S.B. No. 794 introduces a new framework for selecting engineers and general contractors for transportation-related construction projects in Texas, specifically utilizing the "construction manager-general contractor method." This method allows the Texas Department of Transportation (TxDOT) to engage an engineer for design and construction services separately from a construction manager who will serve as the general contractor. The bill establishes a new subchapter in the Transportation Code that outlines definitions, processes, and requirements for this method, including selection criteria and contract awarding rules. Key provisions enable TxDOT to bypass certain procurement procedures, form an evaluation team for proposal assessments, and require the construction manager to perform a minimum percentage of construction work while publicly advertising for subcontractor bids.

Additionally, the bill mandates that authorities select an engineer to prepare construction documents prior to choosing a construction manager and adopt weighted selection criteria for the contract award process, which may involve interviews with top-ranked offerors. An evaluation team, consisting of at least three members with a majority being registered engineers, is required to assist in proposal evaluations. The selection process can be one-step or two-step, with specific requirements for each. The bill also stipulates that authorities must rank offerors based on selection criteria, utilize an independent cost estimator for validating negotiated costs, and ensure the construction manager delivers performance and payment bonds within a specified timeframe. The legislation will take effect immediately upon a two-thirds vote from both houses or on September 1, 2025, if such a vote is not achieved.

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