On October 11, 2009, Governor Schwarzenegger signed into law AB 729 (Evans), revising the design-build statute applicable to transit operators. AB 729 extends the authority of public transit operators to use design-build contracting from January 1, 2011 to January 1, 2015. We interpret this to mean that transit operators must award, but not complete, a design-build contract prior to this date.
A controversial new state law introduced by Sen. Elaine Alquist and approved by the Governor in October 2009 will make it easier for the City of Santa Clara to facilitate construction of a new football stadium for the 49ers. Senate Bill 43 creates a new joint powers authority, the Santa Clara Stadium Authority, which will be exempt from the City's competitive bidding rules and is authorized to award a design-build contract for the new stadium.
Continue Reading...On October 22 and 23, 2009, the Harvard Graduate School of Business and Graduate School of Design jointly sponsored a symposium on Integrated Project Delivery (IPD). IPD is a project delivery method where all of the key participants (owner, contractor, designer and key subcontractors) are engaged at project commencement to collaboratively design, develop and execute the project. Participants’ compensation is based on overall project outcome, measured against an agreed target cost, and liability within the IPD group is waived or greatly reduced. IPD has produced exceptional results in healthcare, and more recently, in a range of commercial and institutional projects.
Continue Reading...On April 16, 2009, President Obama unveiled his new High-Speed Rail Strategic Plan. Until this year, rail transportation has received less than three percent of all federal investment in intercity transportation infrastructure and the Northeast has the nation’s only high-speed rail corridor. In contrast, throughout the 20th century the United States has invested $1.8 trillion in our highway and aviation infrastructure. Now however, with oil prices climbing and mounting concern over climate change, investing in public infrastructure solely to support cars and planes in no longer sustainable. As President Obama’s Plan states, “a new approach is needed--one that responds to today’s economic, energy, and environmental challenges.” Railroads offer a solution as they can reduce pollution and congestion and efficiently transport people and goods between cities.
Continue Reading...
In a word, yes. Most public agencies are required to award their public works construction projects to the lowest responsive, responsible bidder. Failure to comply with public bidding requirements can result in a legal ruling which can void the contract. However, there are also a variety of alternative project delivery methods (design-build, construction manager at-risk, job order contracting, public-private partnerships, lease lease-back etc.) that are available for select public agencies to use for qualifying projects. The difficulty is that the statutes which authorize these alternative project delivery methods are not organized in any logical fashion. I recently prepared a paper summarizing the main alternative project delivery methods available to public agencies in California, with a chart at the end that provides statutory references. The paper was included with the materials at the Integrated Project Delivery Seminar Series. In addition, the paper was included with the materials at the Lean in Public Sector Construction Projects Workshop and served as the basis for a presentation I gave on the topic. You can view a copy of the paper by clicking here.
The California Department of Industrial Relations recently published an opinion which solidifies the “de minimis” exception to prevailing wage laws for private developers which receive small amounts of public financial support for their projects. In Public Works Case No. 2008-37, the DIR responded to a request for a prevailing wage coverage determination initiated by the developer of a senior care facility in Elk Grove. As an incentive to build the facility, the city offered financial incentives in the form of reduced sewer impact fees (sewer credits) which totaled over $200,000. The DIR concluded that pursuant to Labor Code section 1720(c)(3), this amount was “de minimis” in relation to the overall project cost.
Continue Reading...While the recession has led to a drastic slowdown in the construction industry, the horizon looks brighter as the Bay Area preps for a welcome infusion of cash from the federal government. The money comes from the federal stimulus bill, the American Recovery and Reinvestment Act of 2009. During his campaign President Obama emphasized the need for increased infrastructure spending as a means to end the recession, increase public transportation, and improve America’s aging infrastructure. The stimulus bill makes good on his campaign promises, with approximately $50 billion dedicated to core infrastructure spending on bridges, roads, rail, and other transportation projects.
Continue Reading...On February 6, 2009, President Obama signed an Executive Order authorizing federal executive agencies to use project labor agreements on federal construction contracts with a total cost of $25 million or more. The Order is effective immediately, and the Federal Acquisition Regulatory Council has been instructed to take “whatever action is required” to implement the Order within 120 days of its issuance. The Order also repeals Executive Order 13202 issued by former President Bush in 2001, which forbade federal agencies and other recipients of federal funding to require contractors to sign union-only project labor agreements as a condition of performing work on federal projects.
Continue Reading...The California State & Consumer Services Agency recently released the first draft of a step-by-step guide to help California schools and community colleges cut energy costs through on-site electricity generation and become "grid neutral." The guide is entitled "Grid Neutral: Electrical Independence for California Schools and Community Colleges," and can be viewed here. In fact, the state's Department of General Services is seeking comments regarding the content of the guide, which can be emailed to this address: Theresa.Townsend@dgs.ca.gov.
Continue Reading...A recently published appellate case upholds a 50-year ground lease and related agreements between the Peninsula Health Care District (“District”) and the Mills-Peninsula Health Services (“MPHS”), which will allow the construction of a new hospital that complies with California’s stricter seismic standards. (See Peninsula Guardians, Inc. v. Peninsula Health Care District (2008) 168 Cal.App.4th 75.)
Continue Reading...Enter keywords:
