Concerning state highway construction project alternative contracting procedures., the official text

CERTIFICATION OF ENROLLMENT
HOUSE BILL 1970
Chapter 231, Laws of 2025
69TH LEGISLATURE
2025 REGULAR SESSION
STATE HIGHWAY CONSTRUCTION PROJECTS—ALTERNATIVE CONTRACTING PROCEDURES
EFFECTIVE DATE: May 12, 2025
Passed by the House April 21, 2025
Yeas 97  Nays 0
LAURIE JINKINS

Speaker of the House of Representatives
Passed by the Senate April 16, 2025
Yeas 48  Nays 1
DENNY HECK

President of the Senate
CERTIFICATE
I, Bernard Dean, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is HOUSE BILL 1970 as passed by the House of Representatives and the Senate on the dates hereon set forth.
BERNARD DEAN

Chief Clerk
Chief Clerk
Approved May 12, 2025 2:47 PM
FILED
May 14, 2025

BOB FERGUSON

Governor of the State of Washington
Secretary of State
State of Washington

HOUSE BILL 1970

AS AMENDED BY THE SENATE
Passed Legislature - 2025 Regular Session
State of Washington
69th Legislature
2025 Regular Session

By Representatives Zahn and Donaghy
Read first time 02/13/25. Referred to Committee on Transportation.
AN ACT Relating to state highway construction project alternative contracting procedures; amending RCW 39.10.270, 39.10.280, 47.20.780, 47.20.785, and 43.131.408; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 39.10.270 and 2019 c 212 s 3 are each amended to read as follows:
(1) A public body may apply for certification to use the design-build or general contractor/construction manager contracting procedure, or both. Once certified, a public body may use the contracting procedure for which it is certified on individual projects without seeking committee approval for a period of three years. A public body seeking certification must submit to the committee an application in a format and manner as prescribed by the committee. The application must include a description of the public body's qualifications, its capital plan during the certification period, and its intended use of alternative contracting procedures.
(2) A public body seeking certification for the design-build procedure must demonstrate successful management of at least one design-build project within the previous five years. A public body seeking certification for the general contractor/construction manager procedure must demonstrate successful management of at least one general contractor/construction manager project within the previous five years.
(3) To certify a public body, the committee shall determine that the public body:
(a) Has the necessary experience and qualifications to determine which projects are appropriate for using alternative contracting procedures;
(b) Has the necessary experience and qualifications to carry out the alternative contracting procedure including, but not limited to: (i) Project delivery knowledge and experience; (ii) personnel with appropriate construction experience; (iii) a management plan and rationale for its alternative public works projects; (iv) demonstrated success in managing public works projects; (v) the ability to properly manage its capital facilities plan including, but not limited to, appropriate project planning and budgeting experience; and (vi) the ability to meet requirements of this chapter; and
(c) Has resolved any audit findings on previous public works projects in a manner satisfactory to the committee.
(4) The committee shall make its determination at the public meeting during which an application for certification is reviewed. Public comments must be considered before a determination is made. Within ((ten ))10 business days of the public meeting, the committee shall provide a written determination to the public body, and make its determination available to the public on the committee's website.
(5) The committee may revoke any public body's certification upon a finding, after a public hearing, that its use of design-build or general contractor/construction manager contracting procedures no longer serves the public interest.
(6) The committee may renew the certification of a public body for additional three-year periods. The public body must submit an application for recertification at least three months before the initial certification expires. The committee may accept late applications, if administratively feasible, to avoid expiration of certification on a case-by-case basis. The application shall include updated information on the public body's experience and current staffing with the procedure it is applying to renew, and any other information requested in advance by the committee. The committee must review the application for recertification at a meeting held before expiration of the applicant's initial certification period. A public body must reapply for certification under the process described in subsection (1) of this section once the period of recertification expires.
(7) Certified public bodies must submit project data information as required in RCW 39.10.320 and 39.10.350.
(8) The department of transportation is not subject to the certification requirements under this section to use the design-build procedure, progressive design-build procedure, or any general contractor/construction manager contracting procedure on individual projects.
Sec. 2. RCW 39.10.280 and 2014 c 42 s 2 are each amended to read as follows:
(1) A public body not certified under RCW 39.10.270 must apply for approval from the committee to use the design-build or general contractor/construction manager contracting procedure on a project. A public body seeking approval must submit to the committee an application in a format and manner as prescribed by the committee. The application must include a description of the public body's qualifications, a description of the project, the public body's intended use of alternative contracting procedures, and, if applicable, a declaration that the public body has elected to procure the project as a heavy civil construction project.
(2) To approve a proposed project, the committee shall determine that:
(a) The alternative contracting procedure will provide a substantial fiscal benefit or the use of the traditional method of awarding contracts in lump sum to the low responsive bidder is not practical for meeting desired quality standards or delivery schedules;
(b) The proposed project meets the requirements for using the alternative contracting procedure as described in RCW 39.10.300 or 39.10.340;
(c) The public body has the necessary experience or qualified team to carry out the alternative contracting procedure including, but not limited to: (i) Project delivery knowledge and experience; (ii) sufficient personnel with construction experience to administer the contract; (iii) a written management plan that shows clear and logical lines of authority; (iv) the necessary and appropriate funding and time to properly manage the job and complete the project; (v) continuity of project management team, including personnel with experience managing projects of similar scope and size to the project being proposed; and (vi) necessary and appropriate construction budget;
(d) For design-build projects, public body personnel or consultants are knowledgeable in the design-build process and are able to oversee and administer the contract; and
(e) The public body has resolved any audit findings related to previous public works projects in a manner satisfactory to the committee.
(3) The committee shall, if practicable, make its determination at the public meeting during which a submittal is reviewed. Public comments must be considered before a determination is made.
(4) Within ((ten ))10 business days after the public meeting, the committee shall provide a written determination to the public body, and make its determination available to the public on the committee's website. If the committee fails to make a written determination within ((ten ))10 business days of the public meeting, the request of the public body to use the alternative contracting procedure on the requested project shall be deemed approved.
(5) Failure of the committee to meet within sixty calendar days of a public body's application to use an alternative contracting procedure on a project shall be deemed an approval of the application.
(6) Except as provided in RCW 47.20.785(2), the department of transportation is not subject to the project approval requirements under this section.
Sec. 3. RCW 47.20.780 and 2015 3rd sp.s. c 18 s 1 are each amended to read as follows:
(1) The department of transportation shall develop a process for awarding competitively bid highway construction contracts for projects ((over two million dollars )) that may be constructed using a design-build procedure, a progressive design-build procedure, or any general contractor/construction manager procedure .
(2) As used in this section and RCW 47.20.785((, "design-build )):
(a) "Design-build procedure" means a method of contracting under which the department of transportation contracts with another party for the party to both design and build the structures, facilities, and other items specified in the contract.
((The process developed by the department must, at a minimum, include the scope of services required under the design-build procedure, contractor prequalification requirements, criteria for evaluating technical information and project costs, contractor selection criteria, and issue resolution procedures. ))(b) "General contractor/construction manager procedure" means a method of contracting under which the department of transportation selects a firm to provide services during the design phase, negotiate a maximum allowable construction cost, and act as construction manager and general contractor during the construction phase.
(c) "Progressive design-build procedure" means a method of contracting under which the department of transportation selects a design-builder before the establishment of a final project design, price, and schedule, and thereafter, the department and design-builder collaborate to develop a final project scope, schedule, and price.
Sec. 4. RCW 47.20.785 and 2015 3rd sp.s. c 18 s 2 are each amended to read as follows:
(1) The department of transportation is authorized ((and strongly encouraged )) to use the design-build procedure, progressive design-build procedure, and any general contractor/construction manager procedure for public works projects ((over two million dollars when:
(1) The construction activities are highly specialized and a design-build approach is critical in developing the construction methodology; or
(2) The projects selected provide opportunity for greater innovation and efficiencies between the designer and the builder; or
(3) Significant savings in project delivery time would be realized )).
(2) For the first three general contractor/construction manager projects that the department delivers, the department shall pursue approval in accordance with RCW 39.10.280. After three such approvals have been granted, the department is not subject to the approval requirements of RCW 39.10.280.
Sec. 5. RCW 43.131.408 and 2023 c 395 s 36 are each amended to read as follows:
The following acts or parts of acts, as now existing or hereafter amended, are each repealed, effective June 30, 2032:
(1) RCW 39.10.200 and 2023 c 395 s 4, 2010 1st sp.s. c 21 s 2, 2007 c 494 s 1, & 1994 c 132 s 1;
(2) RCW 39.10.210 and 2023 c 395 s 5, 2021 c 230 s 1, 2019 c 212 s 1, 2014 c 42 s 1, & 2013 c 222 s 1;
(3) RCW 39.10.220 and 2023 c 395 s 6, 2021 c 230 s 2, 2013 c 222 s 2, 2007 c 494 s 102, & 2005 c 377 s 1;
(4) RCW 39.10.230 and 2023 c 395 s 7, 2021 c 230 s 3, 2013 c 222 s 3, 2010 1st sp.s. c 21 s 3, 2009 c 75 s 1, 2007 c 494 s 103, & 2005 c 377 s 2;
(5) RCW 39.10.240 and 2023 c 395 s 8, 2021 c 230 s 4, 2013 c 222 s 4, & 2007 c 494 s 104;
(6) RCW 39.10.250 and 2021 c 230 s 5, 2019 c 212 s 2, 2013 c 222 s 5, 2009 c 75 s 2, & 2007 c 494 s 105;
(7) RCW 39.10.260 and 2013 c 222 s 6 & 2007 c 494 s 106;
(8) RCW 39.10.270 and 2025 c . . . s 1 (section 1 of this act), 2019 c 212 s 3, 2017 c 211 s 1, 2013 c 222 s 7, 2009 c 75 s 3, & 2007 c 494 s 107;
(9) RCW 39.10.280 and 2025 c . . . s 2 (section 2 of this act), 2014 c 42 s 2, 2013 c 222 s 8, & 2007 c 494 s 108;
(10) RCW 39.10.290 and 2007 c 494 s 109;
(11) RCW 39.10.300 and 2021 c 230 s 6, 2019 c 212 s 4, 2013 c 222 s 9, 2009 c 75 s 4, & 2007 c 494 s 201;
(12) RCW 39.10.320 and 2019 c 212 s 5, 2013 c 222 s 10, 2007 c 494 s 203, & 1994 c 132 s 7;
(13) RCW 39.10.330 and 2023 c 395 s 9, 2021 c 230 s 7, 2019 c 212 s 6, 2014 c 19 s 1, 2013 c 222 s 11, 2009 c 75 s 5, & 2007 c 494 s 204;
(14) RCW 39.10.340 and 2014 c 42 s 3, 2013 c 222 s 12, & 2007 c 494 s 301;
(15) RCW 39.10.350 and 2021 c 230 s 8, 2014 c 42 s 4, & 2007 c 494 s 302;
(16) RCW 39.10.360 and 2023 c 395 s 10, 2021 c 230 s 9, 2014 c 42 s 5, 2013 c 222 s 13, 2009 c 75 s 6, & 2007 c 494 s 303;
(17) RCW 39.10.370 and 2021 c 230 s 10, 2014 c 42 s 6, & 2007 c 494 s 304;
(18) RCW 39.10.380 and 2023 c 395 s 11, 2021 c 230 s 11, 2013 c 222 s 14, & 2007 c 494 s 305;
(19) RCW 39.10.385 and 2023 c 395 s 12, 2021 c 230 s 12, 2013 c 222 s 15, & 2010 c 163 s 1;
(20) RCW 39.10.390 and 2021 c 230 s 13, 2014 c 42 s 7, 2013 c 222 s 16, & 2007 c 494 s 306;
(21) RCW 39.10.400 and 2021 c 230 s 14, 2013 c 222 s 17, & 2007 c 494 s 307;
(22) RCW 39.10.410 and 2007 c 494 s 308;
(23) RCW 39.10.420 and 2019 c 212 s 7, 2017 c 136 s 1, & 2016 c 52 s 1;
(24) RCW 39.10.430 and 2021 c 230 s 15, 2019 c 212 s 8, & 2007 c 494 s 402;
(25) RCW 39.10.440 and 2021 c 230 s 16, 2019 c 212 s 9, 2015 c 173 s 1, 2013 c 222 s 19, & 2007 c 494 s 403;
(26) RCW 39.10.450 and 2019 c 212 s 10, 2012 c 102 s 2, & 2007 c 494 s 404;
(27) RCW 39.10.460 and 2021 c 230 s 17, 2012 c 102 s 3, & 2007 c 494 s 405;
(28) RCW 39.10.470 and 2019 c 212 s 11, 2014 c 19 s 2, 2005 c 274 s 275, & 1994 c 132 s 10;
(29) RCW 39.10.480 and 1994 c 132 s 9;
(30) RCW 39.10.490 and 2021 c 230 s 18, 2013 c 222 s 20, 2007 c 494 s 501, & 2001 c 328 s 5;
(31) RCW 39.10.900 and 1994 c 132 s 13;
(32) RCW 39.10.901 and 1994 c 132 s 14;
(33) RCW 39.10.903 and 2007 c 494 s 510;
(34) RCW 39.10.904 and 2007 c 494 s 512;
(35) RCW 39.10.905 and 2007 c 494 s 513; and
(36) RCW 39.10.908 and 2023 c 395 s 13 and 2021 c 230 s 19.
NEW SECTION.    Sec. 6. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.
Passed by the House April 21, 2025.
Passed by the Senate April 16, 2025.
Approved by the Governor May 12, 2025.
Filed in Office of Secretary of State May 14, 2025.