AB 427

This bill makes changes in state building contracting and construction

procedures.

Currently, with certain exceptions, contracts for construction work on state

construction projects that cost more than $40,000 must be let by contract to the

lowest responsible bidder and must be preceded by public notice and a public bidding

process. Wisconsin-based bidders are accorded a preference over bidders whose

home governments grant them a preference in making governmental purchases.

With certain exceptions, if bids are required to be solicited and the estimated cost of

a project exceeds $150,000, the Department of Administration (DOA) must solicit

single and separate bids on each portion of the work that DOA designates. DOA must

attempt to ensure that 5 percent of the total amount expended for construction work

in each fiscal year is awarded to minority-owned businesses. Contractors must be

granted certain progress payments while a project is underway. With certain

exceptions, if the estimated cost of a project exceeds $150,000, the project is subject

to approval of the Building Commission.

The bill permits DOA either to: 1) solicit both single and separate bids on any

division of the work it designates; or 2) solicit only single bids on all divisions of the

work that DOA designates. The bill directs DOA to prescribe, by rule, certain

procedures that prime contractors must use to protect subcontractors when DOA

solicits only single bids on all divisions of the work on a project. The bill also permits

DOA to utilize another contracting procedure to construct any project called

"construction-manager-at-risk contracting." Under the

construction-manager-at-risk contracting procedure, DOA hires a construction

manager to provide pre-construction services and to manage the construction

process. The construction manager must publicly solicit bids for all work on a project

unless the manager submits a bid for a portion of the work, in which case, DOA

solicits bids on that portion of the work on the project. The bill also permits DOA to

prescribe, by rule, additional contracting procedures not specified in current law or

in the bill that DOA may utilize for any project. Under all of the proposed new

contracting procedures, as well as any other procedures prescribed by DOA, DOA

must advertise for and solicit bids on all or any portion of the work it designates and

comply with all other laws governing construction procedures, except that DOA may

provide, by rule, that any of these laws do not apply to a specific project that is

constructed using the construction-manager-at-risk procedure, and except that, as

currently provided, the Building Commission may waive compliance with any of

these laws for construction of a specific project.

Currently, with certain exceptions, a bidder on a contract for a state project

need not submit with its bid a list of the subcontractors to be used on the project, but

DOA may require a list of the subcontractors to be submitted before the contract is

awarded. This bill permits DOA to require each bidder on a state project to submit