SB 687 — An Act amending Title 62 (Procurement) of the Pennsylvania Consolidated Statutes, in general provisions, further providing for definitions; in procurement organization, further providing for specific construction powers, duties and procedures; in procurement of construction and design professional services, further providing for procurement of design professional services; providing for project delivery methods; and making a repeal.

PRINTER'S NO.   666

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                        SENATE BILL
                        No. 687
                                               Session of
                                                 2025

     INTRODUCED BY DUSH, COLEMAN, ROTHMAN, PENNYCUICK, KEEFER,
        STEFANO, HUTCHINSON AND BROWN, APRIL 28, 2025

     REFERRED TO LABOR AND INDUSTRY, APRIL 28, 2025


                                    AN ACT
 1   Amending Title 62 (Procurement) of the Pennsylvania Consolidated
 2      Statutes, in general provisions, further providing for
 3      definitions; in procurement organization, further providing
 4      for specific construction powers, duties and procedures; in
 5      procurement of construction and design professional services,
 6      further providing for procurement of design professional
 7      services; providing for project delivery methods; and making
 8      a repeal.
 9      The General Assembly of the Commonwealth of Pennsylvania
10   hereby enacts as follows:
11      Section 1.    The definition of "design/build contract" in
12   section 103 of Title 62 of the Pennsylvania Consolidated
13   Statutes is amended and the section is amended by adding a
14   definition to read:
15   § 103.   Definitions.
16      Subject to additional definitions contained in subsequent
17   provisions of this part which are applicable to specific
18   provisions of this part, the following words and phrases when
19   used in this part shall have the meanings given to them in this
20   section unless the context clearly indicates otherwise:
21      * * *
 1      ["Design/build contract."    A construction contract in which
 2   the contractor is responsible for both the design and
 3   construction of any public structure or building or other public
 4   improvements of any kind to any public real property.]
 5      * * *
 6      "Project delivery method."    As defined in section 3201
 7   (relating to definitions).
 8      * * *
 9      Section 2.    Sections 322(2) and (6) and 905(a) of Title 62
10   are amended to read:
11   § 322.   Specific construction powers, duties and procedures.
12      The following procedure shall apply to construction to be
13   completed by the department which costs more than the amount
14   established by the department under section 514 (relating to
15   small procurements) for construction procurement unless the work
16   is to be done by Commonwealth agency employees or by inmates or
17   patients of a Commonwealth agency institution:
18            * * *
19            (2)   Promptly after the notice in such cases or promptly
20      after any appropriation made to it becomes available, the
21      department shall, if necessary, select an architect and/or an
22      engineer in accordance with the selection procedures of
23      section 905 (relating to procurement of design professional
24      services) to design the work and prepare the specifications
25      therefor. [The department may, as an alternative, enter into
26      a design/build contract in accordance with section 511
27      (relating to methods of source selection). Such design/build
28      contracts shall be subject to the requirements of this act
29      and the provisions of the act of August 15, 1961 (P.L.987,
30      No.442), known as the Pennsylvania Prevailing Wage Act.

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 1    Design/build contracts shall also be subject to the act of
 2    May 1, 1913 (P.L.155, No.104), entitled "An act regulating
 3    the letting of certain contracts for the erection,
 4    construction, and alteration of public buildings," to the
 5    extent provided in paragraph (6).] The department may, as an
 6    alternative, enter into a project delivery method in
 7    accordance with section 511 (relating to methods of source
 8    selection). The project delivery method shall be subject to
 9    all of the following:
10              (i)    The requirements of this part.
11              (ii)    Chapter 32 (relating to project delivery
12        methods) to the extent provided in paragraph (6).
13              (iii)    The act of August 15, 1961 (P.L.987, No.442),
14        known as the Pennsylvania Prevailing Wage Act.
15        * * *
16        (6)   For construction contracts where the total
17    construction costs are less than $25,000, the department
18    shall not be required to comply with [the act of May 1, 1913
19    (P.L.155, No.104), entitled "An act regulating the letting of
20    certain contracts for the erection, construction, and
21    alteration of public buildings,"] Chapter 32 and the
22    department may award such contracts in accordance with
23    section 511. All projects equal to or exceeding $25,000 shall
24    be subject to [the act of May 1, 1913 (P.L.155, No.104),
25    entitled "An act regulating the letting of certain contracts
26    for the erection, construction, and alteration of public
27    buildings."] Chapter 32. Whenever the department enters into
28    a single contract for a project, in the absence of good and
29    sufficient reasons the contractor shall pay each
30    subcontractor, within 15 days of receipt of payment from the

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 1      department, an amount equal to the percentage of completion
 2      allowed to the contractor on the account of the
 3      subcontractor's work. The contractor shall also require the
 4      subcontractor to make similar payments to his subcontractors.
 5             * * *
 6   § 905.    Procurement of design professional services.
 7      (a)    Applicability.--Design professional services shall be
 8   procured as provided in this section except as authorized by
 9   sections 514 (relating to small procurements), 515 (relating to
10   sole source procurement) and 516 (relating to emergency
11   procurement) and Chapter 32 (relating to project delivery
12   methods).
13      * * *
14      Section 3.     Title 62 is amended by adding a chapter to read:
15                                  CHAPTER 32
16                           PROJECT DELIVERY METHODS
17   Sec.
18   3201.    Definitions.
19   3202.    Utilization.
20   § 3201.    Definitions.
21      The following words and phrases when used in this chapter
22   shall have the meanings given to them in this section unless the
23   context clearly indicates otherwise:
24      "Construction management at-risk."       A project delivery method
25   by which a person provides construction management services
26   throughout the preconstruction and construction phases and which
27   guarantees the cost of the project.
28      "Design-bid-build with multiple prime contractors."      A
29   project delivery method by which a government agency or a State-
30   related institution contracts for architectural and engineering

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 1   design professional services and construction services under
 2   separate agreements.
 3      "Design-bid-build with single prime contractor."       A project
 4   delivery method by which a government agency or a State-related
 5   institution contracts for architectural and engineering design
 6   professional services and construction services under separate
 7   agreements, including preparation of a single agreement and
 8   specifications for construction services.
 9      "Design-build."     A project delivery method in which the
10   contractor is responsible for both the design and construction
11   of any public structure or building or other public improvements
12   of any kind to any public real property.
13      "Project delivery method."     Any of the following:
14             (1)   Construction management at-risk.
15             (2)   Design-bid-build with multiple prime contractors.
16             (3)   Design-bid-build with single prime contractor.
17             (4)   Design-build.
18   § 3202.    Utilization.
19      (a)    Requirement.--A government agency or a State-related
20   institution shall utilize a project delivery method for the
21   procurement of construction services for the design, erection,
22   construction and alteration of a public building in this
23   Commonwealth if the total cost of the work exceeds $4,000.
24      (b)    Steel Products Procurement Act.--A contract awarded
25   under this section shall comply with the act of March 3, 1978
26   (P.L.6, No.3), known as the Steel Products Procurement Act.
27      Section 4.     Repeals are as follows:
28             (1)   The General Assembly declares that the repeal under
29      paragraph (2) is necessary to effectuate the amendment or
30      addition of 62 Pa.C.S. §§ 322(2) and (6) and 3202.

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 1          (2)   The act of May 1, 1913 (P.L.155, No.104), referred
 2      to as the Separations Act, is repealed.
 3      Section 5.   The addition of 62 Pa.C.S. § 3202 is a
 4   continuation of the act of May 1, 1913 (P.L.155, No.104),
 5   referred to as the Separations Act. Except as otherwise provided
 6   in 62 Pa.C.S. § 3202, all activities initiated under the
 7   Separations Act shall continue and remain in full force and
 8   effect and may be completed under 62 Pa.C.S. § 3202. Orders,
 9   regulations, rules and decisions which were made under the
10   Separations Act and which are in effect on the effective date of
11   section 4(2) of this act shall remain in full force and effect
12   until revoked, vacated or modified under 62 Pa.C.S. § 3202.
13   Contracts, obligations and collective bargaining agreements
14   entered into under the Separations Act are not affected nor
15   impaired by the repeal of the Separations Act.
16      Section 6.   This act shall take effect in 60 days.




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