Text of MO SB 10 (2025)

EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted and is intended to be omitted in the law. FIRST REGULAR SESSION SENATE BILL NO. 10 103RD GENERAL ASSEMBLY INTRODUCED BY SENATOR HOUGH. 0303S.01I KRISTINA MARTIN, Secretary AN ACT To repeal section 67.5060, RSMo, and to enact in lieu thereof one new section relating to construction regulation. Be it enacted by the General Assembly of the State of Missouri, as follows: Section A. Section 67.5060, RSMo, is repealed and one new 1 section enacted in lieu thereof, to be known as section 67.5060, 2 to read as follows: 3 67.5060. 1. As used in this section, the following 1 terms mean: 2 (1) "Design-build", a project delivery method subject 3 to a three-stage qualifications-based selection for which 4 the design and construction services are furnished under one 5 contract; 6 (2) "Design-build contract", a contract which is 7 subject to a three-stage qualifications-based selection 8 process similar to that described in sections 8.285 to 8.291 9 between a political subdivision and a design-builder to 10 furnish the architectural, engineering, and related design 11 services and the labor, materials, supplies, equipment, and 12 other construction services required for a design-build 13 project; 14 (3) "Design-build project", the design, construction, 15 alteration, addition, remodeling, or improvement of any 16 buildings or facilities under contract with a political 17 SB 10 2 subdivision. Such design-build projects include, but are 18 not limited to: 19 (a) Civil works projects, such as roads, streets, 20 bridges, utilities, airport runways and taxiways, storm 21 drainage and flood control projects, or transit projects; and 22 (b) Noncivil works projects, such as buildings, site 23 improvements, and other structures, habitable or not, 24 commonly designed by architects in excess of seven million 25 dollars; 26 (4) "Design-builder", any individual, partnership, 27 joint venture, or corporation subject to a qualification- 28 based selection that offers to provide or provides design 29 services and general contracting services through a design- 30 build contract in which services within the scope of the 31 practice of professional architecture or engineering are 32 performed respectively by a licensed architect or licensed 33 engineer and in which services within the scope of general 34 contracting are performed by a general contractor or other 35 legal entity that furnishes architecture or engineering 36 services and construction services either directly or 37 through subcontracts or joint ventures; 38 (5) "Design criteria consultant", a person, 39 corporation, partnership, or other legal entity duly 40 licensed and authorized to practice architecture or 41 professional engineering in this state under chapter 327 who 42 is employed by or contracted by the political subdivision to 43 assist the political subdivision in the development of 44 project design criteria, requests for proposals, evaluation 45 of proposals, the evaluation of the construction under a 46 design-build contract to determine adherence to the design 47 criteria, and any additional services requested by the 48 political [subdivisions] subdivision to represent its 49 SB 10 3 interests in relation to a project. The design criteria 50 consultant may not submit a proposal or furnish design or 51 construction services for the design-build contract for 52 which its services were sought; 53 (6) "Design criteria package", performance-oriented 54 program, scope, and specifications for the design-build 55 project sufficient to permit a design-builder to prepare a 56 response to a political subdivision's request for proposals 57 for a design-build project, which may include capacity, 58 durability, standards, ingress and egress requirements, 59 performance requirements, description of the site, surveys, 60 soil and environmental information concerning the site, 61 interior space requirements, material quality standards, 62 design and construction schedules, site development 63 requirements, provisions for utilities, storm water 64 retention and disposal, parking requirements, applicable 65 governmental code requirements, preliminary designs for the 66 project or portions thereof, and other criteria for the 67 intended use of the project; 68 (7) "Design professional services", services that are: 69 (a) Within the practice of architecture as defined in 70 section 327.091, or within the practice of professional 71 engineering as defined in section 327.181; or 72 (b) Performed by a licensed or authorized architect or 73 professional engineer in connection with the architect's or 74 professional engineer's employment or practice; 75 (8) "Proposal", an offer in response to a request for 76 proposals by a design-builder to enter into a design-build 77 contract for a design-build project under this section; 78 (9) "Request for proposal", the document by which the 79 political subdivision solicits proposals for a design-build 80 contract; 81 SB 10 4 (10) "Stipend", an amount paid to the unsuccessful but 82 responsive, short-listed design-builders to defray the cost 83 of participating in phase II of the selection process 84 described in this section. 85 2. In using a design-build contract, the political 86 subdivision shall determine the scope and level of detail 87 required to permit qualified persons to submit proposals in 88 accordance with the request for proposals given the nature 89 of the project. 90 3. A design criteria consultant shall be employed or 91 retained by the political subdivision to assist in 92 preparation of the design criteria package and request for 93 proposal, perform periodic site visits to observe adherence 94 to the design criteria, prepare progress reports, review and 95 approve progress and final pay applications of the design- 96 builder, review shop drawings and submissions, provide input 97 in disputes, help interpret the construction documents, 98 perform inspections upon substantial and final completion, 99 assist in warranty inspections, and provide any other 100 professional service assisting with the project 101 administration. The design criteria consultant may also 102 evaluate construction as to the adherence of the design 103 criteria. The consultant shall be selected and its contract 104 negotiated in compliance with sections 8.285 to 8.291 unless 105 the consultant is a direct employee of the political 106 subdivision. 107 4. The political subdivision shall publicly disclose 108 at a regular meeting its intent to utilize the design-build 109 method and its project design criteria at least one week 110 prior to publishing the request for proposals. Notice of 111 requests for proposals shall be advertised by publication in 112 a newspaper of general circulation published in the county 113 SB 10 5 where the political subdivision is located once a week for 114 two consecutive weeks prior to opening the proposals, or by 115 a virtual notice procedure that notifies interested parties 116 for at least twenty various purchases, design contracts, 117 construction contracts, or other contracts each year for the 118 political subdivision. The political subdivision shall 119 publish a notice of a request for proposal with a 120 description of the project, the procedures for submission, 121 and the selection criteria to be used. 122 5. The political subdivision shall establish in the 123 request for proposal a time, place, and other specific 124 instructions for the receipt of proposals. Proposals not 125 submitted in strict accordance with the instructions shall 126 be subject to rejection. 127 6. A request for proposal shall be prepared for each 128 design-build contract containing at minimum the following 129 elements: 130 (1) The procedures to be followed for submitting 131 proposals, the criteria for evaluating proposals and their 132 relative weight, and the procedures for making awards; 133 (2) The proposed terms and conditions for the design- 134 build contract, if available; 135 (3) The design criteria package; 136 (4) A description of the drawings, specifications, or 137 other information to be submitted with the proposal, with 138 guidance as to the form and level of completeness of the 139 drawings, specifications, or other information that will be 140 acceptable; 141 (5) A schedule for planned commencement and completion 142 of the design-build contract, if any; 143 (6) Budget limits for the design-build contract, if 144 any; 145 SB 10 6 (7) Requirements including any available ratings for 146 performance bonds, payment bonds, and insurance, if any; 147 (8) The amount of the stipend which will be available; 148 and 149 (9) Any other information that the political 150 subdivision in its discretion chooses to supply including, 151 but not limited to, surveys, soil reports, drawings of 152 existing structures, environmental studies, photographs, 153 references to public records, or affirmative action and 154 minority business enterprise requirements consistent with 155 state and federal law. 156 7. The political subdivision shall solicit proposals 157 in a three-stage process. Phase I shall be the solicitation 158 of qualifications of the design-build team. Phase II shall 159 be the solicitation of a technical proposal including 160 conceptual design for the project. Phase III shall be the 161 proposal of the construction cost. 162 8. The political subdivision shall review the 163 submissions of the proposals and assign points to each 164 proposal in accordance with this section and as set out in 165 the instructions of the request for proposal. 166 9. Phase I shall require all design-builders to submit 167 a statement of qualification that shall include, but not be 168 limited to: 169 (1) Demonstrated ability to perform projects 170 comparable in design, scope, and complexity; 171 (2) References of owners for whom design-build 172 projects, construction projects, or design projects have 173 been performed; 174 (3) Qualifications of personnel who will manage the 175 design and construction aspects of the project; and 176 SB 10 7 (4) The names and qualifications of the primary design 177 consultants and the primary trade contractors with whom the 178 design-builder proposes to subcontract or joint venture. 179 The design-builder [may] shall not replace an identified 180 contractor, subcontractor, design consultant, or 181 subconsultant without the written approval of the political 182 subdivision. 183 10. The political subdivision shall evaluate the 184 qualifications of all the design-builders who submitted 185 proposals in accordance with the instructions of the request 186 for proposal. Architectural and engineering services on the 187 project shall be evaluated in accordance with the 188 requirements of sections 8.285 and 8.291. Qualified design- 189 builders selected by the evaluation team may proceed to 190 phase II of the selection process. Design-builders lacking 191 the necessary qualifications to perform the work shall be 192 disqualified and shall not proceed to phase II of the 193 process. This process of short listing shall narrow the 194 number of qualified design-builders to not more than five 195 nor fewer than two. Under no circumstances shall price or 196 fees be a part of the prequalification criteria. Design- 197 builders may be interviewed in either phase I or phase II of 198 the process. Points assigned in phase I of the evaluation 199 process shall not carry forward to phase II of the process. 200 All qualified design-builders shall be ranked on points 201 given in phases II and III only. 202 11. The political subdivision shall have discretion to 203 disqualify any design-builder who, in the political 204 subdivision's opinion, lacks the minimum qualifications 205 required to perform the work. 206 12. Once a sufficient number of no more than five and 207 no fewer than two qualified design-builders have been 208 SB 10 8 selected, the design-builders shall have a specified amount 209 of time in which to assemble phase II and phase III 210 proposals. 211 13. Phase II of the process shall be conducted as 212 follows: 213 (1) The political subdivision shall invite the top 214 qualified design-builders to participate in phase II of the 215 process; 216 (2) A design-builder shall submit its design for the 217 project to the level of detail required in the request for 218 proposal. The design proposal shall demonstrate compliance 219 with the requirements set out in the request for proposal; 220 (3) The ability of the design-builder to meet the 221 schedule for completing a project as specified by the 222 political subdivision may be considered as an element of 223 evaluation in phase II; 224 (4) Up to twenty percent of the points awarded to each 225 design-builder in phase II may be based on each design- 226 builder's qualifications and ability to design, contract, 227 and deliver the project on time and within the budget of the 228 political subdivision; 229 (5) Under no circumstances shall the design proposal 230 contain any reference to the cost of the proposal; and 231 (6) The submitted designs shall be evaluated and 232 assigned points in accordance with the requirements of the 233 request for proposal. Phase II shall account for not less 234 than forty percent of the total point score as specified in 235 the request for proposal. 236 14. Phase III shall be conducted as follows: 237 (1) The phase III proposal shall provide a firm, fixed 238 cost of design and construction. The proposal shall be 239 accompanied by bid security and any other items, such as 240 SB 10 9 statements of minority participation as required by the 241 request for proposal; 242 (2) Cost proposals shall be submitted in accordance 243 with the instructions of the request for proposal. The 244 political subdivision shall reject any proposal that is not 245 submitted on time. Phase III shall account for not less 246 than forty percent of the total point score as specified in 247 the request for proposal; 248 (3) Proposals for phase II and phase III shall be 249 submitted concurrently at the time and place specified in 250 the request for proposal, but in separate envelopes or other 251 means of submission. The phase III cost proposals shall be 252 opened only after the phase II design proposals have been 253 evaluated and assigned points, ranked in order, and posted; 254 (4) Cost proposals shall be opened and read aloud at 255 the time and place specified in the request for proposal. 256 At the same time and place, the evaluation team shall make 257 public its scoring of phase II. Cost proposals shall be 258 evaluated in accordance with the requirements of the request 259 for proposal. In evaluating the cost proposals, the lowest 260 responsive bidder shall be awarded the total number of 261 points assigned to be awarded in phase III. For all other 262 bidders, cost points shall be calculated by reducing the 263 maximum points available in phase III by at least one 264 percent for each percentage point by which the bidder 265 exceeds the lowest bid and the points assigned shall be 266 added to the points assigned for phase II for each design- 267 builder; 268 (5) If the political subdivision determines that it is 269 not in the best interest of the political subdivision to 270 proceed with the project pursuant to the proposal offered by 271 the design-builder with the highest total number of points, 272 SB 10 10 the political subdivision shall reject all proposals. In 273 this event, all qualified and responsive design-builders 274 with lower point totals shall receive a stipend and the 275 responsive design-builder with the highest total number of 276 points shall receive an amount equal to two times the 277 stipend. If the political subdivision decides to award the 278 project, the responsive design-builder with the highest 279 number of points shall be awarded the contract; and 280 (6) If all proposals are rejected, the political 281 subdivision may solicit new proposals using different design 282 criteria, budget constraints, or qualifications. 283 15. As an inducement to qualified design-builders, the 284 political subdivision shall pay a reasonable stipend, the 285 amount of which shall be established in the request for 286 proposal, to each prequalified design-builder whose proposal 287 is responsive but not accepted. Such stipend shall be no 288 less than one-half of one percent of the total project 289 budget. Upon payment of the stipend to any unsuccessful 290 design-builder, the political subdivision shall acquire a 291 nonexclusive right to use the design submitted by the design- 292 builder, and the design-builder shall have no further 293 liability for the use of the design by the political 294 subdivision in any manner. If the design-builder desires to 295 retain all rights and interest in the design proposed, the 296 design-builder shall forfeit the stipend. 297 16. (1) As used in this subsection, "wastewater or 298 water contract" means any design-build contract that 299 involves the provision of engineering and construction 300 services either directly by a party to the contract or 301 through subcontractors retained by a party to the contract 302 for a wastewater or water storage, conveyance, or treatment 303 facility project. 304 SB 10 11 (2) Any political subdivision may enter into a 305 wastewater or water contract for design-build of a 306 wastewater or water project. 307 (3) In disbursing community development block grants 308 under 42 U.S.C. Sections 5301 to 5321, the department of 309 economic development shall not reject wastewater or water 310 projects solely for utilizing wastewater or water contracts. 311 (4) The department of natural resources shall not 312 preclude wastewater or water contracts from consideration 313 for funding provided by the water and wastewater loan fund 314 under section 644.122. 315 (5) A political subdivision planning a wastewater or 316 water design-build project shall retain an engineer duly 317 licensed in this state to assist in preparing any necessary 318 documents and specifications and evaluations of design-build 319 proposals. 320 17. The payment bond requirements of section 107.170 321 shall apply to the design-build project. All persons 322 furnishing design services shall be deemed to be covered by 323 the payment bond the same as any person furnishing labor and 324 materials. The performance bond for the design-builder 325 shall not cover any damages of the type specified to be 326 covered by the professional liability insurance established 327 by the political subdivision in the request for proposals. 328 18. Any person or firm performing architectural, 329 engineering, landscape architecture, or land-surveying 330 services for the design-builder on the design-build project 331 shall be duly licensed or authorized in this state to 332 provide such services as required by chapter 327. 333 19. Any political subdivision engaged in a project 334 under this section which impacts a railroad regulated by the 335 Federal Railroad Administration shall consult with the 336 SB 10 12 affected railroad on required specifications relating to 337 clearance, safety, insurance, and indemnification to be 338 included in the construction documents for such project. 339 20. Under section 327.465, any design-builder that 340 enters into a design-build contract with a political 341 subdivision is exempt from the requirement that such person 342 or entity hold a license or that such corporation hold a 343 certificate of authority if the architectural, engineering, 344 or land-surveying services to be performed under the design- 345 build contract are performed through subcontracts or joint 346 ventures with properly licensed or authorized persons or 347 entities, and not performed by the design-builder or its own 348 employees. 349 21. This section shall not apply to: 350 (1) Any metropolitan sewer district established under 351 Article VI, Section 30(a) of the Constitution of Missouri; or 352 (2) Any special charter city, or any city or county 353 governed by home rule under Article VI, [Section 18] 354 Sections 18(a) to 18(r) or 19 of the Constitution of 355 Missouri that has adopted a design-build process via 356 ordinance, rule, or regulation. 357 [22. The authority to use design-build and design- 358 build contracts provided under this section shall expire 359 September 1, 2026.] 360 