HEA 1196 Summary

• Adds IC 5-32 to Indiana Code establishing a new article allowing public agencies to employ construction managers as constructors (CMc) for public works projects, effective July 1, 2014.

• Applies to state educational institutions for projects beginning after June 30, 2014, and to other public agencies for projects beginning after June 30, 2017.

• Requires CMc selection through a request for proposals (RFP) process that evaluates qualifications and fees, with consideration of contractor history with minority, women, and veteran business enterprises.

• CMc contracts must include payment and performance bonds equal to estimated construction costs or guaranteed maximum price (GMP), and CMc may perform up to 20% of total project work directly.

• Article expires July 1, 2020, and existing public works statutes continue to apply except where modified by this new article.