{"data":{"id":"us-ky/krs-45a.183","jurisdiction":"us-ky","citation":"KRS 45A.183","heading":"Selection committee procedures to apply when capital project is to be","body":"constructed using the construction management-at-risk method -- Eligibility of\nconstruction management-at-risk entity -- Competitive process consistent with\ncode to apply when construction project is to be constructed using the\nconstruction manager-general contractor method -- Eligibility of construction\nmanager-general contractor -- Administrative regulations.\n(1) For the purposes of this section, \"self -perform\" or \"self -performance\" means work\nperformed by direct employees of a construction management -at-risk entity or a\nconstruction manager -general contractor and not by direct employees of a\nsubcontractor that does not exceed twenty percent (20%) of the total cost of the\nproject.\n(2) When a capital project is to be constructed using the construction management -at-\nrisk method, a process parallel to the selection committee procedures established in\nKRS 45A.810 shall apply when procuring a construction management -at-risk firm\nand regulations promulgated in accordance with KRS 45A.180 shall apply that set\nforth requirements for:\n(a) Description of the bond, insurance, and other security provisions that apply to\na project;\n(b) Description of appropriate contract clauses and fisca l responsibility\nrequirements that apply to each project; and\n(c) Restrictions relating to conflicts of interest.\n(3) A construction management -at-risk entity shall be eligible to become an offeror of\ngoods or services on a project it manages when a subcon tractor fails to perform and\nupon prior approval by the contracting body, or when a construction management -\nat-risk entity meets the following conditions:\n(a) The construction management -at-risk entity shall only be eligible to\ncompetitively bid on a part of a project that the entity or its parent, affiliate, or\nsubsidiary performs in its ordinary course of business;\n(b) The construction management -at-risk entity shall publicly declare in its\nadvertisement for bids or addenda thereto which parts of the project it plans to\ncompetitively bid. The scope of work for those parts of the project shall be\nreviewed and approved by the contracting body. The advertisement for bids or\naddenda thereto shall be issued at least two (2) weeks prior to the bid date;\n(c) The construction management-at-risk entity shall submit a sealed bid for the\nparts of the project it plans to competitively bid to the contracting body. Other\nentities who plan to submit bids on the parts of the project submitted by the\nconstruction management -at-risk entity shall also submit their bids to the\ncontracting body;\n(d) The staffing, equipment, and materials that a construction management-at-risk\nentity uses for the management part of the project shall be separate from the\nstaffing, equipment, and m aterials required for the self -performance part of\nthe project;\n(e) The construction management-at-risk entity shall not be eligible to utilize any\nof the construction contingency it may be carrying on the project for any part\nof the project it competitively bids to self -perform unless approved to do so\nby the contracting body; and\n(f) Electrical, mechanical, fire suppression, or plumbing work shall not be self -\nperformed.\n(4) To execute its self -performance bid, a construction management -at-risk entity may\nuse:\n(a) Materials or supplies from a supplier or subcontractor; or\n(b) Tools or equipment leased from a subcontractor.\n(5) (a) When a construction project is to be constructed using the construction\nmanager-general contractor method, a competitive process consistent with this\ncode established by administrative regulations  promulgated under KRS\n45A.180 shall apply.\n(b) The procurement process shall set forth the requirements for:\n1. Description of the bond, insurance, and other security provisions that\napply to the project;\n2. Description of appropriate contract clauses and  fiscal responsibility\nrequirements that apply to the project; and\n3. Restrictions relating to conflicts of interest.\n(c) The selection of the construction manager -general contractor shall be based\non:\n1. Qualifications; and\n2. Price, including preconstruc tion consulting services, overhead, and\nprofit.\n(d) Prior to the construction phase, the construction manager -general contractor\nshall competitively bid the subcontracts by public notice and award each\nsubcontract to the lowest responsive and responsible bidder.\n(e) The final construction cost and completion date for the project shall be\nestablished by change order after the construction manager -general contractor\nenters into all applicable subcontracts.\n(6) A construction manager-general contractor shall be eligible to become an offeror of\ngoods or services on a project it manages when a subcontractor fails to perform and\nupon prior approval by the contracting body, or when the construction manager -\ngeneral contractor meets the following conditions:\n(a) The construction manager -general contractor shall only be eligible to\ncompetitively bid on part or parts of a project that the construction manager -\ngeneral contractor or its parent, affiliate, or subsidiary performs in its ordinary\ncourse of business;\n(b) The construction manager -general contractor shall publicly declare in its\nadvertisement for bids or addenda thereto which parts of the project it plans to\ncompetitively bid. The scope of work for those parts of the project shall be\nreviewed and approved by the contracting body. The advertisement for bids or\naddenda thereto shall be issued at least two (2) weeks prior to the bid date;\n(c) The construction manager-general contractor shall submit a sealed bid for the\nparts of the project it seeks to self -perform no later than thirty (30) minutes\nprior to the date and time established for other entities to submit sealed bids\nfor the same project parts. The construction manager -general contractor shall\npublicly open and read all bid amounts aloud. All bidders shall b e granted\naccess to view the bid amounts submitted. All bids for portions of the project\nthe construction manager -general contractor submitted a bid to self -perform\nshall be submitted to the contracting body for recordkeeping purposes;\n(d) The staffing, eq uipment, and materials that a construction manager -general\ncontractor uses for the management part of the project shall be separate from\nany staffing, equipment, and materials required for the self -performance part\nof the project;\n(e) The construction mana ger-general contractor shall not be eligible to utilize\nany of the construction contingency it may be carrying on the project for any\npart of the project it competitively bids to self -perform unless approved to do\nso by the contracting body; and\n(f) Electrical, mechanical, fire suppression, or plumbing work shall not be self -\nperformed.\n(7) To execute its self-performance bid, a construction manager-general contractor may\nuse:\n(a) Materials or supplies from a supplier or subcontractor; or\n(b) Tools or equipment leased from a subcontractor.\n(8) The provisions of this section shall not apply to any project, contract, proposal, bid,\nor other submission or engagement entered into by the Transportation Cabinet,\nincluding but not limited to procurement of architectural or engineering services.","path":["KRS Chapter 45A"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=53746","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:06Z","sha256":"6aa1dd32c7b87bedef9e275aeb597f91b71a7a90ddce704ae8da46f7937e223c","source_id":"us-ky","stale":false,"prev":"us-ky/krs-45a.182","next":"us-ky/krs-45a.184"},"notice":"GroundRules: Original legal text. Not legal advice."}