1. (1) The division may provide comprehensive construction management services to an LEA, including:

   1. (a) project procurement and contractor selection;
   2. (b) construction oversight and inspection coordination;
   3. (c) cost management and change order approval;
   4. (d) compliance verification and quality assurance;
   5. (e) project scheduling and milestone management; and
   6. (f) architect and design professional services when required under Section 63A-5b-1204 or requested by an LEA.

2. (2) An LEA may request division construction management services for:

   1. (a) any project exceeding $3,500,000 in total cost;
   2. (b) complex projects requiring specialized expertise; or
   3. (c) projects where the LEA lacks sufficient internal capacity.

3. (3) The division shall provide construction management services when:

   1. (a) requested by an LEA and capacity allows; or
   2. (b) an LEA has demonstrated repeated compliance failures.

4. (4)

   1. (a) The division shall establish a cost structure for managed services where:

      1. (i) the LEA reimburses the division for all direct project costs;

      2. (ii) administrative fees do not exceed:

         1. (A) 3% of total project cost; and
         2. (B) for projects under $3,500,000, the actual cost of providing management services in relation to the specific project; and
      3. (iii) fee schedules are published annually in division rules.

   2. (b) The division shall ensure:

      1. (i) the administrative fee structure for division-managed projects includes the construction oversight fee required by Section 63A-5b-1214; and
      2. (ii) an LEA may not pay duplicative fees.

   3. (c) The division shall provide an LEA with a detailed fee breakdown showing:

      1. (i) additional direct project management costs; and
      2. (ii) the total administrative fee percentage.

5. (5) The division shall ensure that for division-managed projects:

   1. (a) the division assumes full responsibility for code compliance;
   2. (b) all procurement follows state procurement rules;
   3. (c) the LEA retains authority over educational program requirements; and
   4. (d) regular progress and financial reports are provided to the LEA governing board as defined in Section 53E-1-102.
6. (6) An LEA may appeal the division's determination to require division-managed construction services to the appeals panel established under Section 63A-5b-1221.

Enacted by Chapter 225, 2026 General Session