(a) Before undertaking a building project using construction management at-risk services, a public agency shall notify and submit a detailed application to proceed to the office of the inspector general. The detailed application shall conform to regulations and procedures promulgated by the inspector general. In order to receive a notice to proceed from the office of the inspector general, the public agency shall demonstrate the following:—

1. (1) The public agency has authorization from its governing body to enter into a contract with a construction management at risk firm. The authorization shall include the results of any public vote if applicable.
2. (2) The public agency has the capacity, a plan and procedures in place and approved of by the governing body, where appropriate, to effectively procure and manage construction management at-risk services for the specific project and has retained the services of a qualified owner's project manager.
3. (3) The public agency has in place procedures to ensure fairness in competition, evaluation and reporting of results at every stage in the procurement process.
4. (4) The building project has an estimated construction value of $5,000,000 or more.
5. (5) The public agency has determined that the use of construction management at-risk services is appropriate for the building project and states in writing the reasons for the determination.