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<regulation prefix="Regulation" num=".07" citation="COMAR 14.39.04.07" title_num="14" subtitle_num="39" chapter_num="04" heading="Design-Build.">
  <paragraph num="A.">
    <text>General.</text>
    <paragraph num="(1)">
      <text>Design-build means a project delivery method in which a single entity is contractually responsible for both design and construction of a project.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>The LEA provides sufficient information to the design-build entity to guide it in the design of the project and specifies the reviews and approvals that will be required of the project.</text>
    </paragraph>
    <paragraph num="(3)">
      <text>The design-build entity is responsible for the following:</text>
      <paragraph num="(a)">
        <text>Quality of the design;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Project costs;</text>
      </paragraph>
      <paragraph num="(c)">
        <text>Construction quality;</text>
      </paragraph>
      <paragraph num="(d)">
        <text>Adherence to the LEA's schedule for project completion and occupancy; and</text>
      </paragraph>
      <paragraph num="(e)">
        <text>Other factors the LEA requires.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(4)">
      <text>Design-build may extend beyond the design and construction phases of a project to include:</text>
      <paragraph num="(a)">
        <text>Financing, in which case the method is called finance-design-build; or</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Provision of furniture and equipment, occupant move-in, or other post-construction tasks, except as limited by §A(5) of this regulation.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(5)">
      <text>The design-build entity may not perform the routine maintenance and operation of a school building after occupancy.</text>
    </paragraph>
  </paragraph>
  <paragraph num="B.">
    <text>IAC Approval.</text>
    <paragraph num="(1)">
      <text>If the LEA decides to use the design-build method, the LEA:</text>
      <paragraph num="(a)">
        <text>Shall request approval from the IAC or its designee 2 months prior to the release of the solicitation; and</text>
      </paragraph>
      <paragraph num="(b)">
        <text>May not proceed with the design-build method until approval is obtained from the IAC or its designee.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(2)">
      <text>The request for approval shall at a minimum include the proposed:</text>
      <paragraph num="(a)">
        <text>Brief description of the scope of work;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Project phasing;</text>
      </paragraph>
      <paragraph num="(c)">
        <text>Schedule for the submission of plans and specifications for review by the IAC or its designee;</text>
      </paragraph>
      <paragraph num="(d)">
        <text>Solicitation schedule;</text>
      </paragraph>
      <paragraph num="(e)">
        <text>Procurement method;</text>
      </paragraph>
      <paragraph num="(f)">
        <text>Financing arrangement, if applicable; and</text>
      </paragraph>
      <paragraph num="(g)">
        <text>Performance expectations.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(3)">
      <text>The LEA shall acknowledge in the request for approval that the State is not responsible for any project cost overruns.</text>
    </paragraph>
    <paragraph num="(4)">
      <text>The LEA shall send the draft design-build solicitation to the IAC or its designee for approval not later than 1 month before it is released to bidders.</text>
    </paragraph>
    <paragraph num="(5)">
      <text>Authorization by the IAC or its designee to proceed with the design-build method is independent of approvals of project planning and funding. If the IAC or its designee authorizes the use of the design-build method but project planning is not approved, the project may proceed as a locally funded project.</text>
    </paragraph>
  </paragraph>
  <paragraph num="C.">
    <text>Design-Build Procurement.</text>
    <paragraph num="(1)">
      <text>The LEA may develop a design-build solicitation based on:</text>
      <paragraph num="(a)">
        <text>Performance specification;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Performance specification combined with concept or schematic design; or</text>
      </paragraph>
      <paragraph num="(c)">
        <text>Performance specification combined with the LEA's prototype design.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(2)">
      <text>The performance specification shall include at a minimum:</text>
      <paragraph num="(a)">
        <text>Educational specifications;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Performance characteristics of the school facility;</text>
      </paragraph>
      <paragraph num="(c)">
        <text>A schedule for completion and occupancy; and</text>
      </paragraph>
      <paragraph num="(d)">
        <text>General conditions that clearly describe the respective responsibilities of the LEA and the design-build entity.</text>
      </paragraph>
    </paragraph>
  </paragraph>
  <paragraph num="D.">
    <text>State Reimbursement.</text>
    <paragraph num="(1)">
      <text>If the LEA intends to seek State reimbursement, the LEA shall distinguish between preconstruction and construction scopes of work to allow the IAC or its designee to determine the costs that are eligible for State reimbursement.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>The State's maximum participation in the project is calculated when:</text>
      <paragraph num="(a)">
        <text>The construction documents are complete; and</text>
      </paragraph>
      <paragraph num="(b)">
        <text>The full scope of the project is known including ineligible items.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(3)">
      <text>Allowable preconstruction services, as determined by the IAC, shall be included in total construction cost.</text>
    </paragraph>
    <paragraph num="(4)">
      <text>Final adjustment of the State's participation shall be made at project closeout.</text>
    </paragraph>
    <paragraph num="(5)">
      <text>Total State reimbursement of eligible costs may not exceed the lesser of:</text>
      <paragraph num="(a)">
        <text>The State's share of the guaranteed maximum price based on the cost-share formula; or</text>
      </paragraph>
      <paragraph num="(b)">
        <text>The maximum State construction allocation.</text>
      </paragraph>
    </paragraph>
  </paragraph>
</regulation>