Tom Henderson//December 28, 2012//
It took more than a year to draft the legislation, but Mike Salsgiver says a bill to amend Oregon’s public contracting law should make a lot of builders in the state happy.
鈥淲e’re fairly confident that the bill going forward is one way we can support,鈥澛爏aid Salsgiver, the executive director of the Oregon-Columbia chapter of Associated General Contractors.
鈥淚t will make things better all the way around,鈥 he added.
A work group has been meeting for more than a year drafting amendments for the construction manager/general contractor (CM-GC) law to address concerns by contractors that public agencies often skip the traditional low-bid process on construction projects and simply hire the company of their choice.
Smaller contractors, in particularly, feel they are left at a competitive disadvantage.

State Sen. Lee Beyer, D-Springfield, organized the work group that hashed out the proposed amendments. Beyer said he likes the results.
鈥淚 think it’s a pretty good bill,鈥 he said. 鈥淣o one is totally happy with it, so that must mean we did a good job.
鈥淧olicy-wise, it adds more transparency and requires local governments to follow the attorney general’s rules for using a general contractor.鈥
For instance, the bill requires public agencies to hold a public hearing before selecting a contractor instead of going through a low-bid process. Hearings must also be held with input from the Department of Administrative Services, the Oregon Department of Transportation or the agency’s local contract review board (whichever is the most applicable).
The agency must also post a notice of the hearing in one trade newspaper and one general circulation newspaper at least 14 days before the hearing.
When considering whether to hire a contractor directly or go out for bid, public officials must also balance such factors as the size and technical complexity of the project as well as whether it is new construction or a modification of an existing structure.
They must also consider whether the structure will be occupied or unoccupied during construction and whether the work will be done in one phase or multiple phases.
Another amendment requires agencies to consult state experts to assist in developing alternative contracting methods and helping negotiate, administer and enforce the terms of the contract.
Patrick Brennan, the administrator of the Senate Interim Committee on Business, Transportation and Economic Development, said the bill will be introduced when the Legislature convenes in February and no doubt face further revisions as its winds its way through the committee process.
鈥淎s it was introduced by a Senate interim committee, and is a Senate bill, it will go to a Senate committee 鈥 though not necessarily Sen. Beyer’s committee,鈥 Brennan said. 鈥淚n fact, they have not yet officially named committees for the 2013 session, so no decisions have been made as to where bills will go. That being said, I’d say there’s a high likelihood that it’ll be assigned to Sen. Beyer’s committee once the 2013 session gets going.鈥
Beyer chairs the Senate Business, Transportation and Economic Development Committee.
The bill is already a little different from the final version the work group drafted, Beyer said.
鈥淚t just got back from the legislative counsel, so it’s not quite the same bill we submitted to them,鈥 he said.
However, he added, most of the changes are matters of legal wording.
Salsgiver said AGC takes particular pride in the bill going before the Legislature.
鈥淥ur team has been 鈥 on this effort for the past 14 to 18 months,鈥 he said. 鈥淲e’re confident with the process behind this bill.鈥
AGC’s team included its incoming board President Tom Gerding and Public Affairs Director John Rakowitz.
Despite Salsgiver’s optimism, the way public agencies hire construction companies聽still meets with considerable cynicism among building professionals.
鈥淚 am not crazy, but I really hate CM-GC,鈥 said Robert Gray of Robert Gray and Associates in Sherwood. 鈥淚 just want to be able to compete.鈥
Jerry Valencia of Bridgeway Contracting in Lowell noticed that Linn-Benton Community College recently hired a contractor for $2 million without going through a bidding process.
鈥淭here’s no reason 鈥 for them to do that,鈥 he said. 鈥淭hey’re not exempt (from public contracting laws).鈥
That sort of news makes him suspicious of lawmakers’ sincerity as they debate the contracting law, he added.
Beyer said that’s exactly why the law needs to be changed 鈥 to restore confidence in the building profession by increasing the transparency of the process.
鈥淚 went in with no specific expectations,鈥 Beyer said. 鈥淪ome subcontractors were not sure of the requirements and what to expect from the contractors. Many people in the public said there was no transparency, and they were not getting the best deal. I wanted transparency across the board.鈥
The 25-member work group included both large and small contractors and subcontractors as well as lawyers and lawmakers.
鈥淲e had the right people at the table,鈥 Beyer said.