• Lower barriers to contractor participation due to earlier contractor compensation.


• A single party accountable for all project problems.


• Ultimate control over the project budget by the owner and a sense of cost fairness.


PDB Popularity Te PDB project procurement method is surging throughout the country. In 2018, Tipton County, Illinois, broke ground on a PDB correctional institution project after unsuccessfully attempting design-build. Presently, the Maryland Department


of Transportation is underway with PDB for a project to resolve congestion and increase throughput on I-270, the “tech- nology corridor”—one of the nation’s most heavily traveled highways serving Maryland and the nation’s capital region. Also, presently the Jacksonville, Florida


utility known as “JEA” recently started PDB for two components of its total water management program, involving an upgrade to the Main Street water treatment plant and segment two of the conveyance system. Reportedly a number of other projects


have proceeded under PDB for airports and transit systems.


PDB In California PDB appeared in California via AB137, effective July 16, 2021. AB137 estab- lished a framework generally for all types of projects, but as enacted it was limited to three projects chosen by the Department of General Services and the Department of Finance. Presently, one of those projects, a $200 million comprehensive remodel of the historical Gregory Bateson Building in Sacramento, is underway using PDB. Under SB-991, effective January 1, 2023, any local agency that provides for


production, storage, supply, treatment, or distribution of any water from any source may procure PDB contracts for up to 15 public works projects in excess of $5 mil- lion for each project. Tis measure will be repealed January 1, 2029, unless extended. AB-1845, effective January 1, 2023,


permits the Metropolitan Water District of Southern California to use PDB for no more than 15 infrastructure projects for recycled water and other water infra- structure. Tese projects may be let only through January 1, 2029. Two bills are presently pending in


the California legislature to expand use of PDB. SB-517, introduced February 15, 2023, would allow use of PDB by regional transportation agencies on or adjacent to highways and expressways. SB-706, introduced February 16, 2023, would


allow for all local agencies to use PDB in addition to the water-related projects allowed under SB1991 and would remove the 15-project limit in SB-991.


PDB Wave to Ride! PDB is gaining momentum through- out the nation and in California. Public contractors would be wise to position themselves to ride this wave into the future, by monitoring the legislature for authorizing legislation, watching for au- thorized PDB solicitations, and meeting solicitation qualifications.


Dan McLennon is the partner in charge of the San Francisco office of Smith, Currie & Hancock LLP (www.smithcurrie.com). He can be reached at (415) 394-6688 or dfmclennon@ smithcurrie.com.


CALIFORNIA CONSTRUCTOR MAY/JUNE 2023


19


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32