This bill amends existing laws regarding contracts for the construction of public improvements in Iowa. It allows governmental entities to reject the lowest responsive bidder or the lowest cost construction manager-at-risk based on their experience, number of employees, and financial capability. When a rejection occurs, the governmental entity must provide a specific rationale, and the rejected party has the right to challenge the decision through legal action if they believe it was made in bad faith or constitutes an abuse of discretion. Additionally, the bill stipulates that a governmental entity can only enter into a guaranteed maximum price contract if the estimated project cost exceeds $150 million.

Furthermore, the bill mandates that proposals from construction managers-at-risk must include detailed costs for general conditions without any contingencies, and any bid containing contingent amounts must be rejected. It changes the selection criteria for construction managers-at-risk from "best value" to "lowest cost," removing the previous requirement for the governmental entity to assess whether awarding a contract to a non-low bidder is in the project's best interest. Lastly, if the estimated cost of trade contract work exceeds a specified threshold, the construction manager-at-risk is required to prepare and provide plans and specifications for the project.

Statutes affected:
Introduced: 26.9, 26A.2, 26A.3