It has been some time in the making, but on May 13, 2013, Governor Haslam signed into law HB-0183, which authorizes a pilot program for the use of a construction manager / general contractor (CM/GC) project deliver method in the development and construction of transportation projects.
Generally, the CM/GC project delivery method allows an owner to engage a construction manager during the design process to provide constructability input. (A design consultant can also be engaged by the owner, through a RFP process). The Construction Manager is generally selected on the basis of qualifications, past experience or a best-value basis through a subjective RFP process. During the design phase, the construction manager provides input regarding scheduling, pricing, phasing and other input that helps the owner design a more constructible project. At approximately an average of 60% to 90% design completion, the owner and the construction manager negotiate a sole source "guaranteed maximum price" contract for the construction of the project based on the defined scope and schedule. If this price is acceptable to both parties, they execute a contract for construction services, and the construction manager becomes the general contractor. The general contractor would self-perform a certain percentage of the work.
A proposed amendment to the original bill was prepared and the Tennessee Road Builders Association had extensive discussion with TDOT about the amendment. Under the amendment, the CM/GC method would be a pilot program of three projects. The first project could not exceed $70 million and the other two projects would have a maximum of $100 million, but the aggregate total of the three projects could not exceed $200 million. A selection committee of five TDOT persons and three people from the private sector with a construction and/or finance background would review and score the RFP proposals. Prior CM/GC, or any other project delivery method, experience could not be considered or be a factor to be weighed as part of the RFP. The law is set to take effect on July 1, 2014 and terminate on July 1, 2019.
There are certainly those in favor of and against the new law. Where do you stand?