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130th MAINE LEGISLATURE |
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LD 1633 |
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LR 1397(02) |
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An Act To Require
Responsible Contracting Practices for Public Construction Projects |
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Fiscal Note for
Bill as Amended by Committee Amendment " " |
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Committee: Labor and Housing |
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Fiscal Note Required: Yes |
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Fiscal Note |
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FY 2021-22 |
FY 2022-23 |
Projections FY 2023-24 |
Projections FY 2024-25 |
Net Cost
(Savings) |
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General Fund |
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$437,744 |
$447,912 |
$458,405 |
$469,234 |
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Appropriations/Allocations |
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General Fund |
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$437,744 |
$447,912 |
$458,405 |
$469,234 |
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Fiscal Detail
and Notes |
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According to the
Department of Administrative and Financial Services, Bureau of General
Services (BGS), several changes in Part A of the bill will increase the costs
of construction projects that receive state funds. Specifically, allowing the
public to protest a contractor or subcontractor before a bid is awarded may
deter contractors from bidding, reducing competition and raising total bid
amounts. The bill also requires the BGS to award a contract to the 2nd
best-value bidder or rebid a project if it is found that the original awardee
is not qualified, potentially raising costs and increasing the number of
times projects must go out to bid. The amount to which bids are expected to
increase will depend on how many construction projects are affected in the
future and the value of those projects. The BGS estimates a 10% increase in
costs per construction project. |
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The bill includes
General Fund appropriations of $437,744 in fiscal year 2021-22 and $447,912
in fiscal year 2022-23 to the BGS. Of this total, $317,744 in fiscal year
2021-22 and $327,912 in fiscal year 2022-23 is to establish 3 architect
positions within the BGS to administer the responsible contractor
certification process. The remaining $120,000 in each fiscal year is for an
anticipated increase in fees paid to the Attorney General for any litigation
or appeals made under the new selection process. |
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The requirement
in Part B of the bill for the State to use project labor agreements for
large-scale construction projects that receive state funds of $10,000,000 or
more could increase State and local costs of major construction projects,
including capital school construction and transportation projects, if fewer
companies are able to meet the requirements. Whether this turns out to be a
significant cost will only become known over time. |
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