2023 Oklahoma Statutes › Title 61. Public Buildings and Public Works › §61-217. Construction managers – Written contract required – Procedure for awarding work.

A. Construction managers shall be selected by the political subdivision following the requirements set forth in subsection K of Section 62 of Title 61 of the Oklahoma Statutes.
B. A written contract between the political subdivision and the construction manager shall set forth the obligations of the parties, which, at a minimum, shall include the construction manager's scope of services, fees and expenses, as follows:
1. A construction management fee, which may be based on a percentage of the construction cost or as defined in the contract;
2. The cost or basis of cost expenses incurred by the construction manager to be reimbursed by the subdivision for normal general conditions and general requirements necessary for the work but not applicable to a particular subcontractor, trade contractor or supplier; and
3. Other project-related expenses as set forth in the contract.
C. The procedures for awarding work under agency construction management are as follows:
1. The construction manager, with the advice of the design consultant and subdivision, will develop individual bid packages for public bidding;
2. Public bidding on individual bid packages will comply with the requirements of the Public Competitive Bidding Act of 1974;
3. The construction manager shall evaluate all bids and recommend the lowest responsible bidder to the subdivision, who shall accept or reject the bids. The construction manager may assist the subdivision with the preparation of contracts and the receipt of insurance and bonds as required for public construction contracts by state law;
4. After trade contracts are awarded, the construction manager will perform contract administrative services as set forth in the agreement and may assist the subdivision with the review and processing of progress and final payments to the subcontractors. However, under no circumstances shall construction managers receive funds from subdivisions for payments of trade contractors;
5. The owner shall pay all trade contractors as required by the Fair Pay for Construction Act; and
6. Contracts awarded under an agency construction management delivery system shall not be modified such to permit the assignment of subcontracts and/or trade packages to the construction manager.
D. The procedures for awarding work under at-risk construction management are as follows:
1. The construction manager, with the advice of the design consultant and subdivision, will develop individual bid packages for public bidding;
2. Whenever the estimated cost of the contract exceeds Fifty Thousand Dollars ($50,000.00), bid packages shall be let and awarded pursuant to the Public Competitive Bidding Act of 1974 and this section;
3. Bid packages with a value less than or equal to Fifty Thousand Dollars ($50,000.00) may be awarded by the political subdivision based on written comparative quotes. Bid packages with a value less than or equal to Twenty-five Thousand Dollars ($25,000.00) may be awarded by the political subdivision to any qualified vendor;
4. Once the bids are accepted by the construction manager and awards made by the subdivision and the subdivision indicates its bonding preference, as noted below, but before written agreements are executed, the construction manager will prepare a guaranteed maximum price (GMP) for the project or relevant portion of the work, as an amendment to the contract. After the subdivision approves the construction manager's GMP amendment, the construction manager shall enter into written subcontractor and supplier agreements for the work previously awarded by the subdivision. Upon receiving a notice to proceed with the work from the subdivision or its designee, the subdivision shall have the option, but not mandate, to require the construction manager to provide performance, payment and maintenance bonds, or any combination, in an amount equal to one hundred percent (100%) of the value of the work, excluding the construction manager's fee, general conditions, reimbursements and insurances. "Payment bond", "performance bond" and "maintenance bond", as used herein, mean and refer to those bonds as defined in the Public Competitive Bidding Act of 1974;
5. The construction manager may require bonds from subcontractors or suppliers in an amount equal to one hundred percent (100%) of the value of their bid packages for subcontractors or suppliers not subject to bonding requirements of the Public Competitive Bidding Act of 1974. In such cases, the bonding requirements shall be set forth in the bidding documents;
6. The construction manager's work performed under this section may be on a lump-sum basis and subject to the change order limitations for a public construction contract as set forth in the Public Competitive Bidding Act of 1974 or may be performed under a cost-plus basis as determined by the subdivision;
7. The subdivision may withhold retainage from the construction manager's progress pay applications as set forth in the Public Competitive Bidding Act of 1974. The owner shall pay the construction manager as required by the Fair Pay for Construction Act; and
8. If a construction manager at-risk wishes to self-perform portions of the work to be performed, it may do so, provided the construction manager at-risk competitively bids the work under the same terms and conditions as the other bidders and the construction manager at-risk is the lowest responsible bidder for the work scope on which the bid was submitted.
E. When bids for a public construction project have been received from general contractors pursuant to the Public Competitive Bidding Act of 1974 and the lowest responsible bid is within the subdivision's available funding, the subdivision shall not reject all bids and subsequently award the project to a construction manager.
Added by Laws 2019, c. 299, § 10, eff. Jan. 1, 2020.