(1) A public body using the general contractor/construction manager contracting procedure shall provide for:

     (a) The preparation of appropriate, complete, and coordinated design documents;

     (b) Confirmation that a constructability analysis of the design documents has been performed prior to solicitation of a subcontract bid package;

     (c) Reasonable budget contingencies totaling not less than five percent of the anticipated contract value;

     (d) To the extent appropriate, on-site architectural or engineering representatives during major construction or installation phases;

     (e) Employment of staff or consultants with expertise and prior experience in the management of comparable projects, critical path method schedule review and analysis, and the administration, pricing, and negotiation of change orders;

     (f) Contract documents that include alternative dispute resolution procedures to be attempted before the initiation of litigation;

     (g) Contract documents that: (i) Obligate the public owner to accept or reject a request for equitable adjustment, change order, or claim within a specified time period but no later than sixty calendar days after the receipt by the public body of related documentation; and (ii) provide that if the public owner does not respond in writing to a request for equitable adjustment, change order, or claim within the specified time period, the request is deemed denied;

     (h) Submission of project information, as required by the board; and

     (i) Contract documents that require the contractor, subcontractors, and designers to submit project information required by the board.

     (2) A public body using the general contractor/construction manager contracting procedure may include an incentive clause for early completion, cost savings, or other performance goals if such incentives are identified in the request for proposals. No incentives granted may exceed five percent of the maximum allowable construction cost. No incentives may be paid from any contingency fund established for coordination of the construction documents or coordination of the work.

     (3) If the construction is completed for less than the maximum allowable construction cost, any savings not otherwise negotiated as part of an incentive clause shall accrue to the public body. If the construction is completed for more than the maximum allowable construction cost, the additional cost is the responsibility of the general contractor/construction manager.

     (4) If the public body and the general contractor/construction manager agree, in writing, on a price for additional work, the public body must issue a change order within thirty days of the written agreement. If the public body does not issue a change order within the thirty days, interest shall accrue on the dollar amount of the additional work satisfactorily completed until a change order is issued. The public body shall pay this interest at a rate of one percent per month.

[2007 c 494 § 302.]

NOTES:

     Sunset Act application: See note following chapter digest.