More than 250 bills pertaining to design-build were introduced during the 2005 legislative cycle — a record high. Most state legislatures have completed their 2005 session. A total of 84 bills (some minor, some major) became law in 2005. Significant design-build advances were achieved in Indiana, Minnesota, Montana, Oklahoma, Arkansas, Mississippi, and New Hampshire. A summary of new key design-build laws appear below:
Arizona
HB 2579
Arizona is already a leader in design-build. HB 2579 makes several positive changes regarding the Arizona Department of Transporta-tion’s design-build authority. The $40 million threshold and two project annual limit to use the design-build project delivery method was eliminated. Additionally, the bill extends the authority to use design-build until 2025, and eliminates annual reporting requirements for using design-build. Also, the Department may enter into confidential discussions about a design-builder’s technical concepts, if stated in the RFP.
Arkansas
HB 1093
Provides authority to use design-build on K-12 school projects. Arkansas previously had only limited authority to use design-build.
California
SB 77
Appropriates $50 million in design-build projects for the University of California at Irvine.
SB 287
Provides design-build authority for Alameda, Butte, Contra Costa, El Dorado, Fresno, Kings, Madera, Mariposa, Merced, Monterey, Orange, Placer, Sacramento, San Diego, San Joaquin, San Luis Obispo, Santa Clara, Shasta, Siskiyou, Solano, Sonoma, Stanislaus, Tulare, and Yuba counties, upon approval of the appropriate board of supervisors.
AB 1329
Permits cities in the counties of Solano and Yolo, with the approval of the city council, to enter into design-build contracts until January 1, 2011. The bill requires at a minimum 50 percent of the points to be given to price, technical design and construction expertise, life cycle costs over 15 years or more, skilled labor force availability, and acceptable safety record, each factor to be weighted equally.
Delaware
SB 190
Extends authority for the DOT to use design build for 12 pilot projects (previously four projects were authorized).
Florida
SB 2600
Appropriates $7 million for a water/wastewater project for the City of Marathon.
Georgia
HB 530
Georgia passed excellent design-build legislation in 2004. This bill furthers the state’s ability to use design-build by eliminating the $10 million minimum threshold for transportation projects. The bill also changes the $100 million annual expenditure ceiling on design-build projects to 15 percent of the Department’s budget from the previous year. The bill specifies that stipends are allowed if the State obtains the right to use a proposer’s submitted design ideas. Moreover, the bill provides that in general, design-build is appropriate for transportation projects so long as right-of-way and utility issues are not major concerns.
Indiana
SB 244
Localities, public education, and state agencies (except transportation) may now utilize the design-build project delivery method as a result of this new law which takes effect July 1st. This broad-based law is especially significant considering Indiana previously was one of only seven states without any design-build authority.
Features of Public Law 74 include:
- Provides a two-step best value selection process to select a design-builder. Bidders (typically three) are first pre-qualified and then a combination of price and qualifications determine the lowest adjusted price.
- Allows stipends to non-successful bidders.
- References Indiana prevailing wage requirements.
Louisiana
HB 665
Creates the Algiers Redevelopment Development District and authorizes design-build by the District’s Redevelopment Board.
Minnesota
SF 1335
Authorizes state construction projects to use the design-build project delivery method. The bill requires stipends for non successful bidders and provides a variety of project selection methods including a qualifications-based selection method.
Mississippi
SB 2486
Provides authorization by the Economic Development Authority to use design-build or design-build bridging for two projects annually. Projects eligible must be greater than $10 million and one of the two projects may be greater than $50 million.
SB 2023
Authorizes design-build for public utility facilities in Harrison County (includes Biloxi and Gulfport).
Montana
SB 342
Creates design-build authority for state and local governments (except state department of transportation which already possesses authority). The bill provides criteria to determine whether to use design-build and evaluating factors to consider in evaluating proposals. The bill also allows for stipends.
SB56
Decreases membership of the Design-Build Board by two members.
New Hampshire
HB 263
This bill is a major legislative improvement by allowing design-build for major state capital projects by the state with approval by the Capital Budget Overview Committee. The bill also increases the cost amount for transportation improvement projects eligible for design-build up to $5 million.
New Mexico
SB 455
Allows K-12 public schools to consider design-build-finance for Public School Capital Outlay Projects.
North Carolina
SB 340
Authorizes the City of Roanoke Rapids to utilize design-build to construct a fire station.
North Dakota
HB 1260
Requires a study on public improvement contracts including design-build.
Oklahoma
HB 1564
Provides broad design-build authority for state agencies and local governments. State agencies must obtain written approval from the Director of Central Services for each design-build project.
South Carolina
H.B 3296
Provides broad design-build authority for the DOT (the state’s previous use of design-build authority was struck down in court).
Texas
HB 2702
Expands procurement procedures through which the DOT may select a design-build team, including unsolicited bids and qualification-based selection.
Virginia
HB 2640 and HB 2084
Provides the authority for annual funding of up to five transportation design-build projects that are not more than $20 million each. However, the Department may exceed $20 million for a project so long as there are not five or more such contracts in effect.
HB 2793
Creates a Transportation Partnership Opportunity Fund, dedicated to funding design-build transportation projects.
HB 2051
Allows competitive negotiation for design-build projects.
HB 2866 and SB 1327
Provides design-build authority for public institutions of higher education.
SB 1090, SB 1306, & HB 2863
Clarifies licensure requirements for design-led and contractor-led design-build teams.
HB 1500
Provides for $50 million in appropriations in design-build transportation projects.
Washington
HB 1830
Authorizes use of design-build or construction manager at risk on one demonstration project that is estimated to cost more than $10 million.
SB 6091
Provides funding for an Olympic Region Project as a design-build project.
West Virginia
HB 2592
Modifies Design-Build Board membership and revises the process for approving the use and evaluation of design-build projects.
DBIA is working closely with its chapters to prepare for the 2006 legislative session where we expect to see even more success.