Okla. Stat. tit. 61, § 61-217

Procedure for awarding work.

Oklahoma Statutes - Title 61. Public Buildings and Public Works Page 65

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

Oklahoma Statutes - Title 61. Public Buildings and Public Works Page 66

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
endment 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

Oklahoma Statutes - Title 61. Public Buildings and Public Works Page 67

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.