BOARD AGENDA MEMORANDUM
Government Code ? 84308 Applies: Yes ? No ?
(If "YES" Complete Attachment A - Gov. Code ? 84308)
SUBJECT: Title
Adopt Recommended Positions on State Legislation: SB 598 (Durazo) Construction Manager/General Contractor Project Delivery Method, and Other Legislation Which May Require Urgent Consideration for a Position by the Board.
End
RECOMMENDATION: Recommendation
Adopt a position of "Support" on: SB 598 (Durazo) Construction Manager/General Contractor Project Delivery Method.
Body
SUMMARY:
SB 598 (Durazo) Local Water Infrastructure Projects: Construction Manager/General Contractor Project Delivery Method - (Amended - 03/24/2025)
Position Recommendation: Support
Priority Recommendation: 3
SB 598 (Durazo) would authorize local agencies to use the Construction Manager/General Contractor (CM/GC) method for constructing regional recycled water projects or other water infrastructure projects undertaken to alleviate water supply shortages attributable to drought or climate change. This would provide an alternative to the traditional design-bid-build process currently required under Public Contract Code Section 21161. The bill includes a sunset date of January 1, 2031.
Importance to Santa Clara Valley Water District (Valley Water)
The CM/GC method allows agencies to hire a contractor during the design phase to provide input on constructability, materials, scheduling, and cost, potentially resulting in a more practical and cost-effective project. After completing a project design, the local agency and the CM negotiate a guaranteed maximum price for the construction of the project. They could then enter a contract for constructing the project in which the CM would become the GC, facilitating a smooth transition between the design and construction phases of the project.
Valley Water has supported previous efforts to provide procurement process flexibility for local agencies, including SB 991 (Newman) in 2022 and AB 400 (Bla...
Click here for full text