§ 100153 Cmgc Preconstruction Services Contract

This law says the VTA must first sign a contract with a construction manager for planning work, pay them an agreed‑upon fee, then later get a fixed‑price or guaranteed‑maximum‑price contract for the actual building, and the manager has to do at least 30% of the building work.

Key Takeaways

•The VTA must sign a written pre‑construction services contract before any construction contract.
•The VTA pays the construction manager a fee that both sides agree on for the planning work.
•A construction contract can only be awarded after a fixed price or guaranteed maximum price is negotiated (or another legal method if not).
•The construction manager must do at least 30% of the work; the rest is subcontracted.

Example

The VTA wants to build a new train station. First they sign a pre‑construction contract with a construction manager and pay a set fee for the planning. After the plans are ready, they negotiate a fixed price for the construction. The construction manager must actually build at least 30% of the station, and the rest is hired out to other subcontractors.

The VTA follows the steps the law requires: a pre‑construction contract first, a fee paid, then a fixed‑price construction contract, and the manager does a big chunk of the building work.

(a) If a contract for CMGC services is entered into pursuant to this article and includes preconstruction services by the construction manager, the VTA shall enter into a written contract with the construction manager for preconstruction services, under which the VTA shall pay the construction manager a fee for preconstruction services in an amount agreed upon by the VTA and the construction manager. The preconstruction services contract may include fees for services to be performed during the contract period. The VTA shall not request or obtain a fixed price or a guaranteed maximum price for the construction contract from the construction manager or enter into a construction contract with the construction manager until after the VTA has entered into a services contract. A preconstruction services contract shall provide for the subsequent negotiation for construction of all or any discrete phase or phases of the project and shall provide for the VTA to own the design plans and other preconstruction services work product. (b) A contract for construction services shall be awarded after the plans have been sufficiently developed and either a fixed price or a guaranteed maximum price has been successfully negotiated. In the event that a fixed price or a guaranteed maximum price is not negotiated, the VTA may award the contract for construction services utilizing any other procurement method authorized by law. (c) The construction manager shall perform not less than 30 percent of the work covered by the fixed price or guaranteed maximum price agreement reached. Work that is not performed directly by the construction manager shall be bid to subcontractors pursuant to Section 6955 of the Public Contract Code. (Amended by Stats. 2016, Ch. 381, Sec. 50. (AB 2196) Effective January 1, 2017.)

Key Takeaways

•The VTA must sign a written pre‑construction services contract before any construction contract.
•The VTA pays the construction manager a fee that both sides agree on for the planning work.
•A construction contract can only be awarded after a fixed price or guaranteed maximum price is negotiated (or another legal method if not).
•The construction manager must do at least 30% of the work; the rest is subcontracted.

Example

The VTA follows the steps the law requires: a pre‑construction contract first, a fee paid, then a fixed‑price construction contract, and the manager does a big chunk of the building work.

Key Takeaways

Example

Key Terms

References

§ 100153 Cmgc Preconstruction Services Contract

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References