Legislative Analysis
Phone: (517) 373-8080
DESIGN-BUILD CONSTRUCTION OF SCHOOL BUILDINGS
http://www.house.mi.gov/hfa
House Bill 4603 (H-3) as passed by the House Analysis available at
Sponsor: Rep. Tullio Liberati, Jr. http://www.legislature.mi.gov
Committee: Regulatory Reform
Complete to 3-13-24
(Enacted as Public Act 67 of 2024)
SUMMARY:
House Bill 4603 would amend 1937 PA 306, which governs the construction of school
buildings. Currently, a school building or its additions cannot be erected, remodeled, or
reconstructed without having the plans prepared by an architect or professional engineer
licensed in Michigan (unless otherwise specified in the rules on used modular classrooms
promulgated by the director of the Department of Licensing and Regulatory Affairs (LARA)).
The act also prescribes requirements and prohibitions related to the construction of a school
building, for example requiring the use of fire-resistant material for walls and floors.
The bill would remove the provisions described above and instead provide that a school
building or its additions cannot be constructed or remodeled unless the plans and specifications
are prepared by either of the following:
• An architect or professional engineer who is licensed in Michigan.
• An architect or professional engineer who is licensed in Michigan, working in
conjunction with a design-builder. These individuals could form a design-build team.
Design-builder would mean an individual, partnership, joint venture, corporation, or
other legal entity that meets both of the following:
• It furnishes design and general contracting services for a project.
• It completes design services in accordance with Article 20 of the Occupational
Code 1 or through a subcontract with a design firm that complies with that
article.
Design-build team would mean a team that consists of both of the following:
• A design-builder.
• An architectural or engineering firm providing professional services in
accordance with section 2010 of the Occupational Code. 2
Design-build construction services would mean a project delivery method that meets
all of the following requirements:
• A school district engages the services of a design-criteria developer, architect,
or professional engineer who is licensed in Michigan and is not employed by
the design-builder to do both of the following:
o Assist the school district in the selection and compensation of a design-
build team or design-builder.
1
http://legislature.mi.gov/doc.aspx?mcl-299-1980-20
2
http://legislature.mi.gov/doc.aspx?mcl-339-2010
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 o Provide for the scope of the services of a design-build team or design-
builder.
• A school district contracts with a single entity for both design and construction
services.
• Design and construction of the project is either sequential (with the entire
design complete before construction begins) or concurrent (with the design
produced in two or more phases and construction of some phases beginning
before the entire design is complete).
• Selection is a single-phase selection using price and qualification to determine
best value.
Design-criteria developer would mean an individual or firm that is both of the
following:
• A licensed architect or licensed professional engineer in Michigan.
• Responsible for preparing a design-criteria package. (The design-criteria
developer may provide construction inspection services.)
Design-criteria package would mean a set of documents that provides sufficient
information to permit a design-builder to prepare a proposal in response to a school
district’s request for proposals.
Construction would mean the construction, erection, reconstruction, alteration,
conversion, demolition, repair, moving, or equipping of buildings or structures.
A school building or building addition that was constructed or remodeled under the bill would
have to comply with the Stille-DeRossett-Hale Single State Construction Code Act and its
associated rules.
MCL 388.851, 388.851a, and 388.852
BACKGROUND:
House Bill 4603 is similar to House Bill 5538 of the 2021-22 legislative session 3 as it was
passed by the House.
BRIEF DISCUSSION:
Supporters of the bill argue that design-builds are already widely used in Michigan and are
allowed for school construction in many other states. They also argue that design-build
construction can allow for faster and more efficient projects, in addition to providing greater
cost flexibility for schools.
Opponents of the legislation argue that the bill is attempting to solve a problem that doesn’t
exist, as they believe current law already allows for the use of design-build construction. They
also contend that the bill would create a system unlike those allowing design-build construction
in other states, by allowing the design-builder to hire a single architect or engineer and qualify
3
http://legislature.mi.gov/doc.aspx?2021-HB-5538
House Fiscal Agency HB 4603 (H-3) as passed by the House Page 2 of 3
 to do school construction. They argue that this system could pose risks to the health and safety
of students and others that use school buildings.
FISCAL IMPACT:
House Bill 4603 would have an indeterminate fiscal impact on school construction costs. The
cost differential associated with using a design-builder would be determined on a case-by-case
basis.
POSITIONS:
Representatives of Performance Services, Inc. testified in support of the bill. (10-3-23)
The following entities indicated support for the bill (2-20-24):
• Michigan Association of School Boards
• Associated General Contractors of Michigan
• Mackinac Center for Public Policy
• Operating Engineers 324
Representatives of the following entities testified in opposition to the bill (10-3-23):
• American Council of Engineering Companies
• Michigan Society of Professional Engineers
• American Institute of Architects
Legislative Analyst: Alex Stegbauer
Fiscal Analyst: Marcus Coffin
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their
deliberations and does not constitute an official statement of legislative intent.
House Fiscal Agency HB 4603 (H-3) as passed by the House Page 3 of 3


Statutes affected:
Substitute (H-2): 388.851
Substitute (H-3): 388.851
House Introduced Bill: 388.851
As Passed by the House: 388.851
As Passed by the Senate: 388.851
House Concurred Bill: 388.851
Public Act: 388.851
House Enrolled Bill: 388.851