32-2-82. Alternative contracting method.

The department shall be authorized to utilize an alternative contracting method for project delivery that includes one of the following:#

1. (1)

   An agreement in which a construction manager/general contractor performs two phases of work as follows:#

   1. (A)

      The first phase, in which the construction manager/general contractor performs in the capacity of a construction manager, consisting of preconstruction services for a project which may be paid in lump sum, cost-plus fixed fee, cost per unit of work, specific rates of compensation, or other comparable payment method permitted by law; and#

   2. (B)

      The second phase, in which the construction manager/ general contractor performs in the capacity of a general contractor, consisting of construction services for a project that may be performed under the same contract as that of the first phase, subject to agreement by the department as to the terms for payment for such services and using any method of payment permitted by law; provided that the construction manager/general contractor self-performs at least 30 percent of the total original price for construction work on the project;#

2. (2)

   A predevelopment agreement, pursuant to which one or more contractors collaborate with the department on one or more projects:#

   1. (A)

      For the conceptual, preliminary, and final planning for such projects, which may include predevelopment services, financial planning, environmental studies, engineering, and assistance with public outreach; and#

   2. (B)

      To perform, at the department’s election, the construction work for any such project, subject to agreement as to the basis of payment for construction services; or#

3. (3)

   A comprehensive development agreement that allows for expedited project delivery through the concurrent design and construction of a project under a single multiphase contract, pursuant to which a contractor shall:#

   1. (A)

      Collaborate with the department to advance development of the project concept;#

   2. (B)

      Perform both the design and construction services; and#

   3. (C)

      Perform any operations or maintenance work required for the project.#

The department shall consider at least the following factors in assessing a project’s suitability and feasibility for delivery through an alternative contracting method: public interest, innovation, risk, design complexity, cost control, and construction schedule optimization.#

When the department determines, in accordance with subsection (b) of this Code section, that the public interest is best served by delivering the project utilizing an alternative contracting method, the department shall submit to the board a written request to proceed in delivering a project using an alternative contracting method. The department shall not proceed with the project using an alternative contracting method without prior approval by the board.#

Upon approval of a request pursuant to subsection (c) of this Code section, the department shall be authorized to issue a written solicitation identifying the scope of the project, the factors to be used to evaluate responses to the solicitation, and the basis for award of the contract to perform work on the project utilizing an alternative contracting method.#

For any project for which an alternative contracting method is elected, the department shall utilize the procurement procedures under Code Section 32-2-80 or 32-2-81 or otherwise authorized by this article to competitively solicit proposals.#

The department shall be authorized to utilize the alternative contracting method set forth in paragraph (1) of subsection (a) of this Code section to deliver no more than two projects during any single fiscal year and no more than seven projects over a single ten-year period. Solely as it relates to a project delivered using an alternative contracting method under paragraph (1) of subsection (a) of this Code section, the department shall not encumber in any one fiscal year an amount greater than 5 percent of the department’s capital budget in the previous fiscal year; provided, however, that the board shall be authorized to waive such requirement by majority vote for one project over a single 100 year period when the project utilizes federal funds.#

Not later than 90 days after the end of a fiscal year in which the department has executed a contract to deliver a project using an alternative contracting method, the department shall provide to the Governor, Lieutenant Governor, Speaker of the House of Representatives, and chairpersons of the House and Senate Transportation Committees a summary containing all contracts that utilized an alternative contracting method. This report shall be made available to the public.#

The department shall adopt rules and regulations to implement the provisions of this Code section.#

Not later than July 1, 2026, and then once every five years thereafter, the department shall submit a report to the Governor, Lieutenant Governor, Speaker of the House of Representatives, and the members of the House and Senate Transportation Committees detailing all contracts executed to deliver a project using an alternative contracting method and the benefits of using an alternative contracting method compared with other contracting methods for review and consideration as to the effectiveness of this Code section and any necessary amendments.#