A bill for an act relating to contracts for the construction of public improvements.

HF 564 allows Iowa government entities to reject the lowest qualified bid for public construction projects based on a bidder's experience, employee count, or financial ability - not just price - and requires them to explain the rejection in writing. It also sets a $150 million cost threshold for using "guaranteed maximum price" contracts (replacing standard bidding for large projects) and mandates that construction managers' proposals include full cost breakdowns without contingency fees. Contractors rejected under these rules can legally challenge the decision in court if they believe it was arbitrary, fraudulent, or in bad faith. The bill directly affects public contractors, government agencies, and construction managers handling projects over $150 million.