                                 CODE OF VIRGINIA

DESIGN-BUILD OR CONSTRUCTION MANAGEMENT CONTRACTS FOR LOCAL PUBLIC BODIES
AUTHORIZED (§ 2.2-4382)

A. Any local public body may enter into a contract for construction on a fixed
price or not-to-exceed price construction management or design-build basis,
provided that the local public body (i) receives approval, if required, as
provided in subsection B, (ii) complies with the requirements of this article,
and (iii) has by ordinance or resolution implemented procedures consistent with
the procedures adopted by the Secretary of Administration for utilizing
construction management or design-build contracts.

B. If a local public body is required to obtain approval from its local
governing body to enter into a contract for construction using construction
management or design-build, then the local governing body shall adopt a
resolution or motion on a per project basis in a public forum to that effect
prior to issuing a Request for Qualifications.

C. Prior to making a determination as to the use of construction management or
design-build for a specific construction project, a local public body shall have
in its employ or under contract a licensed architect or engineer with
professional competence appropriate to the project who shall (i) advise such
public body regarding the use of construction management or design-build for
that project and (ii) assist such public body with the preparation of the
Request for Proposal and the evaluation of such proposals.

D. A written determination shall be made in advance by the local public body
that the design-bid-build project delivery method is not practicable or fiscally
advantageous, and such writing shall document the basis for the determination to
utilize construction management or design-build, including the determination of
the project&#8217;s complexity. The determination shall be included in the
Request for Qualifications and be maintained in the procurement file.

E. Procedures adopted by a local public body for construction management or
design-build pursuant to this article shall include the following requirements:

   1. Construction management or design-build may be utilized on projects,
   provided that (i) the project is a complex project and (ii) the procurement
   method for the project is approved by the local governing body. The written
   approval of the governing body shall be maintained in the procurement file;

   2. Public notice of the Request for Qualifications is posted on the
   Department&#8217;s central electronic procurement website known as eVA, or the
   local public body&#8217;s own website, at least 30 days prior to the date set
   for receipt of qualification proposals;

   3. The construction management contract is entered into no later than the
   completion of the schematic phase of design, unless prohibited by
   authorization of funding restrictions;

   4. Prior construction management or design-build experience or previous
   experience with the Division shall not be considered as a prerequisite or
   factor considered for prequalification of a contract. However, in the
   selection of a contractor, the local public body may consider the experience
   of each contractor on comparable construction management or design-build
   projects;

   5. Construction management contracts shall require that (i) no more than 10
   percent of the construction work, as measured by the cost of the work, be
   performed by the construction manager with its own forces and (ii) the
   remaining 90 percent of the construction work, as measured by the cost of the
   work, be performed by subcontractors of the construction manager, which the
   construction manager shall procure by publicly advertised, competitive sealed
   bidding to the maximum extent practicable. The provisions of this subdivision
   shall not apply to construction management contracts involving infrastructure
   projects;

   6. The procedures allow for a two-step competitive negotiation process;

   7. Price is a critical basis for award of the contract; and

   8. The procedures allow the local public body to post on the
   Department&#8217;s central electronic procurement website known as eVA, or the
   local public body&#8217;s own website, when and where the general contractor
   plans to advertise bid packages for subcontracting opportunities when
   appropriate.

F. Procedures adopted by a local public body for design-build construction
projects shall include a two-step competitive negotiation process consistent
with the standards established by the Division of Engineering and Buildings of
the Department for state public bodies.

HISTORY: 2017, cc. 699, 704; 2020, cc. 162, 163; 2023, cc. 726, 727; 2024, cc.
469, 490.