91Ƶ

Public hearing held, but bill fails to show up

By: Tom Henderson//February 26, 2013//

Public hearing held, but bill fails to show up

Tom Henderson//February 26, 2013//

Listen to this article

A public hearing in Salem on Monday addressed a bill to amend Oregon’s public contracting law – that is, a hearing of sorts.

A bill doesn’t really exist yet. State Sen. Lee Beyer, D-Springfield, who chairs the Senate Business and Transportation Committee, said the cake is still in the oven.

A work group of construction industry professionals and other stakeholders has been meeting for almost two years since the last legislative session to come up with a bill. The group is continuing to meet to discuss precise wording and assorted amendments, Beyer said.

“They’re still working on it, but the product they’re working on is still pretty good,” he said. “I told them I would support whatever they could come to consensus on.”

Consensus is coming, Beyer said.

“The people who are involved in the process are in agreement concerning what they are in agreement about,” he added.

Committee administrator Patrick Brennan said there was little need for Monday’s hearing.

“Members of the work group are still dotting the i’s and crossing the t’s as it were,” he told committee members. “We have (the bill) scheduled today just to get the ball rolling.”

As it stands, Senate Bill 254 would specify the conditions under which a public agency could use an alternative contracting method rather than award the contract to the lowest bidder.

The bill requires the attorney general to adopt rules to specify the precise procedures for using construction manager-general contractor services. It also states that public agencies must obtain services in accordance with the new model rules.

If the bill were to pass this session, it would take effect July 1, 2014.

Tom Gerding, 2013 president of the Associated General Contractors’ Oregon-Columbia chapter, told committee members he likes the way the bill is shaping up.

“I am really glad to be before you today and speaking to you about why Oregon needs this bill,” said Gerding, CEO of Gerding Cos. in Corvallis and a member of the interim work group.

“CM-GC has become challenging and divisive within our industry and likewise within our membership in AGC,” he said. “I guess I am about as conflicted as anyone.”

In some cases, Gerding said, his company has gained a project without having to submit the lowest bid.

“Other times, I have been on the losing end,” he said. “What is really needed is more transparency and consistency in the use of CM-GC.”

There are valid times to not go with the low bidder, Gerding told the committee.

“The contractor comes on board when they’re ready to begin building then and there,” he said. “You jump in and do the work. We’re brought in as part of the team.”

Beyer interjected that the public agency is also assured of a guaranteed maximum price.

The problem, critics argue, is that public agencies use the alternative contracting system too much and automatically cut many potential contractors out of a chance to build large public projects.

“That’s why AGC is in support of Senate Bill 254 as a great first step,” Gerding said. “Within the process, there was a lot of collaboration. This is a very good bill for our industry and I think it is good public policy.”

Gerding said the ultimate goal of the bill, regardless of its final form, is to make sure the appropriate contracting system is used on public projects, and the appropriate contractor gets the work.

State Sen. Bruce Starr, R-Hillsboro, said he would like to know how close committee members are to seeing an actual bill.

“I think we’re close,” Gerding said. “At our last session, we were down to wordsmithing.”



News

See All News

Commentary

See All Commentary

COMMUNITY CALENDAR