Sunset Forces Review of GC/CM, D-B, JOC

39.10. Thats the parlance for the states alternative public works contracting procedures reflecting the pertinent chapter in the Revised Code of Washington. But unless the Legislature reauthorizes it 39.10 goes away next year. 39.10 is set to sunset at the end of June 2013 and were it to do so most state and local government entities would no longer be able to use GC/CM Design-Build or Job Order Contracting (JOC) as alternatives to Design-Bid-Build.

That is not expected to happen as most if not all stakeholders including AGC support the alternative methods and the general parameters that regulate their use. Plus the Washington State Joint Legislative Audit and Review Committee (JLARC) issued a report recommending that the Legislature reauthorize 39.10.

But reauthorization is still a big deal because it allows the Legislature and the Capital Projects Advisory Review Board (CPARB) that advises the Legislature on public works matters to step back and consider how 39.10 might be improved.

CPARB established a Reauthorization Task Force to gather input and make recommendations on any changes to 39.10. AGC-members Vince Campanella (Lydig Construction) and Dan Absher (Absher Construction) and AGC Legislative Counsel Van Collins are members of the task force. Its chairman Ed Kommers of MCA discussed the issue at a recent AGC Seattle District meeting.

The overriding thing is reauthorization Kommers said and contentiousness works against reauthorization. He believes the one thing that could doom reauthorization would be for it to become a Christmas tree of sweeping changes that dont have broad support. The Reauthorization Task Force therefore will be looking for more incremental changes with agreement from stakeholders.

Our goal is to have strong consensus within CPARB regarding any changes recommended to the Legislature he said. We are looking at GC/CM Design-Build and JOC one at a time and asking what and the issues are and where are the areas of agreement.

Kommers noted that some of the areas for which changes have been discussed are:

  • CPARB membership: Some may want to address the make-up of CPARB and whos represented on it. (Click here to see the current list of CPARB members.)
  • Design-Build: Its little used and considered burdensome for owners and contractors alike. Changes are likely.
  • Subcontractors: There currently are allowances for MC/CM and EC/CM but what about other trades or subcontracts?
  • Sunset or not: Kommers supports expiration of 39.10 at some new date in the future in order to force a review every few years but others have suggested making the statute permanent.

In its report recommending reauthorization JLARC suggested a couple tweaks regarding CPARBs data gathering and JOC reporting periods. JLARC also noted without recommendations that GC/CM contracts are concentrated among fewer companies than traditional D-B-B contacts.

AGC members that have a suggestion or question regarding reauthorization of 39.10 are encouraged to contact Van Collins 360-352-5000.