New bill expands design-build authority for transit operators

On September 14, 2006, the Governor signed AB 372 expanding design-build authority for transit operators by revising Public Contract Code sections 20209.5, 20209.7 and 20209.14. Transit operators interested in utilizing the design-build authority for future projects will welcome the useful changes, which include the following:

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State legislature expands statutory design-build authority to apply to more cities and counties

Pursuant to three separate bills, the state legislature expanded existing statutory authority to award construction contracts on a design-build basis to apply to more cities and counties as of January 1, 2006. In each case, the duration of the statutory design-build authority was extended to the year 2011, and the dollar threshold was lowered to $2.5 million per project for counties. Following is a short summary of the bills:

·        AB 1329 (Wolk): This bill added section 20175 to the Public Contract Code, and authorizes cities in the counties of Solano and Yolo to award construction contracts on a design-build basis. The authority only applies to buildings and directly related improvements, and does not apply to streets, highways, public rail transit, or water resources facilities and infrastructure. The statute has a sunset provision for the year 2011.

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