Government Contracts Construction Manager as Constructor Method Added to the GSAR
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Monday, January 20, 2020

Construction Manager as Constructor Method Added to the GSAR

By Government Contracts Editorial Staff

A final rule amends the General Services Administration Acquisition Regulation to adopt a construction project delivery method called “construction manager as constructor.” CMc is similar to project delivery models used extensively in the private sector for large complex construction projects, and it is one of the three predominant methods GSA uses for acquiring construction services. The CMc method engages the construction contractor during the design phase of the project and establishes a ceiling on the eventual construction price (the guaranteed maximum price) before construction documents are prepared. CMc creates value through early collaboration between the architect and constructor, and it offers the opportunity to begin construction prior to full completion of the design, which reduces the total project schedule. GSAR 536.7105-5 provides a cost incentive through shared savings that are split between the constructor and the government, which promotes constructor innovation and efficiencies to reduce costs through the construction phase of the project.

New Clauses. The rule adds new GSAR Subpart 536.71, Construction-Manager-as-Constructor Contracting, which describes policies and procedures for the use of the CMc project delivery method. The rule also adds new two new contract clauses: GSAR 552.236-79, Construction-Manager-As-Constructor, and GSAR 552.236-80, Accounting Records and Progress Payments. These clauses will be used in solicitations and contracts if construction, dismantling, or removal of improvements is contemplated when a CMc project delivery method will be followed. GSAR 552.236-79 will be used in lieu of FAR 52.216-17, Incentive Price Revision—Successive Targets, and GSAR 552.236-80 will be used when FAR 52.230-2, Cost Accounting Standards; FAR 52.230-3, Disclosure and Consistency of Cost Accounting Practices; and FAR 52.230-6, Administration of Cost Accounting Standards do not apply. Further, the rule adds alternates for the GSAR 552.236-15, GSAR 552.236-21, and GSAR 552.236-71 construction contract clauses.

Definitions Changed. In response to comments on the proposed rule (¶70,033.92), GSA revised the GSAR 536.7102 definition of “Fee” to clarify that this definition encompasses solely profit and home office overhead costs, and GSAR 536.7105-2 to allow adjustment to the Fee for scope changes and government-caused delays. GSA also revised the GSAR 536.7102 definition of “Cost” to mean all allowable costs per FAR Part 31, removing the limitation for direct cost only. This final rule is effective on January 21, 2020. For the text, see ¶70,030.216.

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