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 ability to finance the project. When a rejection occurs, the governmental entity must provide a specific basis for the decision, and the rejected party has the right to challenge the action in court if it is deemed fraudulent, arbitrary, in bad faith, or 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 requires that proposals from construction managers-at-risk include detailed costs for general conditions without any contingencies, and any bid containing a contingent amount 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 consider the best interests of the project when awarding contracts. Lastly, if the estimated cost of trade contract work exceeds a certain threshold, the construction manager-at-risk must ensure that plans and specifications are prepared by a licensed professional and made available for the project.

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