Professional Engineers Of North Carolina

SPR 2014

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18 the Professional Engineer Spring 2014 HB 857, sponsored by Rep. Dean Arp, PE, a freshman professional engineer represent- ing Union County, was the signature piece of legislation for the design and construc - tion industry during the 2013 legislative session. Supported and championed by Professional Engineers of North Carolina, American Council of Engineering Com- panies of North Carolina and American Institute of Architects, and working closely with the Carolinas AGC, this consensus bill represented the efforts of 15 stakehold - ers and authorized three new methods of building/fnancing for construction of public buildings (it applies only to non-transporta- tion infrastructure): n Design-build n Design-build bridging n Public-private partnerships What the bill does: 1. Allows additional construction delivery options for local and state govern- ments through design-build, design- build bridging and public-private partnerships, eliminating the need for individual local government legislation seeking this authority. This legislation was one of the key initiatives support- ed by the North Carolina League of Municipalities and the North Carolina Association of County Commissioners. 2. Adds fexibility in construction contract- ing to provide cost effcient public buildings. 3. Ensures fair, equitable, open, transparent and quality-based design and contract- ing procedures where public funds are used. 4. Ensures that quality-based selection is the primary criteria used in the selection process. Most importantly for engineers and architects, the government exemp- tion often used by local governments and N.C. Department of Transportation to exempt themselves from QBS at their sole discretion has been eliminated for projects more than $50,000. Projects where the estimated professional fee is at or less than $50,000 threshold for procurement of architectural, engineer- ing and surveying services may be exempt from QBS. Explanation of bill's sections: SEction 1 Adds three new contracting options: 1. Design-build 2. Design-build bridging 3. Public-private partnerships – primarily a fnancing mechanism rather than a method of construction delivery All three methods require the governmental entity to provide suffcient justifcation for using these methods, have adequate over- sight and fnancial resources and comply with reporting requirements as specifed in the bill. SEction 2 1. For procurement of architectural, engineering and surveying services, the threshold for exemption from the required bidding increases from $30,000 to $50,000 when the estimated profes- sional fee is at or less than that amount. 2. Eliminates the exemption of those proj- ects determined in the sole discretion of NCDOT or a unit of local government to be exempt. SEction 3 Adds the three new construction delivery/ fnancing methods to those that already exist in statute. (single prime, CM at Risk, etc.) SEction 4 This section of the bill includes defnitions of the three new delivery methods and speci- fes the procedures that should be used: 1. Design-build QBS (143.128.1A) Allows the design-builder to offer complete services through a pure qualifcations based process or Allows the design-builder to offer services through traditional bidding of subcontractors 2. Design-build bridging – (1430128.1B) • Uses a hybrid approach of qualifca- tions and traditional bidding. This procedure will most likely be used by state construction and the UNC Rep. Dean Arp, PE, sponsors major design-build/QBS bill B y B e t s y B a i l e y C o n C e p t s : H B 8 5 7 N.C. Department of Transportation Concepts2_spring14.indd 18 3/27/14 5:57 PM

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