San Diego Municipal Code Div. 33 Design-Build Contracts

(“Design-Build Contracts” added 4-12-1999 by O-18631 N.S.)

The purpose of this Division is to provide guidelines for the award, use, and evaluation of design-build contracts. (“Purpose and Intent” added 4-12-1999 by O-18631 N.S.) (Amended 3-11-2021 by O-21298 N.S.; effective 4-10-2021.)

(a) For purposes of this Division only, prior to procuring a design-build public works contract, the City shall prepare a request for proposal or invitation to bid setting forth the scope of the project that may include, but is not limited to, the size, type, and desired design character of the buildings and site, and performance specifications. The performance specifications shall describe the quality of construction materials, assemblies, and other information deemed necessary to adequately describe the City’s needs. The performance specifications shall be prepared by a design professional designated by the City. Nothing in this Division precludes a design-build contract from being awarded without competition pursuant to Section 22.3108 or precludes an energy savings performance contract from being awarded without competition as authorized in California Government Code sections 4217.10 through 4217.18 and Section 22.3308.

(b) Any architectural firms, engineering firms, specialty consultants, or
individuals retained by the City to assist in the development of criteria or the
preparation of a request for proposals or an invitation to bid shall not be
eligible to participate in the competition for that project as a design-build
entity or with any design-build entity.
(“Design-Build Procurement” added 4-12-1999 by O-18631 N.S.)
(Amended 4-23-2012 by O-20149 N.S.; effective 5-23-2012.)
(Amended 3-11-2021 by O-21298 N.S.; effective 4-10-2021.)

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The City may issue a request for qualifications to establish a competitive prequalification and selection process to determine which design-build entities are the most qualified and eligible for energy savings performance contracts or to respond to a request for design-build proposals or invitations to bid. (“Competitive Prequalification and Selection Process” added 4-12-1999 by O-18631 N.S.) (Amended 4-23-2012 by O-20149 N.S.; effective 5-23-2012.) (Amended 3-11-2021 by O-21298 N.S.; effective 4-10-2021.)

The City may consider all or any combination of the following criteria in prequalifying design-build entities:

(a) Possession of all required licenses, registration, and credentials in good
standing that are required to design and construct the project.

(b) Submission of documentation establishing that the design-build entity
members have completed, or demonstrated the capability to complete, projects
of similar size, scope, building type, or complexity, and that proposed key
personnel have sufficient experience and training to competently manage and
complete the design and construction of the project.

(c) Submission of a proposed project management plan establishing that the
design-build entity has the experience, competence, and capacity needed to
effectively complete the project.

(d) Submission of evidence establishing that the design-build entity has the
capacity to obtain all required payment and performance bonding, liability
insurance, and errors and omissions insurance, as well as a financial statement
assuring the City that the design-build entity has the capacity to complete the
project.

(e) Provision of a declaration that the applying members of the design-build
entity have not had a surety company finish work on any project within the
past five years.

(f) Provision of a declaration providing detail for the past five years concerning
all of the following:

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(1) Civil or criminal violations of the Occupational Safety and Health Act
against any member of the design-build entity.

(2) Civil or criminal violations of the Contractors’ State License Law
against any member of the design-build entity.

(3) Any conviction of any member of the design-build entity of submitting
a false or fraudulent claim to a public agency.

(4) Civil or criminal violations of federal or state law governing the payment of wages, benefits, or personal income tax withholding, or of Federal Insurance Contributions Act (FICA) withholding requirements, state disability insurance withholding, or unemployment insurance payment requirements against any member of the design- build entity. For purposes of Section 22.3305(f)(4), only violations by a design-build entity member, as an employer shall be deemed applicable, unless it is shown that the design-build entity member, in his or her capacity as an employer, had knowledge of a subcontractor’s violations or failed to comply with the conditions set forth in Section 1775(b) of the California Labor Code.

(5) Civil or criminal violations of federal or state law against any design-
build entity member governing equal opportunity employment,
contracting, or subcontracting.

(g) Provision of a declaration that the design-build entity will comply with all
other provisions of law applicable to the project. The declaration shall state
that reasonable diligence has been used in its preparation and that it is true and
complete to the best of the signer’s knowledge.
(“Prequalification Criteria” added 4-12-1999 by O-18631 N.S.)
(Amended 4-23-2012 by O-20149 N.S.; effective 5-23-2012.)

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Design-build entities are contractors within the meaning of Chapter 2, Article 2, Division 27 of the Municipal Code, and shall comply with the City’s equal employment opportunity outreach program and any related requirements in the design-build contract. (“Documentation of Outreach Programs” added 4-12-1999 by O-18631 N.S.) (Retitled to “Equal Employment Opportunity Outreach Program” and amended 4-23-2012 by O-20149 N.S.; effective 5-23-2012.)

It is unlawful to submit any declaration under this Division containing any material matter that is false. (“False Declaration Unlawful” added 4-12-1999 by O-18631 N.S.)

The City shall select one of the following methods as the process to be used for the selection of the winning entity:

(a) A design-build competition where award is made to the design-build entity
whose proposal offers the best value to the City considering price and the
evaluation criteria in the request for proposals.

(1) The City shall issue a request for proposals describing the project and
any performance requirements and specifications the City deems
necessary. The City may include preliminary designs and drawings
detailing the requirements of the project.

(2) The request for proposals shall establish evaluation criteria and a
methodology that the City will use to evaluate proposals. Criteria may
include, but are not limited to, the experience of the design-build entity
and key personnel, references, commitment to equal opportunity,
proposed design approach, project cost, initial and/or life-cycle costs,
project features, financing, quality, capacity, schedule, and operational
and functional performance of the facility. However, any criteria and
methods used to evaluate proposals shall be limited to those contained
in the request for design-build proposals.

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(b) A design-build competition based on program requirements and a detailed
scope of work, including any preliminary design drawings and specifications
set forth by the City in the invitation to bid. Award shall be made on the basis
of the lowest responsible and reliable bid.

(c) An energy savings performance contract in the best interest of the City
awarded in compliance with California Government Code sections 4217.10
through 4217.18.

(d) An emergency or sole source contract award of a design-build contract
without competition pursuant to section 22.3108.

(e) A progressive design-build contract award shall be made to the design-build
entity based on demonstrated competence and on the professional
qualifications necessary for the satisfactory performance of the professional
services required.

(1) The City shall issue a request for proposal describing the project and
any specific requirements the City has for the project.

(2) The request for proposal shall establish evaluation criteria and the methodology the City will use to evaluate the proposals. Criteria may include the experience of the design-build entity and key personnel, references, commitment to equal opportunity, proposed design approach, anticipated project features, quality, capacity, schedule, and operational and functional performance of any proposed facilities. However, any criteria and methods used to evaluate proposals shall be limited to those contained in the request for proposals.

(3) The Purchasing Agent shall negotiate the cost of the first phase of the
progressive design-build contract with the most qualified design-build
entity, for a price determined to be fair and reasonable to the City.

(4) If the Purchasing Agent is unable to reach agreement with the most
qualified firm on the cost of the first phase of the progressive design-
build contract, the Purchasing Agent shall reject the proposal of the
most qualified design-build entity and may begin negotiations with the
next most qualified firm.
(“Selection Method” added 4-12-1999 by O-18631 N.S.)
(Amended 4-23-2012 by O-20149 N.S.; effective 5-23-2012.)
(Amended 3-11-2021 by O-21298 N.S.; effective 4-10-2021.)
(Amended 10-13-2025 by O-22005 N.S.; effective 11-12-2025.)

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The City recognizes that the design-build entity is charged with performing both design and construction. Because design-build and progressive design-build contracts may be awarded prior to the completion of the design, it is often impracticable for the design-build entity to list all subcontractors at the time of the award.

(a) It is the intent of the City to establish a clear process for the selection and
award of subcontracts entered into pursuant to this Division in a manner that
retains protection for subcontractors while allowing design-build projects to
be administered in an efficient fashion.

(b) All of the following requirements shall apply to subcontractors, licensed by
the State, that are employed on design-build and progressive design- build
projects awarded under this Division.

(1) The design-build entity in each design-build proposal shall specify the
construction trades or types of subcontractors that may be named as
members of the design-build entity at the time of award. In selecting
the trades that may be identified as members of the design-build entity,
the design-build entity shall identify the trades deemed essential in the
design considerations of the project. All subcontractors that are listed
at the time of award shall be afforded the protection of all applicable
laws.

(2) Any work that was not listed by the design-build entity at the time of
award in accordance with section 22.3309(b)(1) shall be performed by
the design-build entity with its own employees, or awarded by the
design-build entity, in accordance with a bidding process set forth in
the request for design-build proposals.
(“Work Listing” added 4-12-1999 by O-18631 N.S.)
(Amended 4-23-2012 by O-20149 N.S.; effective 5-23-2012.)
(Amended 10-13-2025 by O-22005 N.S.; effective 11-12-2025.)

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The City may award design-build contracts to more than one design-build entity in which the design-build entities compete for public works projects on a task order basis, under the following conditions:

(a) The City issues a request for qualifications or proposals generally describing
the types of public works projects anticipated to be performed under the
multiple award design-build contracts, and the evaluation criteria to be used to
determine which design-build entities will be awarded contracts.

(b) The City Council approves the award of the multiple award design-build
contracts.

(c) Only the design-build entities awarded multiple award design-build contracts
are eligible to compete for the public works projects submitted to them by the
City, with the winning design-build entity determined in accordance with
Section 22.3308. The winning design-build entity is awarded the public works
project through the issuance of a task order.

(d) No multiple award design-build contract may guarantee a design-build entity
cumulative task orders in excess of $50,000.

(e) A task order may not exceed $30,000,000 without City Council approval.

(f) The cumulative amount of task orders issued to all design-build entities
awarded contracts through each request for qualifications or proposals may
not exceed $100,000,000 without City Council
approval.

(g) Every request for proposals for a task order that the City estimates to cost
over $1,000,000 shall include mandatory minimum participation by Small
Local Business Enterprises and/or Emerging Local Business Enterprises, as
defined in Section 22.3603.

The City Manager may include mandatory minimum participation by Small
Local Business Enterprises and/or Emerging Local Business Enterprises in
requests for proposals for task orders estimated to cost $1,000,000 or less.
The City Manager may also include mandatory minimum participation by
Disabled Veteran Business Enterprises in any request for proposal for a task
order.

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(1) The City Manager shall determine the levels of mandatory minimum participation for Small Local Business Enterprises, Emerging Local Business Enterprises, and Disabled Veteran Business Enterprises on a project-by-project basis, and include the mandatory minimum participation levels in the request for proposals for each task order.

(2) Notwithstanding Sections 22.3609 and 22.3610, good faith efforts by
the design-build entity shall not satisfy the mandatory minimum
participation levels required by Section 22.3310(h)(1).

(3) Any design-build entity awarded a task order who fails to achieve the
required mandatory minimum participation levels in the request for
proposals shall be ineligible to compete for further task orders under
that multiple award design-build contract.
(“Multiple Award Design-Build Contracts” added 4-23-2012 by O-20149 N.S.;
effective 5-23-2012.
(Amended 11-20-2015 by O-20574 N.S.; effective 12-20-2015.)

(a) Progressive design-build contracts for major public works may be awarded by the City Manager provided that all of the following are met:

(1) The progressive design-build contract does not contain any provision
that guarantees the design-build entity an amount that exceeds the City
Manager’s authority to award a consultant contract for a public works
project under section 22.3207 or the pre-construction phase or phases
of the contract;

(2) The public works project was previously identified and appropriated
through the Annual Capital Improvements Program budget adopted by
City Council or identified in a City Council resolution establishing an
Underground Utility District;

(3) The City Council has not required, by resolution or ordinance, that a
major public works contract for the project be returned to City
Council for approval prior to award;

(4) The progressive design-build contract has been advertised as
described in sections 22.3303 and 22.3308 or has been certified by the
City Manager as a sole source contract in accordance with
section 22.3016;

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(5) The progressive design-build contract requires that the contract will
be open book among the City, design-build entity, and subcontractors,
and shall require full disclosure of all documents and information to
the City by the design-build entity and subcontractors, including
estimates, schedules, records of direct and indirect costs, field and
home office overhead calculations, subcontracts, records of payment
and any other data or document deemed by the City to be relevant to
the project.

(6) The progressive design-build contract contains provisions that
prohibit the construction phase or phases of the project from moving
forward until all of the following are satisfied:

(A) the potential impacts of the project on the environment have
been considered as required under the California
Environmental Quality Act;

(B) the City and the design-build entity have agreed on a guaranteed maximum price for the completion of the project; and

(C) an amendment to the Contract authorizing the construction
phase or phases to proceed that includes the guaranteed
maximum price has been signed by all parties to the
progressive design-build contract.

(7) The progressive design-build contract is in writing.

(b) Notwithstanding section 22.3018, the City Manager or Purchasing Agent is
authorized to enter into an amendment to the progressive design-build
contract for a major public work that authorizes the construction phase or
phases to proceed provided that all of the following are met:

(1) The potential environmental impacts of the project have been
considered as required by the California Environmental Quality Act;

(2) The total costs of the construction phase or phases does not exceed the
amount of the City Manager’s authority to award a major public works
contract established in section 22.3102 and the total costs for all
phases of the project do not exceed the combined amount of the City
Manager’s authority to award consultant contracts and major public
works contracts as established in sections 22.3207 and 22.3102;

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(3) The amendment does not cause the project costs to exceed the total
amount allocated for the project in the Annual Capital Improvements
Program budget adopted by City Council;

(4) The City Council has not required, by resolution or ordinance, that the
project be returned to City Council for approval prior to amendment;

(5) The amendment to the progressive design-build contract is in writing.

(g) Except as set forth in subsections (a) and (b) of 22.3311 and section 22.3018,
all other awards of, amendments to, or alterations of progressive design-build
contracts must be approved by City Council.
(“City Manager’s Authority to Award Progressive Design-Build Contracts” added
10-13-2025 by O-22005 N.S.; effective 11-12-2025.)

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Article 2: Administrative Code