LBD14612-02-4
A. 9429 2
(8) The individual qualifications of the proposer's key personnel;
(9) The proposer's ability to assess and manage risk and minimize risk
impact;
(10) The proposer's financial capability;
(11) The proposer's ability to comply with applicable requirements,
including the provisions of articles 145, 147 and 148 of the education
law;
(12) The proposer's past record of compliance with federal, state and
local laws, rules, licensing requirements, where applicable, and execu-
tive orders, including but not limited to compliance with the labor law
and other applicable labor and prevailing wage laws, article 15-A of the
executive law, and any other applicable laws concerning minority- and
women-owned business enterprise participation;
(13) The proposer's record of complying with existing labor standards,
maintaining harmonious labor relations, and protecting the health and
safety of workers and payment of wages above any locally-defined living
wage; and
(14) A quantitative factor to be used in evaluation of bids or offers
for awarding of contracts for bidders or offerers that are certified as
minority- or women-owned business enterprises pursuant to article 15-A
of the executive law, and certified pursuant to local law as minority-
or women-owned business enterprises. Where an agency identifies a quan-
titative factor pursuant to this paragraph, the agency must specify that
businesses certified as minority- or women-owned business enterprises
pursuant to article 15-A of the executive law as well as those certified
as minority- or women-owned business enterprises or pursuant to section
1304 of the New York city charter are eligible to qualify for such
factor. Nothing in this paragraph shall be construed as a requirement
that such businesses be concurrently certified as minority- or women-
owned business enterprises under both article 15-A of the executive law
and section 1304 of the New York city charter to qualify for such quan-
titative factors. In addition, where the New York city school
construction authority acts as the authorized entity, businesses certi-
fied as minority- or women-owned business enterprises pursuant to
section 1743 of the public authorities law shall be eligible to qualify
for such factor.
Such basis shall reflect, wherever possible, objective and quantifi-
able analysis.
(c) "Cost plus" shall mean compensating a contractor for the cost to
complete a contract by reimbursing actual costs for labor, equipment and
materials plus an additional amount for overhead and profit.
(d) "Design-build contract" shall mean a contract for the design and
construction of a public work with a single entity, which may be a team
comprised of separate entities.
(D-1) "PROGRESSIVE DESIGN-BUILD CONTRACT" SHALL MEAN A CONTRACT FOR
THE DESIGN AND CONSTRUCTION OF A PUBLIC WORK WITH A SINGLE ENTITY,
WHICH MAY BE A TEAM COMPRISED OF SEPARATE ENTITIES, THAT IS SELECTED
THROUGH A QUALIFICATIONS-BASED SELECTION AT THE EARLIEST FEASIBLE STAGE
OF THE PROJECT.
(e) "Project labor agreement" shall have the meaning set forth in
subdivision 1 of section 222 of the labor law. A project labor agreement
shall require participation in apprentice training programs in accord-
ance with paragraph (e) of subdivision 2 of such section.
(F) "QUALIFICATIONS-BASED SELECTION" MEANS THE PROCESS BY WHICH THE
AUTHORIZED ENTITY SOLICITS FOR SERVICES FROM THE PROGRESSIVE DESIGN-
A. 9429 3
BUILD ENTITIES AND THAT PRICE IS NOT THE SOLE FACTOR AS THE BASIS OF
AWARD, OR THE COST RANGE IS NOT YET DETERMINED.
§ 3. Any contract for a public work undertaken pursuant to a project
labor agreement in accordance with section 222 of the labor law may be a
design-build contract OR A PROGRESSIVE DESIGN-BUILD CONTRACT in accord-
ance with this act.
§ 4. Notwithstanding any general, special or local law, rule or regu-
lation to the contrary, including but not limited to section 7210 of the
education law, article 5-A of the general municipal law, article 8 of
the public housing law, sections 1734 and 1735 of the public authori-
ties law and section 8 of the New York city health and hospitals corpo-
ration act, and in conformity with the requirements of this act, for any
public work that has an estimated cost of not less than 10 million
dollars and is undertaken pursuant to a project labor agreement in
accordance with section 222 of the labor law, an authorized entity
charged with awarding a contract for public work may use the alternative
delivery [method] METHODS referred to as design-build OR PROGRESSIVE
DESIGN-BUILD contracts. Provided, however, that any authorized entity
charged with awarding a contract for public work in connection with
property within the jurisdiction of the New York city department of
parks and recreation or the New York city housing authority is author-
ized to use the alternative delivery method referred to as design-build
OR PROGRESSIVE DESIGN-BUILD contracts for any such public work that has
an estimated cost of not less than one million two hundred thousand
dollars if such public work is otherwise in conformity with the require-
ments of this act. Provided further that any authorized entity may use
the alternative delivery method referred to as design-build OR PROGRES-
SIVE DESIGN-BUILD contracts for any public work that has an estimated
cost of not less than one million two hundred thousand dollars if such
public work is otherwise in conformity with the requirements of this act
and primarily consists of: pedestrian ramps and similar infrastructure
to improve access to sidewalks in the city of New York for people with
disabilities; renovation and construction of cultural institutions
located on publicly owned real property and of public libraries in the
city of New York; or security infrastructure, including bollards, plan-
ters and other physical structures, designed to protect life and proper-
ty from acts of terror or mass violence.
(a) A contractor selected by such an authorized entity to enter into a
design-build contract shall be selected through a two-step method, as
follows:
(1) Step one. Generation of a list of responding entities that have
demonstrated the general capability to perform the design-build
contract. Such list shall consist of a specified number of responding
entities, as determined by an authorized entity, and shall be generated
based upon the authorized entity's review of responses to a publicly
advertised request for qualifications. The authorized entity's request
for qualifications shall include a general description of the public
work, the maximum number of responding entities to be included on the
list, the selection criteria to be used and the relative weight of each
criteria in generating the list. Such selection criteria shall include
the qualifications and experience of the design and construction team,
organization, demonstrated responsibility, ability of the team or of a
member or members of the team to comply with applicable requirements,
including the provisions of articles 145, 147 and 148 of the education
law, past record of compliance with the labor law, and such other quali-
fications the authorized entity deems appropriate, which may include but
A. 9429 4
are not limited to project understanding, financial capability and
record of past performance. The authorized entity shall evaluate and
rate all responding entities to the request for qualifications. Based
upon such ratings, the authorized entity shall list the responding enti-
ties that shall receive a request for proposals in accordance with para-
graph two of this subdivision. To the extent consistent with applicable
federal law, the authorized entity shall consider, when awarding any
contract pursuant to this section, the participation of (i) responding
entities that are certified as minority- or women-owned business enter-
prises pursuant to article 15-A of the executive law, or certified
pursuant to local law as minority- or women-owned business enterprises,
or, where the New York city school construction authority acts as the
authorized entity, certified pursuant to section 1743 of the public
authorities law; and (ii) small business concerns identified pursuant to
subdivision (b) of section 139-g of the state finance law. In addition,
nothing in this section shall be deemed to supersede any pre-qualifica-
tion guidelines or requirements otherwise authorized by law for an
authorized entity.
(2) Step two. Selection of the proposal which is the best value to the
authorized entity. The authorized entity shall issue a request for
proposals to the responding entities listed pursuant to paragraph one of
this subdivision. If such a responding entity consists of a team of
separate entities, the entities that comprise such a team must remain
unchanged from the responding entity as listed pursuant to paragraph one
of this subdivision unless otherwise approved by the authorized entity.
The request for proposals shall set forth the public work's scope of
work, and other requirements, as determined by the authorized entity,
which may include separate goals for work under the contract to be
performed by businesses certified as minority- or women-owned business
enterprises pursuant to article 15-A of the executive law or section
1743 of the public authorities law, or certified pursuant to local law
as minority- or women-owned business enterprises. The request for
proposals shall also specify the criteria to be used to evaluate the
responses and the relative weight of each of such criteria. Such crite-
ria shall include the proposal's cost, the quality of the proposal's
solution, the qualifications and experience of the proposer, and other
factors deemed pertinent by the authorized entity, which may include,
but shall not be limited to, the proposal's manner and schedule of
project implementation, the proposer's ability to complete the work in a
timely and satisfactory manner, maintenance costs of the completed
public work, maintenance of traffic approach, and community impact. Any
contract awarded pursuant to this act shall be awarded to a responsive
and responsible proposer, which, in consideration of these and other
specified criteria deemed pertinent, offers the best value, as deter-
mined by the authorized entity. The request for proposals shall include
a statement that proposers shall designate in writing those portions of
the proposal that contain trade secrets or other proprietary information
that are to remain confidential; that the material designated as confi-
dential shall be readily separable from the proposal. Nothing in this
subdivision shall be construed to prohibit the authorized entity from
negotiating final contract terms and conditions including cost. All
proposals submitted shall be scored according to the criteria listed in
the request for proposals and such final scores shall be published on
the authorized entity's website after registration of such contract or
the date upon which such contract may be implemented, if registration
requirements do not apply.
A. 9429 5
(b) THE PROCUREMENT PROCESS FOR PROGRESSIVE DESIGN-BUILD PROJECTS
SHALL PROGRESS AS FOLLOWS:
(1) THE AUTHORIZED ENTITY SHALL PREPARE AND ISSUE A REQUEST FOR QUALI-
FICATIONS IN ORDER TO SELECT A PROGRESSIVE DESIGN-BUILD ENTITY TO
EXECUTE THE PROJECT. THE REQUEST FOR QUALIFICATIONS SHALL INCLUDE, BUT
IS NOT LIMITED TO, THE FOLLOWING ELEMENTS:
(I) DOCUMENTATION OF THE SIZE, TYPE, AND DESIRED DESIGN CHARACTER OF
THE PROJECT AND ANY OTHER INFORMATION DEEMED NECESSARY TO DESCRIBE
ADEQUATELY THE AUTHORIZED ENTITY'S NEEDS, INCLUDING THE EXPECTED COST
RANGE, PROVIDED, HOWEVER, THAT THE AUTHORIZED ENTITY MAY DETERMINE THESE
IN CONSULTATION WITH THE PROGRESSIVE DESIGN-BUILD ENTITY SUBSEQUENT TO
THE AWARDING OF A CONTRACT; THE METHODOLOGY THAT WILL BE USED BY THE
AUTHORIZED ENTITY TO EVALUATE THE PROGRESSIVE DESIGN-BUILD ENTITY'S
QUALIFICATIONS, THE PROCEDURE FOR FINAL SELECTION OF THE PROGRESSIVE
DESIGN-BUILD ENTITY, AND ANY OTHER INFORMATION DEEMED NECESSARY BY THE
LOCAL AGENCY TO INFORM INTERESTED PARTIES OF THE CONTRACTING OPPORTU-
NITY.
(II) SIGNIFICANT FACTORS THAT THE AUTHORIZED ENTITY REASONABLY EXPECTS
TO CONSIDER IN EVALUATING QUALIFICATIONS, INCLUDING TECHNICAL DESIGN AND
CONSTRUCTION EXPERTISE, AND ALL OTHER NON-PRICE-RELATED FACTORS. THE
AUTHORIZED ENTITY MAY REQUIRE THAT A PRELIMINARY COST ESTIMATE BE
INCLUDED IN THE PROGRESSIVE DESIGN-BUILD ENTITIES' RESPONSES AND CONSID-
ER THOSE COSTS IN EVALUATING THE STATEMENTS OF QUALIFICATIONS.
(III) THE RELATIVE IMPORTANCE OR THE WEIGHT ASSIGNED TO EACH OF THE
FACTORS IDENTIFIED IN THE REQUEST FOR QUALIFICATIONS.
(IV) A STANDARD TEMPLATE REQUEST FOR STATEMENTS OF QUALIFICATIONS
PREPARED BY THE AUTHORIZED ENTITY. IN PREPARING THE STANDARD TEMPLATE,
THE AUTHORIZED ENTITY MAY CONSULT WITH THE CONSTRUCTION INDUSTRY, THE
BUILDING TRADES AND SURETY INDUSTRY, AND OTHER LOCAL AGENCIES INTERESTED
IN USING THE AUTHORIZATION PROVIDED BY THIS ACT. THE TEMPLATE SHALL
REQUIRE THE FOLLOWING INFORMATION:
(A) IF THE PROGRESSIVE DESIGN-BUILD ENTITY IS A PRIVATELY HELD CORPO-
RATION, LIMITED LIABILITY COMPANY, PARTNERSHIP, OR JOINT VENTURE, A
LISTING OF ALL OF THE ENTITY'S SHAREHOLDERS, PARTNERS, OR MEMBERS KNOWN
AT THE TIME OF THE STATEMENT OF QUALIFICATION SUBMISSION WHO WILL
PERFORM WORK ON THE PROJECT;
(B) EVIDENCE THAT THE MEMBERS OF THE PROGRESSIVE DESIGN-BUILD TEAM
HAVE COMPLETED, OR HAVE DEMONSTRATED THE EXPERIENCE, COMPETENCY, CAPA-
BILITY, AND CAPACITY TO COMPLETE, PROJECTS OF SIMILAR SIZE, SCOPE, OR
COMPLEXITY, AND THAT PROPOSED KEY PERSONNEL HAVE SUFFICIENT EXPERIENCE
AND TRAINING TO COMPETENTLY MANAGE AND COMPLETE THE DESIGN AND
CONSTRUCTION OF THE PROJECT, AND A FINANCIAL STATEMENT THAT ENSURES THAT
THE PROGRESSIVE DESIGN-BUILD ENTITY HAS THE CAPACITY TO COMPLETE THE
PROJECT;
(C) THE LICENSES, REGISTRATION, AND CREDENTIALS REQUIRED TO DESIGN AND
CONSTRUCT THE PROJECT, INCLUDING, BUT NOT LIMITED TO, INFORMATION ON THE
REVOCATION OR SUSPENSION OF ANY LICENSE, CREDENTIAL, OR REGISTRATION;
(D) EVIDENCE THAT ESTABLISHES THAT THE PROGRESSIVE DESIGN-BUILD ENTITY
HAS THE CAPACITY TO OBTAIN ALL REQUIRED PAYMENT AND PERFORMANCE BONDING,
LIABILITY INSURANCE, AND ERRORS AND OMISSIONS INSURANCE;
(E) INFORMATION CONCERNING WORKERS' COMPENSATION EXPERIENCE HISTORY
AND A WORKER SAFETY PROGRAM;
(F) IF THE PROPOSED PROGRESSIVE DESIGN-BUILD ENTITY IS A CORPORATION,
LIMITED LIABILITY COMPANY, PARTNERSHIP, JOINT VENTURE, OR OTHER LEGAL
ENTITY, A COPY OF THE ORGANIZATIONAL DOCUMENTS OR AGREEMENT COMMITTING
TO FORM THE ORGANIZATION; AND
A. 9429 6
(G) AN ACCEPTABLE SAFETY RECORD. A PROPOSER'S SAFETY RECORD SHALL BE
DEEMED ACCEPTABLE IF ITS EXPERIENCE MODIFICATION RATE FOR THE MOST
RECENT THREE-YEAR PERIOD IS AN AVERAGE OF 1.00 OR LESS, AND ITS AVERAGE
TOTAL RECORDABLE INJURY OR ILLNESS RATE AND AVERAGE LOST WORK RATE FOR
THE MOST RECENT THREE-YEAR PERIOD DOES NOT EXCEED THE APPLICABLE STATIS-
TICAL STANDARDS FOR ITS BUSINESS CATEGORY OR IF THE PROPOSER IS A PARTY
TO AN ALTERNATIVE DISPUTE RESOLUTION SYSTEM.
(V) THE INFORMATION REQUIRED UNDER THIS SUBDIVISION SHALL BE CERTIFIED
UNDER PENALTY OF PERJURY BY THE PROGRESSIVE DESIGN-BUILD ENTITY AND ITS
GENERAL PARTNERS OR JOINT VENTURE MEMBERS.
(2) AT THE CLOSE OF THE SOLICITATION PERIOD, THE AUTHORIZED ENTITY
SHALL REVIEW THE SUBMISSIONS. THE AUTHORIZED ENTITY MAY EVALUATE
SUBMISSIONS BASED SOLELY UPON THE INFORMATION PROVIDED IN EACH PROGRES-
SIVE DESIGN-BUILD ENTITY'S STATEMENT OF QUALIFICATIONS. THE AUTHORIZED
ENTITY MAY ALSO INTERVIEW SOME OR ALL OF THE PROGRESSIVE DESIGN-BUILD
ENTITIES TO FURTHER EVALUATE THEIR QUALIFICATIONS FOR THE PROJECT.
(3) UPON ISSUANCE OF A CONTRACT AWARD, THE AUTHORIZED ENTITY SHALL
PUBLICLY ANNOUNCE ITS AWARD, IDENTIFYING THE PROGRESSIVE DESIGN-BUILD
ENTITY TO WHICH THE AWARD IS MADE, ALONG WITH A STATEMENT REGARDING THE
BASIS OF THE AWARD. THE STATEMENT REGARDING THE AUTHORIZED ENTITY'S
CONTRACT AWARD AND THE CONTRACT FILE SHALL PROVIDE SUFFICIENT INFORMA-
TION TO SATISFY AN EXTERNAL AUDIT.
(C) An authorized entity awarding a design-build OR PROGRESSIVE
DESIGN-BUILD contract to a contractor offering the best value may but
shall not be required to use the following types of contracts:
(1) A cost-plus not to exceed guaranteed maximum price form of
contract in which the authorized entity shall be entitled to monitor and
audit all costs. In establishing the schedule and process for determin-
ing a guaranteed maximum price, the contract between the authorized
entity and the contractor shall:
(i) Describe the scope of the work and the cost of performing such
work,
(ii) Include a detailed line item cost breakdown,
(iii) Include a list of all drawings, specifications and other infor-
mation on which the guaranteed maximum price is based,
(iv) Include the dates of substantial and final completion on which
the guaranteed maximum price is based, and
(v) Include a schedule of unit prices; or
(2) A lump sum contract in which the contractor agrees to accept a set
dollar amount for a contract which comprises a single bid without
providing a cost breakdown for all costs such as for equipment, labor,
materials, as well as such contractor's profit for completing all items
of work comprising the public work.
§ 5. Any contract entered into pursuant to this act shall include a
clause requiring that any professional services regulated by articles
145, 147 and 148 of the education law shall be performed and stamped and
sealed, where appropriate, by a professional licensed in accordance with
the appropriate article.
§ 6. Construction with respect to each contract entered into by an
authorized entity pursuant to this act shall be deemed a "public work"
to be performed in accordance with the provisions of article 8 of the
labor law, as well as subject to sections 200, 240, 241 and 242 of such
law and enforcement of prevailing wage requirements pursuant to applica-
ble law or, for projects or public works receiving federal aid, applica-
ble federal requirements for prevailing wage. Any contract entered into
pursuant to this act shall include a clause requiring the selected
A. 9429 7
design builder to obligate every tier of contractor working on the
public work to comply with the project labor agreement referenced in
section three of this act, and shall include project labor agreement
compliance monitoring and enforcement provisions consistent with the
applicable project labor agreement.
§ 7. Each contract entered into by an authorized entity pursuant to
this act shall comply with the objectives and goals relating to the
performance of design and construction services by minority- and women-
owned business enterprises pursuant to, as applicable, section 6-129 of
the administrative code of the city of New York, subdivision 6 of
section 8 of the New York city health and hospitals corporation act,
section 1743 of the public authorities law, or, for projects or public
works receiving federal aid, applicable federal requirements for disad-
vantaged business enterprises or minority- and women-owned business
enterprises.
§ 8. Public works undertaken by an authorized entity pursuant to this
act shall be subject to the requirements of article 8 of the environ-
mental conservation law, and, where applicable, the requirements of the
National Environmental Policy Act.
§ 9. (a) Notwithstanding any provision of law to the contrary, all
rights or benefits, including terms and conditions of employment, and
protection of civil service and collective bargaining status of all
employees of authorized entities solely in connection with public work
undertaken by an authorized entity pursuant to this act, shall be
preserved and protected.
(b) Nothing in this act shall result in the: (1) displacement of any
currently employed worker or loss of position (including partial
displacement such as a reduction in the hours of non-overtime work,
wages or employment benefits), or result in the impairment of existing
collective bargaining agreements; and (2) transfer of existing duties
and functions related to maintenance and operations currently performed
by existing employees of authorized entities to a contractor.
(c) Employees of authorized entities using design-build contracts
serving in positions in newly created titles shall be assigned to the
appropriate bargaining unit. Nothing contained in this act shall be
construed to affect (1) the existing rights of employees of such enti-
ties pursuant to an existing collective bargaining agreement, (2) the
existing representational relationships among employee organizations
representing employees of such entities, or (3) the bargaining relation-
ships between such entities and such employee organizations.
(d) Without limiting contractors' obligations under design-build OR
PROGRESSIVE DESIGN-BUILD contracts to issue their own initial certif-
ications of substantial completion and final completion, public employ-
ees of authorized entities shall review and determine whether the work
performed by contractors is acceptable and has been performed in accord-
ance with the applicable design-build contracts, and if such public
employees so determine, such public employees shall accept contractors'
substantial or final completion of the public works as applicable.
Performance by authorized entities of any review described in this
subdivision shall not be construed to modify or limit contractors' obli-
gations to perform the work in strict accordance with the applicable
design-build OR PROGRESSIVE DESIGN-BUILD contracts or the contractors'
or any subcontractors' obligations or liabilities under any law.
§ 10. The submission of a proposal or responses or the execution of a
design-build OR PROGRESSIVE DESIGN-BUILD contract pursuant to this act
A. 9429 8
shall not be construed to be a violation of section 6512 of the educa-
tion law.
§ 11. Nothing contained in this act shall limit the right or obli-
gation of any authorized entity to comply with the provisions of any
existing contract or to award contracts as otherwise provided by law.
§ 12. The authority conferred by this act shall not impact or impair
the application of section 1740 of the public authorities law concerning
the use of outside design, drafting or inspection services, and shall be
in addition to the authority conferred by any other law upon any author-
ized entity, provided that any public work covered by the New York city
BQE design-build act, the New York city housing authority modernization
investment act or the New York city Rikers Island jail complex replace-
ment act shall continue to be governed by the provisions of such act
while such provisions are in effect.
§ 13. A report shall be submitted no later than June 30, 2020 and
annually thereafter, to the governor, the temporary president of the
senate and the speaker of the assembly by the city of New York on behalf
of its agencies, the New York city housing authority, the New York city
school construction authority, and the New York city health and hospi-
tals corporation containing information regarding each design-build OR
PROGRESSIVE DESIGN-BUILD contract procured pursuant to this act. Such
report shall include a description of each such design-build AND
PROGRESSIVE DESIGN-BUILD contract, information regarding the procurement
process for each such [design-build] contract including the list of
responding entities that demonstrated the general capability to perform
the design-build OR PROGRESSIVE DESIGN-BUILD contract pursuant to para-
graph (1) of subdivision (a) OR SUBDIVISION (B) of section four of this
act, the total cost of each design-build OR PROGRESSIVE DESIGN-BUILD
contract, an explanation of the estimated savings resulting from the
design-build [method] AND PROGRESSIVE DESIGN-BUILD METHODS, and the
participation rate of and total dollar value of monies paid to minority-
and women-owned business enterprises under such design-build OR PROGRES-
SIVE DESIGN-BUILD contract.
§ 14. This act shall take effect immediately and shall expire and be
deemed repealed eight years after such date, provided that, public works
with requests for qualifications issued prior to such repeal shall be
permitted to continue under this act notwithstanding such repeal.
§ 2. This act shall take effect immediately; provided, however, that
the amendments to sections 1 through 13 of chapter 749 of the laws of
2019 constituting the New York city public works investment act made by
section one of this act shall not affect the expiration of such sections
and shall be deemed repealed therewith.