State Contracting Reform

Associated General Contractors
New Mexico Building Branch
1615 University Blvd. NE Albuquerque, NM 87102-1791
505-842-1462
FAX: 505-842-1980
email:

AGC supports qualifications-based selection and expanded delivery methods for public works contracting. Qualifications-based selection emphasizes taking responsibility for one’s own actions and following through. There are alternatives to the current procurement system that should be available to public owners in the appropriate situation. Those alternatives expand upon the “low bid” system and include Design and Build (currently available only for projects over $10 million); Construction Manager At-Risk (CMAR); Competitive Sealed Proposals; and Job Order Contracting (JOC). These methods are used extensively in private construction projects and should be more widely available to public owners. Using them should ensure that taxpayers get what they have paid for from capable contractors.

AGC members have invested in the education, training, and safety of their workers. AGC members have also invested in their companies to ensure they can perform. It makes no sense to spend time developing a bid only to lose it to someone who goes out of business or must be replaced on the job.

Some claim the state has a procurement law that is clear in that contracts are awarded to the “low bidder.” To investigate the finances of the business, its people, or its business reputation adds time and cost to the bidding process. Such action has no place in determining how public money is spent. Including this in the process will limit one’s right to go after public work.

Commercial construction is a very complex undertaking. To be a successful contractor requires more than knowledge of a particular trade. It requires more than knowledge of business. Many contractors are not capable of dealing with the complexities of a modern commercial construction project. Public owners must get better at selecting entities that build for them.