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 construction of a

1-5 public 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 construction 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) Design and construct the public work at a cost that is

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

2-8 design and construct the public work using a different method;

2-9 (2) Design and construct the public work in a shorter time than

2-10 would be required to design and construct the public work using a

2-11 different method, if exigent circumstances require that the public work

2-12 be designed and constructed within a short time; or

2-13 (3) Ensure that the design and construction 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; or

2-26 (4) Landscaping.

2-27 Sec. 3. 1. A public body shall not contract with a design-build team

2-28 with respect to a public work unless the governing body of the public

2-29 body makes the determinations, at a public hearing, that are required

2-30 pursuant to subsection 2 or 3 of section 2 of this act, as applicable.

2-31 2. A public body that is required to hold a public hearing pursuant to

2-32 this section shall publish notice of the hearing at least once each week

2-33 for 3 consecutive weeks in:

2-34 (a) A newspaper of general circulation published in the county in

2-35 which the public work is proposed to be constructed or, if there is no such

2-36 newspaper, in a newspaper of general circulation in the county published

2-37 in this state; and

2-38 (b) A newspaper of general circulation in this state.

2-39 Sec. 4. 1. A public body that is required to contract with a prime

2-40 contractor pursuant to subsection 1 of section 2 of this act or elects to

2-41 contract with a specialty contractor pursuant to subsection 3 of section 2

2-42 of this act shall select the prime contractor or specialty contractor, as

3-1 appropriate, in accordance with the procedures for bidding that are set

3-2 forth in NRS 338.140 to 338.147, inclusive.

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

3-4 sections 2 and 3 of this act shall select the design-build team in

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

3-6 Sec. 5. 1. A public body shall advertise for preliminary proposals

3-7 for the design and construction of a public work by a design-build team

3-8 at least twice each week for 3 consecutive weeks in:

3-9 (a) A newspaper of general circulation published in the county in

3-10 which the public work is proposed to be constructed or, if there is no such

3-11 newspaper, in a newspaper of general circulation in the county published

3-12 in this state; and

3-13 (b) A newspaper of general circulation in this state.

3-14 2. A request for preliminary proposals published pursuant to

3-15 subsection 1 must include, without limitation:

3-16 (a) A description of the public work to be designed and constructed;

3-17 (b) Separate estimates of the costs of designing and constructing the

3-18 public work;

3-19 (c) The dates on which it is anticipated that the separate phases of the

3-20 design and construction of the public work will begin and end;

3-21 (d) A statement setting forth the place and time in which a design-

3-22 build team desiring to bid on the public work may obtain specifications

3-23 for bids and other information necessary to bid on the public work;

3-24 (e) A list of the requirements set forth in section 6 of this act;

3-25 (f) A list of the factors that the public body will use to evaluate design-

3-26 build teams who bid on the public work, including, without limitation:

3-27 (1) The relative weight to be assigned to each factor; and

3-28 (2) A disclosure of whether the factors that are not related to cost

3-29 are, when considered as a group, more or less important in the process of

3-30 evaluation than the factor of cost;

3-31 (g) A statement setting forth that a design-build team whose prime

3-32 contractor holds a certificate of eligibility to receive a preference in

3-33 bidding on public works issued pursuant to NRS 338.147 shall be deemed

3-34 to have submitted a better proposal than a competing design-build team

3-35 whose prime contractor does not hold such a certificate of eligibility if

3-36 the amount of the bid of the design-build team is not more than 5 percent

3-37 higher than the amount bid by the competing design-build team;

3-38 (h) Notice that a design-build team desiring to bid on the public work

3-39 must include with its bid the information used by the public body to

3-40 determine finalists among the bidding design-build teams pursuant to

3-41 subsection 2 of section 7 of this act and a description of that information;

3-42 (i) A statement as to whether a bidding design-build team that is

3-43 selected as a finalist pursuant to section 7 of this act but is not awarded

4-1 the design-build contract pursuant to section 8 of this act will be partially

4-2 reimbursed for the cost of preparing a final proposal and, if so, an

4-3 estimate of the amount of the partial reimbursement; and

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

4-5 public body, which must not be less than 30 days or more than 60 days

4-6 after the date on which the request for preliminary proposals is first

4-7 published in a newspaper pursuant to subsection 1.

4-8 Sec. 6. To qualify to participate in a project for the design and

4-9 construction of a public work, a design-build team must:

4-10 1. Obtain a performance bond and payment bond as required

4-11 pursuant to NRS 339.025;

4-12 2. Obtain insurance covering general liability and liability for errors

4-13 and omissions;

4-14 3. Not have been found liable for breach of contract with respect to a

4-15 previous project, other than a breach for legitimate cause;

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

4-17 pursuant to NRS 338.017, 338.145 or 408.333; and

4-18 5. Ensure that the members of the design-build team possess the

4-19 licenses and certificates required to carry out the functions of their

4-20 respective professions within this state.

4-21 Sec. 7. 1. Within 30 days after the date by which preliminary

4-22 proposals must be submitted to the public body, the public body shall

4-23 select at least three but not more than five finalists from among the

4-24 design-build teams that submitted preliminary proposals. If the public

4-25 body does not receive at least three preliminary proposals from design-

4-26 build teams that the public body determines to be qualified pursuant to

4-27 this section and section 6 of this act, the public body may not contract

4-28 with a design-build team for the design and construction of the public

4-29 work.

4-30 2. The public body shall select finalists pursuant to subsection 1 by:

4-31 (a) Verifying that each design-build team which submitted a

4-32 preliminary proposal satisfies the requirements of section 6 of this act;

4-33 and

4-34 (b) Conducting an evaluation of the qualifications of each design-

4-35 build team that submitted a preliminary proposal, including, without

4-36 limitation, an evaluation of:

4-37 (1) The professional qualifications and experience of the members

4-38 of the design-build team;

4-39 (2) The performance history of the members of the design-build

4-40 team concerning other recent, similar projects completed by those

4-41 members, if any;

4-42 (3) The safety programs established and the safety records

4-43 accumulated by the members of the design-build team; and

5-1 (4) The proposed plan of the design-build team to manage the

5-2 design and construction of the public work that sets forth in detail the

5-3 ability of the design-build team to design and construct the public work.

5-4 Sec. 8. 1. After selecting the finalists pursuant to section 7 of this

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

5-6 proposals for the public work. The request for final proposals must:

5-7 (a) Set forth the factors that the public body will use to select a design-

5-8 build team to design and construct the public work, including the relative

5-9 weight to be assigned to each factor; and

5-10 (b) Set forth the date by which final proposals must be submitted to

5-11 the public body.

5-12 2. A final proposal submitted by a design-build team pursuant to this

5-13 section must be prepared thoroughly, be responsive to the criteria that the

5-14 public body will use to select a design-build team to design and construct

5-15 the public work described in subsection 1 and comply with the provisions

5-16 of NRS 338.144.

5-17 3. Within 30 days after receiving the final proposals for the public

5-18 work, the public body shall:

5-19 (a) Select the most cost-effective and responsive final proposal, using

5-20 the criteria set forth pursuant to subsection 1; or

5-21 (b) Reject all the final proposals.

5-22 4. If a public body selects a final proposal pursuant to paragraph (a)

5-23 of subsection 3, the public body shall, at its next regularly scheduled

5-24 meeting:

5-25 (a) Review and ratify the selection.

5-26 (b) Award the design-build contract to the design-build team whose

5-27 proposal is selected.

5-28 (c) Partially reimburse the unsuccessful finalists if partial

5-29 reimbursement was provided for in the request for preliminary proposals

5-30 pursuant to paragraph (i) of subsection 2 of section 5 of this act. The

5-31 amount of reimbursement must not exceed, for each unsuccessful

5-32 finalist, three percent of the total amount to be paid to the design-build

5-33 team as set forth in the design-build contract.

5-34 (d) Make available to the public a summary setting forth the factors

5-35 used by the public body to select the successful design-build team, the

5-36 relative weight assigned to each factor and the ranking of the design-

5-37 build teams who submitted final proposals. The public body shall not

5-38 release to a third party, or otherwise make public, financial or

5-39 proprietary information submitted by a design-build team.

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

5-41 this section shall:

6-1 (a) Assume overall responsibility for ensuring that the design and

6-2 construction of the public work is completed in a satisfactory manner;

6-3 and

6-4 (b) Use the work force of the prime contractor on the design-build

6-5 team to construct at least 15 percent of the public work.

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

6-7 professional engineer as a consultant to assist the public body in

6-8 overseeing the construction of a public work. An architect or engineer so

6-9 employed shall not:

6-10 1. Design or construct the public work; or

6-11 2. Assume overall responsibility for ensuring that the design or

6-12 construction of the public work is completed in a satisfactory manner.

6-13 Sec. 10. NRS 338.010 is hereby amended to read as follows:

6-14 338.010 As used in this chapter:

6-42 (b) Coordinates all work performed on the entire project;

7-1 (c) Uses his own workforce to perform all or a part of the

7-2 construction, repair or reconstruction of the project; and

7-3 (d) Contracts for the services of any subcontractor or independent

7-4 contractor or is responsible for payment to any contracted subcontractors

7-5 or independent contractors.

7-6 8. "Public body" means the state, county, city, town, school district or

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

7-8 financing a public work.

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

7-10 repair or reconstruction of:

7-11 (a) A project financed in whole or in part from public money for:

7-12 (1) Public buildings;

7-13 (2) Jails and prisons;

7-14 (3) Public roads;

7-15 (4) Public highways;

7-16 (5) Public streets and alleys;

7-17 (6) Public utilities which are financed in whole or in part by public

7-18 money;

7-19 (7) Publicly owned water mains and sewers;

7-20 (8) Public parks and playgrounds;

7-21 (9) Public convention facilities which are financed at least in part with

7-22 public funds; and

7-23 (10) All other publicly owned works and property whose cost as a

7-24 whole exceeds $20,000. Each separate unit which is a part of a project is

7-25 included in the cost of the project for the purpose of determining whether a

7-26 project meets this threshold.

7-27 (b) A building for the University and Community College System of

7-28 Nevada of which 25 percent or more of the costs of the building as a whole

7-29 are paid from money appropriated by the state or federal money.

7-30 [6.] 10. "Specialty contractor" means a contractor whose operations

7-31 as such are the performance of construction work requiring special skill

7-32 and whose principal contracting business involves the use of specialized

7-33 building trades or crafts.

7-34 11. "Stand-alone underground utility project" means an

7-35 underground utility project that is not integrated into a larger project,

7-36 including, without limitation:

7-37 (a) An underground sewer line or an underground pipeline for the

7-38 conveyance of water, including facilities appurtenant thereto; and

7-39 (b) A project for the construction or installation of a storm drain,

7-40 including facilities appurtenant thereto,

7-41 that is not located at the site of a public work for the design and

7-42 construction of which a public body is authorized to contract with a

7-43 design-build team pursuant to subsection 2 of section 2 of this act.

8-1 12. "Wages" means:

8-2 (a) The basic hourly rate of pay; and

8-3 (b) The amount of pension, health and welfare, vacation and holiday

8-4 pay, the cost of apprenticeship training or other similar programs or other

8-5 bona fide fringe benefits which are a benefit to the workman.

8-6 [7.] 13. "Workman" means a skilled mechanic, skilled workman,

8-7 semiskilled mechanic, semiskilled workman or unskilled workman. The

8-8 term does not include a design professional.

8-9 Sec. 11. NRS 338.143 is hereby amended to read as follows:

8-10 338.143 1. Except as otherwise provided in subsection 6 and NRS

8-43 determination that the public interest would be served by rejecting any bids

9-1 received in response to an advertisement for bids, it shall prepare and make

9-2 available for public inspection a written statement containing:

9-3 (a) A list of all persons, including supervisors, who the agency or

9-4 political subdivision intends to assign to the project, together with their

9-5 classifications and an estimate of the direct and indirect costs of their labor;

9-6 (b) A list of all equipment that the agency or political subdivision

9-7 intends to use on the project, together with an estimate of the number of

9-8 hours each item of equipment will be used and the hourly cost to use each

9-9 item of equipment;

9-10 (c) An estimate of the cost of administrative support for the persons

9-11 assigned to the project;

9-12 (d) An estimate of the total cost of the project; and

9-13 (e) An estimate of the amount of money the agency or political

9-14 subdivision expects to save by rejecting the bids and performing the project

9-15 itself.

9-16 6. This section does not apply to:

9-17 (a) Any utility subject to the provisions of chapter 318 or 710 of NRS;

9-18 (b) Any work of construction, reconstruction, improvement and

9-19 maintenance of highways subject to NRS 408.323 or 408.327;

9-20 (c) Normal maintenance of the property of a school district; [or]

9-21 (d) The Las Vegas Valley water district created pursuant to chapter 167,

9-22 Statutes of Nevada 1947 [.] ; or

9-23 (e) The design and construction of a public work for which a public

9-24 body contracts with a design-build team pursuant to sections 2 to 9,

9-25 inclusive, of this act.

9-26 Sec. 12. NRS 338.143 is hereby amended to read as follows:

9-27 338.143 1. Except as otherwise provided in subsection 6, an agency

9-43 contractor an equal opportunity to bid on a public works project. A

10-1 properly licensed contractor must submit a written request annually to the

10-2 public body to remain on the list. Offers for bids which are made pursuant

10-3 to this subsection must be sent by certified mail.

10-4 3. Approved plans and specifications for the bids must be on file at a

10-5 place and time stated in the advertisement for the inspection of all persons

10-6 desiring to bid thereon and for other interested persons. Contracts for the

10-7 project must be awarded on the basis of bids received.

10-8 4. Any or all bids received in response to an advertisement for bids

10-9 may be rejected if the person responsible for awarding the contract

10-10 determines that:

10-11 (a) The bidder is not responsive or responsible;

10-12 (b) The quality of the services, materials, equipment or labor offered

10-13 does not conform to the approved plan or specifications; or

10-14 (c) The public interest would be served by such a rejection.

10-15 5. Before an agency or political subdivision of the state may commence

10-16 a project subject to the provisions of this section, based upon a

10-17 determination that the public interest would be served by rejecting any bids

10-18 received in response to an advertisement for bids, it shall prepare and make

10-19 available for public inspection a written statement containing:

10-20 (a) A list of all persons, including supervisors, who the agency or

10-21 political subdivision intends to assign to the project, together with their

10-22 classifications and an estimate of the direct and indirect costs of their labor;

10-23 (b) A list of all equipment that the agency or political subdivision

10-24 intends to use on the project, together with an estimate of the number of

10-25 hours each item of equipment will be used and the hourly cost to use each

10-26 item of equipment;

10-27 (c) An estimate of the cost of administrative support for the persons

10-28 assigned to the project;

10-29 (d) An estimate of the total cost of the project; and

10-30 (e) An estimate of the amount of money the agency or political

10-31 subdivision expects to save by rejecting the bids and performing the project

10-32 itself.

10-33 6. This section does not apply to:

10-34 (a) Any utility subject to the provisions of chapter 318 or 710 of NRS;

10-35 (b) Any work of construction, reconstruction, improvement and

10-36 maintenance of highways subject to NRS 408.323 or 408.327;

10-37 (c) Normal maintenance of the property of a school district; [or]

10-38 (d) The Las Vegas Valley water district created pursuant to chapter 167,

10-39 Statutes of Nevada 1947 [.] ; or

10-40 (e) The design and construction of a public work for which a public

10-41 body contracts with a design-build team pursuant to sections 2 to 9,

10-42 inclusive, of this act.

11-1 Sec. 13. NRS 338.147 is hereby amended to read as follows:

11-2 338.147 1. [A] Except as otherwise provided in NRS 338.143 and

11-41 4.] ; or

12-1 (b) Acquired, by inheritance, gift or transfer through a stock option

12-2 plan for employees, all the assets and liabilities of a viable, operating

12-3 construction firm that possesses a:

12-4 (1) License as a general contractor pursuant to the provisions of

12-5 chapter 624 of NRS; and

12-6 (2) Certificate of eligibility to receive a preference in bidding on

12-7 public works.

12-8 4. For the purposes of complying with the requirements set forth in

12-9 paragraph (a) of subsection 3, a general contractor shall be deemed to

12-10 have paid:

12-11 (a) Sales and use taxes and motor vehicle privilege taxes paid in this

12-12 state by an affiliate or parent company of the contractor, if the affiliate

12-13 or parent company is also a general contractor; and

12-14 (b) Sales and use taxes paid in this state by a joint venture in which

12-15 the contractor is a participant, in proportion to the amount of interest the

12-16 contractor has in the joint venture.

12-17 5. A contractor who has received a certificate of eligibility to receive

12-18 a preference in bidding on public works from the state contractors’ board

12-19 pursuant to subsection 3 shall, at the time for the annual renewal of his

12-20 contractors’ license pursuant to NRS 624.283, submit to the board an

12-21 affidavit from a certified public accountant setting forth that the

12-22 contractor has, during the immediately preceding 12 months, paid the

12-23 taxes required pursuant to paragraph (a) of subsection 3 to maintain his

12-24 eligibility to hold such a certificate.

12-25 6. A contractor who fails to submit an affidavit to the board pursuant

12-26 to subsection 5 ceases to be eligible to receive a preference in bidding on

12-27 public works unless he reapplies for and receives a certificate of

12-28 eligibility pursuant to subsection 3.

12-29 7. If a contractor who applies to the state contractors’ board for a

12-30 certificate of eligibility to receive a preference in bidding on public works

12-31 submits false information to the board regarding the required payment of

12-32 taxes, the contractor is not eligible to receive a preference in bidding on

12-33 public works for a period of 5 years after the date on which the board

12-34 becomes aware of the submission of the false information.

12-35 8. If any federal statute or regulation precludes the granting of federal

12-36 assistance or reduces the amount of that assistance for a particular public

12-37 work because of the provisions of subsection 2, those provisions do not

12-38 apply insofar as their application would preclude or reduce federal

12-39 assistance for that work. The provisions of subsection 2 do not apply to any

12-40 contract for a public work which is expected to cost less than $250,000.

12-41 [5.] 9. Except as otherwise provided in [subsection 6,] paragraph (g)

12-42 of subsection 2 of section 5 of this act and paragraph (g) of subsection 2

12-43 of section 24 of this act, if a bid is submitted by two or more contractors as

13-1 a joint venture or by one of them as a joint venturer, the provisions of

13-2 subsection 2 apply only if both or all of the joint venturers separately meet

13-3 the requirements of that subsection.

13-4 [6. Except as otherwise provided in subsection 8, if a bid is submitted

13-5 by a joint venture and one or more of the joint venturers has responsibility

13-6 for the performance of the contract as described in subsection 7, the

13-7 provisions of subsection 2 apply only to those joint venturers who have

13-8 such responsibility.

13-9 7. For the purposes of subsection 6, a joint venturer has responsibility

13-10 for the performance of a contract if he has at least one of the following

13-11 duties or obligations delegated to him in writing in the contract creating the

13-12 joint venture:

13-13 (a) Supplying the labor necessary to perform the contract and paying the

13-14 labor and any related taxes and benefits;

13-15 (b) Supplying the equipment necessary to perform the contract and

13-16 paying any charges related to the equipment;

13-17 (c) Contracting with and making payments to any subcontractors; or

13-18 (d) Performing the recordkeeping for the joint venture and making any

13-19 payments to persons who provide goods or services related to the

13-20 performance of the contract.

13-21 8. The provisions of subsection 6 do not apply to a joint venture which

13-22 is formed for the sole purpose of circumventing any of the requirements of

13-23 this section.]

13-24 10. The state contractors’ board shall adopt regulations and may

13-25 assess reasonable fees relating to the certification of contractors for a

13-26 preference in bidding on public works.

13-27 11. A person or entity who believes that a contractor wrongfully

13-28 holds a certificate of eligibility to receive a preference in bidding on

13-29 public works may challenge the validity of the certificate by filing a

13-30 written objection with the public body to which the contractor has

13-31 submitted a bid or proposal on a contract for the construction of a public

13-32 work. A written objection authorized pursuant to this subsection must be

13-33 filed with the public body at or after the time at which the contractor

13-34 submitted the bid or proposal to the public body and before the time at

13-35 which the public body awards the contract for which the bid or proposal

13-36 was submitted. A public body that receives a written objection pursuant to

13-37 this subsection shall determine if the contractor qualifies for the

13-38 certificate pursuant to the provisions of this section and award the

13-39 contract accordingly.

13-40 Sec. 14. NRS 338.155 is hereby amended to read as follows:

13-41 338.155 [1.] If a public body enters into a contract with a design

13-43 of services in connection with a public work, the contract:

14-1 [(a)] 1. Must set forth:

14-2 [(1)] (a) The specific period within which the public body must pay

14-3 the design professional.

14-4 [(2)] (b) The specific period and manner in which the public body

14-5 may dispute a payment or portion thereof that the design professional

14-6 alleges is due.

14-7 [(3)] (c) The terms of any penalty that will be imposed upon the

14-8 public body if the public body fails to pay the design professional within

14-9 the specific period set forth in the contract pursuant to [subparagraph (1).

14-10 (4)] paragraph (a).

14-11 (d) That the prevailing party in an action to enforce the contract is

14-12 entitled to reasonable attorney’s fees and costs.

14-13 [(b)] 2. May set forth the terms of any discount that the public body

14-14 will receive if the public body pays the design professional within the

14-15 specific period set forth in the contract pursuant to [subparagraph (1) of]

14-16 paragraph (a) [.

14-17 2. As used in this section, "design professional" means a person with a

14-18 professional license or certificate issued pursuant to chapter 623, 623A or

14-19 625 of NRS.] of subsection 1.

14-20 Sec. 15. Chapter 408 of NRS is hereby amended by adding thereto the

14-21 provisions set forth as sections 16 to 28, inclusive, of this act.

14-22 Sec. 16. As used in sections 16 to 28, inclusive, of this act, unless the

14-23 context otherwise requires, the words and terms defined in sections 17 to

14-24 20, inclusive, of this act have the meanings ascribed to them in those

14-25 sections.

14-26 Sec. 17. "Design-build contract" means a contract between the

14-27 department and a design-build team in which the design-build team

14-28 agrees to design and construct a project.

14-29 Sec. 18. "Design-build team" means an entity that consists of:

14-30 1. At least one person who is licensed as a general engineering

14-31 contractor or a general building contractor pursuant to NRS 624.230 to

14-32 624.320, inclusive; and

14-33 2. At least one person who holds a certificate of registration to

14-34 practice architecture pursuant to chapter 623 of NRS or is licensed as a

14-35 professional engineer pursuant to chapter 625 of NRS.

14-36 Sec. 19. "Prime contractor" means a person who:

14-37 1. Contracts to construct an entire project;

14-38 2. Coordinates all work performed on the entire project;

14-39 3. Uses his own workforce to perform all or a part of the

14-40 construction of the project; and

14-41 4. Contracts for the services of any subcontractor or independent

14-42 contractor or is responsible for payment to any contracted subcontractors

14-43 or independent contractors.

15-1 Sec. 20. "Project" means a project for the construction,

15-2 reconstruction or improvement of a highway.

15-3 Sec. 21. The department may contract with a design-build team for

15-4 the design and construction of a project if the department determines

15-5 that:

15-6 1. The estimated cost of the project exceeds $30,000,000; and

15-7 2. Contracting with a design-build team will enable the department

15-8 to:

15-9 (a) Design and construct the project at a cost that is significantly

15-10 lower than the cost that the department would incur to design and

15-11 construct the project using a different method;

15-12 (b) Design and construct the project in a shorter time than would be

15-13 required to complete the project using a different method, if exigent

15-14 circumstances require that the project be designed and constructed

15-15 within a short time; or

15-16 (c) Ensure that the design and construction of the project is properly

15-17 coordinated, if the project is unique, highly technical and complex in

15-18 nature.

15-19 Sec. 22. 1. The department shall not contract with a design-build

15-20 team with respect to a project unless the board makes the determinations,

15-21 at a public hearing, that are required pursuant to section 21 of this act.

15-22 2. If the department is required to hold a public hearing pursuant to

15-23 this section, the department shall publish notice of the hearing at least

15-24 once each week for 3 consecutive weeks in:

15-25 (a) A newspaper of general circulation published in each county in

15-26 which the project is proposed to be constructed or, if there is no such

15-27 newspaper, in a newspaper of general circulation in each county

15-28 published in this state; and

15-29 (b) A newspaper of general circulation in this state.

15-30 Sec. 23. If the department desires to contract with a design-build

15-31 team pursuant to sections 21 and 22 of this act, the department must

15-32 select the design-build team in accordance with sections 24 to 27,

15-33 inclusive, of this act.

15-34 Sec. 24. 1. The department shall advertise for preliminary

15-35 proposals for the design and construction of a project by a design-build

15-36 team at least twice each week for 3 consecutive weeks in:

15-37 (a) A newspaper of general circulation published in each county in

15-38 which the project is proposed to be constructed or, if there is no such

15-39 newspaper, in a newspaper of general circulation in each county

15-40 published in this state; and

15-41 (b) A newspaper of general circulation in this state.

15-42 2. A request for preliminary proposals published pursuant to

15-43 subsection 1 must include, without limitation:

16-1 (a) A description of the proposed project;

16-2 (b) Separate estimates of the costs of designing and constructing the

16-3 project;

16-4 (c) The dates on which it is anticipated that the separate phases of the

16-5 design and construction of the project will begin and end;

16-6 (d) A statement setting forth the place and time in which a design-

16-7 build team desiring to bid on the project may obtain specifications for

16-8 bids and other information necessary to bid on the project;

16-9 (e) A list of the requirements set forth in section 25 of this act;

16-10 (f) A list of the factors that the department will use to evaluate design-

16-11 build teams who bid on the project, including, without limitation:

16-12 (1) The relative weight to be assigned to each factor; and

16-13 (2) A disclosure of whether the factors that are not related to cost

16-14 are, when considered as a group, more or less important in the process of

16-15 evaluation than the factor of cost;

16-16 (g) A statement setting forth that a design-build team whose prime

16-17 contractor holds a certificate of eligibility to receive a preference in

16-18 bidding on public works issued pursuant to NRS 338.147 shall be deemed

16-19 to have submitted a better proposal than a competing design-build team

16-20 whose prime contractor does not hold such a certificate of eligibility if

16-21 the amount of the bid of the design-build team is not more than 5 percent

16-22 higher than the amount bid by the competing design-build team;

16-23 (h) Notice that a design-build team desiring to bid on the project must

16-24 include with its bid the information used by the department to determine

16-25 finalists among the bidding design-build teams pursuant to subsection 2

16-26 of section 26 of this act and a description of that information;

16-27 (i) A statement as to whether a bidding design-build team that is

16-28 selected as a finalist pursuant to section 26 of this act but is not awarded

16-29 the design-build contract pursuant to section 27 of this act will be

16-30 partially reimbursed for the cost of preparing a final proposal and, if so,

16-31 an estimate of the amount of the partial reimbursement; and

16-32 (j) The date by which preliminary proposals must be submitted to the

16-33 department, which must not be less than 30 days or more than 60 days

16-34 after the date on which the request for preliminary proposals is first

16-35 published in a newspaper pursuant to subsection 1.

16-36 Sec. 25. To qualify to participate in the design and construction of a

16-37 project for the department, a design-build team must:

16-38 1. Obtain a performance bond and payment bond as the department

16-39 may require;

16-40 2. Obtain insurance covering general liability and liability for errors

16-41 and omissions;

16-42 3. Not have been found liable for breach of contract with respect to a

16-43 previous project, other than a breach for legitimate cause;

17-1 4. Not have been disqualified from being awarded a contract

17-2 pursuant to NRS 338.017, 338.145 or 408.333; and

17-3 5. Ensure that the members of the design-build team possess the

17-4 licenses and certificates required to carry out the functions of their

17-5 respective professions within this state.

17-6 Sec. 26. 1. Within 30 days after the date by which preliminary

17-7 proposals must be submitted to the department, the department shall

17-8 select at least three but not more than five finalists from among the

17-9 design-build teams that submitted preliminary proposals. If the

17-10 department does not receive at least three preliminary proposals from

17-11 design-build teams that the department determines to be qualified

17-12 pursuant to this section and section 25 of this act, the department may

17-13 not contract with a design-build team for the design and construction of

17-14 the project.

17-15 2. The department shall select finalists pursuant to subsection 1 by:

17-16 (a) Verifying that each design-build team which submitted a

17-17 preliminary proposal satisfies the requirements of section 25 of this act;

17-18 and

17-19 (b) Conducting an evaluation of the qualifications of each design-

17-20 build team that submitted a preliminary proposal, including, without

17-21 limitation, an evaluation of:

17-22 (1) The professional qualifications and experience of the members

17-23 of the design-build team;

17-24 (2) The performance history of the members of the design-build

17-25 team concerning other recent, similar projects completed by those

17-26 members, if any;

17-27 (3) The safety programs established and the safety records

17-28 accumulated by the members of the design-build team; and

17-29 (4) The proposed plan of the design-build team to manage the

17-30 design and construction of the project that sets forth in detail the ability

17-31 of the design-build team to design and construct the project.

17-32 Sec. 27. 1. After selecting the finalists pursuant to section 26 of

17-33 this act, the department shall provide to each finalist a request for final

17-34 proposals for the project. The request for final proposals must:

17-35 (a) Set forth the factors that the department will use to select a design-

17-36 build team to design and construct the project, including the relative

17-37 weight to be assigned to each factor; and

17-38 (b) Set forth the date by which final proposals must be submitted to

17-39 the department.

17-40 2. A final proposal submitted by a design-build team pursuant to this

17-41 section must be prepared thoroughly, be responsive to the criteria that the

17-42 department will use to select a design-build team to design and construct

18-1 the project described in subsection 1 and comply with the provisions of

18-2 NRS 338.144.

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

18-4 the department shall:

18-5 (a) Select the most cost-effective and responsive final proposal, using

18-6 the criteria set forth pursuant to subsection 1; or

18-7 (b) Reject all the final proposals.

18-8 4. If the department selects a final proposal pursuant to paragraph

18-9 (a) of subsection 3, the department shall hold a public meeting to:

18-10 (a) Review and ratify the selection.

18-11 (b) Award the design-build contract to the design-build team whose

18-12 proposal is selected.

18-13 (c) Partially reimburse the unsuccessful finalists if partial

18-14 reimbursement was provided for in the request for preliminary proposals

18-15 pursuant to paragraph (i) of subsection 2 of section 24 of this act. The

18-16 amount of reimbursement must not exceed, for each unsuccessful

18-17 finalist, three percent of the total amount to be paid to the design-build

18-18 team as set forth in the design-build contract.

18-19 (d) Make available to the public a summary setting forth the factors

18-20 used by the department to select the successful design-build team, the

18-21 relative weight assigned to each factor and the ranking of the design-

18-22 build teams who submitted final proposals. The department shall not

18-23 release to a third party, or otherwise make public, financial or

18-24 proprietary information submitted by a design-build team.

18-25 5. A design-build team to whom a contract is awarded pursuant to

18-26 this section shall:

18-27 (a) Assume overall responsibility for ensuring that the design and

18-28 construction of the project is completed in a satisfactory manner; and

18-29 (b) Use the work force of the prime contractor on the design-build

18-30 team to construct at least 15 percent of the project.

18-31 Sec. 28. The department may employ a registered architect or

18-32 licensed professional engineer as a consultant to assist the department in

18-33 overseeing the construction of a project. An architect or engineer so

18-34 employed shall not:

18-35 1. Design, construct, reconstruct or improve the highway; or

18-36 2. Assume overall responsibility for ensuring that the design or

18-37 construction of the project is completed in a satisfactory manner.

18-38 Sec. 29. NRS 408.215 is hereby amended to read as follows:

18-39 408.215 1. The director has charge of all the records of the

18-43 described in NRS 408.333 [,] and the financial or proprietary information

19-1 described in paragraph (d) of subsection 4 of section 27 of this act, which

19-2 must not become matters of public record.

19-3 2. The director may photograph, microphotograph or film or dispose of

19-4 the records of the department referred to in subsection 1 as provided in

19-5 NRS 239.051, 239.080 and 239.085.

19-6 3. The director shall maintain an index or record of deeds or other

19-7 references of title or interests in and to all lands or interests in land owned

19-8 or acquired by the department.

19-9 4. The director shall adopt such regulations as may be necessary to

19-10 carry out and enforce the provisions of this chapter.

19-11 Sec. 30. NRS 408.317 is hereby amended to read as follows:

19-12 408.317 1. [All] Except as otherwise provided in sections 16 to 28,

19-19 department must be paid out of the state highway fund.

19-20 Sec. 31. NRS 408.327 is hereby amended to read as follows:

19-21 408.327 Except as otherwise provided in sections 16 to 28, inclusive,

19-38 for opening bids.

19-39 Sec. 32. NRS 408.333 is hereby amended to read as follows:

19-40 408.333 Except as otherwise provided in sections 16 to 28, inclusive,

19-43 work with the plans and specifications for such work, the director shall

20-1 require from the person a statement, verified under oath, in the form of

20-2 answers to questions contained in a standard form of questionnaire and

20-3 financial statement, which must include a complete statement of the

20-4 person’s financial ability and experience in performing public work of a

20-5 similar nature.

20-6 2. Such statements must be filed with the director in ample time to

20-7 permit the department to verify the information contained therein in

20-8 advance of furnishing proposal forms, plans and specifications to any

20-9 person proposing to bid on the advertised public work, in accordance with

20-10 the regulations of the department.

20-11 3. Whenever the director is not satisfied with the sufficiency of the

20-12 answers contained in the questionnaire and financial statement, he may

20-13 refuse to furnish the person with plans and specifications and the official

20-14 proposal forms on the advertised project. Any bid of any person to whom

20-15 plans and specifications and the official proposal forms have not been

20-16 issued in accordance with this section must be disregarded, and the certified

20-17 check, cash or undertaking of such a bidder returned forthwith.

20-18 4. Any person who is disqualified by the director, in accordance with

20-19 the provisions of this section, may request, in writing, a hearing before the

20-20 director and present again his check, cash or undertaking and such further

20-21 evidence with respect to his financial responsibility, organization, plant and

20-22 equipment, or experience, as might tend to justify, in his opinion, issuance

20-23 to him of the plans and specifications for the work.

20-24 5. Such a person may appeal the decision of the director to the board

20-25 no later than 5 days before the opening of the bids on the project. If the

20-26 appeal is sustained by the board, the person must be granted the rights and

20-27 privileges of all other bidders.

20-28 Sec. 33. NRS 408.337 is hereby amended to read as follows:

20-29 408.337 Except as otherwise provided in sections 16 to 28, inclusive,

20-43 on refusal or failure of the successful bidder to execute the contract, award

21-1 it to the second lowest responsible bidder. If the second lowest responsible

21-2 bidder fails or refuses to execute the contract, the director may likewise

21-3 award it to the third lowest responsible bidder. On the failure or refusal to

21-4 execute the contract of the second or third lowest bidder to whom a

21-5 contract is so awarded, their bidder’s security is likewise forfeited to the

21-6 state.

21-7 5. The bidder’s security of the second and third lowest responsible

21-8 bidders may be withheld by the department until the contract has been

21-9 finally executed and the bond given as required under the provisions of the

21-10 contract, at which time the security must be returned. The bidder’s security

21-11 submitted by all other unsuccessful bidders must be returned to them within

21-12 10 days after the contract is awarded.

21-13 Sec. 34. NRS 408.343 is hereby amended to read as follows:

21-14 408.343 Except as otherwise provided in sections 16 to 28, inclusive,

21-35 accordance with the provisions of this chapter.

21-36 Sec. 35. NRS 625.530 is hereby amended to read as follows:

21-37 625.530 Except as otherwise provided in sections 2 to 9, inclusive,

21-42 plans, specifications, reports and estimates have been prepared by, and the

22-1 work executed under the supervision of, a professional engineer,

22-2 professional land surveyor or registered architect.

22-3 2. The provisions of this section do not:

22-4 (a) Apply to any public work wherein the expenditure for the complete

22-5 project of which the work is a part does not exceed $35,000.

22-6 (b) Include any maintenance work undertaken by the State of Nevada or

22-7 its political subdivisions.

22-8 (c) Authorize a professional engineer, registered architect or

22-9 professional land surveyor to practice in violation of any of the provisions

22-10 of chapter 623 of NRS or this chapter.

22-11 (d) Require the services of an architect registered pursuant to the

22-12 provisions of chapter 623 of NRS for the erection of buildings or structures

22-13 manufactured in an industrial plant, if those buildings or structures meet the

22-14 requirements of local building codes of the jurisdiction in which they are

22-15 being erected.

22-16 3. The selection of a professional engineer, professional land surveyor

22-17 or registered architect to perform services pursuant to subsection 1 must be

22-18 made on the basis of the competence and qualifications of the engineer,

22-19 land surveyor or architect for the type of services to be performed and not

22-20 on the basis of competitive fees. If, after selection of the engineer, land

22-21 surveyor or architect, an agreement upon a fair and reasonable fee cannot

22-22 be reached with him, the public agency may terminate negotiations and

22-23 select another engineer, land surveyor or architect.

22-24 Sec. 36. NRS 341.161 and 341.171 are hereby repealed.

22-25 TEXT OF REPEALED SECTIONS

22-26 341.161 Contracts for contractor’s services which assist architect

23-1 (a) The determination of the qualifications of contractors to bid for

23-2 contracts for services described in subsection 1.

23-3 (b) The bidding and awarding of such contracts, subject to the

23-4 provisions of subsection 3.

23-5 (c) The awarding of construction contracts, subject to the provisions of

23-6 subsection 4, based on a final cost of the project which the contractor

23-7 guarantees will not be exceeded.

23-8 (d) The scheduling and controlling of projects.

23-9 3. Bids on contracts for services which assist the architect in the design

23-10 of a project of capital improvement must state separately the contractor’s

23-11 cost for:

23-12 (a) Assisting the architect in the design of the project.

23-13 (b) Obtaining all bids for subcontracts.

23-14 (c) Administering the construction contract.

23-15 4. A contractor who is:

23-16 (a) Qualified under the regulations of the board to bid for a contract for

23-17 services described in subsection 1; and

23-18 (b) Awarded that contract,

23-19 is entitled to be awarded the construction contract for the project if his

23-20 work under the contract for services is satisfactory to the board and he

23-21 guarantees a final cost for the project which the board is willing to accept.

23-22 5. A person who furnishes services under a contract awarded pursuant

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

23-24 contractor in Title 28 of NRS.

23-25 341.171 Single contract for design and construction of capital

23-42 project.

24-1 (c) The bidding and awarding of contracts for the design and

24-2 construction of projects based on a final cost of the project which the

24-3 contractor guarantees will not be exceeded.

24-4 (d) The scheduling and controlling of projects.