A. Construction managers shall be selected by the political subdivision following the requirements set forth in subsection K of Section 62 of Title 61 of the Oklahoma Statutes.
B. A written contract between the political subdivision and the construction manager shall set forth the obligations of the parties, which, at a minimum, shall include the construction manager's scope of services, fees and expenses, as follows:
1. A construction management fee, which may be based on a percentage of the construction cost or as defined in the contract;
2. The cost or basis of cost expenses incurred by the construction manager to be reimbursed by the subdivision for normal general conditions and general requirements necessary for the work but not applicable to a particular subcontractor, trade contractor or supplier; and
3. Other project-related expenses as set forth in the contract.
C. The procedures for awarding work under agency construction management are as follows:
1. The construction manager, with the advice of the design consultant and subdivision, will develop individual bid packages for public bidding;
2. Public bidding on individual bid packages will comply with the requirements of the Public Competitive Bidding Act of 1974;
3. The construction manager shall evaluate all bids and recommend the lowest responsible bidder to the subdivision, who shall accept or reject the bids. The construction manager may assist the subdivision with the preparation of contracts and the receipt of insurance and bonds as required for public construction contracts by state law;
4. After trade contracts are awarded, the construction manager will perform contract administrative services as set forth in the agreement and may assist the subdivision with the review and processing of progress and final payments to the subcontractors. However, under no circumstances shall construction managers receive funds from subdivisions for payments of trade contractors;
5. The owner shall pay all trade contractors as required by the Fair Pay for Construction Act; and
6. Contracts awarded under an agency construction management delivery system shall not be modified such to permit the assignment of subcontracts and/or trade packages to the construction manager.
D. The procedures for awarding work under at-risk construction management are as follows:
1. The construction manager, with the advice of the design consultant and subdivision, will develop individual bid packages for public bidding;
2. Whenever the estimated cost of the contract exceeds Fifty Thousand Dollars ($50,000.00), bid packages shall be let and awarded pursuant to the Public Competitive Bidding Act of 1974 and this section;
3. Bid packages with a value less than or equal to Fifty Thousand Dollars ($50,000.00) may be awarded by the political subdivision based on written comparative quotes. Bid packages with a value less than or equal to Twenty-five Thousand Dollars ($25,000.00) may be awarded by the political subdivision to any qualified vendor;
4. Once the bids are accepted by the construction manager and awards made by the subdivision and the subdivision indicates its bonding preference, as noted below, but before written agreements are executed, the construction manager will prepare a guaranteed maximum price (GMP) for the project or relevant portion of the work, as an amendment to the contract. After the subdivision approves the construction manager's GMP amendment, the construction manager shall enter into written subcontractor and supplier agreements for the work previously awarded by the subdivision. Upon receiving a notice to proceed with the work from the subdivision or its designee, the subdivision shall have the option, but not mandate, to require the construction manager to provide performance, payment and maintenance bonds, or any combination, in an amount equal to one hundred percent (100%) of the value of the work, excluding the construction manager's fee, general conditions, reimbursements and insurances. "Payment bond", "performance bond" and "maintenance bond", as used herein, mean and refer to those bonds as defined in the Public Competitive Bidding Act of 1974;
5. The construction manager may require bonds from subcontractors or suppliers in an amount equal to one hundred percent (100%) of the value of their bid packages for subcontractors or suppliers not subject to bonding requirements of the Public Competitive Bidding Act of 1974. In such cases, the bonding requirements shall be set forth in the bidding documents;
6. The construction manager's work performed under this section may be on a lump-sum basis and subject to the change order limitations for a public construction contract as set forth in the Public Competitive Bidding Act of 1974 or may be performed under a cost-plus basis as determined by the subdivision;
7. The subdivision may withhold retainage from the construction manager's progress pay applications as set forth in the Public Competitive Bidding Act of 1974. The owner shall pay the construction manager as required by the Fair Pay for Construction Act; and
8. If a construction manager at-risk wishes to self-perform portions of the work to be performed, it may do so, provided the construction manager at-risk competitively bids the work under the same terms and conditions as the other bidders and the construction manager at-risk is the lowest responsible bidder for the work scope on which the bid was submitted.
E. When bids for a public construction project have been received from general contractors pursuant to the Public Competitive Bidding Act of 1974 and the lowest responsible bid is within the subdivision's available funding, the subdivision shall not reject all bids and subsequently award the project to a construction manager.
Added by Laws 2019, c. 299, § 10, eff. Jan. 1, 2020.
Structure Oklahoma Statutes
Title 61. Public Buildings and Public Works
§61-1. Bond to be furnished on public works contracts.
§61-2. Filing of bond - Action on bond - Subcontractors.
§61-3. Working day for public employees.
§61-4. Public contracts made on basis of eight-hour day.
§61-5. Penalty for violating two preceding sections.
§61-6. Public buildings - Home products - When to use.
§61-12. Plans and specifications - Approval.
§61-17. Presumption as to consent to jurisdiction of Oklahoma courts.
§61-18. Liability of contractor after completion of contract work.
§61-19. Multi-year contracts for painting and other maintenance of water storage tanks.
§61-60. See the following versions:
§61-60v1. Mandatory consultant and construction contract forms - Exceptions.
§61-60v2. Mandatory consultant and construction contract forms - Exceptions.
§61-62. Construction managers and consultants - Registration and selection.
§61-62.1. Contracts to be in accordance with Public Building Construction and Planning Act.
§61-62.2. Contracts for minor services.
§61-63. Ownership and control of plans, etc.
§61-64. Misdemeanor offenses - Punishment.
§61-65. Application of act - Emergencies.
§61-81. Fair and Open Competition in Governmental Construction Act.
§61-83. Prohibited terms in bid specifications for public improvement projects.
§61-85. Prohibited terms in bid specifications for public improvement projects.
§61-103. Governing law - Solicitation and award of contracts.
§61-103.2. Political subdivision may appoint purchasing agent.
§61-103.4. School districts – Erection of building or making improvements on force account basis.
§61-103.7. Contracts related to fish and wildlife conservation.
§61-105. Contents of bid notices.
§61-106. Bidding documents to be on file.
§61-107. Check, bond or irrevocable letter of credit to accompany bid.
§61-108. Written statement under oath to accompany bid.
§61-111. Time for awarding of contract.
§61-112. Bids, contracts, bonds open for public inspection.
§61-113. Execution of contract.
§61-113.1. See the following versions:
§61-113.1v1. Partial payment - Retainage.
§61-113.1v2. Partial payment - Retainage.
§61-113.2. Withdrawal of retainage - Deposit of securities.
§61-114. Conflict of interest.
§61-115. Collusion among bidders or material suppliers.
§61-116. Disclosure of terms of bids - Public agency engineering estimates.
§61-117. Award to other than lowest bidder.
§61-118. Prequalification of bidders.
§61-119.1. Certain contract to be negotiated when no bid is received.
§61-120. Assignment of contracts.
§61-121. Change orders or addenda.
§61-122. Taxpayer suits to enjoin execution of unlawful contracts.
§61-123. Supervisor's certification to accompany invoices - Exception.
§61-125. Accounting procedure.
§61-126. Construction on force account basis.
§61-127. Contracts made by a public entity - Applicability.
§61-128. Builder’s risk insurance.
§61-131. Splitting of contracts - Punishment and fine.
§61-134. Insurance or bond to be secured from carrier licensed in Oklahoma.
§61-136. Conflicts with federal rules and regulations - Laws governing.
§61-137. Termination of certain unperformed contracts.
§61-139. Authority to enter into cooperative purchasing agreements.
§61-201. Short title – Public Facilities Act.
§61-202. See the following versions:
§61-204. Office of Management and Enterprise Services - Duties.
§61-207.2. Architects, engineers or land surveyors - Employment.
§61-208.1. Contracting for construction services - Fee.
§61-208.2. State Construction Revolving Fund.
§61-208.3. Exempted entities - Compliance with act.
§61-210. Model shared savings contract.
§61-211. Selection of equipment on life cycle cost analysis basis.
§61-213. Public building energy and environmental performance program.
§61-215. Short title - Public Construction Management Act for Political Subdivisions.
§61-217. Construction managers – Written contract required – Procedure for awarding work.
§61-223. Construction contracts - Progress payments - Reduction.
§61-224. Payment of subcontractor or sub-contractor or supplier - Time limit.
§61-225. Suspension or termination of construction contract - Payment.
§61-226. Retainage of portion of payment due - Release.
§61-308. Oil or gas lease of lands of public institutions.
§61-310. Oil and gas leases upon described state-owned lands.
§61-311. Jurisdiction over lands covered by lease.
§61-314. Use of other state-owned lands by lessees.
§61-316. Payment of proceeds into Maintenance of State Buildings Revolving Fund.
§61-317. Oil and gas or mineral leases of state lands other than Capitol lands and parkways.
§61-318. Lease of property formerly occupied by Russell Girls Home.
§61-319. Purpose or use for which leased.
§61-322. Easement and right-of-way grants - Exemptions.
§61-324. Director to take charge, manage and lease Capitol Building Lands.
§61-325. Inventory and appraisal - Sale.
§61-326. Disposition of proceeds - Leases for oil and gas purposes.
§61-327. Procedures for disposal or lease of certain state-owned real property.
§61-327.1. Written proposals for state-owned properties not subject to disposition.
§61-327.2. Proposals for investment real property.
§61-330.1. Recording fee for Office of Management and Enterprise Services.