HB275 Alabama 2015 Session

Summary

Primary Sponsor

Mark Tuggle

Republican

Session

Regular Session 2015

Title

Public works contracts, alternative project delivery methods authorized, selection of construction manager/general contractor, penalties for violations, Secs. 39-2-40 to 39-2-43, inclusive, 39-2-60 to 39-2-69, inclusive, added; Secs. 39-2-1, 39-2-2 am'd.

Summary

HB275 would add CM/GC and design-build as new ways to deliver Alabama public works, with detailed rules for selection, pricing, and penalties.

What This Bill Does

It creates two new project delivery methods (construction manager/general contractor and design-build) in addition to design-bid-build. For large projects (costs over $15 million), awarding authorities may use CM/GC or design-build, with certain exclusions for DOT and local roads. Each method has structured prequalification, competitive proposals, and contract processes, and the bill imposes penalties for violations and requires public records; it also includes emergency and confidentiality provisions.

Who It Affects

• Awarding authorities (state agencies, counties, and municipalities) would gain new options to procure public works using CM/GC or design-build, following new thresholds and procedures.
• CM/GC firms, design-builders, subcontractors, and licensed design professionals would participate in new prequalification and competitive-proposal processes, adhere to licensing/bonding rules, and face potential penalties for violations; the general public would see increased project oversight and access to records.

Key Provisions

• Adds Article 2 (CM/GC) and Article 3 (Design-Build) to Chapter 2 of Title 39, Codifies CM/GC and design-build as procurement methods.
• Thresholds: CM/GC and design-build may be used for projects with anticipated construction/design costs over $15,000,000; excludes Alabama Department of Transportation and local roads/highways from these methods.
• CM/GC process: requires written justification, prequalification, competitive proposals, qualifications-based scoring, and negotiations leading to a contract; no sole reliance on price.
• CM/GC self-perform limit: CM/GC may self-perform up to 10% of the guaranteed maximum price; includes rules for subcontractor selection and ownership considerations.
• Design-build process: two-step prequalification, followed by competitive proposals; final selection based on qualifications and scoring, not solely on price; design-builder must be licensed.
• Contract terms: design-build contracts must reflect final design, be terminated for substantial noncompliance, and require written approval of final design before construction.
• Public records and enforcement: all CM/GC and design-build records and contracts are public; violations can be void contracts and are Class C felonies; the Attorney General and bidders may seek injunctions and recover certain costs.
• Budget and funds: authorities must state funds available and ensure budgets align with proposals; emergency procurements allowed with confidentiality when Homeland Security concerns apply.
• Effective date and constitutional note: act becomes effective October 1, 2016; acknowledges Amendment 621 exceptions for local funds, meaning the bill is exempt from the typical 2/3 vote requirement for new local expenditures.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Contracts