SB 262 — Require construction contracts note variation from standard form

66Sec. (E) After evaluating the pricing proposals, the public 67 authority shall rank the selected construction managers at risk 68 based on its evaluation of the value of each pricing proposal, 69 with such evaluation considering the proposed cost and 70 qualifications.

71 (F) The public authority shall enter into negotiations for 72 a construction management contract with the construction manager 73 at risk whose pricing proposal the public authority determines 74 to be the best value under division (E) of this section.

75 Contract negotiations shall be directed toward:

76 (1) Ensuring that the construction manager at risk and the 77 public authority mutually understand the essential requirements 78 S.

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262 Page 4 As Passed by the Senate involved in providing the required construction management 79 services, including the provisions for the use of contingency 80 funds and the possible distribution of savings in the final 81 costs of the project;

82 (2) Ensuring that the construction manager at risk will be 83 able to provide the necessary personnel, equipment, and 84 facilities to perform the construction management services 85 within the time required by the construction management 86 contract;

87 (3) Agreeing upon a procedure and schedule for determining 88 a guaranteed maximum price using an open book pricing method 89 that shall represent the total maximum amount to be paid by the 90 public authority to the construction manager at risk for the 91 project and that shall include the costs of all the work, the 92 cost of its general conditions, the contingency, and the fee 93 payable to the construction manager at risk.

94 (G)(1) If the public authority fails to negotiate a 95 construction management contract with the construction manager 96 at risk whose pricing proposal the public authority determines 97 to be the best value under division (E) of this section, the 98 public authority shall inform the construction manager at risk, 99 in writing, of the termination of negotiations.

100 (2) Upon terminating negotiations, the public authority 101 may enter into negotiations as provided in this section with the 102 construction manager at risk that the public authority ranked 103 next highest under division (E) of this section.

If negotiations 104 fail, the public authority may enter into negotiations as 105 provided in this section with the construction manager at risk 106 the public authority ranked next highest under division (E) of 107 this section.

108 S.

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262 Page 5 As Passed by the Senate (3) If a public authority fails to negotiate a 109 construction management contract with a construction manager at 110 risk whose pricing proposal the public authority determines to 111 be the best value under division (E) of this section, the public 112 authority may select additional construction managers at risk to 113 provide pricing proposals to the public authority pursuant to 114 this section or may select an alternative delivery method for 115 the project.

116 (H) If the public authority and construction manager at 117 risk fail to agree on a guaranteed maximum price, nothing in 118 this section shall prohibit the public authority from allowing 119 the construction manager at risk to provide the management 120 services that a construction manager is authorized to provide.

121 (I) Nothing in this section affects a public authority's 122 right to accept or reject any or all proposals in whole or in 123 part.

124 Sec.

(A) With respect to award of any contract for 125 the construction, reconstruction, improvement, enlargement, 126 alteration, repair, painting, or decoration of a public 127 improvement made by the state, or any county, township, 128 municipal corporation, school district, or other political 129 subdivision, or any public board, commission, authority, 130 instrumentality, or special purpose district of or in the state 131 or a political subdivision or that is authorized by state law, 132 the award, and execution of the contract, shall be made within 133 sixty days after the date on which the bids are opened.

The 134 failure to award and execute the contract within sixty days 135 invalidates the entire bid proceedings and all bids submitted, 136 unless the time for awarding and executing the contract is 137 extended by mutual consent of the owner or its representatives 138and S.the bidder whose bid the owner accepts and with respect to whom the owner subsequently awards and executes a contract.

The public owners referred to in this section shall include, in the plans and specifications for the project for which bids are solicited, the estimate of cost.

The bid for which the award is to be made shall be opened at the time and place named in the advertisement for bids, unless extended by the owner or its representative or unless, within seventy-two hours prior to the published time for the opening of bids, excluding Saturdays, Sundays, and legal holidays, any modification of the plans or specifications and estimates of cost for the project for which bids are solicited is issued and mailed or otherwise furnished to persons who have obtained plans or specifications for the project, for which the time for opening of bids shall be extended one week, with no further advertising of bids required.

The contractor, upon request, is entitled to a notice to proceed with the work by the owner or its representative upon execution of the contract.

No contract to which this section applies shall be entered into if the price of the contract, or, if the project involves multiple contracts where the total price of all contracts for the project, is in excess of ten per cent, in the case of a contract made by the state or a public board, commission, authority, or instrumentality of the state, or twenty per cent, in the case of a contract made by a county, township, municipal corporation, school district, special purpose district, or other Am.

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262 Page136th 6G.A. As Passed by the Senate and the bidder whose bid the owner accepts and with respect to 139 whom the owner subsequently awards and executes a contract.

Thepolitical 140subdivision or a public ownersboard, referredcommission, toauthority, inor thisinstrumentality sectionof shallthe include,political insubdivision, above the 141entire plansestimate andthereof, specificationsnor forshall the projectentire cost of the construction, reconstruction, repair, painting, decorating, improvement, alteration, addition, or installation, including changes and estimates of expenses for whicharchitects bidsor areengineers, 142exceed solicited,in the estimateaggregate ofthe cost.amount authorized by law.

The bidunit foror whichlump thesum awardprice isstated 143in tothe becontract made shall be openedused at the time and place named in thedetermining 144 advertisement for bids, unless extended by the owneramount or its 145 representative or unless, within seventy-two hours prior to thebe 146paid published time for the opening of bids, excluding Saturdays, 147 Sundays, and legalshall holidays,constitute anyfull modification of the plans or 148 specifications and estimatesfinal ofcompensation cost for theall project for which 149 bids are solicited is issued and mailed or otherwise furnished 150 to persons who have obtained plans or specifications for the 151work. project, for which the time for opening of bids shall be 152 extended one week, with no further advertising of bids required.

153Partial Thepayment contractor,to uponthe request,contractor isfor entitledwork toperformed aunder noticethe tolump proceedsum 154price withshall be based on a schedule prepared by the workcontractor and approved by the ownerarchitect or itsengineer representativewho uponshall executionapportion 155the lump sum price to the major components entering into or forming a part of the contract.work under the lump sum price.

NoPartial contractpayments to which this section applies shall 156 be entered into if the pricecontractor offor thelabor contract,performed or,under ifeither thea projectunit 157or involveslump multiplesum contracts where the total price ofcontract allshall 158be contracts for the project, is in excess of ten per cent, in the 159 case of a contract made byat the state or a publicrate board, 160 commission, authority, or instrumentality of thenot state,less orthan 161ninety-six twenty per cent,cent inof the caseestimates ofprepared a contract made by a county, 162 township, municipal corporation, school district, special 163 purpose district, or other political subdivision or a public 164 board, commission, authority, or instrumentality of the 165contractor politicaland subdivision,approved aboveby the entirearchitect estimate thereof, nor 166 shall the entire cost of the construction, reconstruction, 167 repair, painting, decorating, improvement, alteration, addition, 168 or installation,engineer. including changes and estimates of expenses for 169 architects or engineers, exceed in the aggregate the amount 170 S.

B.No subcontract shall be paid at a rate lower than the rate being paid to the contractor by the public authority.

No.The amounts and time of payments of any public improvements contract made by the state or any county, township, municipal corporation, school district, or other political subdivision, or any public board, commission, authority, instrumentality, or special purpose district of or in the state or a political subdivision or that is authorized by state law, except as provided in section 5525.19 of the Revised Code, shall be governed by this section and sections 153.13 and 153.14 of the Revised Code.

262If Pagethe 7time Asfor Passedawarding the contract is extended by mutual consent, or if the Senateowner authorizedor its representative fails to issue a timely notice to proceed as required by law.this section, the owner or its representative shall issue a change order authorizing delay costs to the contractor, which does not invalidate the contract.

171 The unitamount orof lumpsuch suma pricechange statedorder into the contractowner shall be 172determined usedin accordance with the provisions of the contract for change orders or force accounts or, if no such provision is set forth in determiningthe contract, the amountcost to the owner shall be paidthe andcontractor's shallactual constitutecosts 173including fullwages, labor costs other than wages, wage taxes, materials, equipment costs and finalrentals, compensationinsurance, forand allsubcontracts attributable to the work.delay, plus a reasonable sum for overhead.

174In Partialthe paymentevent toof thea contractordispute forbetween workthe performedowner underand 175 the lumpcontractor sumconcerning pricesuch shallchange beorder, basedprocedures onshall abe schedulecommenced preparedunder by the 176applicable contractorterms andof approved by the architectcontract, oror, engineerif whothe shallcontract 177contains apportionno theprovision lumpfor sumresolving price to the majordispute, componentsit enteringshall 178be intoresolved orpursuant formingto a part of the workprocedures underfor thearbitration lumpin sumChapter price.2711.

179of Partial payments to the contractorRevised forCode, laborexcept performedas 180provided underin eitherdivision a(B) unit or lump sum price contract shall be made at 181 a rate of notthis lesssection. than ninety-six per cent of the estimates 182 prepared by the contractor and approved by the architect or 183 engineer.

NoNothing subcontractin this division shall be paidconstrued atas a ratelimitation lowerupon than the 184authority rateof beingthe paiddirector toof thetransportation contractorgranted byin theChapter public5525. authority.

185 The amounts and time of payments of any public 186 improvements contract made by the state or any county, township, 187 municipal corporation, school district, or other political 188 subdivision, or any public board, commission, authority, 189 instrumentality, or special purpose district of or in the state 190 or a political subdivision or that is authorized by state law, 191 except as provided in section 5525.19 of the Revised Code, shall 192 be governed by this section and sections 153.13 and 153.14 of 193 the Revised Code.

If the time for awarding the contract is 194 extended by mutual consent, or if the owner or its 195 representative fails to issue a timely notice to proceed as 196 required by this section, the owner or its representative shall 197 issue a change order authorizing delay costs to the contractor, 198 which does not invalidate the contract.

The amount of such a 199 change order to the owner shall be determined in accordance with 200 S.

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262 Page 8 As Passed by the Senate the provisions of the contract for change orders or force 201 accounts or, if no such provision is set forth in the contract, 202 the cost to the owner shall be the contractor's actual costs 203 including wages, labor costs other than wages, wage taxes, 204 materials, equipment costs and rentals, insurance, and 205 subcontracts attributable to the delay, plus a reasonable sum 206 for overhead.

In the event of a dispute between the owner and 207 the contractor concerning such change order, procedures shall be 208 commenced under the applicable terms of the contract, or, if the 209 contract contains no provision for resolving the dispute, it 210 shall be resolved pursuant to the procedures for arbitration in 211 Chapter 2711.

of the Revised Code, except as provided in 212 division (B) of this section.

Nothing in this division shall be 213 construed as a limitation upon the authority of the director of 214 transportation granted in Chapter 5525.

215 (B) If a dispute arises between the state and a contractor 216 concerning the terms of a public improvement contract let by the 217 state or concerning a breach of the contract, and after 218 administrative remedies provided for in such contract and any 219 alternative dispute resolution procedures provided in accordance 220 with guidelines established by the executive director of the 221 Ohio facilities construction commissionAm. are exhausted, the 222 contractor may bring an action to the court of claims in 223 accordance with Chapter 2743.

ofS. the Revised Code.

The state or 224 the contractor may request the chief justice of the supreme 225 court to appoint a referee or panel of referees in accordance 226 with division (C)(3) of section 2743.03 of the Revised Code.

As 227 used in this division, "dispute" means a disagreement between 228 the state and the contractor concerning a public improvement 229 contract let by the state.

230 (C) When utilizing an industry standard published 231 S.

262 Page136th 9G.A. As Passed by the Senate construction management contract form, the public authority 232 shall provide the contract form in a manner that indicates any 233 alteration to the standard form by striking through and 234 underlining any changes to the original language of the standard 235 form or by cross-referencing conditions that are supplemental to 236 the standard form.

Failurecommission toare indicateexhausted, an alteration to the 237contractor originalmay languagebring ofan theaction standardto form in the mannercourt requiredof 238claims above results in theaccordance alterationwith beingChapter void2743. and without effect 239 such that the original language prevails.

240of Sec.the Revised Code.

The state or the contractor may request the chief justice of the supreme court to appoint a referee or panel of referees in accordance with division (C)(3) of section 2743.03 of the Revised Code.

As used in this division, "dispute" means a disagreement between the state and the contractor concerning a public improvement contract let by the state.

(C) When utilizing an industry standard published construction management contract form, the public authority shall provide the contract form in a manner that indicates any alteration to the standard form by striking through and underlining any changes to the original language of the standard form, by cross-referencing conditions that are supplemental to the standard form, or by including conditions that are supplemental to the standard form that cross-reference the section or sections of the standard form being altered.

Failure to indicate an alteration to the original language of the standard form in the manner required above results in the alteration being void and without effect such that the original language prevails.

Sec.

(A) A public authority may accept a 241 subcontract awarded by a construction manager at risk, a design-design-build 242 build firm, or a general contracting firm, or may reject any 243 such subcontract if the public authority determines that the 244 bidder is not responsible.

When utilizing an industry standard 245 published construction management contract form, the public 246 authority shall provide the contract form in a manner that 247 indicates any alteration to the standard form by striking 248 through and underlining any changes to the original language of 249the standard form, by cross- referencing conditions that are supplemental to the standard formform, or by cross-referencingincluding conditions that are 250 supplemental to the standard form.form that cross-reference the section or sections of the standard form being altered.

Failure to indicate an 251 alteration to the original language of the standard form in the 252 manner required above results in the alteration being void and 253 without effect such that the original language prevails.

254 (B) A public authority may authorize a construction 255 manager at risk or design-build firm to utilize a design-assist 256 firm on any public improvement project without transferring any 257 design liability to the design-assist firm.

258 (C) If the construction manager at risk or design-build 259 firm intends and is permitted by the public authority to self-self-perform 260 perform a portion of the work to be performed, the construction 261manager S.at risk or design-build firm shall submit a sealed bid to the public authority for the portion of the work prior to accepting and opening any bids for the same work, except when the public authority requests a guaranteed maximum price proposal due at the time of selection.

B.Sec.

No.

262 Page 10 As Passed by the Senate manager at risk or design-build firm shall submit a sealed bid 262 to the public authority for the portion of the work prior to 263 accepting and opening any bids for the same work, except when 264 the public authority requests a guaranteed maximum price 265 proposal due at the time of selection.

266 Sec.

(A) The Ohio facilities construction 267 commission, pursuant to Chapter 119.

of the Revised Code, shall 268 adopt rules to do all of the following:

269 (A)(1) Prescribe the procedures and criteria for 270 determining the best value selection of a construction manager 271 at risk or design-build firm;

272 (B)(2) Set forth standards to be followed by construction 273 managers at risk and design-build firms when establishing 274 prequalification criteria pursuant to section 153.502 of the 275 Revised Code;

276Am. (C)(3) Prescribe the form for the contract documents to be 277 used by a construction manager at risk, design-build firm, or 278 general contractor when entering into a subcontract;

279S. (D)(4) Prescribe the form for the contract documents to be 280 used by a public authority when entering into a contract with a 281 construction manager at risk or design-build firm.

282 (B) The rules adopted under divisions (A)(3) and (4) of 283 this section shall include a requirement that a public 284 authority, construction manager at risk, design-build firm, or 285 general contracting firm utilizing a prescribed industry 286 standard published contract or subcontract form shall provide 287 the form in a manner that indicates any alteration to the 288 standard form by striking through and underlining any changes to 289 the original language of the standard form or by cross- 290 S.

262 Page136th 11G.A. As Passed by the Senate referencing conditions that are supplemental to the standard 291 form.

Failure(C)(3) toPrescribe indicate an alteration to the original language 292 of the standard form infor the mannercontract requireddocuments aboveto resultsbe inused theby 293a alterationconstruction beingmanager voidat andrisk, withoutdesign-build effectfirm, suchor thatgeneral thecontractor originalwhen 294entering languageinto prevails.a subcontract;

295(D)(4) Sec.Prescribe the form for the contract documents to be used by a public authority when entering into a contract with a construction manager at risk or design-build firm.

(B) The rules adopted under divisions (A)(3) and (4) of this section shall include a requirement that a public authority, construction manager at risk, design-build firm, or general contracting firm utilizing a prescribed industry standard published contract or subcontract form shall provide the form in a manner that indicates any alteration to the standard form by striking through and underlining any changes to the original language of the standard form, by cross-referencing conditions that are supplemental to the standard form, or by including conditions that are supplemental to the standard form that cross-reference the section or sections of the standard form being altered.

Failure to indicate an alteration to the original language of the standard form in the manner required above results in the alteration being void and without effect such that the original language prevails.

Sec.

(A)(1) For every design-build contract, the 296 public authority planning to contract for design-build services, 297 in consultation with the criteria architect or engineer, shall 298 evaluate the statements of qualifications submitted by design-design-build 299 build firms specifically regarding the project, including the 300 design-build firm's proposed architect or engineer of record.

301 (2) For projects valued at less than four million dollars, 302 the public authority may require the design-build firm to submit 303 a statement along with a pricing proposal described in division 304 (B)(2)(h) of this section.

The public authority shall provide 305 each design-build firm who desires to submit both a statement 306 and a proposal a pre-proposal meeting to explore the proposals 307 further, in which the public authority shall provide the design-design-build 308 build firm with a description of the project, including the 309 scope and nature of the proposed services and potential 310 technical approaches.

After and only after the public authority 311 ranks and selects firms under division (B)(1) of this section, 312 the public authority shall review the pricing proposals 313 submitted by selected firms under this division, and proceed 314 under division (B)(3) of this section, continuing the selection 315 process from there.

316 (B) Following this evaluation, the public authority shall:

317 (1) Select and rank not fewer than three firms which it 318 considers to be the most qualified to provide the required 319 design-build services, except that the public authority shall 320select S.and rank fewer than three firms when the public authority determines in writing that fewer than three qualified firms are available;

(2) Provide each selected design-build firm with all of the following:

(a) A description of the project and project delivery;

(b) The design criteria produced by the criteria architect or engineer under section 153.692 of the Revised Code;

(c) A preliminary project schedule;

(d) A description of any preconstruction services;

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262 Page136th 12G.A. As Passed by the Senate select and rank fewer than three firms when the public authority 321 determines in writing that fewer than three qualified firms are 322 available;

323(e) (2)A Providedescription each selected design-build firm with all of 324 the following:proposed design services;

325(f) (a) A description of a guaranteed maximum price, including the projectestimated andlevel projectof delivery;design on which such guaranteed maximum price is based;

326(g) (b) The designform criteria produced by the criteria architect 327 or engineer under section 153.692 of the Reviseddesign-build Code;services contract;.

328If (c)using Aan preliminaryindustry projectstandard schedule;published design-build services contract form, the public authority shall provide the form in a manner that indicates any alteration to the standard form by striking through and underlining any changes to the original language of the standard form, by cross-referencing conditions that are supplemental to the standard form, or by including conditions that are supplemental to the standard form that cross- reference the section or sections of the standard form being altered.

329If (d)the Apublic descriptionauthority fails to indicate an alteration to the original language of anythe preconstructionstandard services;form, the alteration is void and without effect and the original language prevails.

330(h) (e)Except Afor descriptionprojects under division (A)(2) of thethis proposedsection, a request for a pricing proposal that shall be divided into a design services;services fee and a preconstruction and design-build services fee.

331The (f)pricing Aproposal description of aeach guaranteeddesign-build maximumfirm price,shall includinginclude 332at theleast estimatedall level of designthe onfollowing: which such guaranteed maximum 333 price is based;

334(i) (g)A Thelist form of thekey design-buildpersonnel servicesand contract;.consultants for the project;

If(ii) 335Design usingconcepts anadhering industry standard published design-build services 336 contract form, the public authority shall provide the form in a 337 manner that indicates any alteration to the standarddesign formcriteria produced by 338 striking through and underlining any changes to the originalcriteria 339architect language of the standard form or byengineer cross-referencingunder conditionssection 340153.692 thatof are supplemental to the standardRevised form.Code;

If(iii) theThe publicdesign-build 341firm's authoritystatement fails to indicate an alteration to the original 342 language of thegeneral standardconditions form, the alteration is void and 343estimated withoutcontingency effectrequirements; and the original language prevails.

344(iv) (h)A Exceptpreliminary forproject projectsschedule. under division (A)(2) of this 345 section, a request for a pricing proposal that shall be divided 346 into a design services fee and a preconstruction and design- 347 build services fee.

The(3) Evaluate the pricing proposal ofsubmitted by each design-buildselected 348firm S.and, at its discretion, hold discussions with each firm to further investigate its pricing proposal, including the scope and nature of the firm's proposed services and potential technical approaches;

(4) Rank the selected firms based on the public authority's evaluation of the value of each firm's pricing proposal, with such evaluation considering each firm's proposed costs and qualifications;

(5) Enter into contract negotiations for design-build services with the design-build firm whose pricing proposal the public authority determines to be the best value under this section.

(C) In complying with division (B)(5) of this section, contract negotiations shall be directed toward:

(1) Ensuring that the design-build firm and the public authority mutually understand the essential requirements involved in providing the required design-build services, the provisions for the use of contingency funds, and the terms of the contract, including terms related to the possible distribution of savings in the final costs of the project;

(2) Ensuring that the design-build firm shall be able to provide the necessary personnel, equipment, and facilities to perform the design-build services within the time required by the design- build construction contract;

(3) Agreeing upon a procedure and schedule for determining a guaranteed maximum price Am.

S.

262 Page136th 13G.A. As Passed by the Senate firm shall include at least all of the following:

349using (i)an Aopen listbook pricing method that shall represent the total maximum amount to be paid by the public authority to the design-build firm for the project and that shall include the costs of keyall personnelwork, the cost of its general conditions, the contingency, and consultantsthe forfee payable to the 350design-build project;firm.

351(D) (ii)If Designthe conceptspublic adheringauthority fails to negotiate a contract with the designdesign-build criteriafirm 352whose producedpricing byproposal the criteriapublic architectauthority ordetermines engineerto be the best value as determined under sectionthis 353section, 153.692the public authority shall inform the design-build firm in writing of the Revisedtermination Code;of negotiations.

354 (iii) The design-buildpublic firm'sauthority statementmay ofthen generaldo 355the conditionsfollowing: and estimated contingency requirements;

356(1) (iv)Negotiate Aa preliminarycontract projectwith schedule.a design-build firm ranked next highest under this section following the negotiation procedure described in this section;

357(2) (3)If Evaluatenegotiations thefail pricingwith proposalthe submitteddesign-build byfirm eachunder 358division selected(D)(1) firmof and,this atsection, itsnegotiate discretion,a holdcontract discussions with eachthe 359design-build firm toranked furthernext investigatehighest itsunder pricingthis proposal,section includingfollowing the 360negotiation scopeprocedure described in this section and naturecontinue ofnegotiating with the firm'sdesign-build proposedfirms servicesselected andunder potentialthis 361section technicalin approaches;the order of their ranking until a contract is negotiated.

362(E) (4)If Rank the selectedpublic firmsauthority basedfails onto negotiate a contract with a design-build firm whose pricing proposal the public 363authority authority'sdetermines evaluationto ofbe the best value ofas eachdetermined firm'sunder this section, it may select additional design-build firms to provide pricing 364proposals proposal,to withthe suchpublic evaluationauthority consideringpursuant eachto firm'sthis proposedsection 365or costsmay andselect qualifications;an alternative delivery method for the project.

366(F) (5)The Enterpublic intoauthority contractmay negotiationsprovide fora design-buildstipend 367for services with the design-build firm whose pricing proposalproposals thereceived 368from publicdesign- authoritybuild determinesfirms. to be the best value under this 369 section.

370(G) (C)Nothing Inin complyingthis withsection divisionaffects (B)(5)a ofpublic thisauthority's section,right 371to contractaccept negotiationsor shallreject beany directedor toward:all proposals in whole or in part.

372SECTION (1)2. Ensuring that the design-build firm and the public 373 authority mutually understand the essential requirements 374 involved in providing the required design-build services, the 375 provisions for the use of contingency funds, and the terms of 376 S.

That existing sections 9.334, 153.12, 153.501, 153.503, and 153.693 of the Revised Code are hereby repealed.

SECTION 3.

The changes in sections 9.334, 153.501, 153.503, and 153.693 of the Revised Code and division (C) of section 153.12 of the Revised Code as amended by this act apply to a contract entered into on or after the effective date of this section and do not apply to a contract already in effect on the effective date of this section.

Am.

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262 Page136th 14G.A. As Passed by the Senate the contract, including terms related to the possible 377 distribution of savings in the final costs of the project;

378Speaker (2)___________________ Ensuringof that the design-buildHouse firmof shallRepresentatives. be able to 379 provide the necessary personnel, equipment, and facilities to 380 perform the design-build services within the time required by 381 the design-build construction contract;

382President (3)___________________ Agreeing upon a procedure and schedule for determining 383 a guaranteed maximum price using an open book pricing method 384 that shall represent the total maximum amount to be paid by the 385 public authority to the design-build firm for the project and 386 that shall include the costs of all work, the costSenate. of its 387 general conditions, the contingency, and the fee payable to the 388 design-build firm.

389Passed (D)________________________, If20____ theApproved public________________________, authority20____ failsGovernor. to negotiate a contract 390 with the design-build firm whose pricing proposal the public 391 authority determines to be the best value as determined under 392 this section, the public authority shall inform the design-build 393 firm in writing of the termination of negotiations.

TheAm. public 394 authority may then do the following:

395S. (1) Negotiate a contract with a design-build firm ranked 396 next highest under this section following the negotiation 397 procedure described in this section;

398 (2) If negotiations fail with the design-build firm under 399 division (D)(1) of this section, negotiate a contract with the 400 design-build firm ranked next highest under this section 401 following the negotiation procedure described in this section 402 and continue negotiating with the design-build firms selected 403 under this section in the order of their ranking until a 404 contract is negotiated.

405 S.

262 Page136th 15G.A. As Passed by the Senate (E) If the public authority fails to negotiate a contract 406 with a design-build firm whose pricing proposal the public 407 authority determines to be the best value as determined under 408 this section, it may select additional design-build firms to 409 provide pricing proposals to the public authority pursuant to 410 this section or may select an alternative delivery method for 411 the project.

412 (F) The publicsection authoritynumbering mayof providelaw of a stipendgeneral forand pricingpermanent 413nature proposalsis receivedcomplete fromand design-buildin firms.conformity with the Revised Code.

414Director, (G)Legislative NothingService inCommission. this section affects a public authority's 415 right to accept or reject any or all proposals in whole or in 416 part.

417Filed Sectionin 2.the office of the Secretary of State at Columbus, Ohio, on the ____ day of ___________,A.

ThatD. existing sections 9.334, 153.12, 153.501, 418 153.503, and 153.693 of the Revised Code are hereby repealed.

41920____. Section 3.

TheSecretary changes in sections 9.334, 153.501, 420 153.503, and 153.693 of theState. Revised Code and division (C) of 421 section 153.12 of the Revised Code as amended by this act apply 422 to a contract entered into on or after the effective date of 423 this section and do not apply to a contract already in effect on 424 the effective date of this section.

425File No.

_________ Effective Date ___________________