Commissioner Scott Bollinger

Office of the State Engineer

Stacy Langdeau, PE - State Engineer

Procedures for Construction Manager at Risk

Section 1. Purpose
In order to comply with SDCL 5-18B-44, the state shall select construction management firms to provide construction management at risk services in accordance with the following procedures.

Section 2. Definitions
For the purposes of this procedure the definitions contained in SDCL and the following definitions shall apply.
"State" means the State of South Dakota, its departments, bureaus, commission, boards, and agencies.
"Firm" means any individual, firm partnership, corporation, association, joint venture, or other legal entity permitted by law to practice architecture, engineering, or construction contracting in the State of South Dakota
"Project" means the project described in the public announcement.

Section 3.Minimum Qualification Requirements for Firms Providing Construction Management At Risk Services.
Construction Managers shall be registered with the Secretary of State as a domestic or foreign corporation, partnership, or joint venture. Construction Managers shall be registered with the Department of Revenue for tax purposes.

Section 4. Public Announcement Procedures
Except in emergencies, the state shall publish an announcement in accordance with SDCL 5-18A and 5-18B. The announcement shall set forth a general description of the project requiring construction management at risk services. The announcement shall define the procedures for interested firms to apply for consideration and set forth the deadline for submitting applications.

Section 5. Review Committee
There shall be a Review Committee (Committee) comprised of one individual from the Office of the State Engineer and two individuals from the institution unless circumstances warrant additional reviewers. The Committee shall have the responsibility for determining the most qualified offerors as provided in Section 6.

Section 6. Selection Criteria
The state shall issue a Request for Qualifications ("RFQ") by advertisement in accordance with 5-18B-44. The RFQ shall contain the following:

  • a general description of the project;
  • whether the services required will be construction manager "at risk", or "at agency"
  • a description of the areas of qualification required for performance of the work, such as experience, management resources, and financial capability;
  • the basis upon which the most qualified offerors will be determined; the procedures for preparing and submitting proposals;
  • a description of the qualifications the Construction Manager will be required to have;
  • a description of or reference to the proposed contract terms and conditions for the Construction Manager services contract, including a description of services he performs;
  • any other requirements the state deems necessary.

Firms desiring to submit proposals on the construction management project shall submit a statement of qualifications setting forth the qualifications of the entities involved in the firm and providing any other information required by the RFQ.

The Committee shall determine the relative ability of each firm to perform the services required for each project. The Committee shall base its determination upon the following:
  • experience with comparable projects;
  • financial and bonding capacity;
  • managerial resources;
  • the ability of the professional personnel;
  • past performance
  • capacity to meet time and budget requirements;
  • knowledge of local or regional conditions;
  • recent and current project workload;
  • the ability of the construction manager to complete the work in a timely and satisfactory manner;
  • legal judgements against the construction manager;
  • references.

After considering the factors in (2) above and if the project is greater than $1,500,000.00 the Committee shall:
  • For projects over 1.5 million dollars, report its selection of the three to five firms deemed to be most highly qualified to perform the required services to the State Building Committee for approval and final selection. If three or fewer responsible firms submit a statement of qualifications, the Committee shall submit the names of all responsible firms to the State Building Committee for approval and final selection.
  • For all other projects, the highest ranked firms will be submitted to Building Committee for selection.
  • If the project is less <1,500,000.00 the committee may select the most qualified firm.

The Committee shall submit questions of responsibility to the State Engineer for determination.

Section 7. Negotiations
Negotiations between the public corporations and those submitting proposals prior to the acceptance of a proposal shall be conducted through the Office of the State Engineer. The State Engineer shall endeavor at all times to maintain the confidentiality of said negotiations.

Section 8. Award
The State Engineer at the direction of the State Building Committee shall notify the successful construction manager in writing. Simultaneously, the State Engineer shall notify, in writing, the unsuccessful construction managers that their proposals were not accepted.

Section 9. Confidentiality
The State will at all times make every effort to maintain the confidentiality of information provided by Construction managers. Construction Managers shall submit proposals as outlined in the RFQ to the State Engineer. Construction Managers shall identify any proprietary information and submit as a separate document within the same proposal. The State Engineer shall identify and account for each copy of the construction managers submittal and conduct an initial review of the submittals for the purpose of determining proprietary information and whether any additional considerations to confidentiality is required. The State Engineer shall share information only with the review committee and the State Building Committee. Before sharing any information the State Engineer shall review the procedures and confidentiality requirements with each member of the review committee and the State Building Committee. Committee members shall return their copy of construction managers submittal to the State Engineer for safekeeping upon completion of review.