ID H0119

Construction manager/general contractor (CM/GC) firms, including subsidiaries and affiliated companies, may perform no more than 30% of the work under a contract, as measured by the guaranteed maximum price.

A guaranteed maximum price must be negotiated between the public body and CM/GC when construction documents and specifications are at least 90% complete, with performance and payment bonds required in amounts fixed by the public entity.

CM/GC firms may only bid to perform construction work or supply materials if they hold a valid public works contractor license, customarily self-perform or supply such work, and must disclose their intent to bid and any relationships with subsidiaries or affiliated companies bidding on the same project.

Contingency reserves and incentives must have all terms agreed upon in writing when the contract is awarded, with incentives capped at 5% of the guaranteed maximum price and not payable from coordination contingency funds.

Cost savings below the guaranteed maximum price accrue to the public entity; costs exceeding the guaranteed maximum price are the responsibility of the CM/GC.