093_SB1648eng

 
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 1        AN ACT concerning construction management.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The Illinois Procurement Code is  amended  by
 5    adding Article 33 as follows:

 6        (30 ILCS 500/Art. 33 heading new)

 7            ARTICLE 33. CONSTRUCTION MANAGEMENT SERVICES

 8        (30 ILCS 500/33-5 new)
 9        Sec. 33-5.  Definitions. In this Article:
10        "Construction management services" includes:
11             (1)  services   provided   in   the   planning   and
12        pre-construction   phases   of   a  construction  project
13        including, but not limited to, consulting with, advising,
14        assisting, and making recommendations to the State agency
15        and architect, engineer, or licensed land surveyor on all
16        aspects of planning for project  construction;  reviewing
17        all  plans and specifications as they are being developed
18        and making recommendations with respect  to  construction
19        feasibility,  availability  of  material  and labor, time
20        requirements  for  procurement  and   construction,   and
21        projected  costs;  making, reviewing, and refining budget
22        estimates based on the State agency's program  and  other
23        available  information;  making  recommendations  to  the
24        State  agency and the architect or engineer regarding the
25        division of work  in  the  plans  and  specifications  to
26        facilitate   the   bidding  and  awarding  of  contracts;
27        soliciting the interest of capable contractors and taking
28        bids on the project; analyzing  the  bids  received;  and
29        preparing  and maintaining a progress schedule during the
30        design phase of the project and preparation of a proposed
 
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 1        construction schedule; and
 2             (2)  services provided in the construction phase  of
 3        the  project  including,  but not limited to, maintaining
 4        competent supervisory staff  to  coordinate  and  provide
 5        general  direction  of  the  work  and  progress  of  the
 6        contractors  on  the project; directing the work as it is
 7        being performed  for  general  conformance  with  working
 8        drawings  and specifications; establishing procedures for
 9        coordinating  among  the  State  agency,   architect   or
10        engineer,  contractors,  and  construction  manager  with
11        respect  to  all  aspects of the project and implementing
12        those procedures; maintaining job site records and making
13        appropriate progress reports; implementing  labor  policy
14        in conformance with the requirements of the public owner;
15        reviewing  the  safety  and equal opportunity programs of
16        each contractor for conformance with the  public  owner's
17        policy   and   making   recommendations;   reviewing  and
18        processing  all  applications  for  payment  by  involved
19        contractors and material suppliers in accordance with the
20        terms  of  the  contract;  making   recommendations   and
21        processing   requests   for   changes  in  the  work  and
22        maintaining records  of  change  orders;  scheduling  and
23        conducting job meetings to ensure orderly progress of the
24        work;   developing  and  monitoring  a  project  progress
25        schedule, coordinating and expediting  the  work  of  all
26        contractors  and providing periodic status reports to the
27        owner and the architect or engineer; and establishing and
28        maintaining a cost control system and conducting meetings
29        to review costs.
30        "Construction  manager"  means   any   individual,   sole
31    proprietorship,  firm,  partnership,  corporation,  or  other
32    legal entity providing construction management services for a
33    State  agency  and  prequalified  by the State of Illinois in
34    accordance with 30 ILCS 500/33-10.
 
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 1        (30 ILCS 500/33-10 new)
 2        Sec.  33-10.  Prequalification.  A  State  agency   shall
 3    establish  procedures  to prequalify firms seeking to provide
 4    construction management services or may use  prequalification
 5    lists  from  other State agencies to meet the requirements of
 6    this Section.

 7        (30 ILCS 500/33-15 new)
 8        Sec. 33-15. Public notice. Whenever a  project  requiring
 9    construction  management  services  is  proposed  for a State
10    agency, the State agency shall provide no less than a  14-day
11    advance  notice  published in a request for proposals setting
12    forth the projects and services to be procured.  The  request
13    for   proposals   shall  be  mailed  to  each  firm  that  is
14    prequalified under Section 33-10. The request  for  proposals
15    shall  include  a description of each project and shall state
16    the time and place for interested firms to submit a letter of
17    interest and, if required by the  request  for  proposals,  a
18    statement of qualifications.

19        (30 ILCS 500/33-20 new)
20        Sec.  33-20.  Evaluation  procedure. A State agency shall
21    evaluate the  construction  managers  submitting  letters  of
22    interest and other prequalified construction managers, taking
23    into   account  qualifications;  and  the  State  agency  may
24    consider, but shall not be limited to considering, ability of
25    personnel, past record and experience,  performance  data  on
26    file,   willingness  to  meet  time  requirements,  location,
27    workload  of  the  construction  manager,   and   any   other
28    qualifications-based   factors   as   the  State  agency  may
29    determine in writing are applicable.  The  State  agency  may
30    conduct  discussions with and require public presentations by
31    construction  managers  deemed  to  be  the  most   qualified
32    regarding  their qualifications, approach to the project, and
 
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 1    ability to furnish the required services.
 2        A State agency shall  establish  a  committee  to  select
 3    construction  managers  to  provide  construction  management
 4    services.  A  selection  committee  may  include at least one
 5    public member. The public  member  may  not  be  employed  or
 6    associated  with  any  firm holding a contract with the State
 7    agency nor may the public member's firm be considered  for  a
 8    contract with that State agency while he or she is serving as
 9    a public member of the committee.
10        In  no  case  shall  a State agency, prior to selecting a
11    construction manager for  negotiation  under  Section  33-30,
12    seek  formal  or  informal  submission  of  verbal or written
13    estimates of costs or proposals in terms  of  dollars,  hours
14    required,  percentage  of  construction  cost,  or  any other
15    measure of compensation.

16        (30 ILCS 500/33-25 new)
17        Sec.  33-25.  Selection  Procedure.  On  the   basis   of
18    evaluations,  discussions,  and  any presentations, the State
19    agency shall select no less than 3 firms it determines to  be
20    qualified  to  provide services for the project and rank them
21    in order of qualifications to provide services regarding  the
22    specific  project.  The State agency shall then contract at a
23    fair and reasonable  compensation.  If  fewer  than  3  firms
24    submit  letters  of  interest and the State agency determines
25    that one or both of those firms are so qualified,  the  State
26    agency  may  proceed  to  negotiate  a contract under Section
27    33-30. The decision of the State agency shall  be  final  and
28    binding.

29        (30 ILCS 500/33-30 new)
30        Sec. 33-30.  Contract Negotiation.
31        (a)  The State agency shall prepare a written description
32    of  the  scope of the proposed services to be used as a basis
 
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 1    for negotiations and shall  negotiate  a  contract  with  the
 2    highest  ranked  construction management firm at compensation
 3    that the State agency determines in writing to  be  fair  and
 4    reasonable.  In  making this decision, the State agency shall
 5    take into account the estimated value, scope, complexity, and
 6    nature of the services to be rendered. In no case may a State
 7    agency establish a  payment  formula  designed  to  eliminate
 8    firms  from contention or restrict competition or negotiation
 9    of fees.
10        (b)  If  the  State  agency  is  unable  to  negotiate  a
11    satisfactory contract with the firm that is  highest  ranked,
12    negotiations  with  that  firm shall be terminated. The State
13    agency shall then begin negotiations with the  firm  that  is
14    next  highest  ranked.  If  the  State  agency  is  unable to
15    negotiate   a   satisfactory   contract   with   that   firm,
16    negotiations with that firm shall be  terminated.  The  State
17    agency  shall  then  begin negotiations with the firm that is
18    next highest ranked.
19        (c)  If  the  State  agency  is  unable  to  negotiate  a
20    satisfactory contract with any of  the  selected  firms,  the
21    State  agency  shall  re-evaluate the construction management
22    services requested, including  the  estimated  value,  scope,
23    complexity, and fee requirements. The State agency shall then
24    compile  a  list  of  not  less than 3 prequalified firms and
25    proceed in accordance with the provisions of this Act.

26        (30 ILCS 500/33-35 new)
27        Sec. 33-35.  Small Contracts. The provisions of  Sections
28    33-20,   33-25,  and  33-30  do  not  apply  to  construction
29    management contracts of less than $25,000.

30        (30 ILCS 500/33-40 new)
31        Sec. 33-40.  Emergency services. Sections  33-20,  33-25,
32    and  33-30  do  not  apply in the procurement of construction
 
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 1    management services by State  agencies  (i)  when  an  agency
 2    determines  in writing that it is in the best interest of the
 3    State to proceed with the immediate selection of  a  firm  or
 4    (ii)  in emergencies when immediate services are necessary to
 5    protect the public health  and  safety,  including,  but  not
 6    limited   to,  earthquake,  tornado,  storm,  or  natural  or
 7    man-made disaster.

 8        (30 ILCS 500/33-45 new)
 9        Sec.  33-45.  Firm  performance  evaluation.  Each  State
10    agency shall evaluate  the  performance  of  each  firm  upon
11    completion  of  a  contract.  That  evaluation  shall be made
12    available to the firm and  the  firm  may  submit  a  written
13    response, with the evaluation and response retained solely by
14    the  agency.  The  evaluation  and response shall not be made
15    available to any other person or  firm  and  is  exempt  from
16    disclosure   under   the  Freedom  of  Information  Act.  The
17    evaluation shall be based on  the  terms  identified  in  the
18    construction manager's contract.

19        (30 ILCS 500/33-50 new)
20        Sec.  33-50.  Duties  of construction manager; additional
21    requirements for persons performing construction work.
22        (a)  Upon the award of a construction management services
23    contract, a construction manager must contract with the State
24    agency  to  furnish  his  or  her  skill  and   judgment   in
25    cooperation  with,  and  reliance  upon,  the services of the
26    project architect or engineer. The construction manager  must
27    furnish    business   administration,   management   of   the
28    construction process, and other  specified  services  to  the
29    State  agency  and  must perform his or her obligations in an
30    expeditious  and  economical  manner  consistent   with   the
31    interest  of  the  State agency. If it is in the State's best
32    interest, the construction manager  may  provide  or  perform
 
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 1    basic  services  for  which  reimbursement is provided in the
 2    general conditions to the  construction  management  services
 3    contract.
 4        (b)  The  actual construction work on the project must be
 5    awarded  to  contractors  by  an  open  competitive   bidding
 6    process.   This  subsection  is  subject  to  the  applicable
 7    provisions of the following Acts:
 8             (1)  the Prevailing Wage Act;
 9             (2)  the Public Construction Bond Act;
10             (3)  the Public Works Employment Discrimination Act;
11             (4)  the Public Works Preference Act;
12             (5)  the Employment of Illinois  Workers  on  Public
13        Works Act;
14             (6)  the Public Contract Fraud Act;
15             (7)  the Illinois Construction Evaluation Act; and
16             (8)  the Illinois Architecture Practice Act of 1989,
17        the  Professional  Engineering  Practice Act of 1989, the
18        Illinois Professional Land Surveyor Act of 1989, and  the
19        Structural Engineering Practice Act of 1989.

20        Section  99.  Effective  date. This Act takes effect upon
21    becoming law.