BUSINESS AND OPERATIONS:                                                                          [LAW]

CONSTRUCTION MANAGER-AT-RISK CONTRACTS

 

The following provisions apply only to a charter holder that has amended its charter to adopt Tex. Educ. Code Chapter 44.

 

The school may award a contract for the construction, repair, or renovation, of a structure, road, highway, or other improvement or addition to real property by using a construction manager-at-risk.

 

Tex. Educ. Code § 44.031(a)(7); 19 Tex. Admin. Code § 100.103.

 

1.         Definition

 

A construction manager-at-risk is a sole proprietorship, partnership, corporation, or other legal entity that assumes the risk for construction, rehabilitation, alteration, or repair of a facility at the contracted price as a general contractor and provides consultation to the school regarding construction during and after the design of the facility.

 

Tex. Educ. Code § 44. 038(b).

 

2.         Use of Construction Manager-At-Risk

 

The school may use construction manager-at-risk as a method of entering into a contract for construction if it has determined that construction manager-at-risk provides the best value for the school.

 

Tex. Educ. Code §§ 44.035(a), 44.038(a).

 

3.         Delegation of Authority

 

            The school board may not delegate to others the authority to:

 

A.        Select the construction delivery method that provides the best value; or

 

B.         Adopt special rules and procedures for the selection process.

 

The board may choose to delegate its authority regarding an action required under Texas Education Code, Chapter 44, subchapter B, to a designated person, representative, or committee.  In procuring construction services, the school shall provide notice of the delegation and the limits of the delegation in the request for bids.  If the school fails to timely provide notice of the delegation, a ranking, selection, or evaluation of bids, proposals, or qualifications for construction services, other than by the board, is advisory only.

 

Tex. Educ. Code § 44.0312.

 

4.         Notice of Bids and Selection Criteria

 

A.        Notice of the time by when and place where requests for proposals or qualifications, as appropriate, will be received and opened shall be published in the county in which the school’s central administrative office is located, once a week for at least two (2) weeks before the deadline for receiving proposals or qualifications.  If there is not a newspaper in that county, the advertising shall be published in a newspaper in the county nearest the county seat of the county in which the school’s central administrative office is located.  In a two-step procurement process, the time and place where the second-step bids will be received are not required to be published separately.  [See also Selection Process, paragraph (7) below].

 

Tex. Educ. Code § 44.031(g).

 

B.         In the published request for proposals or qualifications the school will identify the criteria that will be used to evaluate the offerors and the relative weights given to the criteria.

 

Tex. Educ. Code § 44.035(b).

 

5.         Designation of Engineer or Architect

 

Before or concurrently with selecting a construction manager-at-risk, the school shall select or designate an engineer or architect who shall prepare the construction documents for the project and who has full responsibility to comply with Vernon’s Texas Civil Statutes 3271a (Texas Engineering Practice Act) or Vernon’s Texas Civil Statutes Article 249a, as applicable.  If the engineer or architect is not a full-time employee of the school, the school shall select the engineer or architect on the basis of demonstrated competence and qualifications as provided by § 2254.004, Tex. Gov’t Code.  The school’s engineer, architect or construction manager-agent for a project may not serve, alone or in combination with another, as the construction manager-at-risk.

 

Tex. Educ. Code § 44.038(c).

 

6.         Inspection and Testing

 

The school shall provide or contract for, independently of the construction manager-at-risk, the inspection services, the testing of construction materials engineering, and the verification testing services necessary for acceptance of the facility by the charter holder.  The school shall select those services for which it contracts in accordance with § 2254.004, Tex. Gov’t Code.

 

Tex. Educ. Code § 44.038(d).

 

7.         Selection Process

 

The school shall select the construction manager-at-risk in either a one-step or two-step process.

 

A.        Request for Proposals or Qualifications

 

The school shall prepare a request for proposals, in the case of a one-step process, or a request for qualifications, in the case of a two-step process, that includes general information on the project site, project scope, schedule, selection criteria, estimated budget, and the time and place for receipt of proposals or qualifications, as applicable, a statement as to whether the selection process is a one-step or two-step process, and other information that may assist the charter holder in its selection of a construction manager-at-risk. 

 

B.         Statement of Selection Criteria

 

The school shall state the selection criteria in the request for proposals or qualifications, as applicable.  The selection criteria may include the offeror’s experience, past performance, safety record, proposed personnel and methodology, and other appropriate factors that demonstrate the capability of the construction manager-at-risk.

 

(1)        Request for Fees and Prices

 

(a)        If a one-step process is used, the school may request, as part of the offeror’s proposal, proposed fees and prices for fulfilling the general conditions.

 

(b)        If a two-step process is used, the charter holder may not request fees or prices in step one.  In step two, the school may request that five or fewer offerors, selected solely on the basis of qualifications, provide additional information, including the construction manager-at-risk’s proposed fee and its price for fulfilling the general conditions.

 

C.        Opening Proposals

 

At each step, the school shall receive, publicly open, and read aloud the names of the offerors.  At the appropriate step, the school shall also read aloud the fees and prices, if any, stated in each proposal as the proposal is opened.  Within 45 days after the date of opening the proposals, the school shall evaluate and rank each proposal submitted in relation to the criteria set forth in the request for proposals.

 

Tex. Educ. Code § 44.038(e)-(f).

 

8.         Selection

 

The school shall select the offeror that submits the proposal that offers the best value for the school based on the published selection criteria and on its ranking evaluation .  The school shall first attempt to negotiate with the selected offeror a contract.  If the school is unable to negotiate a satisfactory contract with the selected offeror, the school shall, formally and in writing, end negotiations with that offeror and proceed to negotiate with the next offeror in the order of the selection ranking until a contract is reached or negotiations with all ranked offerors end. 

 

Tex. Educ. Code § 44.038(g).

 

9.         Contractors and Subcontractors

 

A.        Advertisement

 

A construction manager-at-risk shall publicly advertise, in accordance with the notice publication requirements described above, and receive bids or proposals from trade contractors or subcontractors for the performance of all major elements of the work other than the minor work that may be included in the general conditions.  A construction manager-at-risk may seek to perform portions of the work itself if the construction manager-at-risk submits its bid or proposal for those portions of the work in the same manner as all other trade contractors or subcontractors and if the school determines that the construction manager-at-risk’s bid or proposal provides the best value for the school.

 

B.         The construction manager-at-risk and the school or its representative shall review all trade contractor or subcontractor bids or proposals in a manner that does not disclose the contents of the bid or proposal during the selection process to a person not employed by the construction manager-at-risk, engineer, architect, or charter holder.  All bids or proposals shall be made public after the award of the contract or within seven (7) days after the date of final selection of bids or proposals, whichever is later.

 

C.        If the construction manager-at-risk reviews, evaluates, and recommends to the school a bid or proposal from a trade contractor of subcontractor but the school requires another bid or proposal to be accepted, the school shall compensate the construction manager-at-risk by a change in price, time, or guaranteed maximum cost for any additional cost and risk that the construction manager-at-risk may incur because of the school’s requirement that another bid or proposal be accepted.

 

D.        If a selected trade contractor or subcontractor defaults in the performance of its work or fails to execute a subcontract after being selected in accordance with this policy, the construction manager-at-risk may, without out advertising, itself fulfill the contract requirements or select a replacement trade contractor or subcontractor to fulfill the contract requirements.

 

Tex. Educ. Code § 44. 038(h)-(k).

 

10.       Bonds

 

If a fixed contract amount or guaranteed maximum price has not been determined at the time the contract is awarded, the penal sums of the performance and payment bonds delivered to the school must each be in an amount equal to the project budget, as specified in the request for qualifications.  The construction manager shall deliver the bonds not later than the 10th day after the date the construction manager executes the contract unless the construction manager furnishes a bid bond or other financial security acceptable to the school to ensure that the construction manager will furnish the required performance and payment bonds when a guaranteed maximum price is established.

 

Tex. Educ. Code § 44.038(l).

 

11.       Making Evaluations Public

 

The school shall document the basis of its selection and shall make the evaluations public not later than the seventh day after the date the contract is awarded.

 

Tex. Educ. Code § 44.035(c).