Senate Bill No. 342–Senator O’Connell
March 10, 1999
____________
Referred to Committee on Government Affairs
SUMMARY—Prohibits public bodies from requiring contractor or subcontractor to agree to certain requirements as condition of bidding on, being awarded or working pursuant to contract for public work. (BDR 28-16)
FISCAL NOTE: Effect on Local Government: Yes.
Effect on the State or on Industrial Insurance: No.
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EXPLANATION – Matter in
bolded italics is new; matter between brackets
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
1-1
Section 1. Chapter 338 of NRS is hereby amended by adding thereto a1-2
new section to read as follows:1-3
1. Except as otherwise provided in subsections 2 and 3, a public body1-4
that awards a contract for a public work shall not, as a condition of1-5
bidding on the contract, being awarded the contract or being hired to1-6
work pursuant to the contract, require that a contractor or subcontractor1-7
agree to:1-8
(a) Make a monetary contribution to a labor organization for the1-9
provision of benefits for the workmen who work on the public work; or1-10
(b) Limit the number of employees of the contractor or subcontractor1-11
that he may hire to work on the public work.1-12
2. A public body that awards a contract for a public work may, as a1-13
condition of bidding on the contract, being awarded the contract or being1-14
hired to work pursuant to the contract, require a contractor or1-15
subcontractor who provides benefits:2-1
(a) Directly to his workmen, pursuant to the terms of employment2-2
established by the contractor or subcontractor; and2-3
(b) That cost less to provide than the benefits provided by the local2-4
labor organization to which his workmen would most likely belong if they2-5
were to choose to become members of a labor organization,2-6
to agree to pay directly to his workmen the difference between the cost of2-7
the benefits that he provides to his workmen and the cost of the benefits2-8
that the local labor organization provides to its members.2-9
3. A public body that awards a contract for a public work may, as a2-10
condition of bidding on the contract, being awarded the contract or being2-11
hired to work pursuant to the contract, require a contractor or2-12
subcontractor to agree that if, after the public work commences, it is2-13
determined that more workmen or workmen of a different trade are2-14
needed to complete the project than are currently employed by the2-15
contractors and subcontractors currently engaged on the public work, the2-16
contractor or subcontractor will hire only workmen who have been2-17
referred to the contractor or subcontractor by a labor organization.2-18
4. As used in this section, the term "benefits" means the benefits2-19
described in paragraph (b) of subsection 6 of NRS 338.010.2-20
Sec. 2. NRS 338.015 is hereby amended to read as follows: 338.015 1. The labor commissioner shall enforce the provisions of2-22
NRS 338.010 to 338.130, inclusive2-23
informed of violations thereof, the labor commissioner may hold hearings2-24
on and assess fines for violations of those provisions and shall report those2-25
violations to the district attorney of the county in which the violations2-26
occurred.2-27
2. The district attorney shall prosecute the violator in accordance with2-28
law.2-29
Sec. 3. NRS 338.090 is hereby amended to read as follows: 338.090 1. Any person, including the officers, agents or employees2-31
of a public body, who violates any of the provisions of NRS 338.010 to2-32
338.080, inclusive, and section 1 of this act is guilty of a misdemeanor.2-33
2. The labor commissioner, in addition to any other penalty provided in2-34
this chapter:2-35
(a) Shall assess a person who, after a hearing, is found to have failed to2-36
pay the prevailing wage required pursuant to NRS 338.020 to 338.090,2-37
inclusive, an amount equal to the difference between the prevailing wages2-38
required to be paid and the wages he actually paid; and2-39
(b) May , in addition , impose an administrative fine not to exceed the2-40
costs he incurred to investigate and prosecute the matter.2-41
Sec. 4. NRS 341.161 is hereby amended to read as follows: 341.161 1. The board may, with the approval of the interim finance2-43
committee when the legislature is not in regular or special session, or with3-1
the approval of the legislature by concurrent resolution when the legislature3-2
is in regular or special session, let to a contractor licensed under chapter3-3
624 of NRS a contract for services which assist the architect in the design3-4
of a project of capital improvement. The board shall , for that purpose ,3-5
participate in the development of plans, outlines of specifications and3-6
estimates of costs.3-7
2. The board shall adopt regulations establishing procedures for:3-8
(a) The determination of the qualifications of contractors to bid for3-9
contracts for services described in subsection 1.3-10
(b) The bidding and awarding of such contracts, subject to the3-11
provisions of subsection 33-12
(c) The awarding of construction contracts, subject to the provisions of3-13
subsection 43-14
project which the contractor guarantees will not be exceeded.3-15
(d) The scheduling and controlling of projects.3-16
3. Bids on contracts for services which assist the architect in the design3-17
of a project of capital improvement must state separately the contractor’s3-18
cost for:3-19
(a) Assisting the architect in the design of the project.3-20
(b) Obtaining all bids for subcontracts.3-21
(c) Administering the construction contract.3-22
4. A contractor who is:3-23
(a) Qualified under the regulations of the board to bid for a contract for3-24
services described in subsection 1; and3-25
(b) Awarded that contract,3-26
is entitled to be awarded the construction contract for the project if his3-27
work under the contract for services is satisfactory to the board and he3-28
guarantees a final cost for the project which the board is willing to accept.3-29
5. A person who furnishes services under a contract awarded pursuant3-30
to subsection 1 is a contractor subject to all provisions pertaining to a3-31
contractor in Title 28 of NRS.3-32
Sec. 5. NRS 341.171 is hereby amended to read as follows: 341.171 1. The board may, with the approval of the interim finance3-34
committee when the legislature is not in regular or special session, or with3-35
the approval of the legislature by concurrent resolution when the legislature3-36
is in regular or special session, let to a contractor licensed under chapter3-37
624 of NRS a single contract for both the design and construction of a3-38
project of capital improvement. The board shall , for3-39
prepare a comprehensive sketch plan and narrative of the scope of the work3-40
involved in a project.3-41
2. The board shall adopt regulations establishing procedures for:4-1
(a) The determination of the qualifications of contractors to bid for4-2
contracts for the design and construction of such projects. The board shall4-3
consult with the American Institute of Architects and the Associated4-4
General Contractors, or the successor of either if the named organization4-5
ceases to exist, before adopting procedures under this paragraph.4-6
(b) The board’s approval of designs and architects employed in a4-7
project.4-8
(c) The bidding and awarding of contracts for the design and4-9
construction of projects , subject to the provisions of section 1 of this act,4-10
based on a final cost of the project which the contractor guarantees will not4-11
be exceeded.4-12
(d) The scheduling and controlling of projects.4-13
Sec. 6. NRS 271.335 is hereby amended to read as follows: 271.335 1. No contract for doing construction work for acquiring or4-15
improving the project contemplated may be made or awarded, nor may the4-16
governing body incur any expense or liability in relation thereto, except for4-17
maps, plats, diagrams, estimates, plans, specifications and notices, until4-18
after the hearing upon the provisional order and notice thereof provided for4-19
in NRS 271.305 have been given and had.4-20
2. This section does not prevent the governing body from advertising4-21
by publication for proposals for doing the work whenever the governing4-22
body sees fit, but the contract may not be made or awarded before the time4-23
stated in subsection 1.4-24
3. Except as otherwise provided in NRS 271.800, in the case of4-25
construction work done by independent contract for any project, or portion4-26
thereof, in any improvement district, the municipality shall request4-27
competitive bids, and proceed thereon, pursuant to the provisions of4-28
chapter 338 of NRS.4-29
4. The municipality may waive any irregularity in the form of any bid.4-30
5. Any contract may be let on a lump sum or on a unit basis.4-31
6. No contract may be entered into for such work unless the contractor4-32
gives an undertaking with a sufficient surety or sureties approved by the4-33
governing body and in an amount fixed by it for the faithful performance of4-34
the contract and for payment of the contract.4-35
7. Upon default in the performance of any contract, any designated4-36
official, as directed by motion of the governing body, may advertise and4-37
relet the remainder of the work without further ordinance or resolution and4-38
deduct the cost from the original contract price and recover any excess cost4-39
by suit on the original bond, or otherwise.4-40
8. All contracts must provide among other things that the person4-41
entering into the contract with the municipality will pay for all materials4-42
furnished and labor and services rendered for the performance of the5-1
contract, and that any person furnishing the materials or rendering the5-2
services may maintain an action to recover for them against the obligor in5-3
the undertaking as though the person was named therein.5-4
9. A contract or agreement made in violation of the provisions of this5-5
section is voidable, and no action may be maintained thereon by any party5-6
thereto against the municipality.5-7
10. To the extent the municipality makes any payment thereunder, such5-8
a contract or agreement is valid, and any such payment may be included in5-9
any cost defrayed by the levy of assessments, unless theretofore the5-10
municipality elects to void the contract or agreement in its entirety and to5-11
recover any such payment from the party to whom made.5-12
11. The governing body, except as expressly limited in this section5-13
or as otherwise provided in section 1 of this act, may, in the letting of5-14
contracts, impose such conditions upon bidders with regard to bonds and5-15
securities, and such guaranties of good and faithful performance and5-16
completion of any work and the keeping of the work in repair, and5-17
providing for any further matter or thing in connection therewith, as may be5-18
considered by the governing body to be advantageous to the municipality5-19
and to all interested.5-20
Sec. 7. The amendatory provisions of this act do not apply to offenses5-21
that were committed before October 1, 1999.~