Bill changes GC/CM for heavy civil projects

HB 2208 is legislation that would specifically allow changes to the current self-performance limitations and allow for part of the project to be negotiated when a project is “heavy civil” in nature. The bill changes the current 30 percent limit on negotiated work to 50%.

The Capital Projects Review Committee (CPARB) reviews alternative public works contracting procedures and provides guidance to state policy makers to enhance the quality efficiency and accountability of public works contracting methods. In December 2013 CPARB endorsed the recommendations of its Heavy Civil Task Force and HB 2208 is the result. Several AGC members are on CPARB or served on the task force and AGC supports the bill.

HB 2208 includes these changes to current GC/CM statutes:

• The definition of Heavy Civil Construction Project means a civil engineering project the predominant features of which are infrastructure improvements;

• Public bodies certified to use the GC/CM process do not need to obtain project approval to use the Heavy Civil GC/CM process;

• The five criteria (RCW 39.10.340) for a certified body to use the process have been expanded to six to include Heavy Civil. A project must meet one of the six criteria in order to qualify for GC/CM use;

• The public body and Heavy Civil GC/CM may negotiate the scopes of work to be procured;

The negotiated self-perform portion of the project shall not exceed 50% of the cost of the work to construct the project. Currently the value of subcontract work performed by a GC/CM may not exceed 30% of the negotiated maximum allowable construction cost (MACC).
At least 30% of the work to construct the project shall be procured through competitive sealed bidding in which bidding by the GC/CM and/or its subsidiaries is prohibited.

The bill has had a hearing in the House Capital Budget Committee where it awaits additional action. For more information contact AGC’s Chief Lobbyist and Legislative Counsel Van Collins 300.352.5000.