimum mandatory technical level.

 

R916-4-5. Evaluation Team.

(1) The Department may establish a team for evaluating the technical proposals consisting of not more than 7 people.

(2) At least one member of the team may be a registered professional engineer; and

(3) At least one member may be a senior management employee of a licensed contractor.

 

R916-4-6. Evaluation of Proposals and Discussions with Proposers.

(1) The Department shall evaluate proposals, in accordance with the evaluation factors set forth in the RFP.

(2) As part of the qualifications specified in the RFP, the Department may require that potential contractors at least demonstrate their:

(a) construction experience in similar projects;

(b) financial, manpower and equipment resources available for the project;

(c) experience in other negotiated contracts; and

(d) preconstruction or design support experience.

 

R916-4-7. Acceptable Bid Security; Performance and Payment Bonds.

(1) The Executive Director or designee shall have the right to waive the requirement to provide bid security, or may reduce the amount of such security, if he or she determines that the bid security otherwise required by Utah Code Ann. Sections 63-56- 37 through 39 to be unnecessary to protect the State.

(2) The Executive Director or designee may reduce the amount of the payment and performance bonds below the 100% level required by Utah Code Ann. Sections 63-56-37 through 39, if he or she determines that a 100% bond is unnecessary to protect the State.

(3) Bid security, payment bonds and performance bonds must be provided on the forms included in the RFP.

 

R916-4-8. Required Contract Clauses.

The CM/GC contract documents shall include the contract clauses set forth in Utah Administrative Code R23-1-7, subject to such modifications as the Executive Director or designee believes appropriate. Any modifications shall be supported by a written determination of the Executive Director or designee that describes the circumstances justifying the variations, and notice of any material variation shall be included in the RFP.

 

R916-4-9. Selection.

The basis for selection shall be stated in the RFP. Selection may be based on any of the following approaches.

(1) By the responsible proposer offering the lowest priced responsive proposal. If the RFP includes a mandatory technical level, no proposal shall be considered responsive unless it meets that level; or

(2) By the responsible proposer whose proposal is evaluated as providing the best value to Department.

 

R916-4-10. Award of Contract.

(1) The Contract will be awarded in two phases. The first is for preconstruction or design services, which may include value engineering, cost estimating, conceptual estimating, constructability reviews, scheduling, and Maintenance of Traffic plans.

(2) The second phase is for construction services. The second phase will be awarded after the plans have been sufficiently developed and a Guaranteed Maximum Price for construction services has been successfully negotiated. In the event that a Guaranteed Maximum Price is not negotiated, the Department will not award construction phase of the contract.

(3) In order to accelerate completion, incremental construction phases may be awarded after Guaranteed Maximum Prices are negotiated for each phase.

(4) The Department is not required to ever award a contract. Following award, however, a contract shall be executed and notice given to the successful CM/GC proposer to proceed with the work.

 

KEY: transportation, highways, contracts, construction

2005

63-56-36.1

63-56-13

72-1-201