Session of 1998
HOUSE BILL No. 3010
By Committee on Appropriations
3-12
9
AN ACT concerning construction management
services for public works
10 projects of state
agencies and local governments; prescribing certain
11 procurement
procedures; amending K.S.A. 75-1265 and repealing the
12 existing section.
13
14 Be it enacted by the Legislature of the
State of Kansas:
15 New Section 1. (a)
In accordance with the provisions of this section,
16 each public agency may enter into contracts
for construction management
17 services when planning, designing or
constructing a public works project.
18 Construction management services may be
used by the public agency in
19 the preconstruction phase of a public works
project, in the construction
20 phase of a public works project, or in both
such phases of a public works
21 project.
22 (b) When a public agency
determines that a public works project
23 should be undertaken for the public agency
with a negotiated contract
24 for construction management services, the
public agency shall advertise
25 and solicit proposals for the public works
project from construction man-
26 agers in the following manner:
27 (1) If the total
estimated cost for the public works project exceeds
28 $500,000, the public agency shall request
and solicit proposals by adver-
29 tising for 10 days in one newspaper of
general circulation in the county
30 where the construction phase of the public
works project is to be con-
31 ducted; and
32 (2) if the total
estimated cost for the public works project exceeds
33 $1,000,000, the public agency shall request
and solicit proposals by ad-
34 vertising for 10 days in two daily
newspapers publishing in Kansas which
35 have a daily circulation of at least 50,000
copies and in one newspaper of
36 general circulation in the county where the
construction phase of the
37 public works project is to be
conducted.
38 (c) Except as otherwise
provided by this section, the requests for
39 proposals for construction management
services shall not be restricted to
40 proposals submitted by particular technical
or construction professionals
41 or professions and shall be open to all
construction managers complying
42 with the terms upon which the proposals are
requested. The public
43 agency shall consider the following factors
when selecting a construction
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1 manager for a public works project
under this section:
2 (1) Fees for
overhead and profit;
3 (2) reimbursable
costs for reimbursable items as defined in the re-
4 quest for proposals;
5 (3) qualifications
of the construction manager to perform the con-
6 struction management services
required for the specific public works pro-
7 ject;
8 (4) demonstration
of ability to perform the construction management
9 services required for public works
projects that are comparable in design,
10 scope and complexity;
11 (5) demonstration of
good faith efforts to achieve compliance with
12 federal, state and local affirmative action
requirements;
13 (6) references of
previous public agencies and private entities for
14 which construction management services have
been performed;
15 (7) financial
strength;
16 (8) qualifications of
in-house personnel who will perform the con-
17 struction management services required for
the specific public works pro-
18 ject; and
19 (9) demonstration of
successful management and other systems
20 which have been employed for the purposes
of estimating, scheduling
21 and controlling costs for projects.
22 (d) Upon selecting a
construction manager to perform the construc-
23 tion management services required for the
public works project, the pub-
24 lic agency may negotiate a contract for
such construction management
25 services. If the public agency is unable to
negotiate a contract with any
26 of the construction managers submitting
proposals to perform the re-
27 quired construction management services for
a price determined by the
28 public agency to be fair and reasonable,
the public agency shall reevaluate
29 the required construction management
services for the public works pro-
30 ject, including the scope and reasonable
fee requirements, and shall pro-
31 ceed to advertise and solicit proposals for
the public works project under
32 the terms of the revised request for
proposals in accordance with this
33 section.
34 (e) Upon entering into a
contract with a public agency to perform
35 construction management services for a
public works project, the con-
36 struction manager shall furnish skill and
judgment in cooperation with
37 and reliance upon the services of the
project architect or engineer for the
38 public works project. The construction
manager shall furnish business
39 administration, management of the
construction process and other spec-
40 ified services to the public agency, as
prescribed by the contract for con-
41 struction management services, in an
expeditious and economical manner
42 consistent with the interests of the public
agency. If it is determined by
43 the public agency to be in the public
interest, the construction manager
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1 may perform basic services for which
reimbursement is provided in the
2 general conditions of the contract
with a public agency to perform con-
3 struction management services. The
construction manager shall not bid
4 to perform or perform any of the
actual construction work on a public
5 works project for which the
construction manager is serving as the con-
6 struction manager. No construction
company which controls, is controlled
7 by, or shares common ownership or
control with the construction man-
8 ager for a specific public works
project shall bid to perform or perform
9 any of the actual construction work
on such public works project. The
10 actual construction work on a public works
project shall be awarded pur-
11 suant to competitive bidding or as
otherwise authorized by law for such
12 public works project and shall be performed
at the direction of the con-
13 struction manager unless otherwise provided
in the construction man-
14 ager's contract with the public agency.
15 (f) (1) No contract
for construction management services for a public
16 works project shall be awarded to or
entered into by a public agency on
17 a negotiated basis as provided by this
section if the construction manager,
18 or any business entity that controls, is
controlled by or shares common
19 ownership or control with the construction
manager:
20 (A) Guarantees, warrants
or otherwise assumes financial responsibil-
21 ity for the work of any other entity
performing work or services on the
22 public works project;
23 (B) provides the public
agency with a guaranteed maximum price for
24 the work of any other entity performing
work or services on the public
25 works project; or
26 (C) furnishes or
guarantees any performance or payment bond for
27 any other entity performing work or
services on the public works project.
28 (2) In any such case,
the contract for construction management serv-
29 ices for such public works project shall be
let and entered into pursuant
30 to competitive bidding procedures that
apply to the contracts for con-
31 struction work on public works projects for
the public agency.
32 (g) As used in this
section:
33 (1) ``Construction
management services'' means:
34 (A) Services provided in
the planning and design phases of a public
35 works project including, but not limited
to, (i) consulting with, advising,
36 assisting and making recommendations to the
public agency and architect,
37 engineer or registered landscape architect
on all aspects of planning for
38 the public works project construction, (ii)
reviewing all plans and speci-
39 fications as they are being developed and
making recommendations with
40 respect to construction feasibility,
availability of material and labor, time
41 requirements for procurement and
construction, and projected costs, (iii)
42 making, reviewing and refining budget
estimates based on the public
43 agency's program for the public works
project and other available infor-
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4
1 mation, (iv) making recommendations
to the public agency and the ar-
2 chitect or engineer regarding the
division of work in the plans and spec-
3 ifications to facilitate the bidding
and awarding of contracts, (v) soliciting
4 the interest of capable contractors
and assisting the public agency in tak-
5 ing bids on the public works project,
(vi) analyzing the bids received and
6 awarding contracts, and (vii)
preparing and monitoring a progress sched-
7 ule during the design phase of the
public works project and preparation
8 of a proposed construction schedule;
and
9 (B) services
provided in the construction phase of a public works
10 project including, but not limited to, (i)
maintaining competent supervi-
11 sory staff to coordinate and provide
general direction of the work and
12 progress of the contractors on the public
works project, (ii) observing the
13 work as it is being performed for general
conformance with working draw-
14 ings and specifications, (iii) establishing
procedures for coordinating
15 among the public agency, architect or
engineer, contractors and construc-
16 tion manager with respect to all aspects of
the public works project and
17 implementing such procedures, (iv)
maintaining job site records and mak-
18 ing appropriate progress reports, (v)
implementing labor policy in con-
19 formance with the requirements of the
public agency, (vi) reviewing the
20 safety and equal opportunity programs of
each contractor for conform-
21 ance with the public agency's policy and
making recommendations there-
22 for, (vii) reviewing and processing all
applications for payment by involved
23 contractors and material suppliers in
accordance with the terms of the
24 contract, (viii) making recommendations for
and processing requests for
25 changes in the work and maintaining records
of change orders, (ix) sched-
26 uling and conducting job meetings to ensure
orderly progress of the work,
27 (x) developing and monitoring a project
progress schedule, coordinating
28 and expediting the work of all contractors
and providing periodic status
29 reports to the public agency and the
architect or engineer, and (xi) estab-
30 lishing and maintaining a cost control
system and conducting meetings to
31 review costs;
32 (2) ``construction
manager'' means any person providing construction
33 management services for a public
agency;
34 (3) ``public agency''
means, in the case of a local government, the
35 governing body of the local government and,
in the case of a state agency,
36 means the governing body if there is one
and the chief administrative
37 officer if there is no governing body of
the state agency;
38 (4) ``public works
project'' means any capital improvement project
39 for the erection or construction of any
building or structure or for the
40 improvement, alteration or repair of any
building or structure;
41 (5) ``local government''
means any county, township, city, municipal
42 university, school district, community
college, drainage district and any
43 other special district, taxing district or
political subdivision of Kansas that
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1 is supported by tax funds; and
2 (6) ``state
agency'' means any state office or officer, department,
3 board, commission, institution,
bureau or any agency, division or unit
4 within any office, department, board,
commission or other state authority
5 within any branch of state
government.
6
Sec. 2. K.S.A. 75-1265 is hereby amended to read as
follows: 75-
7 1265. Whenever the
negotiating committee and the secretary of admin-
8 istration, with the advice of
the state building advisory commission, agree
9 the chief administrative officer
of a state agency, with regard to a specific
10 project for the state agency,
determines that the best interests of the state
11 would be served, the negotiating
committee state agency is hereby au-
12 thorized to solicit proposals for and to
negotiate and may enter into a
13 contract with any qualified company or
person for construction manage-
14 ment services for such project in
accordance with the provisions of section
15 1 and amendments thereto.
Such services may include: Detail cost esti-
16 mating, critical path method
scheduling and monitoring, drafting contract
17 documents for necessary phasing and
grouping, drafting contracts and
18 change orders, full-time inspection
and checking and approving shop
19 drawings, color schedules, and
materials. The fee for construction man-
20 agement services under this
section for a state agency shall be negotiated
21 by the negotiating committee but
shall not exceed one percent (1%) of
22 the estimated cost of the
project, state agency and such fees shall be in
23 addition to fees authorized under K.S.A.
75-1263, and amendments
24 thereto. Any contracts negotiated and
entered into under section 1 and
25 amendments thereto for a state agency
for construction management serv-
26 ices shall be exempt from the provisions
of K.S.A. 75-3739, 75-3740, 75-
27 3740a, 75-3741, 75-3741a, 75-3741b,
75-3742, 75-3743 and 75-3744 and
28 amendments thereto.
29 Sec. 3. K.S.A.
75-1265 is hereby repealed.
30 Sec. 4. This act
shall take effect and be in force from and after its
31 publication in the statute book.
32