2SHB 1506 -
By Committee on Government Operations & Elections
ADOPTED 04/05/2007
Strike everything after the enacting clause and insert the following:
"Sec. 1 RCW 39.10.010 and 1994 c 132 s 1 are each amended to read
as follows:
The legislature finds that the traditional process of awarding
public works contracts in lump sum to the lowest responsible bidder is
a fair and objective method of selecting a contractor. However, under
certain circumstances, alternative public works contracting procedures
may best serve the public interest if such procedures are implemented
in an open and fair process based on objective and equitable criteria.
The purpose of this chapter is to authorize the use of certain
supplemental alternative public works contracting procedures ((by state
agencies and large municipalities under limited circumstances)), to
prescribe appropriate requirements to ensure that such contracting
procedures serve the public interest, and to establish a process for
evaluation of such contracting procedures.
Sec. 101 RCW 39.10.020 and 2005 c 469 s 3 are each amended to
read as follows:
Unless the context clearly requires otherwise, the definitions in
this section apply throughout this chapter.
(1) "Alternative public works contracting procedure" means the
design-build ((and the)), general contractor/construction manager, and
job order contracting procedures authorized in RCW 39.10.051 ((and)),
39.10.061, and 39.10.130 (as recodified by this act), respectively.
((Public bodies eligible to enter into agreements with service
providers for the furnishing of services in connection with water
pollution control facilities under the authority of chapter 70.150 RCW
may elect to use either RCW 39.10.051 and 39.10.061 or chapter 70.150
RCW as their method of procurement for such services.))
(2) (("Public body" means the state department of general
administration; the University of Washington; Washington State
University; every city with a population greater than seventy thousand
and any public authority chartered by such city under RCW 35.21.730
through 35.21.755 and specifically authorized as provided in RCW
39.10.120(4); every county with a population greater than four hundred
fifty thousand; every port district with total revenues greater than
fifteen million dollars per year; every public hospital district with
total revenues greater than fifteen million dollars per year utilizing
the design-build procedure authorized by RCW 39.10.051 and every public
hospital district, regardless of total revenues, proposing projects
that are considered and approved by the public hospital district
project review board under RCW 39.10.117; every public utility district
with revenues from energy sales greater than twenty-three million
dollars per year; those school districts proposing projects that are
considered and approved by the school district project review board
under RCW 39.10.115; and the state ferry system.)) "Board" means the
capital projects advisory review board.
(3) (("Public works project" means any work for a public body
within the definition of the term public work in RCW 39.04.010.))
"Committee" means the project review committee.
(4) "Design-build procedure" means a contract between a public body
and another party in which the party agrees to both design and build
the facility, portion of the facility, or other item specified in the
contract.
(5) "Total contract cost" means the fixed amount for the detailed
specified general conditions work, the negotiated maximum allowable
construction cost, and the percent fee on the negotiated maximum
allowable construction cost.
(6) "General contractor/construction manager" means a firm with
which a public body has selected and negotiated a maximum allowable
construction cost to provide services during the design phase and to
act as construction manager and general contractor during the
construction phase.
(7) "Job order contract" means a contract ((between a public body
or any school district and a registered or licensed contractor)) in
which the contractor agrees to a fixed period, indefinite quantity
delivery order contract which provides for the use of negotiated,
definitive work orders for public works as defined in RCW 39.04.010.
(((5))) (8) "Job order contractor" means a registered or licensed
contractor awarded a job order contract.
(((6))) (9) "Maximum allowable construction cost" means the maximum
cost of the work to construct the project including a percentage for
risk contingency, negotiated support services, and approved change
orders.
(10) "Negotiated support services" means items a general contractor
would normally manage or perform on a construction project including,
but not limited to surveying, hoisting, safety enforcement, provision
of toilet facilities, temporary heat, cleanup, and trash removal.
(11) "Percent fee" means the percentage amount to be earned by the
general contractor/construction manager as overhead and profit.
(12) "Public body" means any general or special purpose government,
including but not limited to state agencies, institutions of higher
education, counties, cities, towns, ports, school districts, and
special purpose districts.
(13) "Certified public body" means a public body certified to use
design-build or general contractor/construction manager contracting
procedures, or both, under section 107 of this act.
(14) "Public works project" means any work for a public body within
the definition of "public work" in RCW 39.04.010.
(15) "Total project cost" means the cost of the project less
financing and land acquisition costs.
(16) "Unit price book" means a book containing specific prices,
based on generally accepted industry standards and information, where
available, for various items of work to be performed by the job order
contractor. The prices may include: All the costs of materials;
labor; equipment; overhead, including bonding costs; and profit for
performing the items of work. The unit prices for labor must be at the
rates in effect at the time the individual work order is issued.
(((7))) (17) "Work order" means an order issued for a definite
scope of work to be performed pursuant to a job order contract.
Sec. 102 RCW 39.10.800 and 2005 c 377 s 1 are each amended to
read as follows:
(1) The ((capital projects advisory review)) board is created in
the department of general administration to provide an evaluation of
public capital projects construction processes, including the impact of
contracting methods on project outcomes, and to advise the legislature
on policies related to ((alternative)) public works delivery methods.
(2)(a) The ((capital projects advisory review)) board shall consist
of the following members appointed by the governor: ((One)) Two
representatives from construction general contracting; one
representative from the ((design industries)) architectural profession;
one representative from the engineering profession; two representatives
from construction specialty subcontracting; ((one)) two representatives
from ((a)) construction trades labor organizations; one representative
from the office of minority and women's business enterprises; one
representative from a higher education institution; one representative
from the department of general administration; two representatives from
private industry; and one representative of a domestic insurer
authorized to write surety bonds for contractors in Washington state.
All appointed members must be ((actively engaged in or authorized to
use alternative)) knowledgeable about public works contracting
procedures.
(b) ((Two)) Three members shall be ((at-large)) positions
representing different local public owners((. The two at-large
positions shall serve on a rotating basis to be determined and
appointed)), selected by the association of Washington cities, the
Washington state association of counties, and the Washington public
ports association, respectively.
(c) One member shall be a ((member of)) representative from the
public hospital districts ((project review board)), selected by ((that
board, who shall be nonvoting)) the association of Washington public
hospital districts.
(d) One member shall be a ((member of the)) representative from
school districts ((project review board)), selected by ((that board,
who shall be nonvoting)) the Washington state school directors'
association.
(e) The ((advisory review)) board shall include two members of the
house of representatives, one from each major caucus, appointed by the
speaker of the house of representatives, and two members of the senate,
one from each major caucus, appointed by the president of the senate.
Legislative members are nonvoting.
(3) Members selected under subsection (2)(a) of this section shall
serve for terms of four years, with the terms expiring on June 30th on
the fourth year of the term. ((However, in the case of the initial
members, four members shall serve four-year terms, four members shall
serve three-year terms, and three members shall serve a two-year term,
with each of the terms expiring on June 30th of the applicable year.
Appointees may be reappointed to serve more than one term.))
(4) The ((capital projects advisory review)) board chair is
selected from among the appointed members by the majority vote of the
voting members.
(5) Legislative members of the ((capital projects advisory review))
board shall be reimbursed for travel expenses in accordance with RCW
44.04.120. Nonlegislative members of the ((capital projects advisory
review)) board, ((including any subcommittee members, except those
representing an employer or organization,)) project review committee
members, and subcommittee chairs shall be reimbursed for travel
expenses as provided in RCW 43.03.050 and 43.03.060.
(6) If a vacancy occurs of the appointive members of the board, the
governor shall fill the vacancy for the unexpired term. Members of the
board may be removed for malfeasance or misfeasance in office, upon
specific written charges by the governor, under chapter 34.05 RCW.
(7) The ((capital projects advisory review)) board shall ((convene
as soon as practical after July 1, 2005, and may)) meet as often as
necessary ((thereafter)).
(8) ((Capital projects advisory review)) Board members are expected
to consistently attend ((review)) board meetings. The chair of the
((capital projects advisory review)) board may ask the governor to
remove any member who misses more than two meetings in any calendar
year without cause.
(9) The department of general administration shall provide staff
support as may be required for the proper discharge of the function of
the ((capital projects advisory review)) board.
(10) The ((capital projects advisory review)) board may establish
subcommittees as it desires and may invite nonmembers of the ((capital
projects advisory review)) board to serve as committee members.
(11) The board shall encourage participation from persons and
entities not represented on the ((capital projects advisory review))
board.
Sec. 103 RCW 39.10.810 and 2005 c 377 s 2 are each amended to
read as follows:
The ((capital projects advisory review)) board has the following
powers and duties:
(1) ((Develop and recommend to the legislature criteria that may be
used to determine effective and feasible use of alternative contracting
procedures;)) Develop and recommend to the legislature policies to further
enhance the quality, efficiency, and accountability of capital
construction projects through the use of traditional and alternative
delivery methods in Washington, and make recommendations regarding
expansion, continuation, elimination, or modification of the
alternative public works contracting methods;
(2) Develop and recommend to the legislature qualification
standards for general contractors bidding on alternative public works
projects;
(3)
(((4))) (2) Evaluate the use of existing contracting procedures and
potential future use of other alternative contracting procedures
including competitive negotiation contracts;
(3) Appoint members of the committee; and
(4) Develop and administer questionnaires designed to provide
quantitative and qualitative data on alternative public works
contracting procedures on which evaluations are based.
NEW SECTION. Sec. 104
(2) The board shall, by a majority vote of the board, appoint
persons to the committee who are knowledgeable in the use of the
design-build and general contractor/construction manager contracting
procedures. Appointments must represent a balance among the industries
and public owners on the board listed in RCW 39.10.800 (as recodified
by this act).
(a) When making initial appointments to the committee, the board
shall consider for appointment former members of the school district
project review board and the public hospital district project review
board.
(b) Each member of the committee shall be appointed for a term of
three years. However, for initial appointments, the board shall
stagger the appointment of committee members so that the first members
are appointed to serve terms of one, two, or three years from the date
of appointment. Appointees may be reappointed to serve more than one
term.
(c) The committee shall, by a majority vote, elect a chair and
vice-chair for the committee.
(d) The committee chair may select a person or persons on a
temporary basis as a nonvoting member if project specific expertise is
needed to assist in a review.
(3) The chair of the committee, in consultation with the vice-chair, may appoint one or more panels of at least six committee members
to carry out the duties of the committee. Each panel shall have
balanced representation of the private and public sector
representatives serving on the committee.
(4) Any member of the committee directly or indirectly affiliated
with a submittal before the committee must recuse himself or herself
from the committee consideration of that submittal.
(5) Any person who sits on the committee or panel is not precluded
from subsequently bidding on or participating in projects that have
been reviewed by the committee.
(6) The committee shall meet as often as necessary to ensure that
certification and approvals are completed in a timely manner.
NEW SECTION. Sec. 105
(1) Certify, or recertify, public bodies for a period of three
years to use the design-build or general contractor/construction
manager, or both, contracting procedures for projects with a total
project cost of ten million dollars or more;
(2) Review and approve the use of the design-build or general
contractor/construction manager contracting procedures on a project by
project basis for public bodies that are not certified under section
107 of this act; and
(3) Review and approve the use of the general
contractor/construction manager contracting procedure by certified
public bodies for projects with a total project cost under ten million
dollars.
NEW SECTION. Sec. 106
(2) The committee shall publish notice of its public meetings at
least twenty days before the meeting in a legal newspaper circulated in
the area where the public body seeking certification is located, or
where each of the proposed projects under consideration will be
constructed. All meeting notices must be posted on the committee's web
site.
(3) The meeting notice must identify the public body that is
seeking certification or project approval, and where applicable, a
description of projects to be considered at the meeting. The notice
must indicate when, where, and how the public may present comments
regarding the committee's certification of a public body or approval of
a project. Information submitted by a public body to be reviewed at
the meeting shall be available on the committee's web site at the time
the notice is published.
(4) The committee must allow for public comment on the
appropriateness of certification of a public body or on the
appropriateness of the use of the proposed contracting procedure and
the qualifications of a public body to use the contracting procedure.
The committee shall receive and record both written and oral comments
at the public hearing.
NEW SECTION. Sec. 107
(2) To certify a public body, the committee shall determine that
the public body:
(a) Has the necessary experience and qualifications to determine
which projects are appropriate for using alternative contracting
procedures;
(b) Has the necessary experience and qualifications to carry out
the alternative contracting procedure including, but not limited to:
(i) Project delivery knowledge and experience; (ii) personnel with
appropriate construction experience; (iii) a management plan and
rationale for its alternative public works projects; (iv) demonstrated
success in managing public works projects; (v) demonstrated success in
managing at least one general contractor/construction manager or
design-build project within the previous five years; (vi) the ability
to properly manage its capital facilities plan including, but not
limited to, appropriate project planning and budgeting experience; and
(vii) the ability to meet requirements of this chapter; and
(c) Has resolved any audit findings on previous public works
projects in a manner satisfactory to the committee.
(3) The committee shall, if practicable, make its determination at
the public meeting during which an application for certification is
reviewed. Public comments must be considered before a determination is
made. Within ten business days of the public meeting, the committee
shall provide a written determination to the public body, and make its
determination available to the public on the committee's web site.
(4) The committee may revoke any public body's certification upon
a finding, after a public hearing, that its use of design-build or
general contractor/construction manager contracting procedures no
longer serves the public interest.
(5) The committee may renew the certification of a public body for
one additional three-year period. The public body must submit an
application for recertification at least three months before the
initial certification expires. The application shall include updated
information on the public body's capital plan for the next three years,
its intended use of the procedures, and any other information requested
by the committee. The committee must review the application for
recertification at a meeting held before expiration of the applicant's
initial certification period. A public body must reapply for
certification under the process described in subsection (1) of this
section once the period of recertification expires.
(6) Certified public bodies must submit project data information as
required in RCW 39.10.070 (as recodified by this act) and section 302
of this act.
NEW SECTION. Sec. 108
(2) To approve a proposed project, the committee shall determine
that:
(a) The alternative contracting procedure will provide a
substantial fiscal benefit or the use of the traditional method of
awarding contracts in lump sum to the low responsive bidder is not
practical for meeting desired quality standards or delivery schedules;
(b) The proposed project meets the requirements for using the
alternative contracting procedure as described in section 201 or 301 of
this act;
(c) The public body has the necessary experience or qualified team
to carry out the alternative contracting procedure including, but not
limited to: (i) Project delivery knowledge and experience; (ii)
sufficient personnel with construction experience to administer the
contract; (iii) a written management plan that shows clear and logical
lines of authority; (iv) the necessary and appropriate funding and time
to properly manage the job and complete the project; (v) continuity of
project management team, including personnel with experience managing
projects of similar scope and size to the project being proposed; and
(vi) necessary and appropriate construction budget;
(d) For design-build projects, construction personnel independent
of the design-build team are knowledgeable in the design-build process
and are able to oversee and administer the contract; and
(e) The public body has resolved any audit findings related to
previous public works projects in a manner satisfactory to the
committee.
(3) The committee shall, if practicable, make its determination at
the public meeting during which a submittal is reviewed. Public
comments must be considered before a determination is made.
(4) Within ten business days after the public meeting, the
committee shall provide a written determination to the public body, and
make its determination available to the public on the committee's web
site. If the committee fails to make a written determination within
ten business days of the public meeting, the request of the public body
to use the alternative contracting procedure on the requested project
shall be deemed approved.
(5) The requirements of subsection (1) of this section also apply
to certified public bodies seeking to use the general
contractor/construction manager contracting procedure on projects with
a total project cost of less than ten million dollars.
(6) Failure of the committee to meet within sixty calendar days of
a public body's application to use an alternative contracting procedure
on a project shall be deemed an approval of the application.
NEW SECTION. Sec. 109
Sec. 201 RCW 39.10.051 and 2003 c 352 s 2 and 2003 c 300 s 4 are
each reenacted and amended to read as follows:
(1) ((Notwithstanding any other provision of law, and after
complying with RCW 39.10.030, the following public bodies may utilize
the design-build procedure of public works contracting for public works
projects authorized under this section: The state department of
general administration; the state ferry system; the University of
Washington; Washington State University; every city with a population
greater than seventy thousand and any public authority chartered by
such city under RCW 35.21.730 through 35.21.755 and specifically
authorized as provided in RCW 39.10.120(4); every county with a
population greater than four hundred fifty thousand; every public
utility district with revenues from energy sales greater than twenty-three million dollars per year; every public hospital district with
total revenues greater than fifteen million dollars per year; and every
port district with total revenues greater than fifteen million dollars
per year. The authority granted to port districts in this section is
in addition to and does not affect existing contracting authority under
RCW 53.08.120 and 53.08.130. For the purposes of this section,
"design-build procedure" means a contract between a public body and
another party in which the party agrees to both design and build the
facility, portion of the facility, or other item specified in the
contract.)) Subject to the
process in section 107 or 108 of this act, public bodies may utilize
the design-build procedure for public works projects ((
(2) Public bodies authorized under this sectionvalued)) in
which the total project cost is over ten million dollars and where:
(a) The design and construction activities ((or)), technologies, or
schedule to be used are highly specialized and a design-build approach
is critical in developing the construction methodology or implementing
the proposed technology; or
(b) The project design is repetitive in nature and is an incidental
part of the installation or construction; or
(c) Regular interaction with and feedback from facilities users and
operators during design is not critical to an effective facility
design.
(2) Subject to the process in section 107 or 108 of this act,
public bodies may use the design-build procedure for parking garages,
regardless of cost.
(3) ((Public bodies authorized under this section may also use))
The design-build procedure also may be used for the ((following
projects that meet the criteria in subsection (2)(b) and (c) of this
section:)) construction or erection of preengineered metal buildings
or prefabricated modular buildings, regardless of cost((
(a) The; or)) and is not subject to approval by
the committee.
(b) The construction of new student housing projects valued over
five million dollars.
(4) Contracts for design-build services shall be awarded through a
competitive process utilizing public solicitation of proposals for
design-build services. The public body shall publish at least once in
a legal newspaper of general circulation published in or as near as
possible to that part of the county in which the public work will be
done, a notice of its request for proposals for design-build services
and the availability and location of the request for proposal
documents. The request for proposal documents shall include:
(a) A detailed description of the project including programmatic,
performance, and technical requirements and specifications, functional
and operational elements, minimum and maximum net and gross areas of
any building, and, at the discretion of the public body, preliminary
engineering and architectural drawings;
(b) The reasons for using the design-build procedure;
(c) A description of the qualifications to be required of the
proposer including, but not limited to, submission of the proposer's
accident prevention program;
(d) A description of the process the public body will use to
evaluate qualifications and proposals, including evaluation factors and
the relative weight of factors. Evaluation factors shall include, but
not be limited to: Proposal price; ability of professional personnel;
past performance on similar projects; ability to meet time and budget
requirements; ability to provide a performance and payment bond for the
project; recent, current, and projected work loads of the firm;
location; and the concept of the proposal;
(e) The form of the contract to be awarded;
(f) The amount to be paid to finalists submitting best and final
proposals who are not awarded a design-build contract; and
(g) Other information relevant to the project.
(5) The public body shall establish a committee to evaluate the
proposals based on the factors, weighting, and process identified in
the request for proposals. Based on its evaluation, the public body
shall select not fewer than three nor more than five finalists to
submit best and final proposals. The public body may, in its sole
discretion, reject all proposals. Design-build contracts shall be
awarded using the procedures in (a) or (b) of this subsection.
(a) Best and final proposals shall be evaluated and scored based on
the factors, weighting, and process identified in the initial request
for proposals. The public body may score the proposals using a system
that measures the quality and technical merits of the proposal on a
unit price basis. Final proposals may not be considered if the
proposal cost is greater than the maximum allowable construction cost
identified in the initial request for proposals. The public body shall
initiate negotiations with the firm submitting the highest scored best
and final proposal. If the public body is unable to execute a contract
with the firm submitting the highest scored best and final proposal,
negotiations with that firm may be suspended or terminated and the
public body may proceed to negotiate with the next highest scored firm.
Public bodies shall continue in accordance with this procedure until a
contract agreement is reached or the selection process is terminated.
(b) If the public body determines that all finalists are capable of
producing plans and specifications that adequately meet project
requirements, the public body may award the contract to the firm that
submits the responsive best and final proposal with the lowest price.
(6) The firm awarded the contract shall provide a performance and
payment bond for the contracted amount. The public body shall provide
appropriate honorarium payments to finalists submitting best and final
proposals who are not awarded a design-build contract. Honorarium
payments shall be sufficient to generate meaningful competition among
potential proposers on design-build projects.
(7) The authority provided to the state ferry system in this
section is limited to projects concerning construction, renovation,
preservation, demolition, and reconstruction of ferry terminals and
associated land-based facilities
(4) Except for utility projects, the design-build procedure may not
be used to procure operations and maintenance services for a period
longer than three years. State agency projects that propose to use the
design-build-operate-maintain procedure shall submit cost estimates for
the construction portion of the project consistent with the office of
financial management's capital budget requirements. Operations and
maintenance costs must be shown separately and must not be included as
part of the capital budget request.
Sec. 202 RCW 39.10.080 and 1994 c 132 s 8 are each amended to
read as follows:
Notwithstanding the provisions of RCW 39.04.015, a public body
using the design-build contracting procedure is authorized to negotiate
an adjustment to the lowest bid or proposal price for a public works
project ((awarded under RCW 39.10.050 and 39.10.060)) based upon agreed
changes to the contract plans and specifications under the following
conditions:
(1) All responsive bids or proposal prices exceed the available
funds, as certified by an appropriate fiscal officer;
(2) The apparent low-responsive bid or proposal does not exceed the
available funds by the greater of one hundred twenty-five thousand
dollars or two percent for projects valued over ten million dollars;
and
(3) The negotiated adjustment will bring the bid or proposal price
within the amount of available funds.
Sec. 203 RCW 39.10.070 and 1994 c 132 s 7 are each amended to
read as follows:
(1) A public body utilizing the ((alternative public works))
design-build contracting procedure((s authorized under RCW 39.10.050
and 39.10.060)) shall provide for:
(a) ((The preparation of appropriate, complete, and coordinated
design documents consistent with the procedure utilized;)) Reasonable budget contingencies totaling not less than five
percent of the anticipated contract value;
(b) To the extent appropriate, an independent review of the
contract documents through value engineering or constructability
studies prior to bid or proposal solicitation;
(c)
(((d) To the extent appropriate, on-site architectural or
engineering representatives during major construction or installation
phases;)) (b) Employment of staff or consultants with expertise and
prior experience in the management of comparable projects; ((
(e)and)) (c) Contract documents that include alternative dispute
resolution procedures to be attempted prior to the initiation of
litigation;
(f)
(d) Submission of project information, as required by the board;
and
(e) Contract documents that require the contractor, subcontractors,
and designers to submit project information required by the board.
(2) A public body utilizing the ((alternative public works))
design-build contracting procedure((s under RCW 39.10.050 and
39.10.060)) may provide incentive payments to contractors for early
completion, cost savings, or other goals if such payments are
identified in the request for proposals.
NEW SECTION. Sec. 204
(a) A general description of the project that provides sufficient
information for proposers to submit qualifications;
(b) The reasons for using the design-build procedure;
(c) A description of the qualifications to be required of the
proposer including, but not limited to, submission of the proposer's
accident prevention program;
(d) A description of the process the public body will use to
evaluate qualifications and finalists' proposals, including evaluation
factors and the relative weight of factors and any specific forms to be
used by the proposers;
(i) Evaluation factors for request for qualifications shall
include, but not be limited to, technical qualifications, such as
specialized experience and technical competence; capability to perform;
past performance of the proposers' team, including the architect-engineer and construction members; and other appropriate factors. Cost
or price-related factors are not permitted in the request for
qualifications phase;
(ii) Evaluation factors for finalists' proposals shall include, but
not be limited to, the factors listed in (d)(i) of this subsection, as
well as technical approach design concept; proposal price; ability of
professional personnel; past performance on similar projects; ability
to meet time and budget requirements; ability to provide a performance
and payment bond for the project; recent, current, and projected work
loads of the firm; and location. Alternatively, if the public body
determines that all finalists will be capable of producing a design
that adequately meets project requirements, the public body may award
the contract to the firm that submits the responsive proposal with the
lowest price;
(e) The form of the contract to be awarded;
(f) The amount to be paid to finalists submitting responsive
proposals and who are not awarded a design-build contract;
(g) The schedule for the procurement process and the project; and
(h) Other information relevant to the project.
(2) The public body shall establish an evaluation committee to
evaluate the responses to the request for qualifications based on the
factors, weighting, and process identified in the request for
qualifications. Based on the evaluation committee's findings, the
public body shall select not more than five responsive and responsible
finalists to submit proposals. The public body may, in its sole
discretion, reject all proposals and shall provide its reasons for
rejection in writing to all proposers.
(3) Upon selection of the finalists, the public body shall issue a
request for proposals to the finalists, which shall provide the
following information:
(a) A detailed description of the project including programmatic,
performance, and technical requirements and specifications; functional
and operational elements; minimum and maximum net and gross areas of
any building; and, at the discretion of the public body, preliminary
engineering and architectural drawings; and
(b) The target budget for the design-build portion of the project.
(4) The public body shall establish an evaluation committee to
evaluate the proposals submitted by the finalists. Design-build
contracts shall be awarded using the procedures in (a) or (b) of this
subsection. The public body must identify in the request for
qualifications which procedure will be used.
(a) The finalists' proposals shall be evaluated and scored based on
the factors, weighting, and process identified in the initial request
for qualifications and in any addenda published by the public body.
Public bodies may request best and final proposals from finalists. The
public body shall initiate negotiations with the firm submitting the
highest scored proposal. If the public body is unable to execute a
contract with the firm submitting the highest scored proposal,
negotiations with that firm may be suspended or terminated and the
public body may proceed to negotiate with the next highest scored firm.
Public bodies shall continue in accordance with this procedure until a
contract agreement is reached or the selection process is terminated.
(b) If the public body determines that all finalists are capable of
producing a design that adequately meets project requirements, the
public body may award the contract to the firm that submits the
responsive proposal with the lowest price.
(5) The firm awarded the contract shall provide a performance and
payment bond for the contracted amount. The public body shall provide
appropriate honorarium payments to finalists submitting best and final
proposals that are not awarded a design-build contract. Honorarium
payments shall be sufficient to generate meaningful competition among
potential proposers on design-build projects. In determining the
amount of the honorarium, the public body shall consider the level of
effort required to meet the selection criteria.
Sec. 301 RCW 39.10.061 and 2003 c 352 s 3 and 2003 c 300 s 5 are
each reenacted and amended to read as follows:
(((1) Notwithstanding any other provision of law, and after
complying with RCW 39.10.030, a public body may utilize the general
contractor/construction manager procedure of public works contracting
for public works projects authorized under subsection (2) of this
section. For the purposes of this section, "general
contractor/construction manager" means a firm with which a public body
has selected and negotiated a maximum allowable construction cost to be
guaranteed by the firm, after competitive selection through formal
advertisement and competitive bids, to provide services during the
design phase that may include life-cycle cost design considerations,
value engineering, scheduling, cost estimating, constructability,
alternative construction options for cost savings, and sequencing of
work, and to act as the construction manager and general contractor
during the construction phase.))
Subject to the process in section 107 or 108 of this act, public bodies
((
(2) Except those school districts proposing projects that are
considered and approved by the school district project review board and
those public hospital districts proposing projects that are considered
and approved by the public hospital district project review boardauthorized under this section)) may utilize the general
contractor/construction manager procedure for public works projects
((valued over ten million dollars)) where:
(((a))) (1) Implementation of the project involves complex
scheduling ((requirements)), phasing, or coordination; ((or)) (2) The project involves construction at an ((
(b)existing))
occupied facility which must continue to operate during construction;
((or)) (3) The involvement of the general contractor/construction
manager during the design stage is critical to the success of the
project((
(c).));
(3) Public bodies should select general contractor/construction
managers early in the life of public works projects, and in most
situations no later than the completion of schematic design.
(4) Contracts for the services of a general contractor/construction
manager under this section shall be awarded through a competitive
process requiring the public solicitation of proposals for general
contractor/construction manager services. The public solicitation of
proposals shall include: A description of the project, including
programmatic, performance, and technical requirements and
specifications when available; the reasons for using the general
contractor/construction manager procedure; a description of the
qualifications to be required of the proposer, including submission of
the proposer's accident prevention program; a description of the
process the public body will use to evaluate qualifications and
proposals, including evaluation factors and the relative weight of
factors; the form of the contract to be awarded; the estimated maximum
allowable construction cost; and the bid instructions to be used by the
general contractor/construction manager finalists. Evaluation factors
shall include, but not be limited to: Ability of professional
personnel, past performance in negotiated and complex projects, and
ability to meet time and budget requirements; the scope of work the
general contractor/construction manager proposes to self-perform and
its ability to perform it; location; recent, current, and projected
work loads of the firm; and the concept of their proposal. A public
body shall establish a committee to evaluate the proposals. After the
committee has selected the most qualified finalists, these finalists
shall submit final proposals, including sealed bids for the percent
fee, which is the percentage amount to be earned by the general
contractor/construction manager as overhead and profit, on the
estimated maximum allowable construction cost and the fixed amount for
the detailed specified general conditions work. The public body shall
select the firm submitting the highest scored final proposal using the
evaluation factors and the relative weight of factors published in the
public solicitation of proposals.
(5) The maximum allowable construction cost may be negotiated
between the public body and the selected firm after the scope of the
project is adequately determined to establish a guaranteed contract
cost for which the general contractor/construction manager will provide
a performance and payment bond. The guaranteed contract cost includes
the fixed amount for the detailed specified general conditions work,
the negotiated maximum allowable construction cost, the percent fee on
the negotiated maximum allowable construction cost, and sales tax. If
the public body is unable to negotiate a satisfactory maximum allowable
construction cost with the firm selected that the public body
determines to be fair, reasonable, and within the available funds,
negotiations with that firm shall be formally terminated and the public
body shall negotiate with the next highest scored firm and continue
until an agreement is reached or the process is terminated. If the
maximum allowable construction cost varies more than fifteen percent
from the bid estimated maximum allowable construction cost due to
requested and approved changes in the scope by the public body, the
percent fee shall be renegotiated.
(6) All subcontract work shall be competitively bid with public bid
openings. When critical to the successful completion of a
subcontractor bid package and after publication of notice of intent to
determine bidder eligibility in a legal newspaper of general
circulation published in or as near as possible to that part of the
county in which the public work will be done at least twenty days
before requesting qualifications from interested subcontract bidders,
the owner and general contractor/construction manager may determine
subcontractor bidding eligibility using the following evaluation
criteria:
(a) Adequate financial resources or the ability to secure such
resources;
(b) History of successful completion of a contract of similar type
and scope;
(c) Project management and project supervision personnel with
experience on similar projects and the availability of such personnel
for the project;
(d) Current and projected workload and the impact the project will
have on the subcontractor's current and projected workload;
(e) Ability to accurately estimate the subcontract bid package
scope of work;
(f) Ability to meet subcontract bid package shop drawing and other
coordination procedures;
(g) Eligibility to receive an award under applicable laws and
regulations; and
(h) Ability to meet subcontract bid package scheduling
requirements.
The owner and general contractor/construction manager shall weigh
the evaluation criteria and determine a minimum acceptable score to be
considered an eligible subcontract bidder.
After publication of notice of intent to determine bidder
eligibility, subcontractors requesting eligibility shall be provided
the evaluation criteria and weighting to be used by the owner and
general contractor/construction manager to determine eligible
subcontract bidders. After the owner and general
contractor/construction manager determine eligible subcontract bidders,
subcontractors requesting eligibility shall be provided the results and
scoring of the subcontract bidder eligibility determination.
Subcontract bid packages shall be awarded to the responsible bidder
submitting the low responsive bid. The requirements of RCW 39.30.060
apply to each subcontract bid package. All subcontractors who bid work
over three hundred thousand dollars shall post a bid bond and all
subcontractors who are awarded a contract over three hundred thousand
dollars shall provide a performance and payment bond for their contract
amount. All other subcontractors shall provide a performance and
payment bond if required by the general contractor/construction
manager. If a general contractor/construction manager receives a
written protest from a subcontractor bidder, the general
contractor/construction manager shall not execute a contract for the
subcontract bid package with anyone other than the protesting bidder
without first providing at least two full business days' written notice
of the general contractor/construction manager's intent to execute a
contract for the subcontract bid package; provided that the protesting
bidder submits notice in writing of its protest no later than two full
business days following bid opening. Intermediate Saturdays, Sundays,
and legal holidays are not counted. A low bidder who claims error and
fails to enter into a contract is prohibited from bidding on the same
project if a second or subsequent call for bids is made for the
project. Except as provided for under subsection (7) of this section,
bidding on subcontract work by the general contractor/construction
manager or its subsidiaries is prohibited. The general
contractor/construction manager may negotiate with the low-responsive
bidder in accordance with RCW 39.10.080 or, if unsuccessful in such
negotiations, rebid.
(7) The general contractor/construction manager, or its
subsidiaries, may bid on subcontract work if:
(a) The work within the subcontract bid package is customarily
performed by the general contractor/construction manager;
(b) The bid opening is managed by the public body; and
(c) Notification of the general contractor/construction manager's
intention to bid is included in the public solicitation of bids for the
bid package.
In no event may the value of subcontract work performed by the
general contractor/construction manager exceed thirty percent of the
negotiated maximum allowable construction cost.
(8) A public body may include an incentive clause in any contract
awarded under this section for savings of either time or cost or both
from that originally negotiated. No incentives granted may exceed five
percent of the maximum allowable construction cost. If the project is
completed for less than the agreed upon maximum allowable construction
cost, any savings not otherwise negotiated as part of an incentive
clause shall accrue to the public body. If the project is completed
for more than the agreed upon maximum allowable construction cost,
excepting increases due to any contract change orders approved by the
public body, the additional cost shall be the responsibility of the
general contractor/construction manager.
(9) The authority provided to the state ferry system in this
section is limited to projects concerning construction, renovation,
preservation, demolition, and reconstruction of ferry terminals and
associated land-based facilities
(4) The project encompasses a complex or technical work
environment; or
(5) The project requires specialized work on a building that has
historic significance.
NEW SECTION. Sec. 302
(a) The preparation of appropriate, complete, and coordinated
design documents;
(b) Confirmation that a constructability analysis of the design
documents has been performed prior to solicitation of a subcontract bid
package;
(c) Reasonable budget contingencies totaling not less than five
percent of the anticipated contract value;
(d) To the extent appropriate, on-site architectural or engineering
representatives during major construction or installation phases;
(e) Employment of staff or consultants with expertise and prior
experience in the management of comparable projects, critical path
method schedule review and analysis, and the administration, pricing,
and negotiation of change orders;
(f) Contract documents that include alternative dispute resolution
procedures to be attempted before the initiation of litigation;
(g) Contract documents that: (i) Obligate the public owner to
accept or reject a request for equitable adjustment, change order, or
claim within a specified time period but no later than sixty calendar
days after the receipt by the public body of related documentation; and
(ii) provide that if the public owner does not respond in writing to a
request for equitable adjustment, change order, or claim within the
specified time period, the request is deemed denied;
(h) Submission of project information, as required by the board;
and
(i) Contract documents that require the contractor, subcontractors,
and designers to submit project information required by the board.
(2) A public body using the general contractor/construction manager
contracting procedure may include an incentive clause for early
completion, cost savings, or other performance goals if such incentives
are identified in the request for proposals. No incentives granted may
exceed five percent of the maximum allowable construction cost. No
incentives may be paid from any contingency fund established for
coordination of the construction documents or coordination of the work.
(3) If the construction is completed for less than the maximum
allowable construction cost, any savings not otherwise negotiated as
part of an incentive clause shall accrue to the public body. If the
construction is completed for more than the maximum allowable
construction cost, the additional cost is the responsibility of the
general contractor/construction manager.
(4) If the public body and the general contractor/construction
manager agree, in writing, on a price for additional work, the public
body must issue a change order within thirty days of the written
agreement. If the public body does not issue a change order within the
thirty days, interest shall accrue on the dollar amount of the
additional work satisfactorily completed until a change order is
issued. The public body shall pay this interest at a rate of one
percent per month.
NEW SECTION. Sec. 303
(2) Contracts for the services of a general contractor/
construction manager under this section shall be awarded through a
competitive process requiring the public solicitation of proposals for
general contractor/construction manager services. The public
solicitation of proposals shall include:
(a) A description of the project, including programmatic,
performance, and technical requirements and specifications when
available;
(b) The reasons for using the general contractor/construction
manager procedure;
(c) A description of the qualifications to be required of the firm,
including submission of the firm's accident prevention program;
(d) A description of the process the public body will use to
evaluate qualifications and proposals, including evaluation factors and
the relative weight of factors;
(e) The form of the contract, including any contract for
preconstruction services, to be awarded;
(f) The estimated maximum allowable construction cost; and
(g) The bid instructions to be used by the general contractor/
construction manager finalists.
(3) Evaluation factors for selection of the general
contractor/construction shall include, but not be limited to:
(a) Ability of the firm's professional personnel;
(b) The firm's past performance in negotiated and complex projects;
(c) The firm's ability to meet time and budget requirements;
(d) The scope of work the firm proposes to self-perform and its
ability to perform that work;
(e) The firm's proximity to the project location;
(f) Recent, current, and projected work loads of the firm; and
(g) The firm's approach to executing the project.
(4) A public body shall establish a committee to evaluate the
proposals. After the committee has selected the most qualified
finalists, these finalists shall submit final proposals, including
sealed bids for the percent fee on the estimated maximum allowable
construction cost and the fixed amount for the general conditions work
specified in the request for proposal. The public body shall select
the firm submitting the highest scored final proposal using the
evaluation factors and the relative weight of factors published in the
public solicitation of proposals. A public body shall not evaluate or
disqualify a proposal based on the terms of a collective bargaining
agreement.
(5) Public bodies may contract with the selected firm to provide
services during the design phase that may include life-cycle cost
design considerations, value engineering, scheduling, cost estimating,
constructability, alternative construction options for cost savings,
and sequencing of work, and to act as the construction manager and
general contractor during the construction phase.
NEW SECTION. Sec. 304
(2) Major bid packages may be bid in accordance with section 305 of
this act before agreement on the maximum allowable construction cost
between the public body and the selected general
contractor/construction manager. The general contractor/construction
manager may issue an intent to award to the responsible bidder
submitting the lowest responsive bid.
(3) The public body may, at its option, authorize the general
contractor/construction manager to proceed with the bidding and award
of bid packages and construction before receipt of complete project
plans and specifications. Any contracts awarded under this subsection
shall be incorporated in the negotiated maximum allowable construction
cost.
(4) The total contract cost includes the fixed amount for the
detailed specified general conditions work, the negotiated maximum
allowable construction cost, the negotiated support services, and the
percent fee on the negotiated maximum allowable construction cost.
Negotiated support services may be included in the specified general
conditions at the discretion of the public body.
(5) If the public body is unable to negotiate a satisfactory
maximum allowable construction cost with the firm selected that the
public body determines to be fair, reasonable, and within the available
funds, negotiations with that firm shall be formally terminated and the
public body shall negotiate with the next highest scored firm and
continue until an agreement is reached or the process is terminated.
(6) If the maximum allowable construction cost varies more than
fifteen percent from the bid estimated maximum allowable construction
cost due to requested and approved changes in the scope by the public
body, the percent fee shall be renegotiated.
NEW SECTION. Sec. 305
(2) All subcontract bid packages in which bidder eligibility was
not determined in advance shall include the specific objective criteria
that will be used by the general contractor/construction manager and
the public body to evaluate bidder responsibility. If the lowest
bidder submitting a responsive bid is determined by the general
contractor/construction manager and the public body not to be
responsible, the general contractor/construction manager and the public
body must provide written documentation to that bidder explaining their
intent to reject the bidder as not responsible and afford the bidder
the opportunity to establish that it is a responsible bidder.
Responsibility shall be determined in accordance with criteria listed
in the bid documents. Protests concerning bidder responsibility
determination by the general contractor/construction manager and the
public body shall be in accordance with subsection (4) of this section.
(3) All subcontractors who bid work over three hundred thousand
dollars shall post a bid bond. All subcontractors who are awarded a
contract over three hundred thousand dollars shall provide a
performance and payment bond for the contract amount. All other
subcontractors shall provide a performance and payment bond if required
by the general contractor/construction manager.
(4) If the general contractor/construction manager receives a
written protest from a subcontractor bidder or an equipment or material
supplier, the general contractor/construction manager shall not execute
a contract for the subcontract bid package or equipment or material
purchase order with anyone other than the protesting bidder without
first providing at least two full business days' written notice to all
bidders of the intent to execute a contract for the subcontract bid
package. The protesting bidder must submit written notice of its
protest no later than two full business days following the bid opening.
Intermediate Saturdays, Sundays, and legal holidays are not counted.
(5) A low bidder who claims error and fails to enter into a
contract is prohibited from bidding on the same project if a second or
subsequent call for bids is made for the project.
(6) The general contractor/construction manager may negotiate with
the lowest responsible and responsive bidder to negotiate an adjustment
to the lowest bid or proposal price based upon agreed changes to the
contract plans and specifications under the following conditions:
(a) All responsive bids or proposal prices exceed the available
funds, as certified by an appropriate fiscal officer;
(b) The apparent low responsive bid or proposal does not exceed the
available funds by the greater of one hundred twenty-five thousand
dollars or two percent for projects valued over ten million dollars;
and
(c) The negotiated adjustment will bring the bid or proposal price
within the amount of available funds.
(7) If the negotiation is unsuccessful, the subcontract work or
equipment or material purchases must be rebid.
(8) The general contractor/construction manager must provide a
written explanation if all bids are rejected.
NEW SECTION. Sec. 306
(2) The general contractor/construction manager, or its
subsidiaries, may bid on subcontract work or for the supply of
equipment or materials if:
(a) The work within the subcontract bid package or equipment or
materials is customarily performed or supplied by the general
contractor/construction manager;
(b) The bid opening is managed by the public body and is in
compliance with section 305 of this act; and
(c) Notification of the general contractor/construction manager's
intention to bid is included in the public solicitation of bids for the
bid package or for the equipment or materials.
(3) In no event may the general contractor/construction manager or
its subsidiaries purchase equipment or materials for assignment to
subcontract bid package bidders for installation or warranty. The
value of subcontract work performed and equipment and materials
supplied by the general contractor/construction manager may not exceed
thirty percent of the negotiated maximum allowable construction cost.
Negotiated support services performed by the general
contractor/construction manager shall not be considered subcontract
work for purposes of this subsection.
NEW SECTION. Sec. 307
(a) Conduct a hearing and provide an opportunity for any interested
party to submit written and verbal comments regarding the justification
for conducting bidder eligibility, the evaluation criteria, and weights
for each criteria and subcriteria;
(b) Publish a notice of intent to evaluate and determine bidder
eligibility in a legal newspaper published in or as near as possible to
that part of the county where the public work will be constructed at
least fourteen calendar days before conducting a public hearing;
(c) Ensure the public hearing notice includes the date, time, and
location of the hearing, a statement justifying the basis and need for
performing eligibility analysis before bid opening, and specific
eligibility criteria and applicable weights given to each criteria and
subcriteria that will be used during evaluation;
(d) After the public hearing, consider written and verbal comments
received and determine if establishing bidder eligibility in advance of
seeking bids is in the best interests of the project and critical to
the successful completion of a subcontract bid package; and
(e) Issue a written final determination to all interested parties.
All protests of the decision to establish bidder eligibility before
issuing a subcontractor bid package must be filed with the superior
court within seven calendar days of the final determination. Any
modifications to the eligibility criteria and weights shall be based on
comments received during the public hearing process and shall be
included in the final determination.
(2) Determinations of bidder eligibility shall be in accordance
with the evaluation criteria and weights for each criteria established
in the final determination and shall be provided to interested persons
upon request. Any potential bidder determined not to meet eligibility
criteria must be afforded the opportunity to establish its eligibility.
Protests concerning bidder eligibility determinations shall be in
accordance with subsection (1) of this section.
NEW SECTION. Sec. 308
(1) Delegate, restrict, or assign the general
contractor/construction manager's implied duty not to hinder or delay
the subcontractor. Nothing in this subsection (1) prohibits the
general contractor/construction manager from requiring subcontractors
not to hinder or delay the work of the general contractor/construction
manager or other subcontractors and to hold subcontractors responsible
for such damages;
(2) Delegate, restrict, or assign the general
contractor/construction manager's authority to resolve subcontractor
conflicts. The general contractor/construction manager may delegate or
assign coordination of specific elements of the work, including: (a)
The coordination of shop drawings among subcontractors; (b) the
coordination among subcontractors in ceiling spaces and mechanical
rooms; and (c) the coordination of a subcontractor's lower tier
subcontractors. Nothing in this subsection prohibits the general
contractor/construction manager from imposing a duty on its
subcontractors to cooperate with the general contractor/construction
manager and other subcontractors in the coordination of the work;
(3) Restrict the subcontractor's right to damages for changes to
the construction schedule or work to the extent that the delay or
disruption is caused by the general contractor/construction manager or
entities acting for it. The general contractor/construction manager
may require the subcontractor to provide notice that rescheduling or
resequencing will result in delays or additional costs;
(4) Require the subcontractor to bear the cost of trade damage
repair except to the extent the subcontractor is responsible for the
damage. Nothing in this subsection (4) precludes the general
contractor/construction manager from requiring the subcontractor to
take reasonable steps to protect the subcontractor's work from trade
damage; or
(5) Require the subcontractor to execute progress payment
applications that waive claims for additional time or compensation or
bond or retainage rights as a condition of receipt of progress payment,
except to the extent the subcontractor has received or will receive
payment. Nothing in this section precludes the general
contractor/construction manager from requiring the subcontractor to
provide notice of claims for additional time or compensation as a
condition precedent to right of recovery or to execute a full and final
release, including a waiver of bond and retainage rights, as a
condition of final payment.
Sec. 401 RCW 39.10.130 and 2003 c 301 s 1 are each amended to
read as follows:
(1) The following public bodies are authorized to use the job order
contracting procedure:
(a) The department of general administration;
(b) The University of Washington;
(c) Washington State University;
(d) Every city with a population greater than seventy thousand and
any public authority chartered by such city under RCW 35.21.730 through
35.21.755;
(e) Every county with a population greater than four hundred fifty
thousand;
(f) Every port district with total revenues greater than fifteen
million dollars per year;
(g) Every public utility district with revenues from energy sales
greater than twenty-three million dollars per year;
(h) Every school district; and
(i) The state ferry system.
(2) The department of general administration may issue job order
contract work orders for Washington state parks department projects.
(3) Public bodies may use a job order contract for public works
projects when((:)) a determination is made that the use
of job order contracts will benefit the public by providing an
effective means of reducing the total lead-time and cost for the
construction of public works projects ((
(a) A public body has madeor)) for repair and renovation
required at public facilities through the use of unit price books and
work orders by eliminating time-consuming, costly aspects of the
traditional public works process, which require separate contracting
actions for each small project((;)).
(b) The work order to be issued for a particular project does not
exceed two hundred thousand dollars;
(c) Less than twenty percent of the dollar value of the work order
consists of items of work not contained in the unit price book; and
(d) At least eighty percent of the job order contract must be
subcontracted to entities other than the job order contractor.
(2) Public bodies shall award job order contracts through a
competitive process utilizing public requests for proposals. Public
bodies shall make an effort to solicit proposals from a certified
minority or certified woman-owned contractor to the extent permitted by
the Washington state civil rights act, RCW 49.60.400. The public body
shall publish, at least once in a legal newspaper of general
circulation published in or as near as possible to that part of the
county in which the public works will be done, a request for proposals
for job order contracts and the availability and location of the
request for proposal documents. The public body shall ensure that the
request for proposal documents at a minimum includes:
(a) A detailed description of the scope of the job order contract
including performance, technical requirements and specifications,
functional and operational elements, minimum and maximum work order
amounts, duration of the contract, and options to extend the job order
contract;
(b) The reasons for using job order contracts;
(c) A description of the qualifications required of the proposer;
(d) The identity of the specific unit price book to be used;
(e) The minimum contracted amount committed to the selected job
order contractor;
(f) A description of the process the public body will use to
evaluate qualifications and proposals, including evaluation factors and
the relative weight of factors. The public body shall ensure that
evaluation factors include, but are not limited to, proposal price and
the ability of the proposer to perform the job order contract. In
evaluating the ability of the proposer to perform the job order
contract, the public body may consider: The ability of the
professional personnel who will work on the job order contract; past
performance on similar contracts; ability to meet time and budget
requirements; ability to provide a performance and payment bond for the
job order contract; recent, current, and projected work loads of the
proposer; location; and the concept of the proposal;
(g) The form of the contract to be awarded;
(h) The method for pricing renewals of or extensions to the job
order contract;
(i) A notice that the proposals are subject to the provisions of
RCW 39.10.100; and
(j) Other information relevant to the project.
(3) A public body shall establish a committee to evaluate the
proposals. After the committee has selected the most qualified
finalists, the finalists shall submit final proposals, including sealed
bids based upon the identified unit price book. Such bids may be in
the form of coefficient markups from listed price book costs. The
public body shall award the contract to the firm submitting the highest
scored final proposal using the evaluation factors and the relative
weight of factors published in the public request for proposals.
(4) The public body shall provide a protest period of at least ten
business days following the day of the announcement of the apparent
successful proposal to allow a protester to file a detailed statement
of the grounds of the protest. The public body shall promptly make a
determination on the merits of the protest and provide to all proposers
a written decision of denial or acceptance of the protest. The public
body shall not execute the contract until two business days following
the public body's decision on the protest.
(5) The public body shall issue no work orders until it has
approved, in consultation with the office of minority and women's
business enterprises or the equivalent local agency, a plan prepared by
the job order contractor that equitably spreads certified women and
minority business enterprise subcontracting opportunities, to the
extent permitted by the Washington state civil rights act, RCW
49.60.400, among the various subcontract disciplines.
(6) Job order contracts may be executed for an initial contract
term of not to exceed two years, with the option of extending or
renewing the job order contract for one year. All extensions or
renewals must be priced as provided in the request for proposals. The
extension or renewal must be mutually agreed to by the public body and
the job order contractor.
(7) The maximum total dollar amount that may be awarded under a job
order contract shall not exceed three million dollars in the first year
of the job order contract, five million dollars over the first two
years of the job order contract, and, if extended or renewed, eight
million dollars over the three years of the job order contract.
(8) For each job order contract, public bodies shall not issue more
than two work orders equal to or greater than one hundred fifty
thousand dollars in a twelve-month contract performance period.
(9) All work orders issued for the same project shall be treated as
a single work order for purposes of the one hundred fifty thousand
dollar limit on work orders in subsection (8) of this section and the
two hundred thousand dollar limit on work orders in subsection (1)(b)
of this section.
(10) Any new permanent, enclosed building space constructed under
a work order shall not exceed two thousand gross square feet.
(11) Each public body may have no more than two job order contracts
in effect at any one time.
(12) For purposes of chapters 39.08, 39.12, 39.76, and 60.28 RCW,
each work order issued shall be treated as a separate contract. The
alternate filing provisions of RCW 39.12.040(2) shall apply to each
work order that otherwise meets the eligibility requirements of RCW
39.12.040(2).
(13) The requirements of RCW 39.30.060 do not apply to requests for
proposals for job order contracts.
(14) Job order contractors shall pay prevailing wages for all work
that would otherwise be subject to the requirements of chapter 39.12
RCW. Prevailing wages for all work performed pursuant to each work
order must be the rates in effect at the time the individual work order
is issued.
(15) If, in the initial contract term, the public body, at no fault
of the job order contractor, fails to issue the minimum amount of work
orders stated in the public request for proposals, the public body
shall pay the contractor an amount equal to the difference between the
minimum work order amount and the actual total of the work orders
issued multiplied by an appropriate percentage for overhead and profit
contained in the general conditions for Washington state facility
construction. This will be the contractor's sole remedy.
(16) All job order contracts awarded under this section must be
executed before July 1, 2007, however the job order contract may be
extended or renewed as provided for in this section.
(17) For purposes of this section, "public body" includes any
school district
NEW SECTION. Sec. 402
(2) The public body shall make an effort to solicit proposals from
certified minority or certified woman-owned contractors to the extent
permitted by the Washington state civil rights act, RCW 49.60.400.
(3) The public body shall publish, at least once in a statewide
publication and legal newspaper of general circulation published in
every county in which the public works project is anticipated, a
request for proposals for job order contracts and the availability and
location of the request for proposal documents. The public body shall
ensure that the request for proposal documents at a minimum includes:
(a) A detailed description of the scope of the job order contract
including performance, technical requirements and specifications,
functional and operational elements, minimum and maximum work order
amounts, duration of the contract, and options to extend the job order
contract;
(b) The reasons for using job order contracts;
(c) A description of the qualifications required of the proposer;
(d) The identity of the specific unit price book to be used;
(e) The minimum contracted amount committed to the selected job
order contractor;
(f) A description of the process the public body will use to
evaluate qualifications and proposals, including evaluation factors and
the relative weight of factors. The public body shall ensure that
evaluation factors include, but are not limited to, proposal price and
the ability of the proposer to perform the job order contract. In
evaluating the ability of the proposer to perform the job order
contract, the public body may consider: The ability of the
professional personnel who will work on the job order contract; past
performance on similar contracts; ability to meet time and budget
requirements; ability to provide a performance and payment bond for the
job order contract; recent, current, and projected work loads of the
proposer; location; and the concept of the proposal;
(g) The form of the contract to be awarded;
(h) The method for pricing renewals of or extensions to the job
order contract;
(i) A notice that the proposals are subject to RCW 39.10.100 (as
recodified by this act); and
(j) Other information relevant to the project.
(4) A public body shall establish a committee to evaluate the
proposals. After the committee has selected the most qualified
finalists, the finalists shall submit final proposals, including sealed
bids based upon the identified unit price book. Such bids may be in
the form of coefficient markups from listed price book costs. The
public body shall award the contract to the firm submitting the highest
scored final proposal using the evaluation factors and the relative
weight of factors published in the public request for proposals and
will notify the board of the award of the contract.
(5) The public body shall provide a protest period of at least ten
business days following the day of the announcement of the apparent
successful proposal to allow a protester to file a detailed statement
of the grounds of the protest. The public body shall promptly make a
determination on the merits of the protest and provide to all proposers
a written decision of denial or acceptance of the protest. The public
body shall not execute the contract until two business days following
the public body's decision on the protest.
(6) The requirements of RCW 39.30.060 do not apply to requests for
proposals for job order contracts.
NEW SECTION. Sec. 403
(2) Job order contracts may be executed for an initial contract
term of not to exceed two years, with the option of extending or
renewing the job order contract for one year. All extensions or
renewals must be priced as provided in the request for proposals. The
extension or renewal must be mutually agreed to by the public body and
the job order contractor.
(3) A public body may have no more than two job order contracts in
effect at any one time, with the exception of the department of general
administration, which may have four job order contracts in effect at
any one time.
(4) At least ninety percent of work contained in a job order
contract must be subcontracted to entities other than the job order
contractor. The job order contractor must distribute contracts as
equitably as possible among qualified and available subcontractors
including minority and woman-owned subcontractors to the extent
permitted by law.
(5) The job order contractor shall publish notification of intent
to perform public works projects at the beginning of each contract year
in a statewide publication and in a legal newspaper of general
circulation in every county in which the public works projects are
anticipated.
(6) Job order contractors shall pay prevailing wages for all work
that would otherwise be subject to the requirements of chapter 39.12
RCW. Prevailing wages for all work performed pursuant to each work
order must be the rates in effect at the time the individual work order
is issued.
(7) If, in the initial contract term, the public body, at no fault
of the job order contractor, fails to issue the minimum amount of work
orders stated in the public request for proposals, the public body
shall pay the contractor an amount equal to the difference between the
minimum work order amount and the actual total of the work orders
issued multiplied by an appropriate percentage for overhead and profit
contained in the contract award coefficient for services as specified
in the request for proposals. This is the contractor's sole remedy.
(8) All job order contracts awarded under this section must be
signed before July 1, 2013; however the job order contract may be
extended or renewed as provided for in this section.
(9) Public bodies may amend job order contracts awarded prior to
July 1, 2007, in accordance with this chapter.
NEW SECTION. Sec. 404
(2) All work orders issued for the same project shall be treated as
a single work order for purposes of the dollar limit on work orders.
(3) No more than twenty percent of the dollar value of a work order
may consist of items of work not contained in the unit price book.
(4) Any new permanent, enclosed building space constructed under a
work order shall not exceed two thousand gross square feet.
(5) A public body may issue no work orders under a job order
contract until it has approved, in consultation with the office of
minority and women's business enterprises or the equivalent local
agency, a plan prepared by the job order contractor that equitably
spreads certified women and minority business enterprise subcontracting
opportunities, to the extent permitted by the Washington state civil
rights act, RCW 49.60.400, among the various subcontract disciplines.
(6) For purposes of chapters 39.08, 39.12, 39.76, and 60.28 RCW,
each work order issued shall be treated as a separate contract. The
alternate filing provisions of RCW 39.12.040(2) apply to each work
order that otherwise meets the eligibility requirements of RCW
39.12.040(2).
(7) The job order contract shall not be used for the procurement of
architectural or engineering services not associated with specific work
orders. Architectural and engineering services shall be procured in
accordance with RCW 39.80.040.
NEW SECTION. Sec. 405 A public body shall provide to the board
the following information for each job order contract at the end of
each contract year:
(1) A list of work orders issued;
(2) The cost of each work order;
(3) A list of subcontractors hired under each work order;
(4) If requested by the board, a copy of the intent to pay
prevailing wage and the affidavit of wages paid for each work order
subcontract; and
(5) Any other information requested by the board.
Sec. 501 RCW 39.10.120 and 2001 c 328 s 5 are each amended to
read as follows:
(((1) Except as provided in subsections (2) and (3) of this
section,)) The alternative public works contracting procedures
authorized under this chapter are limited to public works contracts
signed before July 1, ((2007)) 2013. Methods of public works
contracting authorized ((by RCW 39.10.050 and 39.10.060 or 39.10.051
and 39.10.061)) under this chapter shall remain in full force and
effect until completion of contracts signed before July 1, ((2007))
2013.
(((2) For the purposes of a baseball stadium as defined in RCW
82.14.0485, the design-build contracting procedures under RCW 39.10.050
shall remain in full force and effect until completion of contracts
signed before December 31, 1997.))
(3) For the purposes of a stadium and exhibition center, as defined
in RCW 36.102.010, the design-build contracting procedures under RCW
39.10.050 or 39.10.051 shall remain in full force and effect until
completion of contracts signed before December 31, 2002.
(4) A public authority chartered by a city that is a public body
may utilize an alternative public works contracting procedure under
this chapter only after receiving specific authorization on a project-by-project basis from the governing body of the city. For purposes of
public authorities authorized to use alternative public works
contracting procedures under this chapter, the city chartering any such
public authority shall itself comply with RCW 39.10.030 on behalf of
the public authority.
NEW SECTION. Sec. 502 Projects approved by the school district
project review board established under RCW 39.10.115, and the hospital
district project review board established under RCW 39.10.117 before
July 1, 2007, may proceed without the approval of the committee
established in section 104 of this act. The board may grant an
exemption from any provision of this act for projects advertised before
the effective date of this section. A public body seeking an exemption
must submit a request in writing to the board no later than December
31, 2007. The board must respond to the request within sixty calendar
days.
NEW SECTION. Sec. 503 Projects using the design-build or general
contractor/construction manager contracting procedures in which
advertising for selection of a contractor has begun by the effective
date of this section but no contract has been awarded may proceed
without seeking approval of the committee under the processes in
sections 107 and 108 of this act.
Sec. 504 RCW 60.28.011 and 2003 c 301 s 7 are each amended to
read as follows:
(1) Public improvement contracts shall provide, and public bodies
shall reserve, a contract retainage not to exceed five percent of the
moneys earned by the contractor as a trust fund for the protection and
payment of: (a) The claims of any person arising under the contract;
and (b) the state with respect to taxes imposed pursuant to Title 82
RCW which may be due from such contractor.
(2) Every person performing labor or furnishing supplies toward the
completion of a public improvement contract shall have a lien upon
moneys reserved by a public body under the provisions of a public
improvement contract. However, the notice of the lien of the claimant
shall be given within forty-five days of completion of the contract
work, and in the manner provided in RCW 39.08.030.
(3) The contractor at any time may request the contract retainage
be reduced to one hundred percent of the value of the work remaining on
the project.
(a) After completion of all contract work other than landscaping,
the contractor may request that the public body release and pay in full
the amounts retained during the performance of the contract, and sixty
days thereafter the public body must release and pay in full the
amounts retained (other than continuing retention of five percent of
the moneys earned for landscaping) subject to the provisions of
chapters 39.12 and 60.28 RCW.
(b) Sixty days after completion of all contract work the public
body must release and pay in full the amounts retained during the
performance of the contract subject to the provisions of chapters 39.12
and 60.28 RCW.
(4) The moneys reserved by a public body under the provisions of a
public improvement contract, at the option of the contractor, shall be:
(a) Retained in a fund by the public body;
(b) Deposited by the public body in an interest bearing account in
a bank, mutual savings bank, or savings and loan association. Interest
on moneys reserved by a public body under the provision of a public
improvement contract shall be paid to the contractor;
(c) Placed in escrow with a bank or trust company by the public
body. When the moneys reserved are placed in escrow, the public body
shall issue a check representing the sum of the moneys reserved payable
to the bank or trust company and the contractor jointly. This check
shall be converted into bonds and securities chosen by the contractor
and approved by the public body and the bonds and securities shall be
held in escrow. Interest on the bonds and securities shall be paid to
the contractor as the interest accrues.
(5) The contractor or subcontractor may withhold payment of not
more than five percent from the moneys earned by any subcontractor or
sub-subcontractor or supplier contracted with by the contractor to
provide labor, materials, or equipment to the public project. Whenever
the contractor or subcontractor reserves funds earned by a
subcontractor or sub-subcontractor or supplier, the contractor or
subcontractor shall pay interest to the subcontractor or sub-subcontractor or supplier at a rate equal to that received by the
contractor or subcontractor from reserved funds.
(6) A contractor may submit a bond for all or any portion of the
contract retainage in a form acceptable to the public body and from a
bonding company meeting standards established by the public body. The
public body shall accept a bond meeting these requirements unless the
public body can demonstrate good cause for refusing to accept it. This
bond and any proceeds therefrom are subject to all claims and liens and
in the same manner and priority as set forth for retained percentages
in this chapter. The public body shall release the bonded portion of
the retained funds to the contractor within thirty days of accepting
the bond from the contractor. Whenever a public body accepts a bond in
lieu of retained funds from a contractor, the contractor shall accept
like bonds from any subcontractors or suppliers from which the
contractor has retained funds. The contractor shall then release the
funds retained from the subcontractor or supplier to the subcontractor
or supplier within thirty days of accepting the bond from the
subcontractor or supplier.
(7) If the public body administering a contract, after a
substantial portion of the work has been completed, finds that an
unreasonable delay will occur in the completion of the remaining
portion of the contract for any reason not the result of a breach
thereof, it may, if the contractor agrees, delete from the contract the
remaining work and accept as final the improvement at the stage of
completion then attained and make payment in proportion to the amount
of the work accomplished and in this case any amounts retained and
accumulated under this section shall be held for a period of sixty days
following the completion. In the event that the work is terminated
before final completion as provided in this section, the public body
may thereafter enter into a new contract with the same contractor to
perform the remaining work or improvement for an amount equal to or
less than the cost of the remaining work as was provided for in the
original contract without advertisement or bid. The provisions of this
chapter are exclusive and shall supersede all provisions and
regulations in conflict herewith.
(8) Whenever the department of transportation has contracted for
the construction of two or more ferry vessels, sixty days after
completion of all contract work on each ferry vessel, the department
must release and pay in full the amounts retained in connection with
the construction of the vessel subject to the provisions of RCW
60.28.020 and chapter 39.12 RCW. However, the department of
transportation may at its discretion condition the release of funds
retained in connection with the completed ferry upon the contractor
delivering a good and sufficient bond with two or more sureties, or
with a surety company, in the amount of the retained funds to be
released to the contractor, conditioned that no taxes shall be
certified or claims filed for work on the ferry after a period of sixty
days following completion of the ferry; and if taxes are certified or
claims filed, recovery may be had on the bond by the department of
revenue and the materialmen and laborers filing claims.
(9) Except as provided in subsection (1) of this section,
reservation by a public body for any purpose from the moneys earned by
a contractor by fulfilling its responsibilities under public
improvement contracts is prohibited.
(10) Contracts on projects funded in whole or in part by farmers
home administration and subject to farmers home administration
regulations are not subject to subsections (1) through (9) of this
section.
(11) This subsection applies only to a public body that has
contracted for the construction of a facility using the general
contractor/construction manager procedure, as defined under RCW
((39.10.061)) 39.10.020 (as recodified by this act). If the work
performed by a subcontractor on the project has been completed within
the first half of the time provided in the general
contractor/construction manager contract for completing the work, the
public body may accept the completion of the subcontract. The public
body must give public notice of this acceptance. After a forty-five
day period for giving notice of liens, and compliance with the
retainage release procedures in RCW 60.28.021, the public body may
release that portion of the retained funds associated with the
subcontract. Claims against the retained funds after the forty-five
day period are not valid.
(12) Unless the context clearly requires otherwise, the definitions
in this subsection apply throughout this section.
(a) "Contract retainage" means an amount reserved by a public body
from the moneys earned by a person under a public improvement contract.
(b) "Person" means a person or persons, mechanic, subcontractor, or
materialperson who performs labor or provides materials for a public
improvement contract, and any other person who supplies the person with
provisions or supplies for the carrying on of a public improvement
contract.
(c) "Public body" means the state, or a county, city, town,
district, board, or other public body.
(d) "Public improvement contract" means a contract for public
improvements or work, other than for professional services, or a work
order as defined in RCW 39.10.020 (as recodified by this act).
Sec. 505 RCW 70.150.070 and 2005 c 469 s 2 are each amended to
read as follows:
RCW 70.150.030 through 70.150.060 shall be deemed to provide an
additional method for the provision of services from and in connection
with facilities and shall be regarded as supplemental and additional to
powers conferred by other state laws and by federal laws. ((A public
body that is also eligible to enter into agreements with service
providers under the alternative public works contracting procedures in
chapter 39.10 RCW may elect to use either RCW 39.10.051 and 39.10.061
or this chapter as its method of procurement for such services.))
NEW SECTION. Sec. 506 A new section is added to chapter 43.131
RCW to read as follows:
The alternative works contracting procedures under chapter 39.10
RCW shall be terminated June 30, 2013, as provided in section 507 of
this act.
NEW SECTION. Sec. 507 A new section is added to chapter 43.131
RCW to read as follows:
The following acts or parts of acts, as now existing or hereafter
amended, are each repealed, effective June 30, 2014:
(1) RCW 39.10.010 (as recodified by this act) and section 1 of this
act & 1994 c 132 s 1;
(2) RCW 39.10.020 (as recodified by this act) and section 101 of
this act & 2005 c 469 s 3;
(3) RCW 39.10.800 (as recodified by this act) and section 102 of
this act & 2005 c 377 s 1;
(4) RCW 39.10.810 (as recodified by this act) and section 103 of
this act & 2005 c 377 s 2;
(5) RCW 39.10.--- and section 104 of this act;
(6) RCW 39.10.--- and section 105 of this act;
(7) RCW 39.10.--- and section 106 of this act;
(8) RCW 39.10.--- and section 107 of this act;
(9) RCW 39.10.--- and section 108 of this act;
(10) RCW 39.10.--- and section 109 of this act;
(11) RCW 39.10.051 (as recodified by this act) and section 201 of
this act, 2003 c 352 s 2, 2003 c 300 s 4, 2002 c 46 s 1, & 2001 c 328
s 2;
(12) RCW 39.10.080 (as recodified by this act) and section 202 of
this act & 1994 c 132 s 8;
(13) RCW 39.10.070 (as recodified by this act) and section 203 of
this act & 1994 c 132 s 7;
(14) RCW 39.10.--- and section 204 of this act;
(15) RCW 39.10.061 (as recodified by this act) and section 301 of
this act, 2003 c 352 s 3, 2003 c 300 s 5, 2002 c 46 s 2, & 2001 c 328
s 3;
(16) RCW 39.10.--- and section 302 of this act;
(17) RCW 39.10.--- and section 303 of this act;
(18) RCW 39.10.--- and section 304 of this act;
(19) RCW 39.10.--- and section 305 of this act;
(20) RCW 39.10.--- and section 306 of this act;
(21) RCW 39.10.--- and section 307 of this act;
(22) RCW 39.10.--- and section 308 of this act;
(23) RCW 39.10.130 (as recodified by this act) and section 401 of
this act & 2003 c 301 s 1;
(24) RCW 39.10.--- and section 402 of this act;
(25) RCW 39.10.--- and section 403 of this act;
(26) RCW 39.10.--- and section 404 of this act;
(27) RCW 39.10.--- and section 405 of this act;
(28) RCW 39.10.100 (as recodified by this act) and 2005 c 274 s 275
& 1994 c 132 s 10;
(29) RCW 39.10.090 (as recodified by this act) and 1994 c 132 s 9;
(30) RCW 39.10.120 (as recodified by this act) and section 501 of
this act & 2001 c 328 s 5;
(31) RCW 39.10.--- and section 502 of this act;
(32) RCW 39.10.--- and section 503 of this act;
(33) RCW 39.10.900 (as recodified by this act) and 1994 c 132 s 13;
(34) RCW 39.10.901 (as recodified by this act) and 1994 c 132 s 14;
and
(35) RCW 39.10.--- and section 510 of this act.
NEW SECTION. Sec. 508 RCW 39.10.902 (Repealer) and 2006 c 261 s
3 & 2005 c 469 s 5 are each repealed.
NEW SECTION. Sec. 509 The following acts or parts of acts are
each repealed:
(1) RCW 39.10.030 (Public notification and review process) and 1997
c 376 s 2 & 1994 c 132 s 3;
(2) RCW 39.10.040 (Baseball stadium project -- Alternative procedure
may be used) and 1994 c 132 s 4;
(3) RCW 39.10.063 (City demonstration projects -- Conditions--Contract deadline) and 2005 c 377 s 3;
(4) RCW 39.10.065 (Demonstration projects--Contract deadline--Transfer of authority to other public body) and 1997 c 376 s 5;
(5) RCW 39.10.067 (School district capital demonstration projects--Conditions) and 2006 c 261 s 1, 2003 c 301 s 3, 2002 c 46 s 3, & 2000
c 209 s 3;
(6) RCW 39.10.068 (Public hospital district capital demonstration
projects -- Conditions) and 2003 c 300 s 6;
(7) RCW 39.10.115 (School district project review board--Established -- Procedures) and 2006 c 261 s 2, 2001 c 328 s 4, & 2000 c
209 s 4; and
(8) RCW 39.10.117 (Public hospital district project review board--Established -- Procedures) and 2003 c 300 s 7.
NEW SECTION. Sec. 510
NEW SECTION. Sec. 511 The following sections are codified or
recodified in chapter 39.10 RCW in the following order:
RCW 39.10.010
RCW 39.10.020
RCW 39.10.800
RCW 39.10.810
Section 104 of this act
Section 105 of this act
Section 106 of this act
Section 107 of this act
Section 108 of this act
Section 109 of this act
RCW 39.10.051
RCW 39.10.080
RCW 39.10.070
Section 204 of this act
RCW 39.10.061
Section 302 of this act
Section 303 of this act
Section 304 of this act
Section 305 of this act
Section 306 of this act
Section 307 of this act
Section 308 of this act
RCW 39.10.130
Section 402 of this act
Section 403 of this act
Section 404 of this act
Section 405 of this act
RCW 39.10.100
RCW 39.10.090
RCW 39.10.120
Section 502 of this act
Section 503 of this act
RCW 39.10.900
RCW 39.10.901
Section 510 of this act
NEW SECTION. Sec. 512 This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the
state government and its existing public institutions, and takes effect
July 1, 2007, except for section 104 of this act, which takes effect
immediately, and section 508 of this act, which takes effect June 30,
2007.
NEW SECTION. Sec. 513 If any provision of this act or its
application to any person or circumstance is held invalid, the
remainder of the act or the application of the provision to other
persons or circumstances is not affected."
2SHB 1506 -
By Committee on Government Operations & Elections
ADOPTED 04/05/2007
On page 1, line 1 of the title, after "works;" strike the remainder of the title and insert "amending RCW 39.10.010, 39.10.020, 39.10.800, 39.10.810, 39.10.080, 39.10.070, 39.10.130, 39.10.120, 60.28.011, and 70.150.070; reenacting and amending RCW 39.10.051 and 39.10.061; adding new sections to chapter 43.131 RCW; adding new sections to chapter 39.10 RCW; recodifying RCW 39.10.010, 39.10.020, 39.10.800, 39.10.810, 39.10.051, 39.10.080, 39.10.070, 39.10.061, 39.10.130, 39.10.100, 39.10.090, 39.10.120, 39.10.900, and 39.10.901; repealing RCW 39.10.902, 39.10.030, 39.10.040, 39.10.063, 39.10.065, 39.10.067, 39.10.068, 39.10.115, and 39.10.117; providing effective dates; and declaring an emergency."