HCS HB 359 -- DESIGN-BUILD HIGHWAY PROJECT CONTRACTS

SPONSOR:  Hobbs (Denison)

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
Infrastructure and Transportation Funding by a vote of 12 to 0.

This substitute allows the Highways and Transportation Commission
to enter into more than three design-build highway project
contracts, but the total number of contracts cannot exceed 2% of
the total number of all state highway system projects listed in
the commission's approved statewide transportation improvement
project for the fiscal year.

The design-builder is required to provide to the commission his
or her bid, performance and payment bonds, or letters of credit
on forms as the commission determines to be adequate.  The
performance bond or bonds for the construction period specified
must be equal to a reasonable estimate of the total cost of
construction work unless the commission determines in writing
that the amount is impractical, in which case the commission must
establish the amount.  Currently, the bond or bonds must be in an
aggregate amount of $200 million or 25% of a reasonable estimate
of the cost of construction work, whichever is lower, unless the
commission allows other security.

Any project constructed must comply with the clearance and safety
requirements regarding railroads as established by the Federal
Railroad Administration, and any affected railroad must be given
reasonable opportunity to review all project plans.

The substitute contains an emergency clause and will become
effective upon appropriation of federal-aid highway funds.

FISCAL NOTE:  No impact on state funds in FY 2010, FY 2011, and
FY 2012.

PROPONENTS:  Supporters say that the bill allows the state to
enter into design-build projects anywhere in the state.
Currently, all three projects have been in the St. Louis and
Kansas City areas.  Allowing the state to enter into more
projects will condense and expedite the progression of projects
and will cut costs associated with infrastructure construction.

Testifying for the bill were Representative Denison; Department
of Transportation; Associated General Contractors of St. Louis;
American Council of Engineering Companies of Missouri; Heavy
Constructors Association of Greater Kansas City; and St. Charles
County.

OPPONENTS:  Those who oppose the bill say that it gives the
Department of Transportation authority to determine what projects
are available for design-build forever and believe that the
General Assembly should have some oversight.

Testifying against the bill was Associated General Contractors of
Missouri.

Missouri House of Representatives
95th General Assembly, 1st Regular Session
Last Updated November 17, 2009 at 9:24 am