City Manager’s Authority to Award Construction Manager at Risk Contracts
San Diego Municipal Code § 22.3808
in effect§22.3808 City Manager’s Authority to Award Construction Manager at Risk Contracts
(a) Construction manager at risk contracts may be awarded by the City Manager provided that all of the following are met:
(1) The construction manager at risk contract does not contain any provisions that guarantee the construction manager at risk entity an amount that exceeds the Purchasing Agent’s authority to award a consultant contract for a public works contract as established in section 22.3207 for the preconstruction services phase of the contract;
(2) The construction manager at risk contract provides that the costs for labor, equipment, or materials to be provided by a subcontractor or self-performed by the construction manager at risk entity will be negotiated as part of the guaranteed maximum price. However, the construction manager at risk contract may include limited costs at the time of award, including costs for general contract conditions, hourly labor rates, overhead, and the construction manager at risk entity’s proposed fee.
(3) The construction manager at risk contract requires that the contract will be open book among the City, construction manager at risk entity and subcontractors, and shall require full disclosure to the City of all documents and information by the construction manager at risk entity, 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.
(4) The major public works project was previously identified and appropriated through the Annual Capital Improvement Program budget adopted by City Council or identified by City Council in a resolution establishing an Underground Utility District;
(5) 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;
(6) The construction manager at risk contract has been advertised as described in section 22.3803 or it has been certified by the Purchasing Agent as a sole source contract under section 22.3016;
(7) The construction manager at risk contract has provisions that prohibit any construction services from being performed until all of the following are satisfied:
(A) The potential environmental impacts of the project have been considered as required by the California Environmental Quality Act;
(B) The City and the construction manager at risk entity have agreed upon a guaranteed maximum price;
(C) An amendment to the contract, or a separate contract, authorizing the construction services to proceed that includes the guaranteed maximum price has been signed by the City and the construction manager at risk entity;
(8) The construction manager at risk contract is in writing.
(b) Notwithstanding section 22.3018, the City Manager is authorized to enter into an amendment, or a separate contract as part of the construction manager at risk contract for the construction services phase 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 guaranteed maximum price does not exceed the City Manager’s authority to award a major public works contract as established in section 22.3102 and the combined total amount for the preconstruction services and construction services for the project does not exceed the City Manager’s combined authority to award consultant contracts and major public works contracts included in sections 22.3207 and 22.3102, respectively;
(3) The amendment, or additional contract, 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, or separate contract as part of the construction manager at risk contract, for the construction services is in writing.
(c) If the City and the construction manager at risk entity cannot reach an agreement on the terms and conditions of an amendment to a construction manager at risk contract for the construction services phase, the City may do any of the following:
(1) Award a public works contract for the construction services phase to another entity for the project in accordance with the requirements for the type of public works contract awarded.
(2) Exercise its discretion not to proceed with the construction services phase of a construction manager at risk contract. If the City chooses not to proceed with the construction services phase of the project because the guaranteed maximum price exceeds the amount appropriated for the project in the Annual Capital Improvement Program budget, or other funding considerations, and the City decides to move forward with the project at a later date, the City may award a public works contract for the construction services phase of the project under any procurement method authorized by this Code that the City determines is appropriate at that time.
(Added 3-15-2010 by O-19934 N.S.; effective 4-14-2010.)
(Retitled from “Separate Agreements for Preconstruction Services and Construction Services; Essential Terms” to “City Manager’s Authority to Award Construction Manager at Risk Contracts” and amended 10-13-2025 by O-22005 N.S.; effective 11-12-2025.)
Source: City of San Diego Office of the City Clerk, San Diego Municipal Code and City Charter (docs.sandiego.gov PDFs)URL: https://docs.sandiego.gov/municode/MuniCodeChapter02/Ch02Art02Division38.pdf#page=7Fetched: 10/28/2026