BILL REQ. #:  H-1007.2 

Read first time 01/27/09.   Referred to Committee on State Government & Tribal Affairs.

     AN ACT Relating to authorizing alternative public works contracting procedures; amending RCW 28B.20.140, 39.10.200, 39.10.230, 39.10.210, and 43.131.408; and creating a new section.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   The establishment of alternative public works contracting procedures authorized for use by public bodies has been a complex, controversial, and challenging undertaking, but it has been successful. The key to the successful adoption and consideration of these procedures has depended, in great part, on the review and oversight mechanisms put in place by the legislature in chapter 39.10 RCW, as well as the countless hours of dedicated work by numerous stakeholders over many years. It is the intent of the legislature to clarify that, unless otherwise specifically provided for in law, public bodies that want to use an alternative public works contracting procedure may use only those procedures either specifically authorized in chapter 39.10 RCW, subject to the requirements of chapter 39.10 RCW, or those approved for use on a demonstration project by the capital projects advisory review board established under chapter 39.10 RCW.

Sec. 2   RCW 28B.20.140 and 1969 ex.s. c 223 s 28B.20.140 are each amended to read as follows:
     (1) The board of regents shall enter into such contracts with one or more contractors for the erection and construction of university buildings or improvements thereto as in their judgment shall be deemed for the best interest of the university; subject to subsections (2) and (3) of this section, such contract or contracts shall be let after public notice and under such regulations as shall be established by said board or as otherwise provided by law to the person or persons able to perform the same on the most advantageous terms: PROVIDED, That in all cases said board shall require from contractors a good and sufficient bond for the faithful performance of the work, and the full protection of the state against mechanics' and other liens: AND PROVIDED FURTHER, That the board shall not have the power to enter into any contract for the erection of any buildings or improvements which shall bind said board to pay out any sum of money in excess of the amount provided for said purpose.
     (2) The board must comply with the requirements of chapter 39.10 RCW when using any alternative contracting procedure authorized pursuant to chapter 39.10 RCW.
     (3) Prior to adoption of any alternative public works contracting procedure not authorized in chapter 39.10 RCW, the board must submit the proposed contracting procedure to the capital projects advisory review board established under chapter 39.10 RCW for evaluation and approval pursuant to RCW 39.10.230. Final adoption and use of any alternative public works contracting procedure is contingent on approval by the capital projects advisory review board.

Sec. 3   RCW 39.10.200 and 2007 c 494 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, 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. It is the intent of the legislature to establish that, unless otherwise specifically provided for in law, public bodies may use only those alternative public works contracting procedures either specifically authorized in this chapter, subject to the requirements of this chapter, or those approved for use on a demonstration project by the capital projects advisory review board.

Sec. 4   RCW 39.10.230 and 2007 c 494 s 103 are each amended to read as follows:
     The board has the following powers and duties:
     (1) 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) Evaluate the use of existing contracting procedures ((and potential future use of));
     (3) Evaluate other alternative contracting procedures, including competitive negotiation contracts, for: (a) Potential future use; and (b) approval to use as a demonstration project;
     (4) Submit a report to the appropriate committees of the legislature evaluating any alternative contracting procedure that is not authorized under this chapter and has been submitted to the board for its review or approval. The report must:
     (a) Include a recommendation regarding use of the alternative contracting procedure by other public bodies; and
     (b) Be submitted by December of the next regular legislative session following completion of the evaluation;
     (((3))) (5) Appoint members of the committee; and
     (((4))) (6) Develop and administer questionnaires designed to provide quantitative and qualitative data on alternative public works contracting procedures on which evaluations are based.

Sec. 5   RCW 39.10.210 and 2007 c 494 s 101 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, general contractor/construction manager, and job order contracting procedures authorized in RCW 39.10.300, 39.10.340, and 39.10.420, respectively. It also means other contracting procedures submitted to the board under RCW 39.10.230 for approval to use as a demonstration project.
     (2) "Board" means the capital projects advisory review board.
     (3) "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 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.
     (8) "Job order contractor" means a registered or licensed contractor awarded a job order contract.
     (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 RCW 39.10.270.
     (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.
     (17) "Work order" means an order issued for a definite scope of work to be performed pursuant to a job order contract.

Sec. 6   RCW 43.131.408 and 2007 c 494 s 507 are each amended 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 39.10.200 and section 3 of this act, 2007 c 494 § 1, & 1994 c 132 § 1;
     (2) RCW 39.10.210 and section 5 of this act, 2007 c 494 § 101, & 2005 c 469 § 3;
     (3) RCW 39.10.220 and 2007 c 494 § 102 & 2005 c 377 § 1;
     (4) RCW 39.10.230 and section 4 of this act, 2007 c 494 § 103, & 2005 c 377 § 2;
     (5) RCW 39.10.240 and 2007 c 494 § 104;
     (6) RCW 39.10.250 and 2007 c 494 § 105;
     (7) RCW 39.10.260 and 2007 c 494 § 106;
     (8) RCW 39.10.270 and 2007 c 494 § 107;
     (9) RCW 39.10.280 and 2007 c 494 § 108;
     (10) RCW 39.10.290 and 2007 c 494 § 109;
     (11) RCW 39.10.300 and 2007 c 494 § 201, 2003 c 352 § 2, 2003 c 300 § 4, 2002 c 46 § 1, & 2001 c 328 § 2;
     (12) RCW 39.10.310 and 2007 c 494 § 202 & 1994 c 132 § 8;
     (13) RCW 39.10.320 and 2007 c 494 § 203 & 1994 c 132 § 7;
     (14) RCW 39.10.330 and 2007 c 494 § 204;
     (15) RCW 39.10.340 and 2007 c 494 § 301, 2003 c 352 § 3, 2003 c 300 § 5, 2002 c 46 § 2, & 2001 c 328 § 3;
     (16) RCW 39.10.350 and 2007 c 494 § 302;
     (17) RCW 39.10.360 and 2007 c 494 § 303;
     (18) RCW 39.10.370 and 2007 c 494 § 304;
     (19) RCW 39.10.380 and 2007 c 494 § 305;
     (20) RCW 39.10.390 and 2007 c 494 § 306;
     (21) RCW 39.10.400 and 2007 c 494 § 307;
     (22) RCW 39.10.410 and 2007 c 494 § 308;
     (23) RCW 39.10.420 and 2007 c 494 § 401 & 2003 c 301 § 1;
     (24) RCW 39.10.430 and 2007 c 494 § 402;
     (25) RCW 39.10.440 and 2007 c 494 § 403;
     (26) RCW 39.10.450 and 2007 c 494 § 404;
     (27) RCW 39.10.460 and 2007 c 494 § 405;
     (28) RCW 39.10.470 and 2005 c 274 § 275 & 1994 c 132 § 10;
     (29) RCW 39.10.480 and 1994 c 132 § 9;
     (30) RCW 39.10.490 and 2007 c 494 § 501 & 2001 c 328 § 5;
     (31) RCW 39.10.500 and 2007 c 494 § 502;
     (32) RCW 39.10.510 and 2007 c 494 § 503;
     (33) RCW 39.10.900 and 1994 c 132 § 13;
     (34) RCW 39.10.901 and 1994 c 132 § 14; and
     (35) RCW 39.10.903 and 2007 c 494 § 510.