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F I S C A L I M P A C T R E P O R T

SPONSOR:	Larranaga		DATE TYPED:	02/09/02		HB	412
SHORT TITLE:		Lower Design & Build Projects Size				SB
					ANALYST:		Carrillo

APPROPRIATION

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY02

FY03

FY02

FY03

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

Responses Received

General Services Department (GSD)

Regulation and Licensing Department (RLD)

No Response

State Highway and Transportation Department (SHTD)

SUMMARY

Synopsis of Bill

House Bill 412, Lower Design & Build Projects Size, permits the use of a design-build approach for construction projects with a maximum allowable construction cost (MACC) between $2 million and $10 million.

Significant Issues

According to General Services Department, there are few constructions projects conducted under the auspices of the Procurement Code with a MACC of more than $10 million. The bill would create the possibility of wider use of this approach. The design-build approach is not appropriate for Property Control Division projects.

OTHER SUBSTANTIVE ISSUES

GSD staff explains proponents of this approach believe it would save time and money on projects that lend themselves to beginning construction of part of a project while other parts are not yet designed. An example would be for construction of a new building when infrastructure and preliminary site work could begin before the detailed design of the new structure is completed.

WC/ar