SB239 Alabama 2015 Session

Summary

Primary Sponsor

Paul Sanford

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, added; Secs. 39-2-1, 39-2-2 am'd.

Summary

SB239 would add a Construction Manager/General Contractor (CM/GC) option for Alabama public works, creating a new procurement method with specific selection, cost, and oversight rules.

What This Bill Does

It authorizes awarding authorities to use CM/GC for public works projects above a certain cost, with exceptions for DOT and local road/highway work; it requires a written justification and identification of funds. It establishes a process for prequalification, competitive proposals, and negotiated final agreements based on qualifications rather than price alone, plus timelines and extension provisions. It sets rules for CM/GC self-perform limits, subcontractor prequalification and bidding, and transparency of records, while imposing penalties for violations and ensuring contracts are void if laws are violated. It also clarifies definitions, roles of design professionals, and the effective date of the new method.

Who It Affects

• Public awarding authorities (state, counties, municipalities) and their design professionals: they would have the option to use CM/GC for eligible public works projects, must provide a written justification and funds, and must manage the CM/GC process under specified requirements.
• CM/GC firms and subcontractors: CM/GCs would prequalify and bid on projects, may self-perform up to 10% of the GMP, must follow subcontractor selection and pricing rules, and must be licensed and bonded; subcontractors over $50,000 must prequalify and bid, with scoring and ranking conducted by the CM/GC and awarding authority.

Key Provisions

• Article 2 authorizes CM/GC contracts for public works with anticipated construction costs over $15,000,000, excluding DOT and local road/highway projects; construction costs include most on-site costs but exclude land and non-permanent furniture/equipment.
• Awarding authorities must declare in writing why the CM/GC method is preferred, identify potential benefits, and show available funds before proceeding; the design professional of record must be involved and the method must be advertised for prequalification and competitive proposals.
• CM/GC services include construction management during preconstruction and construction and, during construction, acting as the general contractor with a guaranteed maximum price; CM/GCs must be properly licensed and bonded.
• Subcontractor rules require the CM/GC to prequalify all subcontracts over $50,000, solicit lump-sum bids from prequalified subs, and allow the CM/GC to select subs based on written scoring criteria rather than price alone; the awarding authority can object to subs but may incur extra costs or time if substitutions raise costs.
• Negotiation and award process requires a written letter of intent within 30 days of ranking; GMP terms and staffing costs must be proposed within 30 days of the letter, with negotiations completing within 90 days (extensions possible); if no agreement is reached, the process may move to the next ranked CM/GC or another procurement method or project cancellation.
• Penalties and records: contracts or actions in violation are void and subject to Class C felony penalties; CM/GC contracts, records, and related documents must be public records, with limited confidentiality in certain Homeland Security-related cases.

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