House Bill H0119

2015 Freedom Index Score: (-1)

Analyst: Parrish Miller
Date of analysis: February 14, 2015

ANALYST'S NOTE: House Bill 119 puts significant restrictions and limitations on a construction
manager/general contractor (CM/GC) who is seeking a government contract.

Point No. 3 Does it give government any new, additional, or expanded power to prohibit, restrict, or
regulate activities in the free market? Conversely, does it eliminate or reduce government intervention in
the market?
ANALYSIS: House Bill 119 adds language to Section 54-4511, Idaho Code, which puts significant
restrictions and limitations on a construction manager/general contractor (CM/GC) who is
seeking a government contract. Perhaps the most significant stipulation is that "the construction
manager/general contractor, including its subsidiaries and affiliated companies, shall perform no
more than thirty percent (30%) of the work under the contract, as measured by the guaranteed
maximum price required by subsection (3) of this section." No such limitation currently exists in
this section.
An additional requirement set out in this new language is that "the construction
manager/general contractor shall disclose its intent to bid when soliciting bids and shall further
disclose its relationship to any subsidiaries or affiliated companies that intend to bid."
Finally, the bill newly demands that a "guaranteed maximum price" is negotiated, and stipulates
that "the public entity shall require performance and payment bonds in amounts fixed by the
public entity." It also states that any "contingency reserves or incentives" must be "agreed upon
in writing at the time the contract is awarded" and that "no incentives granted may exceed five
percent (5%) of the guaranteed maximum price." (-1)