The following procedure shall apply to construction to be completed by the department which costs more than the amount established by the department under section 514 (relating to small procurements) for construction procurement unless the work is to be done by Commonwealth agency employees or by inmates or patients of a Commonwealth agency institution:

(1) The Commonwealth agency or State-related institution shall notify the department to have plans and specifications for the project.

(2) Promptly after the notice in such cases or promptly after any appropriation made to it becomes available, the department shall, if necessary, select an architect and/or an engineer in accordance with the selection procedures of section 905 (relating to procurement of design professional services) to design the work and prepare the specifications therefor. The department may, as an alternative, enter into a design/build contract in accordance with section 511 (relating to methods of source selection). Such design/build contracts shall be subject to the requirements of this act and the provisions of the act of August 15, 1961 (P.L.987, No.442), known as the Pennsylvania Prevailing Wage Act. Design/build contracts shall also be subject to the act of May 1, 1913 (P.L.155, No.104), entitled "An act regulating the letting of certain contracts for the erection, construction, and alteration of public buildings," to the extent provided in paragraph (6).

(3) The department shall enter into a contract with the architect or engineer which shall provide all of the following:

(i) A date for the completion of the plans and specifications.

(ii) That the plans and specifications must meet with the approval of the Commonwealth agency or State-related institution for which the building is being erected, altered or enlarged and, in the case of an administrative board or commission of the Commonwealth agency with which the board or commission is respectively connected, to the extent of the type and general character of the building, design of the floor layouts, medical equipment or other equipment of a nature peculiar to the building for which the plans and specifications are being prepared.

(iii) That the plans, drawings and specifications must be approved by the department.

(iv) That the plans and specifications must be approved by the Department of Labor and Industry, the Department of Health and the Department of Environmental Protection to the extent to which those Commonwealth agencies, respectively, have jurisdiction to require the submission to them for approval of certain features of the building.

The architect or engineer in preparing plans and specifications shall consult with the department, and the department shall insist upon the prompt completion of the plans and specifications within the time prescribed in the architect's or engineer's contracts unless it shall specifically agree in writing to an extension thereof.

(4) The enforcement of all contracts provided for by this section shall be under the control and supervision of the department. The department shall have the authority to engage the services of a construction management firm to coordinate the work of the total project. All questions or disputes arising between the department and any contractor with respect to any matter pertaining to a contract entered into with the department or any part thereto or any breach of contract arising thereunder shall be submitted to final and binding arbitration as provided by the terms of the contract, which finding shall be final and not subject to further appeal, or, if not so provided, shall be referred to the Board of Claims as set forth in the act of May 20, 1937 (P.L.728, No.193), referred to as the Board of Claims Act, whose decision and award shall be final and binding and conclusive upon all parties thereto except that either party shall have the right to appeal from the decision and award as provided by law.

(5) The department shall examine all bills on account of the contracts entered into under the provisions of this section, and, if they are correct, the department shall certify that the materials have been furnished or that the work or labor has been performed in a workmanlike manner and in accordance with the contract, approve the bills and issue its requisition therefor or forward its certificate to the proper Commonwealth agency or State-related institution as the case may be. Progress payments and final payments shall not estop the department from pursuing its lawful remedies for defects in workmanship or materials or both and other damages.

(6) For construction contracts where the total construction costs are less than $25,000, the department shall not be required to comply with the act of May 1, 1913 (P.L.155, No.104), entitled "An act regulating the letting of certain contracts for the erection, construction, and alteration of public buildings," and the department may award such contracts in accordance with section 511. All projects equal to or exceeding $25,000 shall be subject to the act of May 1, 1913 (P.L.155, No.104), entitled "An act regulating the letting of certain contracts for the erection, construction, and alteration of public buildings." Whenever the department enters into a single contract for a project, in the absence of good and sufficient reasons the contractor shall pay each subcontractor, within 15 days of receipt of payment from the department, an amount equal to the percentage of completion allowed to the contractor on the account of the subcontractor's work. The contractor shall also require the subcontractor to make similar payments to his subcontractors.

(7) The department shall have the right to engage the services of any architect or consulting or supervising engineer or engineers whom it may deem necessary for the proper designing of or inspection or supervision of projects constructed, altered or enlarged by the department under this section in accordance with the selection procedures of section 905.

(8) Changes in scope in the plans or specifications, or both, may be made after their approval only with the consent of the Governor and all of the Commonwealth agencies and State-related institutions whose approval of the original plans or specifications, or both, was necessary under this section.

(9) If the appropriation is to a Commonwealth agency, other than the department or State-related institution, the department shall award and enter into the contract as agent for the Commonwealth agency or State-related institution to which the appropriation was made.

References in Text. The act of May 20, 1937 (P.L.728, No.193), referred to as the Board of Claims Act, referred to in par. (4), was repealed by the act of December 3, 2002 (P.L.1147, No.142). Section 22 of Act 142 provided that the repeal shall take effect upon publication in the Pennsylvania Bulletin of the standing order under 67 Pa.C.S. § 1102(g). The subject matter is now contained in Subchapter C of Chapter 17 of this title.

Cross References. Section 322 is referred to in section 901 of this title.