Colorado SB 19-076: CDOT Colorado Department Of Transportation Consulting Engineer Contracts

Bill Text

SENATE BILL 19-076
BY SENATOR(S) Scott, Bridges, Cooke, Coram, Donovan, Gardner,
Holbert, Lundeen, Marble, Pettersen, Priola, Rankin, Smallwood,
Sonnenberg, Tate, Winter, Woodward;
also REPRESENTATIVE(S) Rich and Valdez D., Carver, Catlin, Exum,
Gray, Herod, Soper, Will.
CONCERNING THE PROCUREMENT OF CONSULTING ENGINEER SERVICES FOR
DEPARTMENT OF TRANSPORTATION CONSTRUCTION PROJECTS.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. Legislative declaration. (1) The general assembly
hereby finds and declares that:
(a) When the department of transportation contracts with a
consulting engineer for construction management and construction
engineering services for a construction project, it typically pays the
consulting engineer by the hour instead of requiring the consulting engineer
to submit a fixed bid for all services to be provided for the project.
(b) Both the department of transportation and the general contractor
for a construction project have a strong interest in successfully completing
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act.

the project as quickly and efficiently as possible because completing the
project quickly and efficiently:
(I) Saves the department money that the department can use to
complete other projects and provide a safer and more effective
transportation system; and
(II) Allows the general contractor, who typically must submit a fixed
bid for the completion of the project in accordance with specified
performance requirements and deadlines, to avoid penalties for failing to
complete the project in accordance with the requirements and deadlines,
devote more resources to other projects, make more money, and provide
more jobs for Colorado workers.
(c) When the department of transportation contracts with a
consulting engineer for construction management and construction
engineering services for a construction project and pays the consulting
engineer by the hour, the consulting engineer has a financial incentive to
work as many hours as possible. This incentive is at odds with the interest
of the department and the general contractor in successfully completing the
project as quickly and efficiently as possible because the general
contractor's ability to successfully complete the project depends in part on
the consulting engineer's ability to competently and efficiently provide
construction management and construction engineering services and
expeditiously obtain required approvals from the department for any project
changes that the consulting engineer recommends.
(d) The efficiency and accountability committee of the department
of transportation is charged with helping the transportation commission and
the department execute their duties efficiently by periodically
recommending means by which the commission and the department may
execute their duties more efficiently.
(e) It is necessary and appropriate to require the efficiency and
accountability committee to study the manner in which the department of
transportation procures construction management and construction
engineering services from consulting engineers, determine whether
improvements can be made to better align consulting engineer incentives
with the interests of the department and general contractors in successfully
completing department projects as quickly and efficiently as possible, and
PAGE 2-SENATE BILL 19-076

recommend appropriate process improvements, including potential statutory
changes, to the commission and the executive director of the department
and to require the department to report on the recommendations made to its
legislative oversight committees.
SECTION 2. In Colorado Revised Statutes, 2-3-1203, repeal
(8)(a)(VI) as follows:
2-3-1203. Sunset review of advisory committees - legislative
declaration - definition - repeal. (8) (a) The following statutory
authorizations for the designated advisory committees will repeal on July
1, 2019:
(VI) The standing cfficiency and accountability commitec crate
SECTION 3. In Colorado Revised Statutes, 43-1-106, repeal
(17)(d); and add (17)(b.5) as follows:
43-1-106. Transportation commission - powers and duties.
(17) (b.5) (I) THE EFFICIENCY AND ACCOUNTABILITY COMMITTEE SHALL
STUDY AND REPORT TO THE EXECUTIVE DIRECTOR AND THE COMMISSION ITS
FINDINGS AND ANY RECOMMENDATIONS REGARDING THE FOLLOWING ISSUES
RELATING TO CONSULTING ENGINEER CONTRACTS:
(A) IMPLEMENTATION OF FIXED BID PROCUREMENT IN LIEU OF BIDS
BASED ON HOURLY CHARGES;
(B) THE QUALITY ASSURANCE PROCESS;
(C) THE REVOLVING DOOR OF RETIRED DEPARTMENT EMPLOYEES
GOING TO WORK FOR CONSULTANTS;
(D) INCENTIVES FOR CLOSING OUT THE CONTRACTS, EARLY PROJECT
COMPLETION, AND TIMELY PROBLEM RESOLUTION; AND
(E) PROJECT STAFFING AND IMPLEMENTATION OF THE PORTION OF
THE DEPARTMENT MEMORANDUM "WORK PLAN FOR CONSISTENT CDOT
AND CONSULTANT CONSTRUCTION PROJE