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SS/SCS/SB 128 - This act modifies the current law that authorizes the state highways and transportation commission to enter into design-build highway project contracts. Under this act, the current statutory restriction that limits the commission to only entering into three design-build highway projects is removed. In lieu of a specific number of projects, the total number of highway design-build project contracts awarded by the commission in any state fiscal year shall not exceed 3% of the total number of all state highway system projects listed in the commission's approved statewide transportation improvement program for that fiscal year. The act also amends the current bonding requirements relating to design-build highway project contracts. The act specifies the requirements for bid, performance and payment bonds, or letters of credit, must be provided by the design-builder directly to the commission in design-build highway project contracts. Under the act, a bid or proposal bond, cash or certified or cashier's check is still required, but the amount shall be determined by the commission. The performance bond or bonds must be in an amount equal to a reasonable estimate of the total cost of construction work under the design-build highway project contract. If the Commission determines that cost estimate for the project contract is expected to exceed $250 million and performance bonds for that amount are impractical, the commission shall set the performance bond at the amount reasonably available, but not less than $250 million and may require additional security for the balance of the estimate not covered by the performance bonds. This act contains an emergency clause. The provisions of this act are similar to SB 178(2009). STEPHEN WITTE
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