State of South Dakota
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EIGHTY-SEVENTH SESSION
LEGISLATIVE ASSEMBLY, 2012
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346T0510
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SENATE BILL NO. 178
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Introduced by: Senators Krebs, Hunhoff (Jean), and Lederman and Representatives Brunner and
Hunt
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FOR AN ACT ENTITLED, An Act to amend the criteria for construction manager engagement.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That § 5-18B-43 be amended to read as follows:
5-18B-43. Unless the construction manager-agent is an employee of the purchasing agency and
provides the construction management services pursuant to such employment, no purchasing agency
may engage the services of a construction manager except as follows:
(1) The purchasing agency shall first make the following determinations:
(a) That it is in the public interest to utilize the services of a construction manager; and
(b) That the construction management services would not unreasonably duplicate and
would be in addition to the normal scope of separate architect or engineer
contracts;
(2) Notwithstanding any other provisions of this chapter, no construction manager may
contract to perform actual construction on the project, except as follows:
(a) The construction manager may perform general conditions of the construction
contract as required by the owner;
(b) The construction manager is a construction manager-at-risk and was solicited
through a qualification- best value based request for proposals method of
procurement as provided in § 5-18B-44 and the construction manager-at-risk, for
any actual construction contracted by the construction manager-at-risk to be
performed on the project, provides payment and performance bonds and
competitively bids the work as required by any statute governing bidding and
bonding for public improvement projects;
(c) Pursuant to a contract awarded on an emergency basis, pursuant to § 5-18A-9; or
(d) Pursuant to a contract negotiated pursuant to subdivision 5-18A-5(9); and
(3) No person, firm, or corporation may act as a construction manager-agent and also as a
contractor on any public improvement, except as follows:
(a) Pursuant to a contract awarded on an emergency basis, pursuant to § 5-18A-9; or
(b) Pursuant to a contract negotiated pursuant to subdivision 5-18A-5(9).
Section 2. That § 5-18B-44 be amended to read as follows:
5-18B-44. Each qualification best value based request for proposals required by subsection 5-18B-43(2)(b) to enter into a construction manager-at-risk services contract where the construction
manager-at-risk intends to actually perform construction on the project, shall meet the following
criteria:
(1) The purchasing agency shall, prior to issuing any request for proposals to enter in a
construction management services contract, establish and publish procedures for the
solicitation and award of such contracts, which procedures shall include the following:
(a) The procedures and standards to be used to qualify construction managers;
(b) The procedures for preparing and submitting competitive sealed proposals;
(c) The procedures for evaluating proposals;
(d) The procedures for negotiations between the purchasing agency and those
submitting proposals prior to the acceptance of a proposal. The procedures shall
contain safeguards to preserve the confidential information and proprietary
information supplied by those submitting proposals; and
(e) The procedures for awarding construction management services contracts;
(2) A request for proposals to enter into a construction management services contract shall
contain the following elements:
(a) The identity of the purchasing agency;
(b) A description of the proposed public improvement;
(c) A description of the qualifications the construction manager will be required to have;
(d) The procedures to be followed for submitting proposals, the criteria for evaluation
of a proposal and its relative weight, and procedures for making awards;
(e) The proposed terms and conditions for the construction management services
contract, including a description of the scope of services to be provided;
(3) Notice of any request for proposals shall be advertised in accordance with the provisions
of § 5-18A-14;
(4)
After obtaining and evaluating proposals, a purchasing agency may accept the proposal it
considers the most advantageous to the purchasing agency. Acceptance of a proposal shall
be by written notice to the construction manager submitting the accepted proposal, and by
simultaneously notifying in writing the other construction managers that their proposals were
not accepted The award of a best value construction contract shall be made to the
responsible offeror whose proposal is determined in writing to be the most advantageous
to the state and that represents the best overall value to the state, taking into consideration
the price and other evaluation factors set forth in the request for proposals. No other
factors or criteria may be evaluated in making the award determination other than those
specified in the request for proposals. The contract file maintained by the purchasing
agency shall contain the basis on which the award determination was made; and
(5) The purchasing agency shall reserve the right to reject any or all proposals submitted.