KRS § 45A.183 — KY Code / Title VI / Chapter 45A / Section 45A.183
45A.183 Selection committee procedures to apply when capital project is to be constructed using the construction management-at-risk method -- Eligibility of construction management-at-risk entity -- Competitive process consistent with code to apply when construction project is to be constructed using the construction manager-general contractor method -- Eligibility of construction manager-general contractor -- Administrative regulations
Status: in_force

45A.183 Selection committee procedures to apply when capital project is to be

constructed using the construction management-at-risk method -- Eligibility of

construction management-at-risk entity -- Competitive process consistent with

code to apply when construction project is to be constructed using the

construction manager-general contractor method -- Eligibility of construction

manager-general contractor -- Administrative regulations.

(1) For the purposes of this section, "self-perform" or "self-performance" means work

performed by direct employees of a construction management-at-risk entity or a

construction manager-general contractor and not by direct employees of a

subcontractor that does not exceed twenty percent (20%) of the total cost of the

project.

(2) When a capital project is to be constructed using the construction management-at-

risk method, a process parallel to the selection committee procedures established in

KRS 45A.810 shall apply when procuring a construction management-at-risk firm

and regulations promulgated in accordance with KRS 45A.180 shall apply that set

forth requirements for:

(a) Description of the bond, insurance, and other security provisions that apply to

a project;

(b) Description of appropriate contract clauses and fiscal responsibility

requirements that apply to each project; and

(c) Restrictions relating to conflicts of interest.

(3) A construction management-at-risk entity shall be eligible to become an offeror of

goods or services on a project it manages when a subcontractor fails to perform and

upon prior approval by the contracting body, or when a construction management-

at-risk entity meets the following conditions:

(a) The construction management-at-risk entity shall only be eligible to

competitively bid on a part of a project that the entity or its parent, affiliate, or

subsidiary performs in its ordinary course of business;

(b) The construction management-at-risk entity shall publicly declare in its

advertisement for bids or addenda thereto which parts of the project it plans to

competitively bid. The scope of work for those parts of the project shall be

reviewed and approved by the contracting body. The advertisement for bids or

addenda thereto shall be issued at least two (2) weeks prior to the bid date;

(c) The construction management-at-risk entity shall submit a sealed bid for the

parts of the project it plans to competitively bid to the contracting body. Other

entities who plan to submit bids on the parts of the project submitted by the

construction management-at-risk entity shall also submit their bids to the

contracting body;

(d) The staffing, equipment, and materials that a construction management-at-risk

entity uses for the management part of the project shall be separate from the

staffing, equipment, and materials required for the self-performance part of

the project;

(e) The construction management-at-risk entity shall not be eligible to utilize any

of the construction contingency it may be carrying on the project for any part

of the project it competitively bids to self-perform unless approved to do so

by the contracting body; and

(f) Electrical, mechanical, fire suppression, or plumbing work shall not be self-

performed.

(4) To execute its self-performance bid, a construction management-at-risk entity may

use:

(a) Materials or supplies from a supplier or subcontractor; or

(b) Tools or equipment leased from a subcontractor.

(5) (a) When a construction project is to be constructed using the construction

manager-general contractor method, a competitive process consistent with this

code established by administrative regulations promulgated under KRS

45A.180 shall apply.

(b) The procurement process shall set forth the requirements for:

1. Description of the bond, insurance, and other security provisions that

apply to the project;

2. Description of appropriate contract clauses and fiscal responsibility

requirements that apply to the project; and

3. Restrictions relating to conflicts of interest.

(c) The selection of the construction manager-general contractor shall be based

on:

1. Qualifications; and

2. Price, including preconstruction consulting services, overhead, and

profit.

(d) Prior to the construction phase, the construction manager-general contractor

shall competitively bid the subcontracts by public notice and award each

subcontract to the lowest responsive and responsible bidder.

(e) The final construction cost and completion date for the project shall be

established by change order after the construction manager-general contractor

enters into all applicable subcontracts.

(6) A construction manager-general contractor shall be eligible to become an offeror of

goods or services on a project it manages when a subcontractor fails to perform and

upon prior approval by the contracting body, or when the construction manager-

general contractor meets the following conditions:

(a) The construction manager-general contractor shall only be eligible to

competitively bid on part or parts of a project that the construction manager-

general contractor or its parent, affiliate, or subsidiary performs in its ordinary

course of business;

(b) The construction manager-general contractor shall publicly declare in its

advertisement for bids or addenda thereto which parts of the project it plans to

competitively bid. The scope of work for those parts of the project shall be

reviewed and approved by the contracting body. The advertisement for bids or

addenda thereto shall be issued at least two (2) weeks prior to the bid date;

(c) The construction manager-general contractor shall submit a sealed bid for the

parts of the project it seeks to self-perform no later than thirty (30) minutes

prior to the date and time established for other entities to submit sealed bids

for the same project parts. The construction manager-general contractor shall

publicly open and read all bid amounts aloud. All bidders shall be granted

access to view the bid amounts submitted. All bids for portions of the project

the construction manager-general contractor submitted a bid to self-perform

shall be submitted to the contracting body for recordkeeping purposes;

(d) The staffing, equipment, and materials that a construction manager-general

contractor uses for the management part of the project shall be separate from

any staffing, equipment, and materials required for the self-performance part

of the project;

(e) The construction manager-general contractor shall not be eligible to utilize

any of the construction contingency it may be carrying on the project for any

part of the project it competitively bids to self-perform unless approved to do

so by the contracting body; and

(f) Electrical, mechanical, fire suppression, or plumbing work shall not be self-

performed.

(7) To execute its self-performance bid, a construction manager-general contractor may

use:

(a) Materials or supplies from a supplier or subcontractor; or

(b) Tools or equipment leased from a subcontractor.

(8) The provisions of this section shall not apply to any project, contract, proposal, bid,

or other submission or engagement entered into by the Transportation Cabinet,

including but not limited to procurement of architectural or engineering services.