093_SB1648eng SB1648 Engrossed LRB093 08405 BDD 08626 b 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 SB1648 Engrossed -2- LRB093 08405 BDD 08626 b 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. SB1648 Engrossed -3- LRB093 08405 BDD 08626 b 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 SB1648 Engrossed -4- LRB093 08405 BDD 08626 b 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 SB1648 Engrossed -5- LRB093 08405 BDD 08626 b 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 SB1648 Engrossed -6- LRB093 08405 BDD 08626 b 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 SB1648 Engrossed -7- LRB093 08405 BDD 08626 b 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.