This chapter applies to a public school construction project for building, improvement, supplies, or equipment if it: 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. This chapter does not apply to a project in a building that is not used primarily for the instruction of students, including an office building, warehouse, or vehicle maintenance or repair building. In this chapter, “IAC or its designee” includes “State Superintendent or designee” if State Superintendent approval is required by Education Article, §2-303(f), Annotated Code of Maryland. The State Superintendent or designee may request assistance from the IAC or its designee when reviewing project delivery proposals. For a public school construction project, an LEA may use one of the following methods: General contracting; or Alternative project delivery including: Construction management agency; Construction management at risk; Design build; and Job order contracting. The requirements of COMAR 14.39.03 apply to all projects conducted under this chapter. All projects regardless of delivery method shall comply with State procedures for project design review. Regardless of project delivery method, the LEA may not begin construction until the IAC or its designee has authorized the LEA to proceed. The IAC may specifically designate an individual or group to act on requests, provide the State approvals on behalf of the IAC, or both, as required in this chapter. General. Construction management agency (CMA) means a project delivery method in which the LEA: Directly contracts with trade contractors; and Either: Engages a construction manager as its agent to manage the project; or Acts as the construction manager. The LEA shall disclose in the solicitation documents if the project may be converted to the construction management at risk method or other project delivery method. State Reimbursement. 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: Submit the solicitation documents to the IAC or its designee for review not later than 1 month before the documents are released to offerors; and Identify in the solicitation documents the construction management services that are eligible for State reimbursement. 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. 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. General. Construction management at risk means a project delivery method in which the LEA engages a construction manager at risk (CMR) to: Contract directly with trade contractors; and Provide a guaranteed maximum price for project procurement and construction. 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. 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: In competitive sealed bidding or quality based selection, the guaranteed maximum price is based on construction documents that are sufficiently developed to allow bidders to reasonably estimate and include costs for unspecified items, and includes: Cost of the work; Construction management fee; and General conditions; and In competitive negotiation, including projects in which a construction manager has provided pre-GMP services, the LEA may begin negotiations to establish a guaranteed maximum price with the construction manager only after: The LEA has provided public notice of its intent and a request for competing proposals; and At least 28 days have elapsed for receipt of competing proposals. If the LEA receives competing proposals, the proposals shall be evaluated in accordance with COMAR 14.39.03. Notice to IAC. 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 Reimbursement. State funds may be used to reimburse: Allowable pre-GMP costs only if related to the solicitation of trade packages; and Allowable post-GMP costs. 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: The State's share of the guaranteed maximum price based on the cost-share formula; or The maximum State construction allocation. 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. Trade Contracts. 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. General. 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: Quality of the design; Project costs; Construction quality; Adherence to the LEA's schedule for project completion and occupancy; and Other factors the LEA requires. Design-build may extend beyond the design and construction phases of a project to include: Financing, in which case the method is called finance-design-build; or Provision of furniture and equipment, occupant move-in, or other post-construction tasks, except as limited by §A(5) of this regulation. The design-build entity may not perform the routine maintenance and operation of a school building after occupancy. IAC Approval. If the LEA decides to use the design-build method, the LEA: Shall request approval from the IAC or its designee 2 months prior to the release of the solicitation; and May not proceed with the design-build method until approval is obtained from the IAC or its designee. The request for approval shall at a minimum include the proposed: Brief description of the scope of work; Project phasing; Schedule for the submission of plans and specifications for review by the IAC or its designee; Solicitation schedule; Procurement method; Financing arrangement, if applicable; and Performance expectations. 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. Design-Build Procurement. The LEA may develop a design-build solicitation based on: Performance specification; Performance specification combined with concept or schematic design; or Performance specification combined with the LEA's prototype design. The performance specification shall include at a minimum: Educational specifications; Performance characteristics of the school facility; A schedule for completion and occupancy; and General conditions that clearly describe the respective responsibilities of the LEA and the design-build entity. State Reimbursement. 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: The construction documents are complete; and The full scope of the project is known including ineligible items. 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: The State's share of the guaranteed maximum price based on the cost-share formula; or The maximum State construction allocation. In this regulation, the following term has the meaning indicated. Term Defined. “Job order contracting (JOC)” means a project delivery method in which the LEA selects a contractor through a competitive procurement process based on a multiplier or coefficient that: 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. The fixed prices of the construction items and activities are defined by the LEA or through a standard project cost source. The schedule of fixed prices may include a construction escalation factor for multiyear contracts. Procurement and Award. 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: Has more than three annual extensions; or Has been increased by change order above the maximum combined price indicated in the solicitation, including all potential extensions, except for changes of scope to individual projects already begun before completion of the final annual extension. When submitting a contract approval to the IAC, the LEA must acknowledge that the State is not responsible for any project cost overruns. Approvals. If an LEA intends to execute a State-funded project through a JOC, it: 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. Education Article, §§4-126, 5-112, and 5-303, Annotated Code of Maryland Effective date: May 21, 2007 (34:10 Md. R. 891) COMAR 23.03.04 recodified to be COMAR 14.39.04 under new subtitle, Interagency Commission on School Construction, effective November 4, 2019 (46:22 Md. R. 979) Regulation .01A amended effective November 4, 2019 (46:22 Md. R. 979) Regulation .03 amended effective June 28, 2021 (48:13 Md. R. 509) Regulation .04A amended effective November 4, 2019 (46:22 Md. R. 979) Regulation .05 amended effective August 18, 2025 (52:16 Md. R. 848) Regulation .05D, E amended effective November 4, 2019 (46:22 Md. R. 979) Regulation .06B, D amended effective November 4, 2019 (46:22 Md. R. 979) Regulation .08E, F amended effective August 18, 2025 (52:16 Md. R. 848) Regulation .09 repealed effective June 28, 2021 (48:13 Md. R. 509)