ARTICLE
1 August 2019

Connecticut General Assembly Amends School Building Project Grant Program

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Day Pitney LLP
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Day Pitney LLP is a full-service law firm with more than 300 attorneys in Boston, Connecticut, Florida, New Jersey, New York and Washington, DC. The firm offers clients strong corporate and litigation practices, with experience on behalf of large national and international corporations as well as emerging and middle-market companies. With one of the largest individual clients practices on the East Coast, the firm also has extensive experience assisting individuals and their families, fiduciaries and tax-exempt entities plan for the future.
All work not performed by the construction manager must be performed by trade subcontractors selected pursuant to a process approved by the municipality and the Commissioner
United States Real Estate and Construction
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In its July 23 special session, the Connecticut General Assembly adopted Public Act No. 19-1, "An Act Concerning Authorization of State Grant Commitments for School Building Projects," which was signed into law by Governor Lamont on July 23.

The act, among other things, makes the following changes to the state's school building project grant program:

  • School Building Committee Membership: Requires that school building committees for grant-eligible projects include at least one member with experience in the construction industry (Act Sec. 3; new).
  • Award of Architectural/Construction Management/Consultant Services Orders and Contracts:
    • Architectural Services: Requires that as part of the consideration of the proposer's organizational and team structure, the evaluation criteria for architectural services orders and contracts include consideration of any subcontractors to be used by the proposer.
    • Construction Managers
      • Allows a construction manager to self-perform a portion of the construction work if the municipality and the Commissioner of Administrative Services determine that the construction manager can self-perform the work more cost-effectively than a subcontractor can. All work not performed by the construction manager must be performed by trade subcontractors selected pursuant to a process approved by the municipality and the Commissioner.
      • Requires that the evaluation criteria for construction manager orders and contracts include whether the proposer intends to self-perform any project element and whether any benefit to the awarding authority will result from such self-performance.
      • Requires a construction manager's contract to include a guaranteed maximum price for the cost of construction, to be determined not later than 90 days after the selection of the trade subcontractors. Construction, except for work relating to site preparation and demolition, may not begin prior to the determination of the guaranteed maximum price.
    • Other Consultant Services: Requires that orders and contracts for any other consultant services—including but not limited to consultant services rendered by the owner's representatives, construction administrators, program managers, environmental professionals, planners and financial specialists—comply with the public selection process applicable to construction manager services and that the orders or contracts receive prior approval from the Commissioner of Administrative Services to be grant eligible.

    (Act Sec. 6, amending C.G.S. Sec. 10-287(b))

  • Security Infrastructure Projects: Permits grant commitments for existing security infrastructure improvements or new security infrastructure installation to be approved by the Commissioner of Administrative Services on a rolling basis, unlike "priority project" grant commitments requiring submission to the General Assembly for approval (Act Sec. 7, amending C.G.S. Sec. 10-283(b)(1)).
  • Diversity School Project Reimbursement Rate: Revises the grant reimbursement rate for diversity school projects from a fixed 80 percent grant to the municipality's standard reimbursement rate plus 10 percent, creating a range of reimbursement from 20 to 80 percent (Act Secs. 4 and 5, amending C.G.S. Secs. 10-286h(c) and 10-285(a)).

These amendments are effective on passage except for the amendments regarding the architectural, construction management and other consultant services orders and contracts, which are effective on July 1, 2020.

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ARTICLE
1 August 2019

Connecticut General Assembly Amends School Building Project Grant Program

United States Real Estate and Construction
Contributor
Day Pitney LLP logo
Day Pitney LLP is a full-service law firm with more than 300 attorneys in Boston, Connecticut, Florida, New Jersey, New York and Washington, DC. The firm offers clients strong corporate and litigation practices, with experience on behalf of large national and international corporations as well as emerging and middle-market companies. With one of the largest individual clients practices on the East Coast, the firm also has extensive experience assisting individuals and their families, fiduciaries and tax-exempt entities plan for the future.
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