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House
File
564
-
Introduced
HOUSE
FILE
564
BY
BARKER
and
GOSA
A
BILL
FOR
An
Act
relating
to
contracts
for
the
construction
of
public
1
improvements.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
2714YH
(3)
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sc/js
H.F.
564
Section
1.
Section
26.9,
Code
2025,
is
amended
by
adding
the
1
following
new
subsection:
2
NEW
SUBSECTION
.
3.
A
governmental
entity
may
reject
the
3
lowest
responsive
bidder
based
on
the
bidder’s
experience,
4
number
of
employees,
and
ability
to
finance
the
cost
of
the
5
public
improvement.
When
rejecting
the
lowest
responsive
6
bidder,
a
governmental
entity
shall
state
with
specificity
7
the
basis
of
the
rejection.
The
lowest
responsive
bidder
8
shall
have
standing
to
maintain
an
action
for
an
injunction,
9
mandamus,
or
declaratory
relief
challenging
the
governmental
10
entity’s
actions
as
fraudulent,
arbitrary,
in
bad
faith,
or
an
11
abuse
of
discretion.
12
Sec.
2.
Section
26A.2,
Code
2025,
is
amended
to
read
as
13
follows:
14
26A.2
Authorization.
15
Notwithstanding
any
other
law
to
the
contrary,
a
16
governmental
entity
shall
be
authorized
to
enter
into
a
17
guaranteed
maximum
price
contract
for
the
construction
of
a
18
public
improvement
pursuant
to
this
chapter
if
the
estimated
19
cost
of
the
project
exceeds
one
hundred
fifty
million
dollars
.
20
Sec.
3.
Section
26A.3,
subsection
4,
paragraphs
a
and
c,
21
Code
2025,
are
amended
to
read
as
follows:
22
a.
After
considering
the
statements
of
qualifications,
the
23
governmental
entity
shall
issue
a
request
for
proposals
to
each
24
contractor
who
meets
the
qualifications
,
which
shall
include
25
selection
and
evaluation
criteria.
Each
contractor
issued
a
26
request
for
proposals
shall
be
permitted
to
submit
a
proposal
27
and
each
proposal
submitted
shall
include
the
construction
28
manager-at-risk’s
proposed
fees
and
costs,
including
the
29
proposed
costs
for
general
conditions.
The
construction
30
manager-at-risk’s
proposed
fees
and
costs
shall
not
contain
31
any
form
of
contingency
.
The
request
for
proposals
shall
be
32
subject
to
the
requirements
of
section
73A.28
and
the
same
33
limitations
applied
to
selection
criteria
for
the
request
for
34
statements
of
qualifications
in
this
chapter
.
35
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c.
The
governmental
entity
or
its
representative
shall
1
select
the
construction
manager-at-risk
that
submits
the
2
proposal
that
offers
the
best
value
lowest
cost
for
the
3
governmental
entity
based
on
the
published
selection
criteria
4
and
on
its
ranking
evaluation.
The
governmental
entity
5
shall
first
attempt
to
negotiate
a
contract
with
the
selected
6
construction
manager-at-risk.
If
the
governmental
entity
7
is
unable
to
negotiate
a
satisfactory
contract
with
the
8
selected
construction
manager-at-risk,
the
governmental
entity
9
shall,
formally
and
in
writing,
end
negotiations
with
that
10
construction
manager-at-risk
and
proceed
to
negotiate
with
the
11
next
construction
manager-at-risk
in
the
order
of
the
selection
12
ranking
until
a
contract
is
reached
or
negotiations
with
all
13
ranked
construction
managers-at-risk
end.
A
governmental
14
entity
may
reject
the
lowest
cost
construction
manager-at-risk
15
based
on
the
construction
manager-at-risk’s
experience,
number
16
of
employees,
and
ability
to
finance
the
cost
of
the
public
17
improvement.
When
rejecting
the
lowest
cost
construction
18
manager-at-risk,
a
governmental
entity
shall
state
with
19
specificity
the
basis
of
the
rejection.
The
lowest
cost
20
construction
manager-at-risk
shall
have
standing
to
maintain
21
an
action
for
an
injunction,
mandamus,
or
declaratory
relief
22
challenging
the
governmental
entity’s
actions
as
fraudulent,
23
arbitrary,
in
bad
faith,
or
an
abuse
of
discretion.
24
Sec.
4.
Section
26A.3,
subsection
5,
paragraph
a,
25
unnumbered
paragraph
1,
Code
2025,
is
amended
to
read
as
26
follows:
27
If
the
estimated
total
cost
of
trade
contract
work
and
28
materials
packages
is
in
excess
of
the
adjusted
competitive
29
bid
threshold
established
in
section
314.1B
,
the
construction
30
manager-at-risk
shall
direct
the
designated
licensed
31
engineer,
architect,
or
landscape
architect
to
prepare
plans
32
and
specifications
and
make
the
plans
and
specifications
33
available.
The
construction
manager-at-risk
shall
advertise
34
for
competitive
bids,
receive
bids,
prepare
bid
analyses,
and
35
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award
contracts
to
qualified
firms
on
trade
contract
work
and
1
materials
packages
in
accordance
with
all
of
the
following:
2
Sec.
5.
Section
26A.3,
subsection
5,
paragraph
a,
3
subparagraphs
(3)
and
(4),
Code
2025,
are
amended
to
read
as
4
follows:
5
(3)
The
governmental
entity
and
the
construction
6
manager-at-risk
shall
participate
in
the
bid
review
and
7
evaluation
process.
The
governmental
entity
and
the
8
construction
manager-at-risk
shall
open,
announce
the
name
9
of
the
contractor
submitting
a
bid,
and
file
all
proposals
10
received,
at
the
time
and
place
specified
in
the
notice
to
11
bidders.
All
bids
containing
contingent
amounts
shall
be
12
rejected.
After
the
bids
have
been
opened,
reviewed,
and
13
tabulated,
the
contracts
shall
be
awarded
to
the
lowest
14
responsive,
responsible
bidder.
All
awards
and
bids
shall
be
15
made
available
to
the
public.
16
(4)
Notwithstanding
any
other
provisions
of
this
paragraph
17
to
the
contrary,
the
construction
manager-at-risk
may
18
self-perform
work
for
a
trade
package
that
is
below
the
19
adjusted
competitive
bid
threshold
established
in
section
20
314.1B
.
If
a
trade
package
is
in
excess
of
the
adjusted
21
competitive
bid
threshold
established
in
section
314.1B
,
the
22
construction
manager-at-risk
shall
notify
the
governmental
23
entity
in
writing
of
its
intent
to
submit
a
bid
proposal
for
24
a
trade
package.
In
submission
of
a
bid,
the
construction
25
manager-at-risk
shall
comply
with
the
requirements
of
this
26
paragraph.
The
governmental
entity
shall
receive
the
bids,
27
participate
in,
and
provide
oversight
of
all
bid
analyses
28
pertinent
to
the
award
of
subcontracts
or
rejection
of
bids
on
29
any
trade
package
for
which
the
construction
manager-at-risk
30
submits
a
bid
to
self-perform.
Where
the
construction
31
manager-at-risk
is
not
the
apparent
low
bidder,
the
government
32
shall
be
responsible
for
determining
whether
a
recommendation
33
of
award
to
the
construction
manager-at-risk
is
in
the
best
34
interests
of
the
project.
A
construction
manager-at-risk
shall
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not
be
required
to
comply
with
bidding
requirements
for
general
1
conditions
as
provided
in
the
contract
with
the
governmental
2
entity.
If
the
construction
manager-at-risk
self-performs
3
the
construction
work,
it
shall
adhere
to
any
agreement
it
4
may
have
with
one
or
more
labor
organizations.
However,
the
5
construction
manager-at-risk
shall
not
be
obligated
to
adhere
6
to
any
terms
and
conditions
of
any
labor
agreement
with
one
or
7
more
labor
organizations
for
those
trade
contracts
that
are
8
not
self-performed
by
the
construction
manager-at-risk
for
the
9
public
improvement,
and
such
terms
shall
be
deemed
void
and
10
unenforceable.
11
EXPLANATION
12
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
13
the
explanation’s
substance
by
the
members
of
the
general
assembly.
14
This
bill
relates
to
contracts
for
the
construction
of
a
15
public
improvement.
16
The
bill
allows
a
governmental
entity
to
reject
the
lowest
17
responsive
bidder
for
the
construction
of
a
public
improvement
18
under
Code
chapter
26
or
the
lowest
cost
construction
19
manager-at-risk
for
a
guaranteed
maximum
price
contract
20
under
Code
chapter
26A
due
to
the
bidder’s
or
construction
21
manager-at-risk’s
experience,
number
of
employees,
or
ability
22
to
finance
the
cost
of
the
public
improvement.
A
rejected
23
bidder
or
construction
manager-at-risk
may
maintain
an
action
24
against
the
governmental
entity,
challenging
the
governmental
25
entity’s
action
as
fraudulent,
arbitrary,
in
bad
faith,
or
an
26
abuse
of
discretion.
27
Under
current
law,
a
governmental
entity
is
authorized
28
to
enter
into
a
guaranteed
maximum
price
contract
for
the
29
construction
of
a
public
improvement.
The
bill
allows
a
30
governmental
entity
to
enter
into
such
a
contract
only
if
the
31
estimated
cost
of
the
project
exceeds
$150
million.
32
The
bill
requires
each
proposal
submitted
by
a
construction
33
manager-at-risk
to
include
the
proposed
costs
for
general
34
conditions.
The
proposed
fees
and
costs
may
not
contain
a
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contingency.
A
bid
containing
a
contingent
amount
must
be
1
rejected.
2
The
bill
provides
that
a
governmental
entity
or
3
representative
must
select
the
construction
manager-at-risk
4
that
submits
the
lowest
cost
proposal,
based
on
the
published
5
selection
criteria
and
its
ranking
evaluation,
rather
than
6
the
proposal
that
offers
the
best
value.
The
bill
strikes
7
a
requirement
that
the
governmental
entity
consider
whether
8
awarding
a
contract
to
the
construction
manager-at-risk
who
was
9
not
the
apparent
lowest
bidder
is
in
the
best
interest
of
the
10
project.
11
If
the
estimated
cost
of
trade
contract
work
and
materials
12
packages
exceeds
the
adjusted
competitive
bid
threshold,
the
13
bill
requires
the
construction
manager-at-risk
to
direct
the
14
designated
licensed
engineer,
architect,
or
landscape
architect
15
to
prepare
and
make
available
plans
and
specifications
for
the
16
public
improvement
project.
17
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