SB 789 - This act modifies provisions relating to construction contracts.


This act allows political subdivisions to use the construction manager-at-risk method for construction projects. If the project is a civil works project, the project cost must exceed $2 million. Other projects must exceed $7 million. Before selecting a construction manager-at-risk, or during the selection process, the political subdivision must select an engineer or architect to prepare the construction documents.

The political subdivision must use a two-step process to select the construction manager-at-risk. This act outlines the necessary procedures for the process. The political subdivision may determine how to publish its notice that it is seeking a construction manager-at-risk.

This act requires the political subdivision to publicly open and read aloud the names of the construction managers for each step, and to evaluate and rank each bidder within 45 days of the opening of the proposals or qualifications. The political subdivision must select the construction manager-at-risk that offers the best value. If the political subdivision fails to negotiate a satisfactory contract with the selected construction manager-at-risk, the political subdivision must negotiate with the next highest ranked construction manager-at-risk.

This act requires the construction manager-at-risk to publicly bid its subcontracts for the performance of all major elements of the work. If the construction manager-at-risk seeks to perform the work, it must be selected by the political subdivision and provide the best value. Both the political subdivision and the construction manager-at-risk evaluate the bids, and the political subdivision may compensate the construction manager-at-risk if the political subdivision requires a different bid be accepted than the one recommended by the construction manager.

This act specifies the procedures for when a selected subcontractor defaults in the performance of its work.

These provisions do not apply to the St. Louis Metropolitan Sewer District, or any city or county with a charter form of government.

These provisions expire on September 1, 2025.

This provision is substantially similar to SCS/HCS/HB 844 (2015).


This act allows political subdivisions to enter into contracts for design-build projects.

Definitions are provided for "design-build", "design-build contract", "design-builder", "design-build project", "design criteria consultant", "design criteria package", "design professional services", "proposal", "qualifications-based selection", "request for proposals", and "stipend".

This act requires political subdivisions to employ a design criteria consultant.

The act also requires political subdivisions to advertise the request for proposals in a certain manner and include certain information in the request for proposals.

This act creates a three-stage process for the solicitation of proposals. The political subdivision must award the project to the highest-scoring bidder. If the political subdivision determines it is not in its best interest to proceed with the project with the highest scoring bidder, the political subdivision must reject all the proposals. All the design-builders who submitted bids must receive stipends, and the highest-scoring design-builder must receive double the stipend. If all the proposals are rejected, the political subdivision may solicit new proposals using different qualifications, costs, and criteria. Design-builders who accept stipends give the political subdivision a nonexclusive right to use their designs and the design-builders have no liability for the use of the designs.

Under this act, the payment requirements that apply to public works contracts also apply to design-build projects.

Any person or firm providing architectural, engineering, landscape architecture, or land-surveying services must be licensed. The design-builder is exempt from the requirements involving certificates of registration or authority if the architectural, engineering, or land-surveying services are performed by subcontractors who are properly licensed.

These provisions do not apply to the St. Louis Metropolitan Sewer District, or any city or county with a charter form of government.

The design-build provisions expire on September 1, 2025.

This provision is substantially similar to SCS/HCS/HB 844 (2015).


This act sets forth certain guidelines for political subdivisions entering into specialty construction design contracts for engineering, design, and construction of a wastewater or water treatment project. The Department of Natural Resources is precluded from excluding from consideration specialty construction design contracts for funding provided by the Water and Wastewater Loan Fund. Furthermore, in disbursing community development block grants from certain federal programs, the Department of Economic Development shall not reject wastewater or water treatment projects solely for utilizing specialty construction design contracts.

This provision is identical to HCS/HB 1048 (2015) and SCS/HCS/HB 844 (2015).


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