1998 Legislation
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HOUSE BILL NO. 811 – Construction managers, licensure

HOUSE BILL NO. 811

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H0811......................................................by STATE AFFAIRS
CONSTRUCTION MANAGERS - Adds to and amends existing law to provide for the
licensing of construction managers who provide construction management
services on public works projects; and to increase the membership of the
Public Works Contractors Licensing Board from five to seven members by
adding a construction manager and a registered professional engineer to the
board.

03/10    House intro - 1st rdg - to printing
03/11    Rpt prt - to 2nd rdg
03/12    2nd rdg - to 3rd rdg
03/13    3rd rdg - PASSED - 60-3-7
      AYES -- Alltus, Barraclough, Barrett, Bell, Bieter, Bivens,
      Black(15), Boe, Bruneel, Callister, Campbell, Clark, Crane, Cuddy,
      Deal, Ellsworth, Field(13), Field(20), Gagner, Geddes, Gould, Hadley,
      Henbest, Hornbeck, Jaquet, Jones(22), Jones(20), Judd, Kellogg,
      Kempton, Kendell, Kjellander, Kunz, Lake, Linford, Loertscher, Mader,
      Marley, McKague, Meyer, Miller, Mortensen, Newcomb, Pischner,
      Pomeroy, Reynolds, Richman, Ridinger, Robison, Stevenson, Stone,
      Stubbs, Taylor, Tilman, Tippets, Trail, Watson, Wheeler, Wood,
      Zimmermann
      NAYS -- Sali, Schaefer, Stoicheff
      Absent and excused -- Black(23), Chase, Crow, Denney, Hansen,
      Jones(9), Mr Speaker
    Floor Sponsor - Gagner
    Title apvd - to Senate
03/16    Senate intro - 1st rdg - to Com/HuRes
03/18    Rpt out - rec d/p - to 2nd rdg
03/19    2nd rdg - to 3rd rdg
03/20    3rd rdg - PASSED - 33-0-2
      AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
      Crow, Darrington, Deide, Dunklin, Frasure, Geddes, Hansen, Hawkins,
      Ingram, Ipsen, Keough, King, Lee, McLaughlin, Noh, Parry, Richardson,
      Riggs, Risch, Schroeder, Sorensen, Stennett, Sweeney, Thorne, Twiggs,
      Wheeler, Whitworth
      NAYS--None
      Absent and excused--Danielson, Sandy
    Floor Sponsor - King
    Title apvd - to House
03/23    To enrol - rpt enrol - Sp signed
03/24    Pres signed - to Governor
03/27    Governor signed
         Session Law Chapter 410
         Effective: 07/01/98

Bill Text


H0811


                                                                        
 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fourth Legislature                 Second Regular Session - 1998
                                                                        

                             IN THE HOUSE OF REPRESENTATIVES

                                    HOUSE BILL NO. 811

                                BY STATE AFFAIRS COMMITTEE

 1                                        AN ACT
 2    RELATING TO LICENSING OF PUBLIC WORKS CONSTRUCTION  MANAGERS;  AMENDING  TITLE
 3        54, IDAHO CODE, BY THE ADDITION OF A NEW CHAPTER 45, TITLE 54, IDAHO CODE,
 4        TO PROVIDE A SHORT TITLE, TO PROVIDE A STATEMENT OF LEGISLATIVE INTENT, TO
 5        PROVIDE  DEFINITIONS,  TO  REQUIRE  CONSTRUCTION  MANAGERS ON PUBLIC WORKS
 6        PROJECTS TO BE LICENSED, TO ESTABLISH REQUIREMENTS FOR LICENSURE, TO  PRO-
 7        VIDE  FOR  INTERIM AND TEMPORARY LICENSES, TO PROVIDE FOR LICENSE RENEWAL,
 8        TO PROVIDE FOR DISCIPLINARY PROCEEDINGS, TO PROVIDE  FOR  CERTIFICATES  OF
 9        AUTHORITY  FOR  FIRMS PROVIDING CONSTRUCTION MANAGEMENT SERVICES ON PUBLIC
10        WORKS PROJECTS, TO PROVIDE FOR LICENSE FEES AND DISPOSITION OF  FUNDS,  TO
11        REQUIRE BIDDING OF CONSTRUCTION CONTRACTS, TO REQUIRE BONDING OF CONSTRUC-
12        TION MANAGERS, TO PROVIDE PENALTIES FOR VIOLATION OF THIS LAW, AND TO PRO-
13        VIDE  FOR  INJUNCTIVE  RELIEF;  AMENDING  SECTION  54-1905, IDAHO CODE, TO
14        INCREASE MEMBERSHIP OF THE PUBLIC WORKS CONTRACTORS  STATE  LICENSE  BOARD
15        FROM  FIVE  TO  SEVEN  MEMBERS AND TO MAKE TECHNICAL CORRECTIONS; AMENDING
16        SECTION 54-1908, IDAHO CODE, TO PROVIDE THAT FOUR  MEMBERS  OF  THE  BOARD
17        SHALL  CONSTITUTE A QUORUM AND TO MAKE TECHNICAL CORRECTIONS; AND AMENDING
18        SECTION 67-2320, IDAHO CODE, TO PROVIDE  FOR  SELECTION  OF  PROFESSIONALS
19        PROVIDING DESIGN SERVICES ON PUBLIC WORKS CONSTRUCTION PROJECTS.

20    Be It Enacted by the Legislature of the State of Idaho:

21        SECTION  1.  That Title 54, Idaho Code, be, and the same is hereby amended
22    by the addition thereto of a  NEW CHAPTER , to be known and  desig-
23    nated as Chapter 45, Title 54, Idaho Code, and to read as follows:

24                                      CHAPTER 45
25                  PUBLIC WORKS CONSTRUCTION MANAGEMENT LICENSING ACT

26        54-4501.  SHORT  TITLE.  The provisions of this chapter shall be known and
27    may be cited as the "Public Works Construction  Management  Licensing  Act  of
28    1998."

29        54-4502.  LEGISLATIVE  INTENT.  In order to protect the public welfare and
30    to promote the highest degree of professional conduct on the part  of  persons
31    providing  construction  management  services,  the provisions of this chapter
32    provide for the licensure of individuals and regulation of  persons  providing
33    construction management services for public works projects.

34        54-4503.  DEFINITIONS. As used in this chapter:
35        (1)  "Applicant"  means an individual who applies for a license or interim
36    license pursuant to the provisions of this chapter.
37        (2)  "Board" means the public works contractors state license board estab-
38    lished in section 54-1905, Idaho Code.
39        (3)  "Construction manager" means an individual who performs  construction
40    management services.


                                          2

 1        (4)  "Construction  management  services" means representation of an owner
 2    in public works construction, as defined in section 54-1901(c), Idaho Code, by
 3    a person with substantial discretion and authority to plan including  schedul-
 4    ing,  estimating and approval,  coordinate, manage or direct phases of a proj-
 5    ect for the construction, demolition, alteration, repair or reconstruction  of
 6    any  public  work.  This definition shall not include general contracting ser-
 7    vices provided by public works contractors who actually perform  the  work  of
 8    construction,  alteration, repair or reconstruction. This definition shall not
 9    include services for which the laws of this  state  require  a  person  to  be
10    licensed  as  an architect or registered as a professional engineer, nor shall
11    it include services traditionally and customarily provided by licensed  archi-
12    tects or registered professional engineers.
13        (5)  "Firm"  means any business organization, including individuals, part-
14    nerships, corporations, associations or any combination thereof  acting  as  a
15    unit.
16        (6)  "Licensure" means the issuance of a license to an applicant under the
17    provisions  of  this  chapter authorizing such individual to offer and perform
18    construction management services.
19        (7)  "Person" includes an individual, partnership,  corporation,  associa-
20    tion or other organization.

21        54-4504.  LICENSE  REQUIRED.  (1)  Except as otherwise provided herein, on
22    and after the effective date of this chapter, it shall  be  unlawful  for  any
23    person  to  act  as  a construction manager in public works construction or to
24    practice or perform or offer to perform construction  management  services  in
25    public  works  construction  unless  such construction management services are
26    performed by or under the direct supervision of a licensed  construction  man-
27    ager.
28        (2)  Only an individual may be licensed as a construction manager. No firm
29    may  provide  or hold itself out as providing construction management services
30    unless it holds a certificate of authority issued by  the  board  pursuant  to
31    section 54-4509, Idaho Code.
32        (3)  Construction  management services provided by a firm must be provided
33    under the direct supervision and control of a  licensed  construction  manager
34    who is a principal or employee of the firm.
35        (4)  An  employee  of an owner for which public works construction manage-
36    ment services are to be performed shall not be required to  obtain  a  license
37    under this chapter in order to provide such services for his employer.
38        (5)  A  licensed  architect,  registered landscape architect or registered
39    professional engineer shall not be required to obtain  a  license  under  this
40    chapter  in order to provide services for which the laws of this state require
41    a person to be licensed as an architect,  registered  landscape  architect  or
42    registered as a professional engineer or to provide services traditionally and
43    customarily  provided  by licensed architects, registered landscape architects
44    or registered professional engineers. Provided  however,  that  such  services
45    shall  not  include the procurement of equipment or construction work required
46    by law to be competitively bid for public works construction.

47        54-4505.  REQUIREMENTS FOR LICENSURE. (1) Any  individual  who  wishes  to
48    become  licensed  as  a construction manager shall make written application to
49    the board on such forms or in such manner as the  board  may  prescribe.  Each
50    applicant shall provide such proof as the board may require that he:
51        (a)  Has  a bachelor's degree in architecture, engineering or construction
52        management from a college or university which has an  educational  program
53        in  architecture,  engineering or construction management, as the case may


                                          3

 1        be, accredited by a nationally  recognized  accrediting  organization  and
 2        that  he has a minimum of four (4) years' experience in managing construc-
 3        tion projects; or
 4        (b)  Has a minimum of five (5) years' experience in managing  construction
 5        projects.
 6        (2)  If  the  board  finds  that  the applicant meets the requirements for
 7    licensure set forth in subsection (1) of this section, it shall administer  an
 8    examination to the applicant, which examination shall be offered at least once
 9    each  year.  The  examination  shall test the applicant's knowledge and profi-
10    ciency in construction management issues, including health, environmental  and
11    safety  regulations,  interpretation  of  construction  contracts,  financing,
12    scheduling  and  project  administration  for construction projects. The board
13    shall establish a fee for administering  the  examination  to  each  applicant
14    which must be paid before the applicant may sit for the examination.
15        (3)  An  applicant who demonstrates knowledge and proficiency of construc-
16    tion management by virtue of passing the examination, and upon the payment  of
17    an  appropriate  fee, shall be issued a license authorizing that individual to
18    provide construction management services.

19        54-4506.  INTERIM AND TEMPORARY LICENSES. (1) For a period of one (1) year
20    following the effective date of this chapter, each  applicant  who  meets  the
21    requirements  of  section  54-4505(1),  Idaho Code, shall be issued an interim
22    construction manager's license pursuant to such application terms  and  condi-
23    tions  as the board may require. At the conclusion of the one (1) year period,
24    following the effective date of this  chapter,  such  interim  licenses  shall
25    expire  and thereafter all licensed construction managers shall be required to
26    meet the licensure requirements as set forth in section 54-4505, Idaho Code.
27        (2)  The board may issue a temporary license for a period  not  to  exceed
28    one  (1) year to an applicant who provides satisfactory proof of possession of
29    a valid construction manager's license issued by  another  state  pursuant  to
30    requirements  substantially  similar  to  those  set forth in section 54-4505,
31    Idaho Code.
32        (3)  Interim and temporary licenses may not be  renewed  nor  their  terms
33    extended beyond the period set forth in this section.

34        54-4507.  LICENSE RENEWAL. (1) Each construction management license issued
35    under  the  terms of this chapter shall expire and become invalid one (1) year
36    after issuance unless renewed in the manner prescribed by the board.
37        (2)  Upon application, the board may grant inactive status to  the  holder
38    of  a license who is no longer actively providing construction management ser-
39    vices.
40        (3)  The board may provide for reinstatement of  an  expired  or  inactive
41    license upon such terms as it may determine by rule.

42        54-4508.  DISCIPLINARY PROCEEDINGS. (1) The board shall have the authority
43    to  deny  or refuse to renew a license or certificate of authority, suspend or
44    revoke a license, or impose probationary conditions on the holder of a license
45    or certificate of authority, upon the following grounds:
46        (a)  Fraud or deception in the procurement of a license or certificate  of
47        authority or in the taking of an examination required under the provisions
48        of this chapter;
49        (b)  Incompetence in the performance of a construction manager's duties;
50        (c)  Fraud  or  deceit  in  the  performance  of  a construction manager's
51        duties; or
52        (d)  Willful violation of the provisions of this chapter or the rules pro-


                                          4

 1        mulgated by the board.
 2        (2)  Proceedings which may result in the suspension  or  revocation  of  a
 3    license  or certificate of authority, or the imposition of probationary condi-
 4    tions on the holder of a license or certificate of authority,  shall  be  con-
 5    ducted  in accordance with the provisions of chapter 52, title 67, Idaho Code;
 6    provided however, that the suspension of a certificate of authority, upon  the
 7    notification  by its holder that the construction manager it has designated to
 8    the board no longer is a principal or employee  of  the  firm,  shall  not  be
 9    required  to  be  conducted  in  accordance with the provisions of chapter 52,
10    title 67, Idaho Code.
11        (3)  The board may, by rule, provide for the reinstatement of suspended or
12    revoked licenses upon such terms as it may impose.

13        54-4509.  CERTIFICATES OF AUTHORITY FOR FIRMS. (1) No firm  shall  provide
14    or hold itself out as providing construction management services unless it has
15    a certificate of authority issued by the board.  If one (1) or more principals
16    or  employees  of a firm are licensed construction managers the firm may apply
17    to the board for a certificate of authority to provide and hold itself out  as
18    providing  construction  management services. An application for a certificate
19    of authority shall:
20        (a)  Designate the licensed construction  manager  or  managers,  who  are
21        principals or employees of the firm, specified to be in responsible charge
22        of construction management services provided by the firm;
23        (b)  Be  accompanied  by  a statement signed by such licensed construction
24        manager or managers accepting the responsibility and duty to provide  con-
25        struction management services for the firm; and
26        (c)  Contain such other information as the board reasonably may require.
27        If  the  board  concludes that the construction manager or managers desig-
28    nated by the firm is or are licensed in good standing and that the firm  meets
29    such other criteria reasonably established by the board, it shall issue a cer-
30    tificate  of  authority  to the firm authorizing it to provide and hold itself
31    out as providing construction management services.
32        (2)  If the construction manager or managers designated by the firm  cease
33    to  be  licensed  or to be principals or employees of the firm, the firm shall
34    immediately notify the board in writing and shall cease to hold itself out  as
35    qualified to offer construction management services. Upon receiving such noti-
36    fication  the  board shall suspend the firm's certificate of authority. If the
37    firm is in the process of providing construction management services when  its
38    designated  licensed construction manager becomes unable to provide those ser-
39    vices, the firm shall complete the construction management  services  for  the
40    project  by  using  the  services of another licensed construction manager who
41    need not be a principal or employee of the firm. The firm shall not provide or
42    hold itself out as providing construction management services for other  proj-
43    ects  until the board has reinstated the firm's certificate of authority which
44    the board shall do if the firm submits an application for reinstatement of its
45    certificate of authority, which shall contain the information required for  an
46    original application together with such other information as the board reason-
47    ably  may require, and the board finds such application to be satisfactory and
48    complete.

49        54-4510.  FEES -- DISPOSITION OF FUNDS. (1) The board shall adopt by  rule
50    reasonable  fees not to exceed two hundred dollars ($200) for each of the fol-
51    lowing:
52        (a)  Initial examination and licensing;
53        (b)  License renewal;


                                          5

 1        (c)  Inactive licenses;
 2        (d)  License reinstatement; and
 3        (e)  Issuance, suspension and reinstatement of a certificate of authority.
 4        (2)  All fees collected by the board shall be paid to the bureau of  occu-
 5    pational  licenses  and  deposited in the state treasury, to the credit of the
 6    occupational licenses fund, and shall be used only for the  administration  of
 7    the  provisions  of this chapter. All expenses incurred pursuant to the provi-
 8    sions of this chapter shall be paid from the occupational licenses  fund.  All
 9    fees  collected  by  the board under the provisions of this chapter are hereby
10    appropriated for one (1) year following the effective date of this chapter and
11    thereafter as appropriated each year by the legislature for carrying  out  the
12    purposes  and  objectives  of  this  chapter and to pay all costs and expenses
13    incurred in connection therewith. Such moneys shall be paid  out  on  warrants
14    drawn by the state controller upon presentation of proper vouchers approved by
15    the board.

16        54-4511.  BIDDING OF CONTRACTS -- DUAL CAPACITY. (1) In soliciting bids or
17    awarding contracts for public works construction, a licensed construction man-
18    ager  shall  comply with all notice and bidding laws with which an owner would
19    be required to comply if it were to do the same activities without the  assis-
20    tance of a construction manager.
21        (2)  A licensed construction manager and the firm of which he is a princi-
22    pal  or employee shall not provide construction management services for a con-
23    struction project on which the licensed construction manager or his firm  also
24    provides  design services or other construction related services, whether as a
25    contractor or subcontractor. Provided however, that  this  section  shall  not
26    preclude a licensed architect or registered professional engineer from provid-
27    ing  public works construction management services which are normally provided
28    by licensed architects or registered professional engineers for a  project  on
29    which  the person or firm has provided design services. Such public works con-
30    struction management services provided by a licensed architect  or  registered
31    professional  engineer  shall not include the procurement of equipment or con-
32    struction work required by law to be competitively bid for public  works  con-
33    struction.
34        (3)  No  public entity shall enter into a contract with any person or firm
35    for construction management services if such person or firm is required to  be
36    licensed under this chapter unless:
37        (a)  Such person holds a valid license or such firm holds a valid certifi-
38        cate issued pursuant to this chapter; and
39        (b)  The  selection  of such construction manager is made pursuant to sec-
40        tion 67-2320, Idaho Code.

41        54-4512.  REQUIREMENT OF BOND. A licensed  construction  manager  or  firm
42    providing  public  works construction management services shall be required to
43    post a payment and performance bond or bonds in the amount of the  total  con-
44    struction management contract to secure the construction manager's obligations
45    thereunder.

46        54-4513.  PENALTIES. Any person who violates any provision of this chapter
47    shall, upon conviction, be guilty of a misdemeanor.

48        54-4514.  INJUNCTIVE RELIEF. The board may bring an action in the district
49    court  for  a temporary restraining order, preliminary injunction or permanent
50    injunction against any person who violates the provisions of this chapter.


                                          6

 1        SECTION 2.  That Section 54-1905, Idaho Code, be, and the same  is  hereby
 2    amended to read as follows:

 3        54-1905.  PUBLIC WORKS CONTRACTORS STATE LICENSE BOARD CREATED -- QUALIFI-
 4    CATIONS  OF  APPOINTEES  --  TERM  -- REMOVALS. There is hereby created in the
 5    department of self-governing agencies a public works contractors state license
 6    board to be composed  of    five      seven    (  5
 7     7 ) members, who shall be appointed by the governor. One (1)
 8    member of the board shall be a "heavy construction" contractor, one (1) member
 9    shall  be  a  "highway  construction"  contractor,  two  (2)  members shall be
10    "building construction" contractors ,    and    one  (1)
11    member  shall  be  a "specialty construction" contractor, as such construction
12    terms are defined in this  act   chapter, one (1) member shall
13    be a "construction manager," and one (1) member shall be a registered  profes-
14    sional engineer . All  contractor  members of the board shall
15    be  contractors  holding  a  current  unrevoked  license  at the time of their
16    appointment, actively engaged in the contracting business  and  have  been  so
17    engaged  for  a  period  of not less than five (5) years preceding the date of
18    their appointment, and who shall so continue in the contracting business  dur-
19    ing their term of office. Each member of the board next preceding his appoint-
20    ment shall have been a citizen and resident of the state of Idaho for at least
21    five  (5) years , be at least thirty (30) years of age, of good character
22    and of recognized standing in his branch of the contracting  business  .
23      Of  the  two (2) new members of the board provided by this act, one (1)
24    shall be a "building construction" contractor  to  be  appointed  for  a  term
25    expiring  December  31,  1957, and one (1) shall be a "specialty construction"
26    contractor to be appointed for a term expiring December 31, 1959.  Thereafter,
27    upon  the  expiration  of each term the   The  governor shall
28    appoint a member to said board for a term of six (6) years. Each member  shall
29    hold  office after the expiration of his own term until his successor has been
30    duly appointed and qualified. Vacancies on the board for any  cause  shall  be
31    filled  by  appointment by the governor for the balance of the unexpired term.
32    The governor may remove any member of the board for  misconduct,  incompetence
33    or  neglect  of  duty. Each member of the board shall receive a certificate of
34    appointment from the governor, and before entering upon the discharge  of  his
35    duties,  shall  file  with  the  secretary of state the constitutional oath of
36    office. The board may, by written agreement, authorize the bureau  of  occupa-
37    tional licenses as agent to act in its interest.

38        SECTION  3.  That  Section 54-1908, Idaho Code, be, and the same is hereby
39    amended to read as follows:

40        54-1908.  MEETINGS -- QUORUM. The board shall hold not less than four  (4)
41    regular  meetings  each year, on a day not later than the fifteenth day of the
42    month in each of the months of January, April, July and October, for the  pur-
43    pose of transacting such business as may properly come before it. At the April
44    meeting  of  each  year  the  board  shall  elect officers. Special or regular
45    monthly meetings of the board may be held at such times as the board may  pro-
46    vide in the  by-laws   bylaws .  Three  
47    Four   ( 3  4 ) members of the board shall consti-
48    tute a quorum. Two (2) members of the board may call a special meeting at  any
49    time.  Due  notice of each meeting of the board and the time and place thereof
50    shall be given each member in the  manner  prescribed  in  the    by-laws
51        bylaws . Each member of the board shall be compensated as
52    provided by section 59-509(h), Idaho Code, to be allowed  and  paid  from  the


                                          7

 1    public  works  contractors  license  account,  as hereinafter provided in this
 2     act   chapter .

 3        SECTION 4.  That Section 67-2320, Idaho Code, be, and the same  is  hereby
 4    amended to read as follows:

 5        67-2320.  PROFESSIONAL  SERVICE CONTRACTS WITH DESIGN PROFESSIONALS ,
 6    CONSTRUCTION MANAGERS AND PROFESSIONAL LAND  SURVEYORS  .  (1)  Notwith-
 7    standing any other provision of law to the contrary, it shall be the policy of
 8    this state that all public agencies and political subdivisions of the state of
 9    Idaho  may   and their agents shall  make selections for
10    professional  engineering,  architectural  , landscape architecture, con-
11    struction management  and  professional  land surveying  ser-
12    vices,  including services by persons licensed pursuant to chapters 3, 12
13    ,   and  30  and 45 , title 54, Idaho Code, on the
14    basis of qualifications and demonstrated competence and  may  
15    shall  negotiate contracts or agreements for such services on the  basis
16    of  demonstrated  competence  and  qualifications  for  the  type  of services
17    required at fair and reasonable prices.
18        (2)  In carrying out this policy, public agencies and  political  subdivi-
19    sions of the state  may   shall  use the following 
20    minimum   guidelines  in securing contracts for engineering, archi-
21    tectural, landscape architecture, construction management and  land  surveying
22    services  on projects for which the professional service fee is anticipated to
23    exceed the total sum of twenty-five thousand dollars ($25,000), excluding pro-
24    fessional services contracts previously awarded for an  associated  or  phased
25    project, and the expenditure is otherwise exempt from the bidding process pro-
26    vided by law :
27        (a)  Encourage  persons   or firms  engaged in the  design
28        professions   services being solicited  to submit  state-
29        ments of qualifications and performance data;
30        (b)  Establish  and  make available to  all interested persons 
31         the public  the criteria and procedures used for the selection
32        of qualified persons  or firms  to perform such services;
33        (c)  Select  from the  interested  persons  those      the
34          persons   or firms  whom the public agency or political
35        subdivision determines  the most  highly      to  be  best
36          qualified to provide the required services , ranked  in
37        order  of  preference,  pursuant  to  the  public  agency   or   political
38        subdivision's established criteria and procedures;
39        (d)  Negotiate  with  the  highest  qualified  
40        ranked  person  or firm  for a contract or  agreement  to
41        perform such services at a price determined by the public agency or polit-
42        ical subdivision to be reasonable and fair to the public after considering
43        the  estimated value, the scope, the complexity and the nature of the ser-
44        vices;
45        (e)  When unable to negotiate a satisfactory contract or  agreement,  for-
46        mally  terminate  negotiations  and  undertake  negotiations with the next
47         most qualified   highest ranked   person    or
48        firm  ,  following  the procedure prescribed in subsection (2)(d) of
49        this section;  and 
50        (f)  When unable to negotiate a satisfactory contract  or  agreement  with
51        any  of  the  selected  persons    or firms , continue with the
52        selection and negotiation process provided in this section  until  a  con-
53        tract or agreement is reached ;


                                          8

 1        (g)  When  public agencies or political subdivisions solicit proposals for
 2        engineering, architectural, landscape architecture,  construction  manage-
 3        ment  or land surveying services for which the professional service fee is
 4        anticipated to exceed  the  total  sum  of  twenty-five  thousand  dollars
 5        ($25,000), they shall publish public notice in the same manner as required
 6        for bidding of public works construction projects.
 7        (h)  In  fulfilling  the requirements of subsections (2)(a) through (2)(g)
 8        of this section, a public agency or political subdivision  may  limit  its
 9        selection  from  a  list  of  three  (3)  persons  or  firms  selected and
10        preapproved for consideration by the public agency or  political  subdivi-
11        sion. In establishing a preapproved list a public agency or political sub-
12        division  shall  publish  notice as set forth in subsection (2)(g) of this
13        section. When selecting from such list, no notice shall be required.
14        (i)  In fulfilling the requirements of subsections (2)(a)  through  (2)(g)
15        of  this  section,  a  public  agency or political subdivision may request
16        information  concerning  a  person's  or  firm's   rates,   overhead   and
17        multipliers,  if  any,  however  such information shall not be used by the
18        public agency or political subdivision for the purpose of ranking in order
19        of preference as required in subsection (2)(c) of this section .
20        (3)   In securing contracts for engineering, architectural, landscape
21    architecture, construction management or land surveying services  on  projects
22    for  which  the  professional  service  fee is anticipated to be less than the
23    total sum of twenty-five thousand dollars  ($25,000),  the  public  agency  or
24    political  subdivision  may  use  the  guidelines  set forth in paragraphs (a)
25    through (g) of subsection (2) of this section or establish its own  guidelines
26    for  selection  based on demonstrated competence and qualifications to perform
27    the type of services required, followed by negotiation of the fee at  a  price
28    determined  by  the public agency or political subdivision to be fair and rea-
29    sonable after considering the estimated value, the scope, the  complexity  and
30    the nature of services.
31        (4)  When a public agency or political subdivision of the state has previ-
32    ously  awarded  a  professional  services  contract to a person or firm for an
33    associated or phased project the public agency or political  subdivision  may,
34    at its discretion, negotiate an extended or new professional services contract
35    with that person or firm. 
36          (5)    (a) For  the purposes of this section, "public agency"
37        shall mean the state of Idaho and any  departments,  commissions,  boards,
38        authorities,  bureaus,  universities,  college  s , educational
39        institutions or other state agencies which have been created by or  pursu-
40        ant to statute other than courts and their agencies and divisions, and the
41        judicial council and the district magistrate's commission;
42        (b)  For  the purposes of this section, "political subdivision" shall mean
43        a county, city, airport, airport district, school  district,  health  dis-
44        trict,  road district, cemetery district,  junior   commu-
45        nity  college  district,  hospital  district,  irrigation  district,
46        sewer district, fire protection district, or any other district or munici-
47        pality  of any nature whatsoever having the power to levy taxes or assess-
48        ment, organized under any general or special law of this state.  The  enu-
49        meration  of  certain  districts  herein shall not be construed to exclude
50        other districts or municipalities from this definition.

Statement of Purpose / Fiscal Impact


    





                          STATEMENT OF PURPOSE
    
                               RS 08194 C1
    
    Idaho does not currently have a process in code for use of a 
    "construction manager". Public entities are attempting to use this 
    concept but bonding and bidding laws are sometimes being ignored 
    on public works projects. It exposes those districts to 
    potentially large losses. This bill would define the method by 
    which public entities could use the process through licensing and 
    oversight.
    
    In addition, the bill defines how architects, engineers, 
    and land surveyors would be selected under a method of quality 
    based selection by public entities for their portion of the 
    public works jobs. Their selections would be based on 
    demonstrated competence as design professionals.
    
                               FISCAL NOTE
    
    License fees will provide funds to conduct the license 
    procedures required by this legislation. This bill is revenue 
    neutral.
    
    CONTACT: Representative Lee Gagner
              (208) 332-1000
    
    Bill No. H 811