EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

1-1 Section 1. Chapter 338 of NRS is hereby amended by adding thereto

1-2 the provisions set forth as sections 2 to 9, inclusive, of this act.

1-3 Sec. 2. 1. Except as otherwise provided in this section, a public

1-4 body shall contract with a prime contractor for the completion of a public

1-5 work for which the estimated cost exceeds $100,000.

1-6 2. A public body may contract with a design-build team for the

1-7 design and completion of a public work that is a discrete project if the

1-8 public body determines that:

1-9 (a) The public work is:

1-10 (1) A plant or facility for the treatment and pumping of water or the

1-11 treatment and disposal of wastewater or sewage, the estimated cost of

1-12 which exceeds $100,000,000; or

2-1 (2) Any other type of public work, except a stand-alone

2-2 underground utility project, the estimated cost of which exceeds

2-3 $30,000,000; and

2-4 (b) Contracting with a design-build team will enable the public body

2-5 to:

2-6 (1) Complete the public work at a cost that is significantly lower

2-7 than the cost that the public body would incur to complete the public

2-8 work using a different method;

2-9 (2) Complete the public work in a shorter time than would be

2-10 required to complete the public work using a different method, if exigent

2-11 circumstances require that the public work be completed within a short

2-12 time; or

2-13 (3) Ensure that the design and completion of the public work is

2-14 properly coordinated, if the public work is unique, highly technical and

2-15 complex in nature.

2-16 3. Notwithstanding the provisions of subsections 1 and 2, a public

2-17 body may contract with a prime contractor, specialty contractor or

2-18 design-build team with respect to a public work if the public body

2-19 determines that the public work is:

2-20 (a) Not part of a larger public work; and

2-21 (b) Limited in scope to:

2-22 (1) Removal of asbestos;

2-23 (2) Replacement of equipment or systems for heating, ventilation

2-24 and air-conditioning;

2-25 (3) Replacement of a roof;

2-26 (4) Landscaping; or

2-27 (5) Any combination of subparagraphs (1) to (4), inclusive.

2-28 4. A public body shall not enter into more than a total of two

2-29 contracts with design-build teams for the completion of public works in

2-30 any fiscal year.

2-31 Sec. 3. 1. A public body shall not contract with a design-build team

2-32 with respect to a public work unless the governing body of the public

2-33 body makes the determinations, at a public hearing, that are required

2-34 pursuant to subsection 2 or 3 of section 2 of this act, as applicable.

2-35 2. A public body that is required to hold a public hearing pursuant to

2-36 this section shall publish notice of the hearing at least once each week

2-37 for 3 consecutive weeks in:

2-38 (a) A newspaper of general circulation published in the county in

2-39 which the public work is proposed to be completed or, if there is no such

2-40 newspaper, in a newspaper of general circulation in the county published

2-41 in this state; and

2-42 (b) A newspaper of general circulation in this state.

3-1 Sec. 4. 1. A public body that is required to contract with a prime

3-2 contractor pursuant to subsection 1 of section 2 of this act or elects to

3-3 contract with a specialty contractor pursuant to subsection 3 of section 2

3-4 of this act shall select the prime contractor or specialty contractor, as

3-5 appropriate, in accordance with the procedures for bidding that are set

3-6 forth in NRS 338.140 to 338.147, inclusive.

3-7 2. A public body that contracts with a design-build team pursuant to

3-8 sections 2 and 3 of this act shall select the design-build team in

3-9 accordance with sections 5 to 8, inclusive, of this act.

3-10 Sec. 5. 1. A public body shall advertise for preliminary proposals

3-11 for the design and completion of a public work by a design-build team at

3-12 least twice each week for 3 consecutive weeks in:

3-13 (a) A newspaper of general circulation published in the county in

3-14 which the public work is proposed to be completed or, if there is no such

3-15 newspaper, in a newspaper of general circulation in the county published

3-16 in this state; and

3-17 (b) A newspaper of general circulation in this state.

3-18 2. A request for preliminary proposals published pursuant to

3-19 subsection 1 must include, without limitation:

3-20 (a) A description of the public work to be designed and completed;

3-21 (b) Separate estimates of the costs of designing and completing the

3-22 public work;

3-23 (c) The dates on which it is anticipated that the separate phases of the

3-24 design and completion of the public work will begin and end;

3-25 (d) A statement setting forth the place and time in which a design-

3-26 build team desiring to bid on the public work may obtain specifications

3-27 for bids and other information necessary to bid on the public work;

3-28 (e) A list of the requirements set forth in section 6 of this act;

3-29 (f) A list of the factors that the public body will use to evaluate design-

3-30 build teams who bid on the public work, including, without limitation:

3-31 (1) The relative weight to be assigned to each factor; and

3-32 (2) A disclosure of whether the factors that are not related to cost

3-33 are, when considered as a group, more or less important in the process of

3-34 evaluation than the factor of cost;

3-35 (g) A statement setting forth that a design-build team whose prime

3-36 contractor holds a certificate of eligibility to receive a preference in

3-37 bidding on public works issued pursuant to NRS 338.147 shall be deemed

3-38 to have submitted a better proposal than a competing design-build team

3-39 whose prime contractor does not hold such a certificate of eligibility if

3-40 the amount of the bid of the design-build team is not more than 5 percent

3-41 higher than the amount bid by the competing design-build team;

3-42 (h) Notice that a design-build team desiring to bid on the public work

3-43 must include with its bid the information used by the public body to

4-1 determine finalists among the design-build teams that bid pursuant to

4-2 subsection 2 of section 7 of this act and a description of that information;

4-3 (i) A statement as to whether a design-build team that submits a bid

4-4 and is selected as a finalist pursuant to section 7 of this act but is not

4-5 awarded the design-build contract pursuant to section 8 of this act will be

4-6 partially reimbursed for the cost of preparing a final proposal and, if so,

4-7 an estimate of the amount of the partial reimbursement; and

4-8 (j) The date by which preliminary proposals must be submitted to the

4-9 public body, which must not be less than 30 days or more than 60 days

4-10 after the date on which the request for preliminary proposals is first

4-11 published in a newspaper pursuant to subsection 1.

4-12 Sec. 6. To qualify to participate in a project for the design and

4-13 completion of a public work, a design-build team must:

4-14 1. Obtain a performance bond and payment bond as required

4-15 pursuant to NRS 339.025;

4-16 2. Obtain insurance covering general liability and liability for errors

4-17 and omissions;

4-18 3. Not have been found liable for breach of contract with respect to a

4-19 previous project, other than a breach for legitimate cause;

4-20 4. Not have been disqualified from being awarded a contract

4-21 pursuant to NRS 338.017, 338.145 or 408.333; and

4-22 5. Ensure that the members of the design-build team possess the

4-23 licenses and certificates required to carry out the functions of their

4-24 respective professions within this state.

4-25 Sec. 7. 1. Except as otherwise provided in this subsection, within

4-26 30 days after the date by which preliminary proposals must be submitted

4-27 to the public body, the public body shall select at least three but not more

4-28 than five finalists that the public body determines to be qualified

4-29 pursuant to this section and section 6 of this act from among the design-

4-30 build teams that submitted preliminary proposals. If the public body

4-31 receives only two preliminary proposals from design-build teams that the

4-32 public body determines to be qualified pursuant to this section and

4-33 section 6 of this act, the public body shall select both of those design-

4-34 build teams as finalists. If the public body does not receive at least two

4-35 preliminary proposals from design-build teams that the public body

4-36 determines to be qualified pursuant to this section and section 6 of this

4-37 act, the public body may not contract with a design-build team for the

4-38 design and completion of the public work.

4-39 2. The public body shall select finalists pursuant to subsection 1 by:

4-40 (a) Verifying that each design-build team which submitted a

4-41 preliminary proposal satisfies the requirements of section 6 of this act;

4-42 and

5-1 (b) Conducting an evaluation of the qualifications of each design-

5-2 build team that submitted a preliminary proposal, including, without

5-3 limitation, an evaluation of:

5-4 (1) The professional qualifications and experience of the members

5-5 of the design-build team;

5-6 (2) The performance history of the members of the design-build

5-7 team concerning other recent, similar projects completed by those

5-8 members, if any;

5-9 (3) The safety programs established and the safety records

5-10 accumulated by the members of the design-build team; and

5-11 (4) The proposed plan of the design-build team to manage the

5-12 design and completion of the public work that sets forth in detail the

5-13 ability of the design-build team to design and complete the public work.

5-14 Sec. 8. 1. After selecting the finalists pursuant to section 7 of this

5-15 act, the public body shall provide to each finalist a request for final

5-16 proposals for the public work. The request for final proposals must:

5-17 (a) Set forth the factors that the public body will use to select a design-

5-18 build team to design and complete the public work, including the relative

5-19 weight to be assigned to each factor;

5-20 (b) Set forth the date by which final proposals must be submitted to

5-21 the public body; and

5-22 (c) Include a statement setting forth that a design-build team whose

5-23 prime contractor holds a certificate of eligibility to receive a preference

5-24 in bidding on public works issued pursuant to NRS 338.147 shall be

5-25 deemed to have submitted a better final proposal than a competing

5-26 design-build team whose prime contractor does not hold such a

5-27 certificate of eligibility if the amount of the bid of the design-build team

5-28 is not more than 5 percent higher than the amount bid by the competing

5-29 design-build team.

5-30 2. A final proposal submitted by a design-build team pursuant to this

5-31 section must be prepared thoroughly and be responsive to the criteria

5-32 that the public body will use to select a design-build team to design and

5-33 complete the public work described in subsection 1.

5-34 3. Within 30 days after receiving the final proposals for the public

5-35 work, the public body shall:

5-36 (a) Select the most cost-effective and responsive final proposal, using

5-37 the criteria set forth pursuant to subsection 1; or

5-38 (b) Reject all the final proposals.

5-39 4. If a public body selects a final proposal pursuant to paragraph (a)

5-40 of subsection 3, the public body shall, at its next regularly scheduled

5-41 meeting:

5-42 (a) Review and ratify the selection.

6-1 (b) Award the design-build contract to the design-build team whose

6-2 proposal is selected.

6-3 (c) Partially reimburse the unsuccessful finalists if partial

6-4 reimbursement was provided for in the request for preliminary proposals

6-5 pursuant to paragraph (i) of subsection 2 of section 5 of this act. The

6-6 amount of reimbursement must not exceed, for each unsuccessful

6-7 finalist, three percent of the total amount to be paid to the design-build

6-8 team as set forth in the design-build contract.

6-9 (d) Make available to the public a summary setting forth the factors

6-10 used by the public body to select the successful design-build team, the

6-11 relative weight assigned to each factor and the ranking of the design-

6-12 build teams who submitted final proposals. The public body shall not

6-13 release to a third party, or otherwise make public, financial or

6-14 proprietary information submitted by a design-build team.

6-15 5. A design-build team to whom a contract is awarded pursuant to

6-16 this section shall:

6-17 (a) Assume overall responsibility for ensuring that the design and

6-18 completion of the public work is completed in a satisfactory manner; and

6-19 (b) Use the work force of the prime contractor on the design-build

6-20 team to complete at least 15 percent of the construction of the public

6-21 work.

6-22 Sec. 9. A public body may employ a registered architect or licensed

6-23 professional engineer as a consultant to assist the public body in

6-24 overseeing the completion of a public work. An architect or engineer so

6-25 employed shall not:

6-26 1. Design or complete the public work; or

6-27 2. Assume overall responsibility for ensuring that the design or

6-28 completion of the public work is completed in a satisfactory manner.

6-29 Sec. 10. NRS 338.010 is hereby amended to read as follows:

6-30 338.010 As used in this chapter:

6-41 624.320, inclusive; and

7-1 (b) At least one person who holds a certificate of registration to

7-2 practice architecture pursuant to chapter 623 of NRS or is licensed as a

7-3 professional engineer pursuant to chapter 625 of NRS.

7-4 4. "Design professional" means a person with a professional license

7-5 or certificate issued pursuant to chapter 623, 623A or 625 of NRS.

7-6 5. "Eligible bidder" means a person who [was] is found to be a

7-7 responsible and responsive contractor or design-build team by a public

7-8 body which [awarded a contract] requests bids for a public work.

7-9 [3.] 6. "Offense" means failing to:

7-10 (a) Pay the prevailing wage required pursuant to this chapter;

7-11 (b) Pay the contributions for unemployment compensation required

7-12 pursuant to chapter 612 of NRS; or

7-13 (c) Provide and secure compensation for employees required pursuant to

7-14 chapters 616A to 617, inclusive, of NRS.

7-15 [4.] 7. "Prime contractor" means a person who:

7-16 (a) Contracts to complete an entire project;

7-17 (b) Coordinates all work performed on the entire project;

7-18 (c) Uses his own work force to perform all or a part of the

7-19 construction, repair or reconstruction of the project; and

7-20 (d) Contracts for the services of any subcontractor or independent

7-21 contractor or is responsible for payment to any contracted subcontractors

7-22 or independent contractors.

7-23 8. "Public body" means the state, county, city, town, school district or

7-24 any public agency of this state or its political subdivisions sponsoring or

7-25 financing a public work.

7-26 [5.] 9. "Public work" means any project for the new construction,

7-27 repair or reconstruction of:

7-28 (a) A project financed in whole or in part from public money for:

7-29 (1) Public buildings;

7-30 (2) Jails and prisons;

7-31 (3) Public roads;

7-32 (4) Public highways;

7-33 (5) Public streets and alleys;

7-34 (6) Public utilities which are financed in whole or in part by public

7-35 money;

7-36 (7) Publicly owned water mains and sewers;

7-37 (8) Public parks and playgrounds;

7-38 (9) Public convention facilities which are financed at least in part with

7-39 public funds; and

7-40 (10) All other publicly owned works and property whose cost as a

7-41 whole exceeds $20,000. Each separate unit which is a part of a project is

7-42 included in the cost of the project for the purpose of determining whether a

7-43 project meets this threshold.

8-1 (b) A building for the University and Community College System of

8-2 Nevada of which 25 percent or more of the costs of the building as a whole

8-3 are paid from money appropriated by the state or federal money.

8-4 [6.] 10. "Specialty contractor" means a contractor whose operations

8-5 as such are the performance of construction work requiring special skill

8-6 and whose principal contracting business involves the use of specialized

8-7 building trades or crafts.

8-8 11. "Stand-alone underground utility project" means an

8-9 underground utility project that is not integrated into a larger project,

8-10 including, without limitation:

8-11 (a) An underground sewer line or an underground pipeline for the

8-12 conveyance of water, including facilities appurtenant thereto; and

8-13 (b) A project for the construction or installation of a storm drain,

8-14 including facilities appurtenant thereto,

8-15 that is not located at the site of a public work for the completion of which

8-16 a public body is authorized to contract with a design-build team pursuant

8-17 to subsection 2 of section 2 of this act.

8-18 12. "Wages" means:

8-19 (a) The basic hourly rate of pay; and

8-20 (b) The amount of pension, health and welfare, vacation and holiday

8-21 pay, the cost of apprenticeship training or other similar programs or other

8-22 bona fide fringe benefits which are a benefit to the workman.

8-23 [7.] 13. "Workman" means a skilled mechanic, skilled workman,

8-24 semiskilled mechanic, semiskilled workman or unskilled workman. The

8-25 term does not include a design professional.

8-26 Sec. 11. NRS 338.143 is hereby amended to read as follows:

8-27 338.143 1. Except as otherwise provided in subsection 6 and NRS

8-43 contractor an equal opportunity to bid on a public works project. A

9-1 properly licensed contractor must submit a written request annually to the

9-2 public body to remain on the list. Offers for bids which are made pursuant

9-3 to this subsection must be sent by certified mail.

9-4 3. Approved plans and specifications for the bids must be on file at a

9-5 place and time stated in the advertisement for the inspection of all persons

9-6 desiring to bid thereon and for other interested persons. Contracts for the

9-7 project must be awarded on the basis of bids received.

9-8 4. Any or all bids received in response to an advertisement for bids

9-9 may be rejected if the person responsible for awarding the contract

9-10 determines that:

9-11 (a) The bidder is not responsive or responsible;

9-12 (b) The quality of the services, materials, equipment or labor offered

9-13 does not conform to the approved plan or specifications; or

9-14 (c) The public interest would be served by such a rejection.

9-15 5. Before an agency or political subdivision of the state may commence

9-16 a project subject to the provisions of this section, based upon a

9-17 determination that the public interest would be served by rejecting any bids

9-18 received in response to an advertisement for bids, it shall prepare and make

9-19 available for public inspection a written statement containing:

9-20 (a) A list of all persons, including supervisors, who the agency or

9-21 political subdivision intends to assign to the project, together with their

9-22 classifications and an estimate of the direct and indirect costs of their labor;

9-23 (b) A list of all equipment that the agency or political subdivision

9-24 intends to use on the project, together with an estimate of the number of

9-25 hours each item of equipment will be used and the hourly cost to use each

9-26 item of equipment;

9-27 (c) An estimate of the cost of administrative support for the persons

9-28 assigned to the project;

9-29 (d) An estimate of the total cost of the project; and

9-30 (e) An estimate of the amount of money the agency or political

9-31 subdivision expects to save by rejecting the bids and performing the project

9-32 itself.

9-33 6. This section does not apply to:

9-34 (a) Any utility subject to the provisions of chapter 318 or 710 of NRS;

9-35 (b) Any work of construction, reconstruction, improvement and

9-36 maintenance of highways subject to NRS 408.323 or 408.327;

9-37 (c) Normal maintenance of the property of a school district; [or]

9-38 (d) The Las Vegas Valley water district created pursuant to chapter 167,

9-39 Statutes of Nevada 1947 [.] ; or

9-40 (e) The design and completion of a public work for which a public

9-41 body contracts with a design-build team pursuant to sections 2 to 9,

9-42 inclusive, of this act.

10-1 Sec. 12. NRS 338.147 is hereby amended to read as follows:

10-2 338.147 1. [A] Except as otherwise provided in NRS 338.143 and

10-43 construction firm that possesses a:

11-1 (1) License as a general contractor pursuant to the provisions of

11-2 chapter 624 of NRS; and

11-3 (2) Certificate of eligibility to receive a preference in bidding on

11-4 public works.

11-5 4. For the purposes of complying with the requirements set forth in

11-6 paragraph (a) of subsection 3, a general contractor shall be deemed to

11-7 have paid:

11-8 (a) Sales and use taxes and motor vehicle privilege taxes paid in this

11-9 state by an affiliate or parent company of the contractor, if the affiliate

11-10 or parent company is also a general contractor; and

11-11 (b) Sales and use taxes paid in this state by a joint venture in which

11-12 the contractor is a participant, in proportion to the amount of interest the

11-13 contractor has in the joint venture.

11-14 5. A contractor who has received a certificate of eligibility to receive

11-15 a preference in bidding on public works from the state contractors’ board

11-16 pursuant to subsection 3 shall, at the time for the annual renewal of his

11-17 contractors’ license pursuant to NRS 624.283, submit to the board an

11-18 affidavit from a certified public accountant setting forth that the

11-19 contractor has, during the immediately preceding 12 months, paid the

11-20 taxes required pursuant to paragraph (a) of subsection 3 to maintain his

11-21 eligibility to hold such a certificate.

11-22 6. A contractor who fails to submit an affidavit to the board pursuant

11-23 to subsection 5 ceases to be eligible to receive a preference in bidding on

11-24 public works unless he reapplies for and receives a certificate of

11-25 eligibility pursuant to subsection 3.

11-26 7. If a contractor who applies to the state contractors’ board for a

11-27 certificate of eligibility to receive a preference in bidding on public works

11-28 submits false information to the board regarding the required payment of

11-29 taxes, the contractor is not eligible to receive a preference in bidding on

11-30 public works for a period of 5 years after the date on which the board

11-31 becomes aware of the submission of the false information.

11-32 8. If any federal statute or regulation precludes the granting of federal

11-33 assistance or reduces the amount of that assistance for a particular public

11-34 work because of the provisions of subsection 2, those provisions do not

11-35 apply insofar as their application would preclude or reduce federal

11-36 assistance for that work. The provisions of subsection 2 do not apply to any

11-37 contract for a public work which is expected to cost less than $250,000.

11-38 [5.] 9. Except as otherwise provided in [subsection 6,] paragraph (g)

11-39 of subsection 2 of section 5 of this act and paragraph (g) of subsection 2

11-40 of section 23 of this act, if a bid is submitted by two or more contractors as

11-41 a joint venture or by one of them as a joint venturer, the provisions of

11-42 subsection 2 apply only if both or all of the joint venturers separately meet

11-43 the requirements of that subsection.

12-1 [6. Except as otherwise provided in subsection 8, if a bid is submitted

12-2 by a joint venture and one or more of the joint venturers has responsibility

12-3 for the performance of the contract as described in subsection 7, the

12-4 provisions of subsection 2 apply only to those joint venturers who have

12-5 such responsibility.

12-6 7. For the purposes of subsection 6, a joint venturer has responsibility

12-7 for the performance of a contract if he has at least one of the following

12-8 duties or obligations delegated to him in writing in the contract creating the

12-9 joint venture:

12-10 (a) Supplying the labor necessary to perform the contract and paying the

12-11 labor and any related taxes and benefits;

12-12 (b) Supplying the equipment necessary to perform the contract and

12-13 paying any charges related to the equipment;

12-14 (c) Contracting with and making payments to any subcontractors; or

12-15 (d) Performing the recordkeeping for the joint venture and making any

12-16 payments to persons who provide goods or services related to the

12-17 performance of the contract.

12-18 8. The provisions of subsection 6 do not apply to a joint venture which

12-19 is formed for the sole purpose of circumventing any of the requirements of

12-20 this section.]

12-21 10. The state contractors’ board shall adopt regulations and may

12-22 assess reasonable fees relating to the certification of contractors for a

12-23 preference in bidding on public works.

12-24 11. A person or entity who believes that a contractor wrongfully

12-25 holds a certificate of eligibility to receive a preference in bidding on

12-26 public works may challenge the validity of the certificate by filing a

12-27 written objection with the public body to which the contractor has

12-28 submitted a bid or proposal on a contract for the completion of a public

12-29 work. A written objection authorized pursuant to this subsection must be

12-30 filed with the public body at or after the time at which the contractor

12-31 submitted the bid or proposal to the public body and before the time at

12-32 which the public body awards the contract for which the bid or proposal

12-33 was submitted. A public body that receives a written objection pursuant to

12-34 this subsection shall determine if the contractor qualifies for the

12-35 certificate pursuant to the provisions of this section and award the

12-36 contract accordingly.

12-37 Sec. 13. NRS 338.155 is hereby amended to read as follows:

12-38 338.155 [1.] If a public body enters into a contract with a design

12-43 the design professional.

13-1 [(2)] (b) The specific period and manner in which the public body

13-2 may dispute a payment or portion thereof that the design professional

13-3 alleges is due.

13-4 [(3)] (c) The terms of any penalty that will be imposed upon the

13-5 public body if the public body fails to pay the design professional within

13-6 the specific period set forth in the contract pursuant to [subparagraph (1).

13-7 (4)] paragraph (a).

13-8 (d) That the prevailing party in an action to enforce the contract is

13-9 entitled to reasonable attorney’s fees and costs.

13-10 [(b)] 2. May set forth the terms of any discount that the public body

13-11 will receive if the public body pays the design professional within the

13-12 specific period set forth in the contract pursuant to [subparagraph (1) of]

13-13 paragraph (a) [.

13-14 2. As used in this section, "design professional" means a person with a

13-15 professional license or certificate issued pursuant to chapter 623, 623A or

13-16 625 of NRS.] of subsection 1.

13-17 Sec. 14. Chapter 408 of NRS is hereby amended by adding thereto the

13-18 provisions set forth as sections 15 to 27, inclusive, of this act.

13-19 Sec. 15. As used in sections 15 to 27, inclusive, of this act, unless the

13-20 context otherwise requires, the words and terms defined in sections 16 to

13-21 19, inclusive, of this act have the meanings ascribed to them in those

13-22 sections.

13-23 Sec. 16. "Design-build contract" means a contract between the

13-24 department and a design-build team in which the design-build team

13-25 agrees to design and complete a project.

13-26 Sec. 17. "Design-build team" means an entity that consists of:

13-27 1. At least one person who is licensed as a general engineering

13-28 contractor or a general building contractor pursuant to NRS 624.230 to

13-29 624.320, inclusive; and

13-30 2. At least one person who holds a certificate of registration to

13-31 practice architecture pursuant to chapter 623 of NRS or is licensed as a

13-32 professional engineer pursuant to chapter 625 of NRS.

13-33 Sec. 18. "Prime contractor" means a person who:

13-34 1. Contracts to complete an entire project;

13-35 2. Coordinates all work performed on the entire project;

13-36 3. Uses his own work force to perform all or a part of the completion

13-37 of the project; and

13-38 4. Contracts for the services of any subcontractor or independent

13-39 contractor or is responsible for payment to any contracted subcontractors

13-40 or independent contractors.

13-41 Sec. 19. "Project" means a project for the construction,

13-42 reconstruction or improvement of a highway.

14-1 Sec. 20. 1. The department may contract with a design-build team

14-2 for the design and completion of a project if the department determines

14-3 that:

14-4 (a) The estimated cost of the project exceeds $30,000,000; and

14-5 (b) Contracting with a design-build team will enable the department

14-6 to:

14-7 (1) Complete the project constructed at a cost that is significantly

14-8 lower than the cost that the department would incur to complete the

14-9 project using a different method;

14-10 (2) Complete the project constructed in a shorter time than would

14-11 be required to complete the project constructed using a different method,

14-12 if exigent circumstances require that the project be constructed within a

14-13 short time; or

14-14 (3) Ensure that the design and completion of the project is properly

14-15 coordinated, if the project is unique, highly technical and complex in

14-16 nature.

14-17 2. The department shall not enter into more than a total of two

14-18 contracts with design-build teams for the completion of projects in any

14-19 fiscal year.

14-20 Sec. 21. 1. The department shall not contract with a design-build

14-21 team with respect to a project unless the board makes the determinations,

14-22 at a public hearing, that are required pursuant to section 20 of this act.

14-23 2. If the department is required to hold a public hearing pursuant to

14-24 this section, the department shall publish notice of the hearing at least

14-25 once each week for 3 consecutive weeks in:

14-26 (a) A newspaper of general circulation published in each county in

14-27 which the project is proposed to be completed or, if there is no such

14-28 newspaper, in a newspaper of general circulation in each county

14-29 published in this state; and

14-30 (b) A newspaper of general circulation in this state.

14-31 Sec. 22. If the department desires to contract with a design-build

14-32 team pursuant to sections 20 and 21 of this act, the department must

14-33 select the design-build team in accordance with sections 23 to 26,

14-34 inclusive, of this act.

14-35 Sec. 23. 1. The department shall advertise for preliminary

14-36 proposals for the design and completion of a project by a design-build

14-37 team at least twice each week for 3 consecutive weeks in:

14-38 (a) A newspaper of general circulation published in each county in

14-39 which the project is proposed to be completed or, if there is no such

14-40 newspaper, in a newspaper of general circulation in each county

14-41 published in this state; and

14-42 (b) A newspaper of general circulation in this state.

15-1 2. A request for preliminary proposals published pursuant to

15-2 subsection 1 must include, without limitation:

15-3 (a) A description of the proposed project;

15-4 (b) Separate estimates of the costs of designing and completing the

15-5 project;

15-6 (c) The dates on which it is anticipated that the separate phases of the

15-7 design and completion of the project will begin and end;

15-8 (d) A statement setting forth the place and time in which a design-

15-9 build team desiring to bid on the project may obtain specifications for

15-10 bids and other information necessary to bid on the project;

15-11 (e) A list of the requirements set forth in section 24 of this act;

15-12 (f) A list of the factors that the department will use to evaluate design-

15-13 build teams who bid on the project, including, without limitation:

15-14 (1) The relative weight to be assigned to each factor; and

15-15 (2) A disclosure of whether the factors that are not related to cost

15-16 are, when considered as a group, more or less important in the process of

15-17 evaluation than the factor of cost;

15-18 (g) A statement setting forth that a design-build team whose prime

15-19 contractor holds a certificate of eligibility to receive a preference in

15-20 bidding on public works issued pursuant to NRS 338.147 shall be deemed

15-21 to have submitted a better proposal than a competing design-build team

15-22 whose prime contractor does not hold such a certificate of eligibility if

15-23 the amount of the bid of the design-build team is not more than 5 percent

15-24 higher than the amount bid by the competing design-build team;

15-25 (h) Notice that a design-build team desiring to bid on the project must

15-26 include with its bid the information used by the department to determine

15-27 finalists among the design-build teams that bid pursuant to subsection 2

15-28 of section 25 of this act and a description of that information;

15-29 (i) A statement as to whether a design-build team that submits a bid

15-30 and is selected as a finalist pursuant to section 25 of this act but is not

15-31 awarded the design-build contract pursuant to section 26 of this act will

15-32 be partially reimbursed for the cost of preparing a final proposal and, if

15-33 so, an estimate of the amount of the partial reimbursement; and

15-34 (j) The date by which preliminary proposals must be submitted to the

15-35 department, which must not be less than 30 days or more than 60 days

15-36 after the date on which the request for preliminary proposals is first

15-37 published in a newspaper pursuant to subsection 1.

15-38 Sec. 24. To qualify to participate in the design and completion of a

15-39 project for the department, a design-build team must:

15-40 1. Obtain a performance bond and payment bond as the department

15-41 may require;

15-42 2. Obtain insurance covering general liability and liability for errors

15-43 and omissions;

16-1 3. Not have been found liable for breach of contract with respect to a

16-2 previous project, other than a breach for legitimate cause;

16-3 4. Not have been disqualified from being awarded a contract

16-4 pursuant to NRS 338.017, 338.145 or 408.333; and

16-5 5. Ensure that the members of the design-build team possess the

16-6 licenses and certificates required to carry out the functions of their

16-7 respective professions within this state.

16-8 Sec. 25. 1. Except as otherwise provided in this subsection, within

16-9 30 days after the date by which preliminary proposals must be submitted

16-10 to the department, the department shall select at least three but not more

16-11 than five finalists that the department determines to be qualified

16-12 pursuant to this section and section 24 of this act from among the design-

16-13 build teams that submitted preliminary proposals. If the department

16-14 receives only two preliminary proposals from design-build teams that the

16-15 department determines to be qualified pursuant to this section and

16-16 section 24 of this act, the department shall select both of those design-

16-17 build teams as finalists. If the department does not receive at least two

16-18 preliminary proposals from design-build teams that the department

16-19 determines to be qualified pursuant to this section and section 24 of this

16-20 act, the department may not contract with a design-build team for the

16-21 design and completion of the project.

16-22 2. The department shall select finalists pursuant to subsection 1 by:

16-23 (a) Verifying that each design-build team which submitted a

16-24 preliminary proposal satisfies the requirements of section 24 of this act;

16-25 and

16-26 (b) Conducting an evaluation of the qualifications of each design-

16-27 build team that submitted a preliminary proposal, including, without

16-28 limitation, an evaluation of:

16-29 (1) The professional qualifications and experience of the members

16-30 of the design-build team;

16-31 (2) The performance history of the members of the design-build

16-32 team concerning other recent, similar projects completed by those

16-33 members, if any;

16-34 (3) The safety programs established and the safety records

16-35 accumulated by the members of the design-build team; and

16-36 (4) The proposed plan of the design-build team to manage the

16-37 design and completion of the project that sets forth in detail the ability of

16-38 the design-build team to design and complete the project.

16-39 Sec. 26. 1. After selecting the finalists pursuant to section 25 of

16-40 this act, the department shall provide to each finalist a request for final

16-41 proposals for the project. The request for final proposals must:

17-1 (a) Set forth the factors that the department will use to select a design-

17-2 build team to design and complete the project, including the relative

17-3 weight to be assigned to each factor;

17-4 (b) Set forth the date by which final proposals must be submitted to

17-5 the department; and

17-6 (c) Include a statement setting forth that a design-build team whose

17-7 prime contractor holds a certificate of eligibility to receive a preference

17-8 in bidding on public works issued pursuant to NRS 338.147 shall be

17-9 deemed to have submitted a better final proposal than a competing

17-10 design-build team whose prime contractor does not hold such a

17-11 certificate of eligibility if the amount of the bid of the design-build team

17-12 is not more than 5 percent higher than the amount bid by the competing

17-13 design-build team.

17-14 2. A final proposal submitted by a design-build team pursuant to this

17-15 section must be prepared thoroughly and be responsive to the criteria

17-16 that the department will use to select a design-build team to design and

17-17 complete the project described in subsection 1.

17-18 3. Within 30 days after receiving the final proposals for the project,

17-19 the department shall:

17-20 (a) Select the most cost-effective and responsive final proposal, using

17-21 the criteria set forth pursuant to subsection 1; or

17-22 (b) Reject all the final proposals.

17-23 4. If the department selects a final proposal pursuant to paragraph

17-24 (a) of subsection 3, the department shall hold a public meeting to:

17-25 (a) Review and ratify the selection.

17-26 (b) Award the design-build contract to the design-build team whose

17-27 proposal is selected.

17-28 (c) Partially reimburse the unsuccessful finalists if partial

17-29 reimbursement was provided for in the request for preliminary proposals

17-30 pursuant to paragraph (i) of subsection 2 of section 23 of this act. The

17-31 amount of reimbursement must not exceed, for each unsuccessful

17-32 finalist, three percent of the total amount to be paid to the design-build

17-33 team as set forth in the design-build contract.

17-34 (d) Make available to the public a summary setting forth the factors

17-35 used by the department to select the successful design-build team, the

17-36 relative weight assigned to each factor and the ranking of the design-

17-37 build teams who submitted final proposals. The department shall not

17-38 release to a third party, or otherwise make public, financial or

17-39 proprietary information submitted by a design-build team.

17-40 5. A design-build team to whom a contract is awarded pursuant to

17-41 this section shall:

17-42 (a) Assume overall responsibility for ensuring that the design and

17-43 completion of the project is completed in a satisfactory manner; and

18-1 (b) Use the work force of the prime contractor on the design-build

18-2 team to complete at least 15 percent of the completion of the project.

18-3 Sec. 27. The department may employ a registered architect or

18-4 licensed professional engineer as a consultant to assist the department in

18-5 overseeing the completion of a project. An architect or engineer so

18-6 employed shall not:

18-7 1. Design, construct, reconstruct or improve the highway; or

18-8 2. Assume overall responsibility for ensuring that the design or

18-9 completion of the project is completed in a satisfactory manner.

18-10 Sec. 28. NRS 408.215 is hereby amended to read as follows:

18-11 408.215 1. The director has charge of all the records of the

18-25 carry out and enforce the provisions of this chapter.

18-26 Sec. 29. NRS 408.317 is hereby amended to read as follows:

18-27 408.317 1. [All] Except as otherwise provided in sections 15 to 27,

18-34 department must be paid out of the state highway fund.

18-35 Sec. 30. NRS 408.327 is hereby amended to read as follows:

18-36 408.327 Except as otherwise provided in sections 15 to 27, inclusive,

18-43 the plans and specifications.

19-1 3. Publication of the advertisement must be made at least once a week

19-2 for 2 consecutive weeks for a total of at least two publications in a

19-3 newspaper of general circulation in the county in which the major portion

19-4 of the proposed improvement or construction is to be made, and the

19-5 advertisement must also be published at least once a week for 2 consecutive

19-6 weeks for a total of at least two publications in one or more daily papers of

19-7 general circulation throughout the state. The first publication of the

19-8 advertisement in the daily newspapers having general circulation

19-9 throughout the state must be made not less than 15 days before the time set

19-10 for opening bids.

19-11 Sec. 31. NRS 408.333 is hereby amended to read as follows:

19-12 408.333 Except as otherwise provided in sections 15 to 27, inclusive,

19-42 privileges of all other bidders.

20-1 Sec. 32. NRS 408.337 is hereby amended to read as follows:

20-2 408.337 Except as otherwise provided in sections 15 to 27, inclusive,

20-28 10 days after the contract is awarded.

20-29 Sec. 33. NRS 408.343 is hereby amended to read as follows:

20-30 408.343 Except as otherwise provided in sections 15 to 27, inclusive,

20-42 bid before the time stated in the advertisement.

21-1 4. The department may reject any bid or all bids if, in the opinion of

21-2 the department, the bids are unbalanced, incomplete, contain irregularities

21-3 of any kind or for any good cause.

21-4 5. Until the final award of the contract, the department may reject or

21-5 accept any bids and may waive technical errors contained in the bids, as

21-6 may be deemed best for the interests of the state.

21-7 6. In awarding a contract, the department shall make the award to the

21-8 lowest responsible bidder who has qualified and submitted his bid in

21-9 accordance with the provisions of this chapter.

21-10 Sec. 34. NRS 625.530 is hereby amended to read as follows:

21-11 625.530 Except as otherwise provided in sections 2 to 9, inclusive,

21-39 select another engineer, land surveyor or architect.

21-40 Sec. 35. NRS 341.161 and 341.171 are hereby repealed.

21-41 Sec. 36. 1. The legislative commission is hereby directed to appoint

21-42 an interim committee to conduct an interim study of the use of design-build

21-43 contracting within this state.

22-1 2. The interim committee appointed pursuant to subsection 1 must be

22-2 composed of seven members selected as follows:

22-3 (a) Two members of the Senate, one of whom served during the 70th

22-4 legislative session on the Senate Standing Committee on Government

22-5 Affairs.

22-6 (b) Two members of the Assembly, one of whom served during the 70th

22-7 legislative session on the Assembly Standing Committee on Government

22-8 Affairs.

22-9 (c) One member to represent the interests of design professionals.

22-10 (d) One member to represent the interests of public agencies.

22-11 (e) One member to represent the interests of builders and contractors.

22-12 3. The interim committee appointed pursuant to subsection 1 shall:

22-13 (a) Examine the methods of design-build contracting that are authorized

22-14 to be used pursuant to the provisions of this act;

22-15 (b) In cooperation with the consultant hired by the director of the

22-16 legislative counsel bureau pursuant to subsection 4:

22-17 (1) Establish criteria to evaluate methods of design-build contracting;

22-18 and

22-19 (2) Use those criteria to evaluate the methods of design-build

22-20 contracting that are authorized to be used pursuant to the provisions of this

22-21 act; and

22-22 (c) Submit a report regarding its findings to the 72nd session of the

22-23 Nevada Legislature, accompanied by any suggestions for legislation that

22-24 the interim committee determines to be advisable.

22-25 4. The director of the legislative counsel bureau shall select and hire a

22-26 consultant to assist the interim committee in carrying out the duties set forth

22-27 in paragraph (b) of subsection 3.

22-28 5. As used in this section, "design professional" means a person with a

22-29 professional license or certificate issued pursuant to chapter 623, 623A or

22-30 625 of NRS.

22-31 Sec. 37. This act expires by limitation on October 1, 2003.

22-32 TEXT OF REPEALED SECTIONS

22-33 341.161 Contracts for contractor’s services which assist architect

22-39 in regular or special session, let to a contractor licensed under chapter 624

23-1 of NRS a contract for services which assist the architect in the design of a

23-2 project of capital improvement. The board shall for that purpose participate

23-3 in the development of plans, outlines of specifications and estimates of

23-4 costs.

23-5 2. The board shall adopt regulations establishing procedures for:

23-6 (a) The determination of the qualifications of contractors to bid for

23-7 contracts for services described in subsection 1.

23-8 (b) The bidding and awarding of such contracts, subject to the

23-9 provisions of subsection 3.

23-10 (c) The awarding of construction contracts, subject to the provisions of

23-11 subsection 4, based on a final cost of the project which the contractor

23-12 guarantees will not be exceeded.

23-13 (d) The scheduling and controlling of projects.

23-14 3. Bids on contracts for services which assist the architect in the design

23-15 of a project of capital improvement must state separately the contractor’s

23-16 cost for:

23-17 (a) Assisting the architect in the design of the project.

23-18 (b) Obtaining all bids for subcontracts.

23-19 (c) Administering the construction contract.

23-20 4. A contractor who is:

23-21 (a) Qualified under the regulations of the board to bid for a contract for

23-22 services described in subsection 1; and

23-23 (b) Awarded that contract,

23-24 is entitled to be awarded the construction contract for the project if his

23-25 work under the contract for services is satisfactory to the board and he

23-26 guarantees a final cost for the project which the board is willing to accept.

23-27 5. A person who furnishes services under a contract awarded pursuant

23-28 to subsection 1 is a contractor subject to all provisions pertaining to a

23-29 contractor in Title 28 of NRS.

23-30 341.171 Single contract for design and construction of capital

23-43 consult with the American Institute of Architects and the Associated

24-1 General Contractors, or the successor of either if the named organization

24-2 ceases to exist, before adopting procedures under this paragraph.

24-3 (b) The board’s approval of designs and architects employed in a

24-4 project.

24-5 (c) The bidding and awarding of contracts for the design and

24-6 construction of projects based on a final cost of the project which the

24-7 contractor guarantees will not be exceeded.

24-8 (d) The scheduling and controlling of projects.