SB 254

By David Doughman

“A reminder to public agencies in Oregon: SB 254 became effective on July 1, 2014.  The Oregon Legislature passed this bill in 2013.  It significantly changes the process by which public agencies may utilize the construction manager/general contractor (aka “CM/GC” or “GC/CM”) delivery method.  It is codified at ORS 279C.337 and a link to that chapter is provided here.

And by “significantly changes,” we mean it makes it significantly more difficult to utilize the CM/GC process to build public improvements.  While the delivery method is meant for complex projects, and while there likely have been instances when its use was not justified for a given project,  SB 254 adds so many proverbial hoops to jump through that most agencies will likely avoid using it even when it makes sense to do so.

Exemptions sought before July 1 were not subject to SB 254.  It is not clear from the bill exactly what steps an agency would need to take in order to vest under the existing process.  To be safe, we recommend an agency have an exemption approved prior to July 1 if it is interested in using CM/GC for a coming project.”