Senate Bill sb2376c2

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    Florida Senate - 2007                    CS for CS for SB 2376

    By the Committees on Governmental Operations; Regulated
    Industries; and Senator Saunders




    585-2673-07

  1                      A bill to be entitled

  2         An act relating to public project construction

  3         bonds; amending s. 255.05, F.S.; providing that

  4         the amount of a bond shall equal the contract

  5         price except under certain conditions;

  6         providing that a bond may not be conditioned on

  7         the performance of design or nonconstruction

  8         services if such services are not included in

  9         the bond amount; creating s. 255.103, F.S.;

10         providing a definition; authorizing local

11         governments to select construction-management

12         or program-management entities to be

13         responsible for certain construction project

14         activities; providing requirements and

15         authority for such entities; amending s.

16         287.055, F.S.; revising provisions relating to

17         the award of design-build contracts for

18         surveying or mapping services by certain

19         governmental entities; providing an effective

20         date.

21  

22  Be It Enacted by the Legislature of the State of Florida:

23  

24         Section 1.  Paragraph (c) is added to subsection (1) of

25  section 255.05, Florida Statutes, to read:

26         255.05  Bond of contractor constructing public

27  buildings; form; action by materialmen.--

28         (1)

29         (c)1.  The amount of the bond shall equal the contract

30  price, except that for a contract in excess of $250 million,

31  if the state, county, municipality, political subdivision, or

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    Florida Senate - 2007                    CS for CS for SB 2376
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 1  other public entity finds that a bond in the amount of the

 2  contract price is not reasonably available, the public owner

 3  shall set the amount of the bond at the largest amount

 4  reasonably available, but not less than $250 million.

 5         2.  For a construction-management or design-build

 6  contracts, if the public owner does not include in the bond

 7  amount the cost of design or other nonconstruction services,

 8  the bond may not be conditioned on performance of such

 9  services or payment to persons furnishing such services.

10  Notwithstanding paragraph (a), such a bond may exclude persons

11  furnishing such services from the classes of persons protected

12  by the bond.

13         Section 2.  Section 255.103, Florida Statutes, is

14  created to read:

15         255.103  Construction management or program management

16  entities.--

17         (1)  "As used in this section, the term "local

18  government" means a county, municipality, special district as

19  defined in chapter 189, or other political subdivision of the

20  state.

21         (2)  A local government may select a construction

22  management entity, pursuant to the process provided by s.

23  287.055, which is to be responsible for construction project

24  scheduling and coordination in both preconstruction and

25  construction phases and generally responsible for the

26  successful, timely, and economical completion of the

27  construction project. The construction management entity must

28  consist of or contract with licensed or registered

29  professionals for the specific fields or areas of construction

30  to be performed, as required by law. The construction

31  management entity may retain necessary design professionals

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    Florida Senate - 2007                    CS for CS for SB 2376
    585-2673-07




 1  selected under the process provided in s. 287.055. At the

 2  option of the local government, the construction management

 3  entity, after having been selected and after competitive

 4  negotiations, may be required to offer a guaranteed maximum

 5  price and a guaranteed completion date or a lump-sum price and

 6  a guaranteed completion date, in which case, the construction

 7  management entity must secure an appropriate surety bond

 8  pursuant to s. 255.05 and must hold construction subcontracts.

 9  If a project, as defined in s. 287.055(2)(f), solicited by a

10  local government under the process provided in s. 287.055

11  includes a grouping of substantially similar construction,

12  rehabilitation, or renovation activities as permitted under s.

13  287.055(2)(f), the local government, after competitive

14  negotiations, may require the construction management entity

15  to provide for a separate guaranteed maximum price or a

16  separate lump-sum price and a separate guaranteed completion

17  date for each grouping of substantially similar construction,

18  rehabilitation, or renovation activities included within the

19  project.

20         (3)  A local government may select a program management

21  entity, pursuant to the process provided by s. 287.055, which

22  is to be responsible for schedule control, cost control, and

23  coordination in providing or procuring planning, design, and

24  construction services. The program management entity must

25  consist of or contract with licensed or registered

26  professionals for the specific areas of design or construction

27  to be performed as required by law. The program management

28  entity may retain necessary design professionals selected

29  under the process provided in s. 287.055. At the option of the

30  local government, the program management entity, after having

31  been selected and after competitive negotiations, may be

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    Florida Senate - 2007                    CS for CS for SB 2376
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 1  required to offer a guaranteed maximum price and a guaranteed

 2  completion date or a lump-sum price and guaranteed completion

 3  date, in which case the program management entity must secure

 4  an appropriate surety bond pursuant to s. 255.05 and must hold

 5  design and construction subcontracts. If a project, as defined

 6  in s. 287.055(2)(f), solicited by a local government under the

 7  process provided in s. 287.055 includes a grouping of

 8  substantially similar construction, rehabilitation, or

 9  renovation activities as permitted under s. 287.055(2)(f), the

10  local government, after competitive negotiations, may require

11  the program management entity to provide for a separate

12  guaranteed maximum price or a lump-sum price and a separate

13  guaranteed completion date for each grouping of substantially

14  similar construction, rehabilitation, or renovation activities

15  included within the project.

16         (4)  This section does not prohibit a local government

17  from procuring construction management services, including the

18  services of a program management entity, pursuant to the

19  requirements of s. 255.20.

20         Section 3.  Paragraph (c) of subsection (9) of section

21  287.055, Florida Statutes, is amended to read:

22         287.055  Acquisition of professional architectural,

23  engineering, landscape architectural, or surveying and mapping

24  services; definitions; procedures; contingent fees prohibited;

25  penalties.--

26         (9)  APPLICABILITY TO DESIGN-BUILD CONTRACTS.--

27         (c)  Except as otherwise provided in s. 337.11(7), the

28  Department of Management Services shall adopt rules for the

29  award of design-build contracts to be followed by state

30  agencies.  Each other agency must adopt rules or ordinances

31  for the award of design-build contracts. Municipalities,

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    Florida Senate - 2007                    CS for CS for SB 2376
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 1  political subdivisions, school districts, and school boards

 2  shall award design-build contracts by the use of a competitive

 3  proposal selection process as described in this subsection, or

 4  by the use of a qualifications-based selection process

 5  pursuant to subsections (3), (4), and (5) for entering into a

 6  contract whereby the selected firm will, subsequent to

 7  competitive negotiations, subsequently establish a guaranteed

 8  maximum price and guaranteed completion date. If the procuring

 9  agency elects the option of qualifications-based selection,

10  during the selection of the design-build firm the procuring

11  agency shall employ or retain a licensed design professional

12  appropriate to the project to serve as the agency's

13  representative. Procedures for the use of a competitive

14  proposal selection process must include as a minimum the

15  following:

16         1.  The preparation of a design criteria package for

17  the design and construction of the public construction

18  project.

19         2.  The qualification and selection of no fewer than

20  three design-build firms as the most qualified, based on the

21  qualifications, availability, and past work of the firms,

22  including the partners or members thereof.

23         3.  The criteria, procedures, and standards for the

24  evaluation of design-build contract proposals or bids, based

25  on price, technical, and design aspects of the public

26  construction project, weighted for the project.

27         4.  The solicitation of competitive proposals, pursuant

28  to a design criteria package, from those qualified

29  design-build firms and the evaluation of the responses or bids

30  submitted by those firms based on the evaluation criteria and

31  

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    Florida Senate - 2007                    CS for CS for SB 2376
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 1  procedures established prior to the solicitation of

 2  competitive proposals.

 3         5.  For consultation with the employed or retained

 4  design criteria professional concerning the evaluation of the

 5  responses or bids submitted by the design-build firms, the

 6  supervision or approval by the agency of the detailed working

 7  drawings of the project; and for evaluation of the compliance

 8  of the project construction with the design criteria package

 9  by the design criteria professional.

10         6.  In the case of public emergencies, for the agency

11  head to declare an emergency and authorize negotiations with

12  the best qualified design-build firm available at that time.

13         Section 4.  This act shall take effect July 1, 2007.

14  

15          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
16                          CS for SB 2376

17                                 

18  Allows a local government to use a construction management or
    program management entity for construction projects, and
19  requires that they be procured pursuant to the Consultants'
    Competitive Negotiation Act (CCNA).
20  
    Modifies the CCNA to clarify that contracts for award of
21  design-build contracts must, subsequent to competitive
    negotiations, establish a guaranteed maximum price and
22  guaranteed completion date.

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24  

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30  

31  

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