SB 366

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 $50,000 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 $185,000, 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 $185,000, 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 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 preconstruction services and to

manage the construction process. The construction manager must solicit bids for all

work on a project unless the manager submits a bid for a portion of the work. The

bill also requires the construction manager to award all contracts to the lowest

qualified responsible bidder unless the construction manager and DOA agree that

it is in the best interest of the state to contract with a subcontractor other than the

lowest bidder. In addition, the bill requires the construction manager to submit

progress payment requests to DOA, to pay each subcontractor the amount to which

the subcontractor is entitled within seven days after the prime contractor receives

payment for work performed, and to limit the amount of any retainage to the

proportionate share of the retainage that is attributable to the subcontractor's

division of the work. 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.

The bill provides the following when DOA uses a contracting procedure in

which it solicits only single bids on all divisions of the work on a project (single prime

contracting): 1) the prime contractor must submit to DOA the names of the

subcontractors that are proposed to be retained; 2) DOA must require the prime

contractor to solicit bids from subcontractors who will perform any division of the

work on the project designated by DOA and to award each subcontract to the lowest