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2011 South Dakota Attorney General Reports and Opinions 1 (2011)

handle is hein.sag/sagsd0020 and id is 1 raw text is: OFFICIAL OPINION NO. 11-01, Construction Manager-at-Risk Services Available to be Provided

STATE OF SOUTH DAKOTA
OFFICEOF
THE ATTORNEY GENERAL
February 23, 2011
Randolph F. Stiles
Mitchell City Attorney
612 N. Main St.
Mitchell, SD 57301
OFFICIALOPINIONNO. 11-01
Construction Manager-at-Risk Services Available to be Provided
Dear Mr. Stiles:
You have requested an official opinion from this Office regarding the following question:
lPT iloN 1.

Whether the construction management provisions in SDCL 5-18B-40 through 44 allow the City to hire a construction manager-at-risk where
the constniction manager does not perform any of the actual construction work on the prcject other than warranty work or
completion/correction of incomplete or unacceptable work done by a third party contractor, subcontractor or supplier and receives no
additional compensation for such work?
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Whether a construction inanager-at-risk providing architect/engineer services violates SDCL 5-181B 15 where the constniction manager's
performance of work on the project is limited to warranty work or completion/correction of incomplete or unacceptable work done by third
parties?
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The City may negotiate a contract with a firm to act as a construction manager-at-risk, however, that finn may not perfonn any construction
work, including warranty work or completion/correction of incomplete or unacceptable work done by a third party. SDCL 5-18B-15
prohibits a constniction inanager-at-risk from performing architect or engineer services and performing any construction work when the
public improvement exceeds $100,000.
The City of Mitchell is in the development stages of construction of a community wellness center. The City desires to hire, through
negotiation, a finn who will provide services as an arcitect/engineer and act as a construction manager-at-risk for the prcject. It is
anticipated that the firm acting as a constniction manager-at-risk will enter into contracts with third party contractors, subcontractors and
suppliers utilizing a bidding process with public notice. It is further anticipated that the firm will not perform construction work, except
which is necessary for the completion or correction of work perfonned by third party contractors, subcontractors and suppliers, or warranty

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