Design-Build Legislative Update

Federal Legislation

DBIA continues to advocate including design-build language in 2007 federal appropriations bills, particularly for Veterans Affairs and Military Construction, US Department of Agriculture, and US Housing and Urban Development. DBIA staff met with committee staff in May to discuss specific language.

State Legislative Update

Recently design-build bills were signed into law in Colorado, Minnesota, North Carolina, Tennessee, and Washington.

On June 1, 2007, Colorado Governor Ritter signed into law HB 1342, Integrated Project Delivery Methods and Public Projects. It will become effective in August 2007. The new law authorizes state agencies, county and municipal governments, and specified special districts (public entities) to award contracts for specified public projects using integrated project delivery methods, or a project delivery method in which there is a contractual agreement between an agency and a single contract bidder for the design, construction, alteration, operation, repair, improvement, demolition, maintenance, or financing or any combination of these services, for a public project.

Minnesota Senate bill 1509 was signed into law by Governor Pawlenty on May 14, 2007. This bill makes revisions to the Hennepin County design-build authority by increasing the potential number of design-build projects allowed by stating that the number of design-build contracts awarded by the county board must not be more than ten percent of its total projects in any fiscal year.

North Carolina House bill 443 became a session law on May 17, 2007. It will allow Cherokee County to use design-build for construction of a justice center.

In Tennessee, on May 30, 2007, Governor Bredesen signed into law Senate Bill 2196. The new law authorizes the department of transportation to award contracts using design-build. A “design-build” contract is defined as an agreement that may include the design, right of way acquisition, and/or utility relocation, along with the construction of a project by a single entity. The contract may also provide for the maintenance, operation, and/or financing of the project. The agreement may be in the form of a design-build contract, a franchise agreement, or any other form of contract approved by the department.

Finally, Washington Governor Gregoire on May 15, 2007, signed into law HB 1506. The new law eliminates some restrictions on which public entities have design-build authority. The new law extends and expands the use of the design-build and general contractor/construction manager contracting procedures; it establishes a project review committee to approve and certify the use of design-build and general contractor/construction manager contracting procedures; and requires data collection for evaluation of alternative contracting procedures.

In addition, five additional design-build bills have been introduced in state legislatures. This brings the total of introduced bills to 65 bills in 25 states with 10 of those bills already signed into law.

New Bills Introduced

Florida HB 1451: The bill makes certain changes to provisions relating to the award of design-build contracts for professional architectural, engineering, landscape architectural, or surveying and mapping services by municipalities, political subdivisions, school districts, and school boards.

Florida HB 1489: The bill makes certain changes to provisions regarding award of design-build contracts for surveying or mapping services by certain governmental entities. For a construction-management or design-build contracts, if the public owner does not include in the bond amount the cost of design or other nonconstruction services, the bond may not be conditioned on performance of such services or payment to persons furnishing such services.

Florida SB 2376: Companion bill to HB 1489.

Massachusetts HB 1453: The bill establishes and regulates the operation of a capital outlay program for the purpose of improving court facilities in the commonwealth; articulates appropriations for the construction and renovation of the articulated courthouse facilities; and authorizes the use of design-build for the projects.

Massachusetts HB 3172: The bill authorizes the use of design-build for the construction, reconstruction, alteration, remodeling, or repair of a public works project by an awarding authority that is estimated by the awarding authority to cost not less than $5,000,000, provided, that prior to using design-build, the awarding authority shall seek the approval of the inspector general.