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PRINTER'S NO. 137
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
163
Session of
2019
INTRODUCED BY EVERETT, DIAMOND, JAMES, RYAN, KAUFFMAN,
BERNSTINE, MACKENZIE, KEEFER, OWLETT, IRVIN, ZIMMERMAN,
F. KELLER, FRITZ, SAYLOR, RADER, ROTHMAN, COX AND WHEELAND,
JANUARY 28, 2019
REFERRED TO COMMITTEE ON STATE GOVERNMENT, JANUARY 28, 2019
AN ACT
Amending Title 62 (Procurement) of the Pennsylvania Consolidated
Statutes, in general provisions, further providing for
definitions; in procurement organization, further providing
for specific construction powers, duties and procedures; in
procurement of construction and design professional services,
further providing for procurement of design professional
services; providing for project delivery methods; and making
a related repeal.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definition of "design/build contract" in
section 103 of Title 62 of the Pennsylvania Consolidated
Statutes is amended and the section is amended by adding a
definition to read:
§ 103. Definitions.
Subject to additional definitions contained in subsequent
provisions of this part which are applicable to specific
provisions of this part, the following words and phrases when
used in this part shall have the meanings given to them in this
section unless the context clearly indicates otherwise:
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* * *
["Design/build contract." A construction contract in which
the contractor is responsible for both the design and
construction of any public structure or building or other public
improvements of any kind to any public real property.]
* * *
"Project delivery method." As defined in section 3201
(relating to definitions).
* * *
Section 2. Sections 322(2) and (6) and 905(a) of Title 62
are amended to read:
§ 322. Specific construction powers, duties and procedures.
The following procedure shall apply to construction to be
completed by the department which costs more than the amount
established by the department under section 514 (relating to
small procurements) for construction procurement unless the work
is to be done by Commonwealth agency employees or by inmates or
patients of a Commonwealth agency institution:
* * *
(2) Promptly after the notice in such cases or promptly
after any appropriation made to it becomes available, the
department shall, if necessary, select an architect and/or an
engineer in accordance with the selection procedures of
section 905 (relating to procurement of design professional
services) to design the work and prepare the specifications
therefor. [The department may, as an alternative, enter into
a design/build contract in accordance with section 511
(relating to methods of source selection). Such design/build
contracts shall be subject to the requirements of this act
and the provisions of the act of August 15, 1961 (P.L.987,
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No.442), known as the Pennsylvania Prevailing Wage Act.
Design/build contracts shall also be subject to the act of
May 1, 1913 (P.L.155, No.104), entitled "An act regulating
the letting of certain contracts for the erection,
construction, and alteration of public buildings," to the
extent provided in paragraph (6).] The department may, as an
alternative, enter into a project delivery method in
accordance with section 511 (relating to methods of source
selection). The project delivery method shall be subject to
all of the following:
(i) The requirements of this part.
(ii) The act of August 15, 1961 (P.L.987, No.442),
known as the Pennsylvania Prevailing Wage Act.
(iii) Chapter 32 (relating to project delivery
methods) to the extent provided in paragraph (6).
* * *
(6) For construction contracts where the total
construction costs are less than $25,000, the department
shall not be required to comply with [the act of May 1, 1913
(P.L.155, No.104), entitled "An act regulating the letting of
certain contracts for the erection, construction, and
alteration of public buildings,"] Chapter 32 and the
department may award such contracts in accordance with
section 511. All projects equal to or exceeding $25,000 shall
be subject to [the act of May 1, 1913 (P.L.155, No.104),
entitled "An act regulating the letting of certain contracts
for the erection, construction, and alteration of public
buildings."] Chapter 32. Whenever the department enters into
a single contract for a project, in the absence of good and
sufficient reasons the contractor shall pay each
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subcontractor, within 15 days of receipt of payment from the
department, an amount equal to the percentage of completion
allowed to the contractor on the account of the
subcontractor's work. The contractor shall also require the
subcontractor to make similar payments to his subcontractors.
* * *
§ 905. Procurement of design professional services.
(a) Applicability.--Design professional services shall be
procured as provided in this section except as authorized by
sections 514 (relating to small procurements), 515 (relating to
sole source procurement) [and], 516 (relating to emergency
procurement) and Chapter 32 (relating to project delivery
methods).
* * *
Section 3. Title 62 is amended by adding a chapter to read:
CHAPTER 32
PROJECT DELIVERY METHODS
Sec.
3201. Definitions.
3202. Utilization.
§ 3201. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Construction management at-risk." A project delivery method
by which a person provides construction management services
throughout the preconstruction and construction phases and which
guarantees the cost of the project.
"Design-bid-build with multiple prime contractors." A
project delivery method by which a government agency or a State-
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related institution contracts for architectural and engineering
design professional services and construction services under
separate agreements.
"Design-bid-build with single prime contractor." A project
delivery method by which a government agency or a State-related
institution contracts for architectural and engineering design
professional services and construction services under separate
agreements, including preparation of a single agreement and
specifications for construction services.
"Design-build." A project delivery method in which the
contractor is responsible for both the design and construction
of any public structure or building or other public improvements
of any kind to any public real property.
"Project delivery method." Any of the following:
(1) Construction management at-risk.
(2) Design-bid-build with multiple prime contractors.
(3) Design-bid-build with single prime contractor.
(4) Design-build.
§ 3202. Utilization.
(a) Requirement.--Notwithstanding any other provision of
law, a government agency or a State-related institution shall
utilize a project delivery method for the procurement of
construction services for the design, erection, construction and
alteration of a public building in this Commonwealth if the
total cost of the work exceeds $4,000.
(b) Steel Products Procurement Act.--A contract awarded
under this section shall comply with the act of March 3, 1978
(P.L.6, No.3), known as the Steel Products Procurement Act.
Section 4. Repeals are as follows:
(1) The General Assembly declares that the repeal under
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paragraph (2) is necessary to effectuate the amendment or
addition of 62 Pa.C.S. §§ 322(2) and (6) and 3202.
(2) The act of May 1, 1913 (P.L.155, No.104), referred
to as the Separations Act, is repealed.
Section 5. The addition of 62 Pa.C.S. § 3202 is a
continuation of the act of May 1, 1913 (P.L.155, No.104),
referred to as the Separations Act. Except as otherwise provided
in 62 Pa.C.S. § 3202, all activities initiated under the
Separations Act shall continue and remain in full force and
effect and may be completed under 62 Pa.C.S. § 3202. Orders,
regulations, rules and decisions which were made under the
Separations Act and which are in effect on the effective date of
this act shall remain in full force and effect until revoked,
vacated or modified under 62 Pa.C.S. § 3202. Contracts,
obligations and collective bargaining agreements entered into
under the Separations Act are not affected nor impaired by the
repeal of the Separations Act.
Section 6. This act shall take effect in 60 days.
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