text:
The procurement process for the design-build projects shall progress as follows:

(a) (1) The director shall prepare a set of documents setting forth the scope and estimated price of the project. The documents may include, but need not be limited to, the size, type, and desired design character of the project, performance specifications covering the quality of materials, equipment, workmanship, preliminary plans or building layouts, or any other information deemed necessary to describe adequately the department’s needs. The performance specifications and any plans shall be prepared by a design professional who is duly licensed and registered in California.

(2) The documents shall not include a design-build-operate contract for any project. The documents, however, may include operations during a training or transition period but shall not include long-term operations for any project.

(b) The director shall prepare and issue a request for qualifications in order to prequalify or short-list the design-build entities whose proposals shall be evaluated for final selection. The request for qualifications shall include, but need not be limited to, the following elements:

(1) Identification of the basic scope and needs of the project or contract, the expected cost range, the methodology that will be used by the department to evaluate proposals, the procedure for final selection of the design-build entity, and any other information deemed necessary by the director to inform interested parties of the contracting opportunity.

(2) Significant factors that the department reasonably expects to consider in evaluating qualifications, including technical design and construction expertise, and all other nonprice-related factors.

(3) A standard template request for statements of qualifications prepared by the department. In preparing the standard template, the department may consult with the construction industry, the building trades and surety industry, and other agencies interested in using the authorization provided by this article. The template shall require the following information:

(A) If the design-build entity is a privately held corporation, limited liability company, partnership, or joint venture, a listing of all of the shareholders, partners, or members known at the time of statement of qualification submission who will perform work on the project.

(B) Evidence that the members of the design-build team have completed, or demonstrated the experience, competency, capability, and capacity to complete projects of similar size, scope, or complexity, and that proposed key personnel have sufficient experience and training to competently manage and complete the design and construction of the project, and a financial statement that ensures that the design-build entity has the capacity to complete the project.

(C) The licenses, registration, and credentials required to design and construct the project, including, but not limited to, information on the revocation or suspension of any license, credential, or registration.

(D) Evidence that establishes that the design-build entity has the capacity to obtain all required payment and performance bonding, liability insurance, and errors and omissions insurance.

(E) Information concerning workers’ compensation experience history and a worker safety program.

(F) If the proposed design-build entity is a corporation, limited liability company, partnership, joint venture, or other legal entity, a copy of the organizational documents or agreement committing to form the organization.

(G) An acceptable safety record. A proposer’s safety record shall be deemed acceptable if its experience modification rate for the most recent three-year period is an average of 1.00 or less, and its average total recordable injury or illness rate and average lost work rate for the most recent three-year period does not exceed the applicable statistical standards for its business category or if the proposer is a party to an alternative dispute resolution system as provided for in Section 3201.5 of the Labor Code.

(4) (A) The information required under this subdivision shall be certified under penalty of perjury by the design-build entity and its general partners or joint venture members.

(B) Information required under this subdivision that is not otherwise a public record under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) shall not be open to public inspection.

(c) (1) A design-build entity shall not be prequalified or short-listed unless the entity provides an enforceable commitment to the director that the entity and its subcontractors at every tier will use a skilled and trained workforce to perform all work on the project or contract that falls within an apprenticeable occupation in the building and construction trades, in accordance with Chapter 2.9 (commencing with Section 2600) of Part 1.

(2) This subdivision shall not apply if any of the following requirements are met:

(A) The department has entered into a project labor agreement that will bind all contractors and subcontractors performing work on the project or contract to use a skilled and trained workforce, and the entity agrees to be bound by that project labor agreement.

(B) The project or contract is being performed under the extension or renewal of a project labor agreement that was entered into by the department prior to January 1, 2017.

(C) The entity has entered into a project labor agreement that will bind the entity and all its subcontractors at every tier performing the project or contract to use a skilled and trained workforce.

(3) For purposes of this subdivision, “project labor agreement” has the same meaning as in paragraph (1) of subdivision (b) of Section 2500.

(d) Based on the documents prepared as described in subdivision (a), the director shall prepare a request for proposals that invites prequalified or short-listed entities to submit competitive sealed proposals in the manner prescribed by the department. The request for proposals shall include, but need not be limited to, the following elements:

(1) Identification of the basic scope and needs of the project or contract, the estimated cost of the project, the methodology that will be used by the department to evaluate proposals, whether the contract will be awarded on the basis of low bid or best value, and any other information deemed necessary by the department to inform interested parties of the contracting opportunity.

(2) Significant factors that the department reasonably expects to consider in evaluating proposals, including, but not limited to, cost or price and all nonprice-related factors.

(3) The relative importance or the weight assigned to each of the factors identified in the request for proposals.

(4) Where a best value selection method is used, the department may reserve the right to request proposal revisions and hold discussions and negotiations with responsive proposers, in which case the department shall so specify in the request for proposals and shall publish separately or incorporate into the request for proposals applicable procedures to be observed by the department to ensure that any discussions or negotiations are conducted in good faith.

(e) For those projects utilizing low bid as the final selection method, the competitive bidding process shall result in lump-sum bids by the prequalified or short-listed design-build entities, and awards shall be made to the design-build entity that is the lowest responsible bidder.

(f) For those projects utilizing best value as a selection method, the design-build competition shall progress as follows:

(1) Competitive proposals shall be evaluated by using only the criteria and selection procedures specifically identified in the request for proposals. The following minimum factors, however, shall be weighted as deemed appropriate by the department:

(A) Price, unless a stipulated sum is specified.

(B) Technical design and construction expertise.

(C) Life-cycle costs over 15 or more years.

(2) Pursuant to subdivision (d), the department may hold discussions or negotiations with responsive proposers using the process articulated in the department’s request for proposals.

(3) When the evaluation is complete, the responsive proposers shall be ranked based on a determination of value provided, provided that no more than three proposers are required to be ranked.

(4) The award of the contract shall be made to the responsible design-build entity whose proposal is determined by the director to have offered the best value to the public.

(5) Notwithstanding any other provision of this code, upon issuance of a contract award, the director shall publicly announce its award, identifying the design-build entity to which the award is made, along with a statement regarding the basis of the award.

(6) The statement regarding the director’s contract award, described in paragraph (5), and the contract file shall provide sufficient information to satisfy an external audit.

history: (History: Amended by Stats. 2021, Ch. 615, Sec. 356. (AB 474) Effective January 1, 2022. Operative January 1, 2023, pursuant to Sec. 463 of Stats. 2021, Ch. 615.)

article: 6. State Agency Design-Build Projects


kind: section

code: PCC

text:
(a) The design-build entity shall provide payment and performance bonds for the project in the form and in the amount required by the director, and issued by a California admitted surety. The amount of the payment bond shall not be less than the amount of the performance bond.

(b) The design-build contract shall require errors and omissions insurance coverage for the design elements of the project.

(c) The department shall develop a standard form of payment and performance bond for its design-build projects.

history: (History: Added by Stats. 2014, Ch. 931, Sec. 6. (SB 785) Effective January 1, 2015.)

division: 2. GENERAL PROVISIONS

part: 2. CONTRACTING BY STATE AGENCIES

chapter: 1. State Contract Act

article: 6. State Agency Design-Build Projects

path: 2. GENERAL PROVISIONS > 2. CONTRACTING BY STATE AGENCIES > 1. State Contract Act > 6. State Agency Design-Build Projects


text:
(a) The department, in each design-build request for proposals, may identify specific types of subcontractors that must be included in the design-build entity statement of qualifications and proposal. All construction subcontractors that are identified in the proposal shall be afforded all the protections of Chapter 4 (commencing with Section 4100) of Part 1.

(b) Following award of the design-build contract, the design-build entity shall proceed as follows in awarding construction subcontracts with a value exceeding one-half of 1 percent of the contract price allocable to construction work:

(1) Provide public notice of availability of work to be subcontracted in accordance with the publication requirements applicable to the competitive bidding process of the department, including a fixed date and time on which qualifications statements, bids, or proposals will be due.

(2) Establish reasonable qualification criteria and standards.

(3) Award the subcontract either on a best value basis or to the lowest responsible bidder. The process may include prequalification or short-listing. The foregoing process does not apply to construction subcontractors listed in the original proposal. Subcontractors awarded construction subcontracts under this subdivision shall be afforded all the protections of Chapter 4 (commencing with Section 4100) of Part 1.

article: 6. State Agency Design-Build Projects


text:
(a) If the department elects to award a project pursuant to this article, retention proceeds withheld by the department from the design-build entity shall not exceed 5 percent if a performance and payment bond, issued by an admitted surety insurer, is required in the solicitation of bids.

(b) In a contract between the design-build entity and a subcontractor, and in a contract between a subcontractor and any subcontractor thereunder, the percentage of the retention proceeds withheld may not exceed the percentage specified in the contract between the department and the design-build entity. If the design-build entity provides written notice to any subcontractor that is not a member of the design-build entity, prior to or at the time the bid is requested, that a bond may be required and the subcontractor subsequently is unable or refuses to furnish a bond to the design-build entity, then the design-build entity may withhold retention proceeds in excess of the percentage specified in the contract between the department and the design-build entity from any payment made by the design-build entity to the subcontractor.

article: 6. State Agency Design-Build Projects


text: Nothing in this article affects, expands, alters, or limits any rights or remedies otherwise available at law.

article: 6. State Agency Design-Build Projects


text:
For purposes of this article, the following definitions shall apply:

(a) “Best value” means a value determined by evaluation of objective criteria that relate to demonstrated competence and on the professional qualifications necessary for the satisfactory performance of the services required. Other factors such as price, features, functions, and life-cycle costs may be considered. If the qualifications-based selection process includes estimates of cost as a factor, a best value determination may involve the selection of the lowest cost proposal meeting the interests of the department and meeting the objectives of the project, or a tradeoff between price and other specified factors.

(b) “Construction subcontract” means each subcontract awarded by the design-build entity to a subcontractor that will perform work or labor or render service to the design-build entity in or about the construction of the work or improvement, or a subcontractor licensed by the State of California that, under subcontract to the design-build entity, specially fabricates and installs a portion of the work or improvement according to detailed drawings contained in the plans and specifications produced by the design-build team.

(c) “Department” means the Department of General Services.

(d) “Design-build entity” means a corporation, limited liability company, partnership, joint venture, or other legal entity that is able to provide appropriately licensed contracting, architectural, and engineering services as needed pursuant to a design-build contract.

(e) “Design-build project” means a capital outlay project using the progressive design-build construction procurement process described in this article.

(f) “Design-build team” means the design-build entity itself and the individuals and other entities identified by the design-build entity as members of its team. Members shall include the general contractor and, if utilized in the design of the project, all electrical, mechanical, and plumbing contractors.

(g) “Director” means the Director of General Services or their designee.

(h) “Guaranteed maximum price” means the maximum payment amount agreed upon by the department and the design-build entity for the design-build entity to finish all remaining design, preconstruction, and construction activities sufficient to complete and close out the project.

(i) “Progressive design-build” means a project delivery process in which both the design and construction of a project are procured from a single entity that is selected through a qualifications-based selection at the earliest feasible stage of the project.

(j) “Qualifications-based selection” means the process by which the department solicits for services from the design-build entities.

history: (History: Added by Stats. 2021, Ch. 77, Sec. 26. (AB 137) Effective July 16, 2021.)

path: 2. GENERAL PROVISIONS > 2. CONTRACTING BY STATE AGENCIES > 1. State Contract Act > 6.5. Progressive Design-Build Contracting


text:
(a) (1) Notwithstanding any other law, and subject to the limitation of paragraph (2), the director may procure progressive design-build contracts.

(2) The authority under this article shall apply to no more than three capital outlay projects, which shall be determined jointly by the department and the Department of Finance.

(b) The director shall develop guidelines for a standard organizational conflict-of-interest policy, consistent with applicable law, regarding the ability of a person or entity that performs services for the department relating to the solicitation of a design-build project, to submit a proposal as a design-build entity, or to join a design-build team. This conflict-of-interest policy shall apply to each department entering into design-build contracts authorized under this article.

article: 6.5. Progressive Design-Build Contracting


text:
The procurement process for progressive design-build projects shall progress as follows:

(a) The department shall prepare and issue a request for qualifications in order to select a design-build entity to execute the project. The request for qualifications shall include, but is not limited to, the following elements:

(1) Documentation of the size, type, and desired design character of the project and any other information deemed necessary to describe adequately the department’s needs, including the expected cost range, the methodology that will be used by the department to evaluate the design-build entity’s qualifications, the procedure for final selection of the design-build entity, and any other information deemed necessary by the department to inform interested parties of the contracting opportunity.

(2) Significant factors that the department reasonably expects to consider in evaluating qualifications, including technical design and construction expertise, and all other nonprice-related factors. The department may require that a cost estimate, including the detailed basis for the estimate, be included in the design-build entities’ responses and consider those costs in evaluating the statements of qualifications.

(3) The relative importance or the weight assigned to each of the factors identified in the request for qualifications.

(4) A request for statements of qualifications with a template for the statement that is prepared by the department. The department shall require all of the following information in the statement and indicate, in the template, that the following information is required:

(A) If the design-build entity is a privately held corporation, limited liability company, partnership, or joint venture, a listing of all of the entity’s shareholders, partners, or members known at the time of the statement of qualification submission who will perform work on the project.

(B) Evidence that the members of the design-build team have completed, or have demonstrated the experience, competency, capability, and capacity to complete, projects of similar size, scope, or complexity, and that proposed key personnel have sufficient experience and training to competently manage and complete the design and construction of the project, and a financial statement that ensures that the design-build entity has the capacity to complete the project.

(C) The licenses, registration, and credentials required to design and construct the project, including, but not limited to, information on the revocation or suspension of any license, credential, or registration.

(D) Evidence that establishes that the design-build entity has the capacity to obtain all required payment and performance bonding, liability insurance, and errors and omissions insurance.

(E) Information concerning workers’ compensation experience history and a worker safety program.

(F) If the proposed design-build entity is a corporation, limited liability company, partnership, joint venture, or other legal entity, a copy of the organizational documents or agreement committing to form the organization.

(G) An acceptable safety record. A proposer’s safety record shall be deemed acceptable if its experience modification rate for the most recent three-year period is an average of 1.00 or less, and its average total recordable injury or illness rate and average lost work rate for the most recent three-year period does not exceed the applicable statistical standards for its business category or if the proposer is a party to an alternative dispute resolution system as provided for in Section 3201.5 of the Labor Code.

(5) The information required under this subdivision shall be certified under penalty of perjury by the design-build entity and its general partners or joint venture members.

(b) (1) A design-build entity shall not be evaluated for selection unless the entity provides an enforceable commitment to the director that the entity and its subcontractors at every tier will use a skilled and trained workforce to perform all work on the project or contract that falls within an apprenticeable occupation in the building and construction trades, in accordance with Chapter 2.9 (commencing with Section 2600) of Part 1.

(2) This subdivision shall not apply if one or more of the following requirements are met:

(A) The department has entered into a project labor agreement that will bind all contractors and subcontractors performing work on the project or contract to use a skilled and trained workforce, and the entity agrees to be bound by that project labor agreement.

(B) The project or contract is being performed under the extension or renewal of a project labor agreement that was entered into by the department prior to January 1, 2022.

(C) The entity has entered into a project labor agreement that will bind the entity and all its subcontractors at every tier performing the project or contract to use a skilled and trained workforce.

(3) For purposes of this subdivision, “project labor agreement” has meaning provided in paragraph (1) of subdivision (b) of Section 2500.

(c) At the close of the solicitation period, the department shall review the submissions. The department may evaluate submissions based solely upon the information provided in each design-build entities’ statement of qualifications. The department may also interview some or all of the design-build entities to further evaluate their qualifications for the project.

(d) Notwithstanding any other provision of this code, upon issuance of a contract award, the department shall publicly announce its award, identifying the design-build entity to which the award is made, along with a statement regarding the basis of the award. The statement regarding the department’s contract award and the contract file shall provide sufficient information to satisfy an external audit.


text:
(a) After selecting a design-build entity based upon qualifications, the department may enter into a contract and direct the design-build entity to begin design and preconstruction activities sufficient to establish a guaranteed maximum price for the project.

(b) (1) Subject to Section 13332.19 of the Government Code, upon agreement of the guaranteed maximum price for the project, the department, at its sole and absolute discretion, may amend its contract to direct the design-build entity to complete the remaining design, preconstruction, and construction activities sufficient to complete and close out the project, and may add funds not exceeding the guaranteed maximum price to the contract for these activities.

(2) If the cost for completing all remaining design, preconstruction, and construction activities sufficient to complete and close out the project exceed the guaranteed maximum price, the costs exceeding the guaranteed maximum price shall be the responsibility of the design-build entity. If the cost for these activities are less than the guaranteed maximum price, the design-build entity shall not be entitled to the difference between the cost and the guaranteed maximum price. These amounts shall revert to the fund from which the appropriation was made.

(c) If the department and the design-build entity do not reach agreement on a guaranteed maximum price, or the department otherwise elects not to amend the design-build entity’s contract to complete the remaining work, the department may solicit proposals to complete the project from firms that submitted statements of qualifications pursuant to Section 10198.2. The department may also, upon written determination that it is in the best interest of the state to do so, formally solicit proposals from other design-build entities. Subject to Section 13332.19 of the Government Code, contract award shall be made on a best value basis.


text:
(a) The department, in each design-build request for qualifications, may identify specific types of subcontractors that shall be included in the design-build entity’s statement of qualifications. All construction subcontractors that are identified in the statement of qualifications shall be afforded the protections of Chapter 4 (commencing with Section 4100) of Part 1.

(b) Following award of the design-build contract, except for those construction subcontractors listed in the statement of qualifications, the design-build entity shall proceed as listed in this subdivision in awarding construction subcontracts with a value exceeding one-half of 1 percent of the contract price allocable to construction work.

(1) Provide public notice of availability of work to be subcontracted in accordance with the publication requirements applicable to the competitive bidding process of the department, including a fixed date and time on which qualifications statements, bids, or proposals will be due.

(2) Establish reasonable qualification criteria and standards.

(3) Award the subcontract either on a best value basis or to the lowest responsible bidder. The process may include prequalification or short-listing.

(c) Subcontractors awarded construction subcontracts under this subdivision shall be afforded all the protections of Chapter 4 (commencing with Section 4100) of Part 1.


text:
(a) If the department elects to award a project pursuant to this article, retention proceeds withheld by the department from the design-build entity shall not exceed 5 percent if a performance and payment bond, issued by an admitted surety insurer, is required in the solicitation. Work performed to establish the guaranteed maximum price shall not be subject to retention.

(b) In a contract between the design-build entity and a subcontractor, and in a contract between a subcontractor and any subcontractor thereunder, the percentage of the retention proceeds withheld shall not exceed the percentage specified in the contract between the department and the design-build entity. If the design-build entity provides written notice to any subcontractor that is not a member of the design-build entity, before or at the time the bid is requested, that a bond may be required, and the subcontractor subsequently is unable or refuses to furnish a bond to the design-build entity, then the design-build entity may withhold retention proceeds in excess of the percentage specified in the contract between the department and the design-build entity from any payment made by the design-build entity to the subcontractor.


text:
(a) The department shall submit to the Joint Legislative Budget Committee, on or before January 1, 2026, a report containing a description of each public works project procured by the department through the progressive design-build process described in this article that is completed after January 1, 2022, and before December 1, 2025.

(b) The report described in subdivision (a) shall include, but is not limited to, all of the following information:

(1) The type of project.

(2) The gross square footage of the project.

(3) The design-build entity that was awarded the project.

(4) The estimated and actual project costs.

(5) An assessment of the selection process and criteria required by this article.

(6) An assessment of the effects of the progressive design-build process described in this article on cost and schedule for the project.

(7) The number of specialty subcontractors listed by construction trade type, on each project, that provided design services, but did not meet the target price for their scope of work and therefore did not perform construction services on that project.

(8) Whether or not any portion of a design prepared by the specialty subcontractor that did not perform the construction work for that design was used by the department.

(9) In instances where the department determined that the guaranteed maximum price of any subcontract exceeded the anticipated target price for that portion of the project, which subcontracts were impacted and on what basis the department determined what the anticipated target price was.

(10) The number of specialty subcontractors listed by construction trade type, on each project, that meet the definition of a small business under subparagraphs (A) and (B) of paragraph (1) of subdivision (d) of Section 14837 of the Government Code.

(11) The number of specialty subcontractors listed by construction trade type, on each project, that meet the definition of a microbusiness under paragraph (2) of subdivision (d) of Section 14837 of the Government Code.

(c) The report submitted pursuant to subdivision (a) shall be submitted in compliance with Section 9795 of the Government Code.


text:
For purposes of this article, the following definitions apply:

(a) “Best value” means a value determined by evaluation of objective criteria that may include, but are not limited to, cost factors, price, features, functions, life-cycle costs, experience, and past performance. A best value determination may involve the selection of the lowest cost proposal meeting the interests of the department and meeting the objectives of the project, or a tradeoff between cost and other specified factors.

(b) “Construction subcontract” means each subcontract awarded by the design-build entity to a subcontractor that will perform work or labor or render service to the design-build entity in or about the construction of the work or improvement, or a subcontractor licensed by the State of California that, under subcontract to the design-build entity, specially fabricates and installs a portion of the work or improvement according to detailed drawings contained in the plans and specifications produced by the design-build team.

(c) “Department” means the Department of Corrections and Rehabilitation.

(d) “Design-build entity” means a corporation, limited liability company, partnership, joint venture, or other legal entity that is able to provide appropriately licensed contracting, architectural, and engineering services as needed pursuant to a design-build contract.

(e) “Design-build project” means the San Quentin Rehabilitation Center, San Quentin: Demolition of Building 38 and Construction of New Educational and Vocational Center project authorized in the 2023 Budget Act, which includes the demolition of Building 38 and the design and construction of a new educational and vocational center, using the progressive design-build construction procurement process described in this article.

(f) “Design-build team” means the design-build entity itself and the individuals and other entities identified by the design-build entity as members of its team. Members shall include the general contractor and, if utilized in the design of the project, all civil, geotechnical, electrical, mechanical, and plumbing contractors.

(g) “Secretary” means the Secretary of the Department of Corrections and Rehabilitation or their designee.

(h) “Guaranteed maximum price” means the maximum payment amount agreed upon by the department and the design-build entity for the design-build entity to finish all remaining design, preconstruction, and construction activities sufficient to complete and close out the demolition of Building 38 or the remainder of the design-build project.

(i) “Progressive design-build” means a project delivery process in which the design, preconstruction services, and construction of a project are procured, in one or more stages, from a single design-build entity that is selected through a qualifications-based selection at the earliest feasible stage of the project. However, the progressive design-build model offers flexibility to retain a different entity for the construction phase of the project, should the parties be unable to agree, after a specified portion of the design phase is complete, on a guaranteed maximum price for the construction phase.

(j) “Qualifications-based selection” means the process by which the department solicits for services from the design-build entities and that best value is the basis of the award.

history: (History: Added by Stats. 2023, Ch. 47, Sec. 25. (AB 134) Effective July 10, 2023.)

path: 2. GENERAL PROVISIONS > 2. CONTRACTING BY STATE AGENCIES > 1. State Contract Act > 6.5.1. San Quentin Progressive Design-Build Contracting


text:
(a) Notwithstanding any other law, the secretary may procure progressive design-build contracts for the design-build project.

(b) The secretary shall develop guidelines for a standard organizational conflict-of-interest policy, consistent with applicable law, regarding the ability of a person or entity that performs services for the department relating to the solicitation of a design-build project, to submit a statement of qualifications, a proposal, or both as a design-build entity, or to join a design-build team.

article: 6.5.1. San Quentin Progressive Design-Build Contracting


text:
The procurement process for a progressive design-build project shall progress as follows:

(a) The department shall determine the scope and estimated price of the design-build project. The determination may include, but need not be limited to, the size, type, and desired design character of the project and any other information deemed necessary to describe adequately the department’s needs.

(b) The department shall prepare and issue a request for qualifications. The request for qualifications shall include, but is not limited to, all of the following elements:

(1) Identification of the basic scope and needs of the design-build project or contract, the expected cost range, the methodology that will be used by the department to evaluate qualifications, the procedure for final selection of the design-build entity, and any other information deemed necessary by the department to inform interested parties of the contracting opportunity.

(2) Significant factors that the department reasonably expects to consider in evaluating qualifications, including technical design and construction expertise, and all other non-price-related factors. The department may require that a cost estimate, including the detailed basis for the estimate, be included in the design-build entities’ responses and consider those costs in evaluating the statements of qualifications.

(3) The relative importance or the weight assigned to each of the factors identified in the request for qualifications.

(4) A request for statements of qualifications with a template for the statement that is prepared by the department. The department shall require all of the following information in the statement and indicate, in the template, that all of the following information is required:

(A) If the design-build entity is a privately held corporation, limited liability company, partnership, or joint venture, a listing of all of the entity’s shareholders, partners, or members who will perform work on the project that are known at the time of the statement of qualification is submitted.

(B) Evidence that the members of the design-build team have completed, or have demonstrated the experience, competency, capability, and capacity to complete, projects of similar size, scope, or complexity, and that proposed key personnel have sufficient experience and training to competently manage and complete the design and construction of the design-build project, and a financial statement that ensures that the design-build entity has the capacity to complete the project.

(C) The licenses, registration, and credentials required to design and construct the design-build project, including, but not limited to, information on the revocation or suspension of any license, credential, or registration.

(D) Evidence that establishes that the design-build entity has the capacity to obtain all required payment and performance bonding, liability insurance, and errors and omissions insurance.

(E) Information concerning workers’ compensation experience history and a worker safety program.

(F) If the proposed design-build entity is a corporation, limited liability company, partnership, joint venture, or other legal entity, a copy of the organizational documents or agreement committing to form the organization.

(G) An acceptable safety record. A proposer’s safety record shall be deemed acceptable if its experience modification rate for the most recent three-year period is an average of 1.00 or less, and its average total recordable injury or illness rate and average lost work rate for the most recent three-year period does not exceed the applicable statistical standards for its business category or if the proposer is a party to an alternative dispute resolution system as provided for in Section 3201.5 of the Labor Code.

(H) A full disclosure regarding each of the following, if applicable:

(i) Any serious or willful violation of Part 1 (commencing with Section 6300) of Division 5 of the Labor Code or the federal Occupational Safety and Health Act of 1970 (Public Law 91-596), settled against any member of the design-build entity.

(ii) Any debarment, disqualification, or removal from a federal, state, or local government public works project.

(iii) Any instance in which the design-build entity, or its owners, officers, or managing employees, submitted a bid on a public works project and were found to be nonresponsive or were found by an awarding body not to be a responsible bidder.

(iv) Any instance in which the design-build entity, or its owners, officers, or managing employees, defaulted on a construction contract.

(v) Any violations of the Contractors State License Law, as described in Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code, including alleged violations of federal or state law regarding the payment of wages, benefits, apprenticeship requirements, or personal income tax withholding, or Federal Insurance Contributions Act withholding requirements settled against any member of the design-build entity.

(vi) Any bankruptcy or receivership of any member of the design-build entity, including, but not limited to, information concerning any work completed by a surety.

(vii) Any settled adverse claims, disputes, or lawsuits between the owner of a public works project and any member of the design-build entity during the five years preceding submission of a bid under this article in which the claim, settlement, or judgment exceeded fifty thousand dollars ($50,000). Information shall also be provided concerning any work completed by a surety during this five-year period.

(5) The information provided by a design-build entity in response to a request for qualifications shall be certified under penalty of perjury by the design-build entity and its general partners or joint venture members.

(c) (1) Following the deadline for submission of a statement of qualifications, the department shall review the submissions. The department may evaluate submissions based solely upon the information provided in each design-build entity’s statement of qualifications. The department may also interview some or all of the design-build entities to further evaluate their qualifications for the design-build project. The department may also hold discussions or negotiations with design-build entities using the process described in the department’s request for qualifications.

(2) For each request for qualification, the department shall generate a final list of qualified design-build entities that participated in the request for qualifications prior to entering into negotiations for the contract or contracts to which the request for qualifications applies.

(3) If submissions in response to a request for qualifications provide sufficient information to determine which qualified design-build entity has offered the best value to the public, the department may enter into negotiations with the entity concerning contract terms and award a contract or contracts for design and preconstruction services for the demolition of Building 38 and the remainder of the design-build project to that entity. Such contract or contracts shall provide for the subsequent negotiation of terms governing the construction phase of the demolition of Building 38 and the remainder of the design-build project. If the department is unable to negotiate a satisfactory contract or contracts with that entity for design and preconstruction services, the department may undertake negotiations with another qualified design-build entity that participated in the request for qualifications process.

(4) If additional information is necessary to determine which qualified design-build entity offers the best value to the public, the department may prepare a further request for proposals, based on the documents prepared as described in subdivision (a), that invites qualified design-build entities identified pursuant to paragraph (2) to submit competitive sealed proposals in the manner prescribed by the department.

(d) Notwithstanding any other provision of this code, upon issuance of a contract award, the department shall publicly announce its award, identifying the design-build entity to which the award is made, along with a statement regarding the basis of the award. The statement regarding the contract award and the contract file shall provide sufficient information to satisfy an external audit.


text:
(a) The design-build entity shall provide payment and performance bonds for the design-build project in the form and in the amount required by the secretary, which are issued by a California admitted surety. The amount of the payment bond shall not be less than the amount of the performance bond.

(b) The design-build contract shall require errors and omissions insurance coverage for the design elements of the design-build project.

(c) The department shall develop a standard form of payment and performance bond for its design-build project.


text:
(a) After selecting a design-build entity for the design and preconstruction phase, the department may enter into a contract or contracts and direct the design-build entity to begin design and preconstruction activities sufficient to establish a separate guaranteed maximum price for the demolition of Building 38 and the remainder of the design-build project.

(b) Subject to Section 13332.19 of the Government Code, upon agreement of the guaranteed maximum price for the demolition of Building 38 or the remainder of the design-build project, the department, at its sole and absolute discretion, may amend its contract or contracts with the design-build entity or enter into a new contract or contracts, and direct the design-build entity to complete the remaining design, preconstruction, and construction activities sufficient to complete and close out the demolition of Building 38 or the remainder of the design-build project, and may add funds not exceeding the guaranteed maximum price to the contract for these activities. Any amendment of the existing contract or contracts or entering into a new contract or contracts with the design-build entity shall not require any additional competitive process. This section does not require the department to amend an existing contract or enter into a new contract for remaining design, preconstruction, or construction activities.

(c) If the cost for completing all remaining design, preconstruction, and construction activities sufficient to complete and close out the design-build project exceeds the guaranteed maximum price, the costs exceeding the guaranteed maximum price shall be the responsibility of the design-build entity. If the cost for these activities is less than the guaranteed maximum price, the design-build entity shall not be entitled to the difference between the cost and the guaranteed maximum price. These amounts shall revert to the fund from which the appropriation was made.

(d) If the department and the design-build entity do not reach an agreement on a guaranteed maximum price for the demolition of Building 38 or the remainder of the design-build project, or the department otherwise elects not to amend the design-build entity’s contract or contracts to complete the demolition of Building 38 or the remainder of the design-build project, the department may solicit proposals to complete the demolition of Building 38 or the remainder of the design-build project from firms that submitted statements of qualifications pursuant to Section 10199.2. The department may also, upon written determination that it is in the best interest of the state to do so, formally solicit proposals from other design-build entities to complete the demolition of Building 38 or the remainder of the design-build project or complete the design-build project using other delivery methods. Subject to Section 13332.19 of the Government Code, a contract award shall be made on a best value basis.


text:
(a) The department, in the request for qualifications or request for proposals, may identify specific types of subcontractors that are required to be included in the design-build entity’s statement of qualifications. All construction subcontractors that are identified in the statement of qualifications shall be afforded the protections of Chapter 4 (commencing with Section 4100) of Part 1.

(b) Following award of the design-build contract, except for those construction subcontractors listed in the statement of qualifications or proposal, the design-build entity shall proceed as follows in awarding construction subcontracts with a value exceeding one-half of 1 percent of the contract price allocable to construction work.

(1) Provide public notice of availability of work to be subcontracted in accordance with the publication requirements applicable to the competitive bidding process of the department, including a fixed date and time on which qualifications statements, bids, or proposals will be due.

(2) Establish reasonable qualification criteria and standards.

(3) Award the subcontract either on a best value basis or to the lowest responsible bidder. The process may include prequalification or short-listing.

(c) Subcontractors awarded construction subcontracts under this subdivision shall be afforded all the protections of Chapter 4 (commencing with Section 4100) of Part 1.


text: This article does not affect, expand, alter, or limit any rights or remedies otherwise available at law.


text:
(a) The Legislature finds and declares that the design-build method of project delivery, using a best value procurement methodology, has been authorized for various agencies that have reported benefits from such projects including reduced project costs, expedited project completion, and design features that are not achievable through the traditional design-bid-build method.

(b) It is the intent of the Legislature that the following occur:

(1) This article provides specific authorization to the Department of Water Resources.

(2) This article shall not be deemed to provide a preference for the design-build method over other procurement methodologies.

history: (History: Added by Stats. 2021, Ch. 247, Sec. 4. (SB 626) Effective January 1, 2022. Repealed as of January 1, 2033, pursuant to Section 10214.)

path: 2. GENERAL PROVISIONS > 2. CONTRACTING BY STATE AGENCIES > 1. State Contract Act > 6.5. Department of Water Resources Design-Build Projects


text:
For purposes of this article, the following definitions and the definitions in subdivision (a) of Section 13332.19 of the Government Code shall apply:

(a) “Best value” means a value determined by evaluation of objective criteria that relate to price, features, functions, life-cycle costs, experience, and past performance. A best value determination may involve the selection of the lowest cost proposal meeting the interests of the department and meeting the objectives of the project, selection of the best proposal for a stipulated sum established by the procuring agency, or a tradeoff between price and other specified factors.

(b) “Construction subcontract” means each subcontract awarded by the design-build entity to a subcontractor that will perform work or labor or render service to the design-build entity in or about the construction of the work or improvement, or a subcontractor licensed by the State of California that, under subcontract to the design-build entity, specially fabricates and installs a portion of the work or improvement according to detailed drawings contained in the plans and specifications produced by the design-build team.

(c) “Department” means the Department of Water Resources.

(d) “Design-build” means a project delivery process in which both the design and construction of a project are procured from a single entity.

(e) “Design-build entity” means a corporation, limited liability company, partnership, joint venture, or other legal entity that is able to provide appropriately licensed contracting, architectural, and engineering services as needed pursuant to a design-build contract.

(f) “Design-build team” means the design-build entity itself and the individuals and other entities identified by the design-build entity as members of its team. Members shall include the general contractor and, if utilized in the design of the project, all electrical, mechanical, and plumbing contractors.

(g) “Director” means the Director of Water Resources.

article: 6.5. Department of Water Resources Design-Build Projects


text:
(a) (1) Notwithstanding any other law, the director, following any required notification made pursuant to Section 10206, may procure design-build contracts for public works projects in excess of one million dollars ($1,000,000) that are at the Salton Sea or that are necessary for the construction, maintenance, or operation of elements of State Water Facilities, as defined in Section 12934 of the Water Code, and may award the contract using either the low bid or best value, provided that this article shall not apply to any projects on the state highway system.

(2) Notwithstanding paragraph (1), this article does not apply to the design or construction of through-Delta water conveyances in the Sacramento-San Joaquin Delta.

(b) The director shall develop guidelines for a standard organizational conflict-of-interest policy, consistent with applicable law, regarding the ability of a person or entity, that performs services for the department relating to the solicitation of a design-build project, to submit a proposal as a design-build entity, or to join a design-build team. This conflict-of-interest policy shall apply to each department entering into design-build contracts authorized under this article.

history: (History: Amended by Stats. 2022, Ch. 60, Sec. 33. (AB 203) Effective June 30, 2022. Repealed as of January 1, 2033, pursuant to Section 10214.)


text: For purposes of projects at the Salton Sea, the director shall notify the California Water Commission regarding the method to be used for selecting the design-build entry, prior to advertising the design-build project.


text:
The procurement process for the design-build projects shall progress as follows:

(a) (1) The director shall prepare a set of documents setting forth the scope and estimated price of the project. The documents may include, but need not be limited to, the size, type, and desired design character of the project, performance specifications covering the quality of materials, equipment, workmanship, preliminary plans or building layouts, or any other information deemed necessary to describe adequately the department’s needs. The performance specifications and any plans shall be prepared by a design professional who is duly licensed and registered in California.

(2) The documents shall not include a design-build-operate contract for any project. The documents, however, may include operations during a training or transition period but shall not include long-term operations for any project.

(b) The director shall prepare and issue a request for qualifications in order to prequalify or short-list the design-build entities whose proposals shall be evaluated for final selection. The request for qualifications shall include, but need not be limited to, the following elements:

(1) Identification of the basic scope and needs of the project or contract, the expected cost range, the methodology that will be used by the department to evaluate proposals, the procedure for final selection of the design-build entity, and any other information deemed necessary by the director to inform interested parties of the contracting opportunity.

(2) Significant factors that the department reasonably expects to consider in evaluating qualifications, including technical design and construction expertise, and all other non-price-related factors.

(3) A standard template request for statements of qualifications prepared by the department. In preparing the standard template, the department may consult with the construction industry, the building trades and surety industry, and other agencies interested in using the authorization provided by this article. The template shall require the following information:

(A) If the design-build entity is a privately held corporation, limited liability company, partnership, or joint venture, a listing of all of the shareholders, partners, or members known at the time of statement of qualification submission who will perform work on the project.

(B) Evidence that the members of the design-build team have completed, or demonstrated the experience, competency, capability, and capacity to complete projects of similar size, scope, or complexity, and that proposed key personnel have sufficient experience and training to competently manage and complete the design and construction of the project, and a financial statement that ensures that the design-build entity has the capacity to complete the project.

(C) The licenses, registration, and credentials required to design and construct the project, including, but not limited to, information on the revocation or suspension of any license, credential, or registration.

(D) Evidence that establishes that the design-build entity has the capacity to obtain all required payment and performance bonding, liability insurance, and errors and omissions insurance.

(E) Information concerning workers’ compensation experience history and a worker safety program.

(F) If the proposed design-build entity is a corporation, limited liability company, partnership, joint venture, or other legal entity, a copy of the organizational documents or agreement committing to form the organization.

(G) An acceptable safety record. A proposer’s safety record shall be deemed acceptable if its experience modification rate for the most recent three-year period is an average of 1.00 or less, and its average total recordable injury or illness rate and average lost work rate for the most recent three-year period does not exceed the applicable statistical standards for its business category or if the proposer is a party to an alternative dispute resolution system as provided for in Section 3201.5 of the Labor Code.

(4) (A) The information required under this subdivision shall be certified under penalty of perjury by the design-build entity and its general partners or joint venture members.

(B) Information required under this subdivision that is not otherwise a public record under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) shall not be open to public inspection.

(c) (1) A design-build entity shall not be prequalified or short-listed unless the entity provides an enforceable commitment to the director that the entity and its subcontractors at every tier will use a skilled and trained workforce to perform all work on the project or contract that falls within an apprenticeable occupation in the building and construction trades, in accordance with Chapter 2.9 (commencing with Section 2600) of Part 1.

(2) This subdivision shall not apply if any of the following requirements are met:

(A) The department has entered into a project labor agreement that will bind all contractors and subcontractors performing work on the project or contract to use a skilled and trained workforce, and the entity agrees to be bound by that project labor agreement.

(B) The project or contract is being performed under the extension or renewal of a project labor agreement that was entered into by the department prior to January 1, 2017.

(C) The entity has entered into a project labor agreement that will bind the entity and all its subcontractors at every tier performing the project or contract to use a skilled and trained workforce.

(3) For purposes of this subdivision, “project labor agreement” has the same meaning as in paragraph (1) of subdivision (b) of Section 2500.

(d) Based on the documents prepared as described in subdivision (a), the director shall prepare a request for proposals that invites prequalified or short-listed entities to submit competitive sealed proposals in the manner prescribed by the department. The request for proposals shall include, but need not be limited to, the following elements:

(1) Identification of the basic scope and needs of the project or contract, the estimated cost of the project, the methodology that will be used by the department to evaluate proposals, whether the contract will be awarded on the basis of low bid or best value, and any other information deemed necessary by the department to inform interested parties of the contracting opportunity.

(2) Significant factors that the department reasonably expects to consider in evaluating proposals, including, but not limited to, cost or price and all non-price-related factors.

(3) The relative importance or the weight assigned to each of the factors identified in the request for proposals.

(4) Where a best value selection method is used, the department may reserve the right to request proposal revisions and hold discussions and negotiations with responsive proposers, in which case the department shall so specify in the request for proposals and shall publish separately or incorporate into the request for proposals applicable procedures to be observed by the department to ensure that any discussions or negotiations are conducted in good faith.

(e) For those projects utilizing low bid as the final selection method, the competitive bidding process shall result in lump-sum bids by the prequalified or short-listed design-build entities, and awards shall be made to the design-build entity that is the lowest responsible bidder.

(f) For those projects utilizing best value as a selection method, the design-build competition shall progress as follows:

(1) Competitive proposals shall be evaluated by using only the criteria and selection procedures specifically identified in the request for proposals. The following minimum factors, however, shall be weighted as deemed appropriate by the department:

(A) Price, unless a stipulated sum is specified.

(B) Technical design and construction expertise.

(C) Life-cycle costs over 15 or more years.

(2) Pursuant to subdivision (d), the department may hold discussions or negotiations with responsive proposers using the process articulated in the department’s request for proposals.

(3) When the evaluation is complete, the responsive proposers shall be ranked based on a determination of value provided, provided that no more than three proposers are required to be ranked.

(4) The award of the contract shall be made to the responsible design-build entity whose proposal is determined by the director to have offered the best value to the public.

(5) Notwithstanding any other provision of this code, upon issuance of a contract award, the director shall publicly announce its award, identifying the design-build entity to which the award is made, along with a statement regarding the basis of the award.

(6) The statement regarding the director’s contract award, described in paragraph (5), and the contract file shall provide sufficient information to satisfy an external audit.

history: (History: Amended by Stats. 2022, Ch. 28, Sec. 130. (SB 1380) Effective January 1, 2023. Repealed as of January 1, 2033, pursuant to Section 10214.)


text:
(a) The design-build entity shall provide payment and performance bonds for the project in the form and in the amount required by the director, and issued by a California admitted surety. The amount of the payment bond shall not be less than the amount of the performance bond.

(b) The design-build contract shall require errors and omissions insurance coverage for the design elements of the project.

(c) The department shall develop a standard form of payment and performance bond for its design-build projects.


text:
(a) The department, in each design-build request for proposals, may identify specific types of subcontractors that must be included in the design-build entity statement of qualifications and proposal. All construction subcontractors that are identified in the proposal shall be afforded all the protections of Chapter 4 (commencing with Section 4100) of Part 1.

(b) Following award of the design-build contract, the design-build entity shall proceed as follows in awarding construction subcontracts with a value exceeding one-half of 1 percent of the contract price allocable to construction work:

(1) Provide public notice of availability of work to be subcontracted in accordance with the publication requirements applicable to the competitive bidding process of the department, including a fixed date and time on which qualifications statements, bids, or proposals will be due.

(2) Establish reasonable qualification criteria and standards.

(3) Award the subcontract either on a best value basis or to the lowest responsible bidder. The process may include prequalification or short-listing. The foregoing process does not apply to construction subcontractors listed in the original proposal. Subcontractors awarded construction subcontracts under this subdivision shall be afforded all the protections of Chapter 4 (commencing with Section 4100) of Part 1.


text:
(a) If the department elects to award a project pursuant to this article, retention proceeds withheld by the department from the design-build entity shall not exceed 5 percent if a performance and payment bond, issued by an admitted surety insurer, is required in the solicitation of bids.

(b) In a contract between the design-build entity and a subcontractor, and in a contract between a subcontractor and any subcontractor thereunder, the percentage of the retention proceeds withheld may not exceed the percentage specified in the contract between the department and the design-build entity. If the design-build entity provides written notice to any subcontractor that is not a member of the design-build entity, prior to or at the time the bid is requested, that a bond may be required and the subcontractor subsequently is unable or refuses to furnish a bond to the design-build entity, then the design-build entity may withhold retention proceeds in excess of the percentage specified in the contract between the department and the design-build entity from any payment made by the design-build entity to the subcontractor.


text:
(a) The design-build authorization in Section 10204 shall not include the authority to perform construction inspection services for water resources projects authorized by this article except as provided for in Section 148 of the Water Code.

(b) (1) The Department of Water Resources shall prepare and submit to the Legislature an interim report no later than July 1, 2025, that describes each design-build project approved under this article beginning January 1, 2022, and that provides relevant data, including, but not limited to, cost, the stage of completion, and estimated time to completion.

(2) The department shall prepare and submit to the Legislature a final report, no later than July 1, 2028, that provides the same relevant data for projects that were approved under this article as of January 1, 2027.

(c) Both the interim and final reports shall provide a comprehensive assessment on the effectiveness of the design-build project delivery method relative to project cost and time savings.

(d) A report to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code.


text: Nothing in this article affects, expands, alters, or limits any rights or remedies otherwise available at law.


text:
(a) The authority to procure design-build contracts for State Water Facilities, as defined in Section 12934 of the Water Code, pursuant to this article is for no more than seven projects.

(b) This article shall remain in effect only until January 1, 2033, and as of that date is repealed.

history: (History: Amended by Stats. 2022, Ch. 60, Sec. 34. (AB 203) Effective June 30, 2022. Repealed as of January 1, 2033, by its own provisions. Note: Repeal affects Article 6.5, commencing with Section 10200.)


text:
For purposes of this article, the following definitions apply:

(a) “Best value” means a value determined by evaluation of objective criteria that may include, but are not limited to, cost factors, price, features, functions, life-cycle costs, experience, and past performance. A best value determination may involve the selection of the lowest cost proposal meeting the interests of the department and meeting the objectives of the project, or a tradeoff between cost and other specified factors.

(b) “Construction subcontract” means each subcontract awarded by the design-build entity to a subcontractor that will perform work or labor or render service to the design-build entity in or about the construction of the work or improvement, or a subcontractor licensed by the State of California that, under subcontract to the design-build entity, specially fabricates and installs a portion of the work or improvement according to detailed drawings contained in the plans and specifications produced by the design-build team.

(c) “Department” means any department of the State of California authorized pursuant to Section 10215.1 to utilize progressive design-build contracting.

(d) “Design-build entity” means a corporation, limited liability company, partnership, joint venture, or other legal entity that is able to provide appropriately licensed contracting, architectural, and engineering services as needed pursuant to a progressive design-build contract.

(e) “Design-build project” means a capital project using the progressive design-build construction procurement process described in this article.

(f) “Design-build team” means the design-build entity itself and the individuals and other entities identified by the design-build entity as members of its team. Members shall include the general contractor and, if utilized in the design of the project, all civil, geotechnical, electrical, mechanical, and plumbing contractors.

(g) “Director” means the director of any department of the State of California authorized pursuant to Section 10215.1 to utilize progressive design-build contracting, or their designee.

(h) “Guaranteed maximum price” means the maximum payment amount agreed upon by the department and the design-build entity for the design-build entity to finish all remaining design, preconstruction, and construction activities sufficient to complete and close out the project.

(i) “Progressive design-build” means a project delivery process in which the design, preconstruction services, and construction of a project are procured, in one or more stages, from a single design-build entity that is selected through a qualifications-based selection at the earliest feasible stage of the project. However, the progressive design-build model offers flexibility to retain a different entity for the construction phase of the project, should the parties be unable to agree, after a specified portion of the design phase is complete, on a guaranteed maximum price for the construction phase.

(j) “Qualifications-based selection” means the process by which the department solicits for services from the design-build entities and that best value is the basis of the award.

history: (History: Added by Stats. 2023, Ch. 58, Sec. 3. (SB 146) Effective July 10, 2023. Repealed as of December 31, 2033, pursuant to Section 10215.8.)

article: 6.7. Progressive Design-Build Projects

path: 2. GENERAL PROVISIONS > 2. CONTRACTING BY STATE AGENCIES > 1. State Contract Act > 6.7. Progressive Design-Build Projects


text:
(a) (1) Notwithstanding any other law, both of the following departments may procure progressive design-build contracts for public works projects for which the estimated price, as determined pursuant to subdivision (a) of Section 10215.2, exceeds twenty five million dollars ($25,000,000):

(A) The Department of Water Resources as established in Section 120 of the Water Code.

(B) The Department of Transportation as established under Part 5 (commencing with Section 14000) of Division 3 of Title 2 of the Government Code.

(2) This subdivision does not authorize a design-build-operate contract for any project. A contract pursuant to this article may provide for operations during a training or transitional period, but shall not include long-term operations for any design-build project.

(3) The progressive design-build authorization in this subdivision shall not include the authority to perform construction inspection services for projects on or interfacing with the state highway system, which shall be performed by the Department of Transportation consistent with Section 91.2 of the Streets and Highways Code.

(4) The progressive design-build authorization in this subdivision shall not include the authority to perform construction inspection services for projects on the State Water Project or any other state-owned or -operated water resources facility, which shall be performed by the Department of Water Resources consistent with Section 148 of the Water Code.

(5) A department described in paragraph (1) shall be limited to utilizing progressive-design build contracts for no more than eight design-build projects.

(b) The director of each department identified in subdivision (a) shall develop guidelines for a standard departmental conflict-of-interest policy, consistent with applicable law, regarding the ability of a person or entity that performs services for the department relating to the solicitation of a progressive design-build project, to submit a statement of qualifications, a proposal, or both as a design-build entity, or to join a design-build team.

(c) This article does not apply to procurement by the Department of Water Resources for the design or construction of through-Delta conveyance facilities of the Sacramento-San Joaquin Delta or seawater desalination projects.

article: 6.7. Progressive Design-Build Projects


text:
The procurement process for progressive design-build projects shall progress as follows:

(a) The department shall determine the scope and estimated price of the design-build project. The determination may include, but need not be limited to, the size, type, and desired design character of the project and any other information deemed necessary to describe adequately the department’s needs.

(b) The department shall prepare and issue a request for qualifications. The request for qualifications shall include, but is not limited to, all of the following elements:

(1) Identification of the basic scope and needs of the design-build project or contract, the expected cost range, the methodology that will be used by the department to evaluate qualifications, the procedure for final selection of the design-build entity, and any other information deemed necessary by the director to inform interested parties of the contracting opportunity.

(2) Significant factors that the department reasonably expects to consider in evaluating qualifications, including technical design and construction expertise, and all other nonprice-related factors. The department may require that a cost estimate, including the detailed basis for the estimate, be included in the design-build entities’ responses and consider those costs in evaluating the statements of qualifications.

(3) The relative importance or the weight assigned to each of the factors identified in the request for qualifications.

(4) A request for a statement of qualifications with a template for the statement that is prepared by the department. The department shall require all of the following information in the statement and indicate, in the template, that all of the following information is required:

(A) If the design-build entity is a privately held corporation, limited liability company, partnership, or joint venture, a listing of all of the design-build entity’s shareholders, partners, or members who, at the time the statement of qualification is submitted, the design-build entity knows will perform work on the design-build project if the design-build entity is selected by the department.

(B) Evidence that the members of the design-build team have completed, or have demonstrated the experience, competency, capability, and capacity to complete, projects of similar size, scope, or complexity, and that proposed key personnel have sufficient experience and training to competently manage and complete the design and construction of the design-build project, and a financial statement that ensures that the design-build entity has the capacity to complete the design-build project.

(C) The licenses, registration, and credentials required to design and construct the design-build project, including, but not limited to, information on the revocation or suspension of any license, credential, or registration.

(D) Evidence that establishes that the design-build entity has the capacity to obtain all required payment and performance bonding, liability insurance, and errors and omissions insurance.

(E) Information concerning workers’ compensation experience history and a worker safety program.

(F) If the proposed design-build entity is a corporation, limited liability company, partnership, joint venture, or other legal entity, a copy of the organizational documents or agreement committing to form the organization.

(G) An acceptable safety record. A design-build entity’s safety record shall be deemed acceptable if its experience modification rate for the most recent three-year period is an average of 1.00 or less, and its average total recordable injury or illness rate and average lost work rate for the most recent three-year period does not exceed the applicable statistical standards for its business category or if the design-build entity is a party to an alternative dispute resolution system as provided for in Section 3201.5 of the Labor Code.

(H) A full disclosure regarding each of the following, if applicable:

(i) Any serious or willful violation of Part 1 (commencing with Section 6300) of Division 5 of the Labor Code or the federal Occupational Safety and Health Act of 1970 (Public Law 91-596), settled or otherwise resolved against any member of the design-build team.

(ii) Any debarment, disqualification, or removal of any member of the design-build team or its owners, officers, or managing employees from a federal, state, or local government public works project.

(iii) Any instance in which a member of the design-build team, or its owners, officers, or managing employees, submitted a bid on a public works project and were found to be nonresponsive or were found by an awarding body not to be a responsible bidder.

(iv) Any instance in which any member of the design-build team, or its owners, officers, or managing employees, defaulted on a construction contract.

(v) Any violations of the Contractors State License Law, as described in Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code, by a member of the design-build team or its owners, officers, or managing employees, including alleged violations of Federal or state law regarding the payment of wages, benefits, apprenticeship requirements, or personal income tax withholding, or federal Insurance Contribution Act withholding requirements settled against any member of the design-build entity.

(vi) Any bankruptcy or receivership of any member of the design-build team, including, but not limited to, information concerning any work completed by a surety.

(vii) Any adverse claims, disputes, or lawsuits between the owner of a public works project and any member of the design-build team during the five years preceding submission of a bid under this article, in which the claim, settlement, or judgment exceeded fifty thousand dollars ($50,000) and was settled or otherwise resolved against the design-build entity or any member of the design-build team. Information shall also be provided concerning any work completed by a surety during this five-year period.

(viii) Any adverse claims, disputes, or lawsuits between any member of the design-build team and any employee of that entity during the five years preceding submission of a bid under this article, in which the claim, settlement, or judgment exceeded fifty thousand dollars ($50,000) and was settled or otherwise resolved against the entity.

(5) The information provided by a design-build entity in response to a request for qualifications shall be certified under penalty of perjury by the design-build entity and its general partners or joint venture members.

(c) (1) Following the deadline for submission of a statement of qualifications, the department shall review the submissions. The department may evaluate submissions based solely upon the information provided in each design-build entity’s statement of qualifications. The department may also interview some or all of the design-build entities to further evaluate their qualifications for the design-build project. The department may also hold discussions or negotiations with design-build entities using the process described in the department’s request for qualifications.

(2) For each request for qualifications, the department shall generate a final list of qualified design-build entities that participated in the request for qualifications before entering into negotiations for the contract or contracts to which the request for qualifications applies.

(3) If submissions in response to a request for qualifications provide sufficient information to determine which qualified design-build entity has offered the best value to the public, the department may enter into negotiations with that entity concerning contract terms and award a contract for design and preconstruction services to that entity. Such contract shall provide for the subsequent negotiation of terms governing the construction phase of the design-build project. If the department is unable to negotiate a satisfactory contract with that entity for design and preconstruction services, the department may undertake negotiations with a separate qualified design-build entity that participated in the request for qualifications process.

(4) If additional information is necessary to determine which qualified design-build entity offers the best value to the public, the department may prepare a further request for proposals, based on the documents prepared as described in subdivision (a), that invites qualified design-build entities identified pursuant to paragraph (2) to submit competitive sealed proposals in the manner prescribed by the department.

(d) Notwithstanding any other provision of this code, upon issuance of a contract award, the director shall publicly announce its award, identifying the design-build entity to which the award is made, along with a statement regarding the basis of the award. The statement regarding the contract award and the contract file shall provide sufficient information to satisfy an external audit.

article: 6.7. Progressive Design-Build Projects


text:
(a) The design-build entity shall provide payment and performance bonds for the design-build project in the form and in the amount required by the director, which are issued by a California admitted surety. The amount of the payment bond shall not be less than the amount of the performance bond.

(b) The design-build contract shall require errors and omissions insurance coverage for the design elements of the design-build project.

(c) The department shall develop a standard form of payment and performance bond for its design-build projects.

article: 6.7. Progressive Design-Build Projects


text:
(a) After selecting a design-build entity for the design and preconstruction phase, the department may enter into a contract and direct the design-build entity to begin design and preconstruction activities sufficient to establish a guaranteed maximum price for the project.

(b) Subject to Section 13332.19 of the Government Code, if otherwise applicable to the department, upon agreement of the guaranteed maximum price for the design-build project, the department, at its sole and absolute discretion, may amend its contract with the design-build entity, or enter into a new contract, and direct the entity to complete the remaining design, preconstruction, and construction activities sufficient to complete and close out the design-build project, and may add funds not exceeding the guaranteed maximum price to the contract for these activities. Any amendment of the existing contract or a new contract with the design-build entity shall not require any additional competitive process. This section does not require the department to amend an existing contract or enter into a new contract for remaining design, preconstruction, or construction activities.

(c) If the cost for completing all remaining design, preconstruction, and construction activities sufficient to complete and close out the design-build project exceeds the guaranteed maximum price, the costs exceeding the guaranteed maximum price shall be the responsibility of the design-build entity. If the cost for these activities is less than the guaranteed maximum price, the design-build entity shall not be entitled to the difference between the cost and the guaranteed maximum price. Any savings provided to the department shall revert to the fund from which the appropriation was made.

(d) If the department and the design-build entity do not reach an agreement on a guaranteed maximum price or the department otherwise elects not to have the design-build entity complete some or all of the remaining work, the department may solicit proposals to complete some or all of the remaining work from firms that submitted a statement of qualifications pursuant to subdivision (b) of Section 10215.2. The department may also, upon written determination that it is in the best interest of the state to do so, formally solicit proposals from other entities to complete all or some of the remaining work, or complete the design-build project using other delivery methods. Subject to Section 13332.19 of the Government Code, if otherwise applicable to the department, any contract awarded shall be made on a best value basis.

article: 6.7. Progressive Design-Build Projects


text:
(a) The department, in each request for qualifications or request for proposals, may identify specific types of subcontractors that are required to be included in the design-build entity’s statement of qualifications. All construction subcontractors that are identified in the statement of qualifications shall be afforded all the protections of Chapter 4 (commencing with Section 4100) of Part 1.

(b) Following award of the design-build contract, except for those construction subcontractors listed in the statement of qualifications or proposal, the design-build entity shall proceed as follows in awarding construction subcontracts with a value exceeding one-half of 1 percent of the contract price allocable to construction work:

(1) Provide public notice of availability of work to be subcontracted in accordance with the publication requirements applicable to the competitive bidding process of the department, including a fixed date and time on which qualification statements, bids, or proposals will be due.

(2) Establish reasonable qualification criteria and standards.

(3) Award the subcontract either on a best value basis or to the lowest responsible bidder. The process may include prequalification or short-listing.

(c) Subcontractors awarded construction subcontracts under this subdivision shall be afforded all the protections of Chapter 4 (commencing with Section 4100) of Part 1.

article: 6.7. Progressive Design-Build Projects


text:
(a) Any department authorized by Section 10215.1 to utilize progressive design-build contracts pursuant to this article shall prepare and submit to the Legislature a report by January 1, 2034, that describes each design-build project awarded under this article that has begun construction by January 1, 2033.

(b) The report described in subdivision (a) shall include relevant data including, but not limited to, all of the following information:

(1) The cost of the design-build project.

(2) The current status or stage of the design-build project.

(3) If complete, the completion date of the design-build project.

(4) If incomplete, the estimated completion date of the design-build project.

(c) The report described in subdivision (a) shall also provide a comprehensive assessment on the effectiveness of the progressive design-build project delivery method relative to project cost and time savings.

(d) The report submitted pursuant to subdivision (a) shall be submitted in compliance with Section 9795 of the Government Code.

article: 6.7. Progressive Design-Build Projects


text: This article does not affect, expand, alter, or limit any rights or remedies otherwise available at law.

article: 6.7. Progressive Design-Build Projects


text: This article shall remain in effect only until December 31, 2033, and as of that date is repealed. The repeal of this article shall not affect the contracts entered into by the department, or the department’s authority to complete the design-build projects for which a design and preconstruction phase contract has been entered under this article, before December 31, 2033.

history: (History: Added by Stats. 2023, Ch. 58, Sec. 3. (SB 146) Effective July 10, 2023. Repealed as of December 31, 2033, by its own provisions. Note: Repeal affects Article 6.7, commencing with Section 10215.)

article: 6.7. Progressive Design-Build Projects


text:
Every contract awarded under this part shall be submitted to the Attorney General or the attorney appointed according to law and authorized to represent the department under which it is to be performed. Such a contract is not binding on the state until the appropriate attorney finds it to be in accordance with the requirements of this chapter, and endorses such finding thereon.

A certified copy of each contract shall be filed with the Controller, but the failure so to file does not invalidate it.

history: (History: Enacted by Stats. 1981, Ch. 306.)

article: 7. Contract Requirements

path: 2. GENERAL PROVISIONS > 2. CONTRACTING BY STATE AGENCIES > 1. State Contract Act > 7. Contract Requirements


text: Every contract shall provide for the filing of separate performance and payment bonds by the contractor in the form of bonds executed by an admitted surety insurer and not deposits in lieu of bond, subject to the approval of the department.

history: (History: Amended by Stats. 1982, Ch. 517, Sec. 348.4.)

article: 7. Contract Requirements


text:
(a) Each bond shall equal at least one-half of the contract price, except as otherwise provided in Section 9554 of the Civil Code, in the California Toll Bridge Authority Act (Chapter 1 (commencing with Section 30000) of Division 7 of the Streets and Highways Code), or in subdivision (b).

(b) Notwithstanding subdivision (a), for projects with a contract price greater than two hundred fifty million dollars ($250,000,000), the Department of Transportation shall have the discretion to specify that the payment bond shall equal not less than one-half of the contract price or five hundred million dollars ($500,000,000), whichever is less.

history: (History: Amended by Stats. 2010, Ch. 697, Sec. 45. (SB 189) Effective January 1, 2011. Operative July 1, 2012, by Sec. 105 of Ch. 697.)

article: 7. Contract Requirements


text: The payment bond shall secure the payment of the claims of laborers, mechanics or materialmen employed on the work under the contract and shall contain all other provisions required by law.

article: 7. Contract Requirements


text: The performance bond shall guarantee the faithful performance of the contract by the contractor.

article: 7. Contract Requirements


text: No payment shall be made upon the contract to the contractor or any assignee of the contractor until any order by the director that a sufficient surety be substituted on the bond or that a new, additional, or supplemental bond be given, is satisfied. No cancellation of or withdrawal of a surety from a bond is effective unless approved by the director.

history: (History: Amended by Stats. 1982, Ch. 517, Sec. 348.5.)

article: 7. Contract Requirements


text: Every contract shall contain a provision in regard to the time when the whole or any specified portion of the work contemplated shall be completed, and shall provide that for each day completion is delayed beyond the specified time, the contractor shall forfeit and pay to the state a specified sum of money, to be deducted from any payments due or to become due to the contractor. The sum so specified is valid as liquidated damages unless manifestly unreasonable under the circumstances existing at the time the contract was made. A contract for a road project, flood control project, or project involving facilities of the State Water Resources Development System may also provide for the payment of extra compensation to the contractor, as a bonus for completion prior to the specified time, the provision, if used, to be included in the specifications and to clearly set forth the basis for the payment.

history: (History: Amended by Stats. 1990, Ch. 1044, Sec. 1.5. Effective September 19, 1990.)

article: 7. Contract Requirements


text: Every contract shall provide that the department may make changes in the plans and specifications pursuant to this part.

article: 7. Contract Requirements


text: Every contract subject to this part, for which disabled veteran business enterprise participation is included in the bid, shall contain a provision requiring the contractor to comply with rules, regulations, ordinances, and statutes that apply to the California Disabled Veteran Business Enterprise Program as defined in Section 999 of the Military and Veterans Code, including, but not limited to, the requirements of subdivision (d) of Section 999.5 of the Military and Veterans Code.

history: (History: Added by Stats. 2019, Ch. 676, Sec. 5. (AB 230) Effective January 1, 2020.)

article: 7. Contract Requirements


text: Every contract subject to this part shall contain a provision requiring each contractor to comply with all air pollution control rules, regulations, ordinances, and statutes which apply to any work performed pursuant to the contract, including any air pollution control rules, regulations, ordinances, and statutes specified in Section 11017 of the Government Code.

article: 7. Contract Requirements


text: Every contract shall contain a statement by which the contractor swears under penalty of perjury that no more than one final, unappealable finding of contempt of court by a federal court has been issued against the contractor within the immediately preceding two-year period because of the contractor’s failure to comply with an order of a federal court which orders the contractor to comply with an order of the National Labor Relations Board. For purposes of this section, a finding of contempt does not include any finding which has been vacated, dismissed, or otherwise removed by the court because the contractor has complied with the order which was the basis for the finding. The state may rescind any contract in which the contractor falsely swears to the truth of the statement required by this section.

history: (History: Added by Stats. 1982, Ch. 466, Sec. 89.)

article: 7. Contract Requirements


text: The remedy for the resolution of claims arising under contracts made under the provisions of this chapter shall be arbitration pursuant to this chapter.

history: (History: Added by Stats. 1982, Ch. 466, Sec. 90.)

article: 7.1. Resolution of Contract Claims

path: 2. GENERAL PROVISIONS > 2. CONTRACTING BY STATE AGENCIES > 1. State Contract Act > 7.1. Resolution of Contract Claims


text: The claimant may initiate arbitration not later than 90 days after the date of service in person or by mail on the claimant of the final written decision by the department on the claim. This limitation shall not apply to any claim founded on any cost audit, latent defect, warranty, or guarantee under the contract.

history: (History: Amended by Stats. 1998, Ch. 857, Sec. 8. Effective January 1, 1999.)

article: 7.1. Resolution of Contract Claims


text: A failure by the claimant to pursue diligently and exhaust, as to the claim, the required administrative procedures set forth in the contract under which the claim arose shall be a bar to arbitration hereunder until there has been compliance therewith. Subject to the preceding sentence, if more than 240 days have elapsed since acceptance of the work by the department, the claimant is entitled to arbitration, even though the procedures are not concluded.

article: 7.1. Resolution of Contract Claims


text: Unless otherwise agreed by the parties, the arbitration shall be conducted by a single arbitrator selected by the parties from the certified list created by the Public Works Contract Arbitration Committee. If the parties cannot agree on the arbitrator, either party may petition the superior court to appoint one from the panel of arbitrators certified by the Public Works Contract Arbitration Committee.

article: 7.1. Resolution of Contract Claims


text: No decision made by a department shall be conclusive on any issue in the arbitration.

article: 7.1. Resolution of Contract Claims


text:
(a) The Departments of General Services, Transportation, and Water Resources shall jointly adopt and may, from time to time, modify, revise, or repeal uniform regulations to implement this article, which regulations shall be consistent with this article and Article 7.2 (commencing with Section 10245). The regulations may include, but need not be limited to:

(1) The method of initiating arbitration.

(2) The place of hearing based upon the convenience of the parties.

(3) Procedures for the selection of a neutral arbitrator.

(4) The form and content of any pleading.

(5) Procedure for conducting hearings.

(6) The providing of experts to assist the arbitrator in the event the assistance is needed.

(7) The content of the award.

(8) Simplified procedures for claims of fifty thousand dollars ($50,000) or less.

(b) Pending adoption of the initial uniform regulations under this section, the arbitration rules set forth in Subchapter 3 (commencing with Section 301) of Chapter 2 of Title 1 of the California Code of Regulations, shall govern the conduct of arbitrations under this chapter.

history: (History: Amended by Stats. 2006, Ch. 538, Sec. 536. Effective January 1, 2007.)

article: 7.1. Resolution of Contract Claims


text: As used in this article, “claim” means a demand for monetary compensation or damages, arising under or relating to the performance of a contract awarded under this chapter.

article: 7.1. Resolution of Contract Claims


text: As used in this article, “Public Works Contract Arbitration Committee” means the committee created by Article 7.2 (commencing with Section 10245).

article: 7.1. Resolution of Contract Claims


text: Unless the parties to the contract otherwise agree, the arbitration decision shall be decided under and in accordance with the law of this state, supported by substantial evidence and, in writing, contain the basis for the decision, findings of fact, and conclusions of law.

article: 7.1. Resolution of Contract Claims


text: A party to the contract may join in the arbitration as a party, any supplier, subcontractor, design professional, surety, or other person who has so agreed and if the joinder is necessary to prevent a substantial risk of the party otherwise being subjected to inconsistent obligations or decisions.

article: 7.1. Resolution of Contract Claims


text: Nothing in this article shall be construed as preventing the parties to the contract, after the claim has arisen, from mutually agreeing in writing to waive the provisions of this article and to have the claim litigated in a court of competent jurisdiction.

article: 7.1. Resolution of Contract Claims


text: Except as provided in this article and in the regulations adopted pursuant to Section 10240.5, the procedure governing the arbitrations shall be as set forth in Title 9 (commencing with Section 1280) of Part 3 of the Code of Civil Procedure. All provisions of Section 1283.05 of the Code of Civil Procedure, except subdivision (e) thereof, apply to the conduct of discovery for any arbitration hereunder.

article: 7.1. Resolution of Contract Claims