Expanded use of design-build and JOC approved by Legislature

A bill that allows greater use of design/build and job-order contracting by public owners recently passed the Legislature.

The bill, SHB 1295, was developed by the Capital Projects Advisory Review Board (CPARB) after a years-long process involving many stakeholders. AGC supported the bill, and CPARB and AGC Government Affairs Committee member Andy Thompson of Granite Construction testified on the measure.

Under the bill, requirements for review by CPARB’s Project Review Committee (PRC) of projects between $2 million and $10 million are removed. Public bodies certified by the PRC may use DB contracts for any project with cost over $2 million.

In addition to other information required for certification by the PRC, public bodies must submit contract documents that require the design/builder to submit plans for inclusion of underutilized firms as specialty contractors and suppliers, as allowed by law.

The request for qualifications must include the estimated contract value and intended use of the project. The evaluation factors for qualifications must include past performance utilization of OMWBE-certified businesses and the ability of the contractor to provide a performance and payment bond. Evaluation factors for finalists must include a management plan to meet time and budget requirements and one or more price-related factors. The signed contract must include reporting requirements for utilization of OMWBE-certified businesses and veteran-owned businesses.

Also, job order contracting (JOC) is available to any public entity. Request for proposal evaluation factors must include past performance on approved subcontractor inclusion plans.

The restrictions for JOCs are amended to

exclude sales tax from the total amount allowed per year;
allow unused capacity to be transferred to the next year;
increase the maximum amount for a work order from $350,000 to $500,000 excluding sales tax, and
increase the number of contracts allowed by a public entity at any one time to three.

Bonding requirements for specialty contractors are limited and apprenticeship utilization is required for any work order over $350,000 with over 600 hours in a single trade.

Exemptions from public disclosure include:

financial information supplied for the purpose of qualifying to submit a bid or proposal for alternative public-works contracting procedures; and
all documents related to the DB contract-award process until either the public body notifies the highest-scoring finalist for the bid, or the selection process is terminated, except that a scoring summary of the evaluation factors may be provided upon the request of a proposer not selected as a finalist.

The bill passed the House 96-1 and the Senate 48-0. It is expected to be signed by the Governor.

For questions or comments, contact AGC Chief Lobbyist Jerry VanderWood, 360.352.5000.