Bill Summary for H 857 (2013-2014)

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Summary date: 

May 13 2013

Bill Information:

View NCGA Bill Details2013-2014 Session
House Bill 857 (Public) Filed Thursday, April 11, 2013
Intro. by Arp, Bryan, Moffitt, Hager.

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Bill summary

House committee substitute makes the following changes to the 1st edition.

Changes the long title.

Amends GS 143-64.31, providing that, for purposes of this Article, the definitions in GS 143-138.1B and GS 143-128.1C apply. Makes an organizational change.

Amends GS 143-64.32, establishing that projects with an estimated professional fee of less than $50,000 (was $30,000) can be exempt from the provisions of this Article.

Amends GS 143-128(a1), adding a new subsection, expanding the list of authorized construction methods for which the state, a county, a municipality, or other public body must award contracts to erect, construct, alter, or repair buildings to include design-build bridging contracts pursuant to GS 143-128.1B. Makes a technical change.

Amends GS 143-128.1A, making technical and conforming changes. Provides that a governmental entity must establish in writing the criteria for determining when the design-build method is appropriate. Enumerates criteria for determining an appropriate design-build method, including a new criteria requiring a good faith effort to comply with specified provisions and to recruit and select small business entities. Makes a technical deletion. Deletes clause stating that the purpose of requiring a public notice of information for government projects is for fair and open competition. Makes organizational changes. Deletes the requirement that a government entity must provide the state construction office with a copy of the public notice before or when it is issued.  Makes various changes to the design-build evaluation and selection process.

Enacts new GS 143-128.1B, entitled Design-Build bridging contracts, providing the definitions for use in the section, including design-build bridging, design-builder, design criteria, design professional, first tier subcontractor, and governmental entity. Requires a governmental entity to establish in writing the criteria used for determining when it is appropriate to use a design criteria design professional for certain projects. Sets outs the minimum requirements for what the criteria must address, including any time constraints for the delivery of the project and the ability to ensure that a quality project can be delivered. Requires a governmental entity to select a design professional, prior to entering into a contract for design-build services, to serve as its representative for the procurement process. Sets out the duties and responsibilities of the design criteria design professional, including preparing a design criteria package equal to 35% of the completed design documentation. Sets out the other required parts of the design criteria package. Requires a public notice of the request for proposals and sets out 10 items of general information that must be included in the notice, including the project site and the project scope. Sets out further design-build contractor selection requirements.

Enacts new GS 143-128.1C, Public-private partnership construction contracts, which was previously included in the 1st edition as GS 143-128.1B, with technical, clarifying, and conforming changes. Adds and defines the terms state entity and state supported financing arrangement. Provides that a governmental entity, that is a public body, must determine that it has a critical need for a capital improvement project (CIP) in an open meeting of that public body. Also requires development contracts to specify the responsibility to put forth a good faith effort to comply with specified provisions regarding minority and small business entities. Specifies bonding requirements, including requiring a payment bond in the amount of 100% (was 125%) of the total anticipated amount of the construction contracts to be entered into between the private developer and the contractors to design or contract the required improvements. Provides that if a payment bond is obtained for a development contract and maintained throughout the public-private project, then the provisions of Article 2 of Chapter 44A will not apply to that public-private project.

Provides new provisions requiring a governmental entity to make a summary of the development contract terms available, with directions on how to obtain or access the complete development contract. Also sets out requirements for the approval and requirements of capital and operating leases. Establishes exceptions to the applicability of this section.

Amends GS 143-128.1, Construction management at risk contracts, incorporating good faith effort requirements for minority business participation and small business solicitation requirements into the section.

Provides that this act is effective October 1, 2013, and applies to projects bid on or after that date, and public-private development contracts entered into on or after that date. This act expires on July 1, 2019.