Beall's SB 1262 to Save Millions More for Road Repairs Signed Into Law

September 17, 2018

SACRAMENTO –  Ensuring Caltrans meets SB 1’s mandate to save taxpayer dollars through efficiency,  Governor Brown today signed Senator Jim Beall’s legislation to allow the permanent use of a new design process that has resulted  in faster and less costly road repairs and upgrades.

“SB 1262 will create hundreds of millions in savings on road projects,’’ Beall said. “Caltrans can take those savings and invest it in more road maintenance and upgrades to increase the safety and efficiency of our transportation system across the state.’’

Senate Bill 1262, carried by Senator Jim Beall, enables Caltrans to institute efficiency measures with the goal of saving up to $100 million annually in maintenance and rehabilitation costs of the state highway system as mandated by SB 1.

The approval of SB 1262 makes permanent Caltrans’ authority to engage construction managers and general contractors as consultants during the design process to assess potential construction problems in order to avoid them before building commences, thereby eliminating or reducing unexpected change orders. The process is known as the Construction Manager/General Contractor project delivery method or CM/GC.

Currently, Caltrans only has statutory authorization to use CM/GC method on 24 projects, as part of a pilot program. Based on other states’ experiences using this method, Caltrans expected a 10 percent cost savings. But last fiscal year, Caltrans actually achieved better results – an 18 percent cost savings – when using the CM/GC method, generating $80 million in savings that can make room for more projects and put Caltrans on track to meet its $100 million annual efficiency goal.

Under SB 1262, Caltrans will be able to use CM/CG on an on-going and open-ended basis, giving it the maximum flexibility to achieve and increase savings on some of California’s biggest transportation infrastructure projects.