Chapter 04. Project Delivery Methods

Exceeds $50,000 and has IAC planning or funding approval; or

Requires review by the State Superintendent of Schools under Education Article, §2-303, Annotated Code of Maryland.

Construction management agency;

Construction management at risk;

Design build; and

Job order contracting.

Directly contracts with trade contractors; and

Either:

The IAC or its designee shall maintain a list of CMA services that are eligible for State reimbursement.

If the LEA intends to seek reimbursement of CMA costs with State funds, the LEA shall:

An LEA intending to seek State reimbursement for construction manager services shall procure a construction manager in accordance with COMAR 14.39.03.

Trade contracts may be procured concurrently or over the life of the project.

The LEA shall submit the bidding schedule for the trade packages with proposed bid dates to the IAC or its designee and provide notice of any changes.

The LEA shall procure each trade contract in accordance with COMAR 14.39.03.

The LEA shall submit each trade contract to the IAC for approval.

If the project is subject to prevailing wage rate requirements, each trade contract within the project is subject to prevailing wage rate requirements.

MBE goals shall be based on the total project price, but MBE goals may vary in individual trade contracts if the overall MBE project goal is acknowledged.

Construction management at risk means a project delivery method in which the LEA engages a construction manager at risk (CMR) to:

The CMR warrants that the work will be completed at or below the guaranteed maximum price with provisions for change order adjustments for work that is outside the agreed-upon work scope.

Cost savings resulting from projects completed below the guaranteed maximum price may be shared between the LEA and the CMR.

Guaranteed maximum price (GMP) means an arrangement between the LEA and the CMR in which the total amount payable to the CMR for the project is restricted to a pre-agreed maximum and includes the cost of construction and construction management services that is generally determined before the design is complete.

The LEA and CMR may determine the guaranteed maximum price as follows:

If the LEA receives competing proposals, the proposals shall be evaluated in accordance with COMAR 14.39.03.

Not later than 2 months before the release of solicitation documents to offerors, the LEA shall provide written notice to the IAC or its designee that the CMR method will be used.

The LEA shall acknowledge in the notice that the State is not responsible for any project cost overruns.

Not later than 1 month before release to offerors, the LEA shall submit the solicitation documents to the IAC or its designee for approval.

State funds may be used to reimburse:

Allowable post-GMP construction management services, as determined by the IAC, shall be included in total construction cost as if the CMR were a general contractor for purposes of determining the maximum State construction allocation, payment of requisitions, and project close out.

Total State reimbursement of eligible costs may not exceed the lesser of:

If an LEA intends to seek State reimbursement of any of the construction management services, the services shall be procured through one of the procurement methods provided in COMAR 14.39.03.

The CMR assumes all risk for cost, schedule, and performance of the trade contracts except for a trade contract that the LEA separately procures.

Trade contracts may be procured concurrently or over the life of the project.

After the guaranteed maximum price is finalized, any trade contract previously awarded by the LEA may be assigned to the CMR who then assumes all risk for coordination and completion of the trade contracts.

Subcontracts solicited by the CMR as components of the final guaranteed maximum price do not require IAC approval.

If the LEA intends to award a separate trade contract, the LEA shall submit the trade contract to the IAC for approval notwithstanding the subsequent inclusion of the trade contract in the guaranteed maximum price.

Design-build means a project delivery method in which a single entity is contractually responsible for both design and construction of a project.

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.

The design-build entity is responsible for the following:

Design-build may extend beyond the design and construction phases of a project to include:

The design-build entity may not perform the routine maintenance and operation of a school building after occupancy.

If the LEA decides to use the design-build method, the LEA:

The request for approval shall at a minimum include the proposed:

The LEA shall acknowledge in the request for approval that the State is not responsible for any project cost overruns.

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.

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.

The LEA may develop a design-build solicitation based on:

The performance specification shall include at a minimum:

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.

The State's maximum participation in the project is calculated when:

Allowable preconstruction services, as determined by the IAC, shall be included in total construction cost.

Final adjustment of the State's participation shall be made at project closeout.

Total State reimbursement of eligible costs may not exceed the lesser of:

Reflects the bidder's determination of the actual cost to perform the work plus overhead and profit; and

Is applied to a fixed-price list of construction items and activities.

An LEA shall obtain a JOC through a competitive procurement process, whether or not the LEA intends to execute State-funded projects through the JOC.

The JOC may include extension clauses, but the State may not participate in a project executed under a JOC that:

When submitting a contract approval to the IAC, the LEA must acknowledge that the State is not responsible for any project cost overruns.

Shall provide the IAC or its designee with a brief description of the anticipated scope of work, the duration of the JOC contract, the number of annual extensions, and the maximum combined cost of the projects to be performed under the JOC;

Shall submit the project for design review prior to the start of construction [shall be required] if it would be required for similar project funded through the same State funding program;

May reference an earlier approval and the JOC solicitation if approval is requested for a project to be executed through a JOC under which a State-funded project was previously approved, but is not required to resubmit all relevant information;

Shall obtain approval of contract award, reimbursement, or both, in the manner and timeframe required for all projects funded under the relevant program;

Shall, for design-build JOC projects, clearly indicate on the request for approval of contract award or for reimbursement those portions of the project cost that are associated with preconstruction activities in order to allow the IAC or its designee to determine which costs are eligible for State reimbursement;

Shall include in the total construction cost allowable preconstruction services, as determined by the IAC; and

Shall acknowledge that final adjustment of the State’s participation will be made at project closeout.