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:

2-1 (1) A plant or facility for the treatment and pumping of water or the

2-2 treatment and disposal of wastewater or sewage, the estimated cost of

2-3 which exceeds $100,000,000; or

2-4 (2) Any other type of public work, except a stand-alone

2-5 underground utility project, the estimated cost of which exceeds

2-6 $30,000,000; and

2-7 (b) Contracting with a design-build team will enable the public body

2-8 to:

2-9 (1) Design and construct the public work at a cost that is

2-10 significantly lower than the cost that the public body would incur to

2-11 design and construct the public work using a different method;

2-12 (2) Design and construct the public work in a shorter time than

2-13 would be required to design and construct the public work using a

2-14 different method, if exigent circumstances require that the public work

2-15 be designed and constructed within a short time; or

2-16 (3) Ensure that the design and construction of the public work is

2-17 properly coordinated, if the public work is unique, highly technical and

2-18 complex in nature.

2-19 3. In a county whose population is 400,000 or more, a public body

2-20 that is responsible for financing public works may, for its own public

2-21 works and those financed by a different public body, including, without

2-22 limitation, an airport if the airport is owned and operated as a

2-23 department of the public body, contract with a design-build team once in

2-24 each fiscal year for the design and construction of a public work if the

2-25 public body determines that:

2-26 (a) The estimated cost of the public work is at least $5,000,000 but less

2-27 than $30,000,000; and

2-28 (b) Contracting with a design-build team will enable the public body

2-29 to:

2-30 (1) Design and construct the public work at a cost that is

2-31 significantly lower than the cost that the public body would incur to

2-32 design and construct the public work using a different method;

2-33 (2) Design and construct the public work in a shorter time than

2-34 would be required to design and construct the public work using a

2-35 different method, if exigent circumstances require that the public work

2-36 be designed and constructed within a short time; or

2-37 (3) Ensure that the design and construction of the public work is

2-38 properly coordinated, if the public work is unique, highly technical and

2-39 complex in nature.

2-40 4. Notwithstanding the provisions of subsections 1, 2 and 3, a public

2-41 body may contract with:

2-42 (a) A nonprofit organization for the design and construction of a

2-43 project to restore, enhance or develop wetlands.

3-1 (b) A prime contractor, specialty contractor or design-build team with

3-2 respect to a public work if the public body determines that the public

3-3 work is:

3-4 (1) Not part of a larger public work; and

3-5 (2) Limited in scope to:

3-6 (I) Removal of asbestos;

3-7 (II) Replacement of equipment or systems for heating, ventilation

3-8 and air-conditioning;

3-9 (III) Replacement of a roof;

3-10 (IV) Landscaping; or

3-11 (V) Restoration, enhancement or development of wetlands.

3-12 Sec. 3. 1. A public body shall not contract with a design-build team

3-13 with respect to a public work unless the governing body of the public

3-14 body makes the determinations, at a public hearing, that are required

3-15 pursuant to subsection 2, 3 or 4 of section 2 of this act, as applicable.

3-16 2. A public body that is required to hold a public hearing pursuant to

3-17 this section shall publish notice of the hearing at least once each week

3-18 for 3 consecutive weeks in:

3-19 (a) A newspaper of general circulation published in the county in

3-20 which the public work is proposed to be constructed or, if there is no such

3-21 newspaper, in a newspaper of general circulation in the county published

3-22 in this state; and

3-23 (b) A newspaper of general circulation in this state.

3-24 Sec. 4. 1. A public body that is required to contract with a prime

3-25 contractor pursuant to subsection 1 of section 2 of this act or elects to

3-26 contract with a specialty contractor pursuant to subsection 4 of section 2

3-27 of this act shall select the prime contractor or specialty contractor, as

3-28 appropriate, in accordance with the procedures for bidding that are set

3-29 forth in NRS 338.140 to 338.147, inclusive.

3-30 2. A public body that contracts with a design-build team pursuant to

3-31 sections 2 and 3 of this act shall select the design-build team in

3-32 accordance with sections 5 to 8, inclusive, of this act.

3-33 Sec. 5. 1. A public body shall advertise for preliminary proposals

3-34 for the design and construction of a public work by a design-build team

3-35 at least twice each week for 3 consecutive weeks in:

3-36 (a) A newspaper of general circulation published in the county in

3-37 which the public work is proposed to be constructed or, if there is no such

3-38 newspaper, in a newspaper of general circulation in the county published

3-39 in this state; and

3-40 (b) A newspaper of general circulation in this state.

3-41 2. A request for preliminary proposals published pursuant to

3-42 subsection 1 must include, without limitation:

3-43 (a) A description of the public work to be designed and constructed;

4-1 (b) Separate estimates of the costs of designing and constructing the

4-2 public work;

4-3 (c) The dates on which it is anticipated that the separate phases of the

4-4 design and construction of the public work will begin and end;

4-5 (d) A statement setting forth the place and time in which a design-

4-6 build team desiring to submit a proposal for the public work may obtain

4-7 the information necessary to submit a proposal, including, without

4-8 limitation, the extent to which designs must be completed for both

4-9 preliminary and final proposals and any other requirements for the

4-10 design and construction of the public work that the public body

4-11 determines to be necessary;

4-12 (e) A list of the requirements set forth in section 6 of this act;

4-13 (f) A list of the factors that the public body will use to evaluate design-

4-14 build teams who submit a proposal for the public work, including,

4-15 without limitation:

4-16 (1) The relative weight to be assigned to each factor; and

4-17 (2) A disclosure of whether the factors that are not related to cost

4-18 are, when considered as a group, more or less important in the process of

4-19 evaluation than the factor of cost;

4-20 (g) Notice that a design-build team desiring to submit a proposal for

4-21 the public work must include with its proposal the information used by

4-22 the public body to determine finalists among the design-build teams

4-23 submitting proposals pursuant to subsection 2 of section 7 of this act and

4-24 a description of that information;

4-25 (h) A statement that a design-build team whose prime contractor

4-26 holds a certificate of eligibility to receive a preference in bidding on

4-27 public works issued pursuant to NRS 338.147 should submit a copy of

4-28 the certificate of eligibility with its proposal;

4-29 (i) A statement as to whether a design-build team that is selected as a

4-30 finalist pursuant to section 7 of this act but is not awarded the design-

4-31 build contract pursuant to section 8 of this act will be partially

4-32 reimbursed for the cost of preparing a final proposal and, if so, an

4-33 estimate of the amount of the partial reimbursement; and

4-34 (j) The date by which preliminary proposals must be submitted to the

4-35 public body, which must not be less than 30 days or more than 60 days

4-36 after the date on which the request for preliminary proposals is first

4-37 published in a newspaper pursuant to subsection 1.

4-38 Sec. 6. To qualify to participate in a project for the design and

4-39 construction of a public work, a design-build team must:

4-40 1. Obtain a performance bond and payment bond as required

4-41 pursuant to NRS 339.025;

4-42 2. Obtain insurance covering general liability and liability for errors

4-43 and omissions;

5-1 3. Not have been found liable for breach of contract with respect to a

5-2 previous project, other than a breach for legitimate cause;

5-3 4. Not have been disqualified from being awarded a contract

5-4 pursuant to NRS 338.017, 338.145 or 408.333; and

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

5-6 licenses and certificates required to carry out the functions of their

5-7 respective professions within this state.

5-8 Sec. 7. 1. At least 30 days after the date by which preliminary

5-9 proposals must be submitted to the public body, the public body shall

5-10 select at least three but not more than five finalists from among the

5-11 design-build teams that submitted preliminary proposals. If the public

5-12 body does not receive at least three preliminary proposals from design-

5-13 build teams that the public body determines to be qualified pursuant to

5-14 this section and section 6 of this act, the public body may not contract

5-15 with a design-build team for the design and construction of the public

5-16 work.

5-17 2. The public body shall select finalists pursuant to subsection 1 by:

5-18 (a) Verifying that each design-build team which submitted a

5-19 preliminary proposal satisfies the requirements of section 6 of this act;

5-20 and

5-21 (b) Conducting an evaluation of the qualifications of each design-

5-22 build team that submitted a preliminary proposal, including, without

5-23 limitation, an evaluation of:

5-24 (1) The professional qualifications and experience of the members

5-25 of the design-build team;

5-26 (2) The performance history of the members of the design-build

5-27 team concerning other recent, similar projects completed by those

5-28 members, if any;

5-29 (3) The safety programs established and the safety records

5-30 accumulated by the members of the design-build team; and

5-31 (4) The proposed plan of the design-build team to manage the

5-32 design and construction of the public work that sets forth in detail the

5-33 ability of the design-build team to design and construct the public work.

5-34 Sec. 8. 1. After selecting the finalists pursuant to section 7 of this

5-35 act, the public body shall provide to each finalist a request for final

5-36 proposals for the public work. The request for final proposals must:

5-37 (a) Set forth the factors that the public body will use to select a design-

5-38 build team to design and construct the public work, including the relative

5-39 weight to be assigned to each factor; and

5-40 (b) Set forth the date by which final proposals must be submitted to

5-41 the public body.

5-42 2. A final proposal submitted by a design-build team pursuant to this

5-43 section must be prepared thoroughly, be responsive to the criteria that the

6-1 public body will use to select a design-build team to design and construct

6-2 the public work described in subsection 1 and comply with the provisions

6-3 of NRS 338.144. If the cost of construction is a factor in the selection of

6-4 a design-build team, a design-build team whose prime contractor has

6-5 submitted with its proposal a certificate of eligibility to receive a

6-6 preference in bidding on public works issued pursuant to NRS 338.147

6-7 shall be deemed to have submitted a better proposal than a competing

6-8 design-build team whose prime contractor has not submitted such a

6-9 certificate of eligibility if the amount proposed by the design-build team

6-10 is not more than 5 percent higher than the amount proposed by the

6-11 competing design-build team.

6-12 3. At least 30 days after receiving the final proposals for the public

6-13 work, the public body shall:

6-14 (a) Select the most cost-effective and responsive final proposal, using

6-15 the criteria set forth pursuant to subsection 1; or

6-16 (b) Reject all the final proposals.

6-17 4. If a public body selects a final proposal pursuant to paragraph (a)

6-18 of subsection 3, the public body shall, at its next regularly scheduled

6-19 meeting:

6-20 (a) Review and ratify the selection.

6-21 (b) Award the design-build contract to the design-build team whose

6-22 proposal is selected.

6-23 (c) Partially reimburse the unsuccessful finalists if partial

6-24 reimbursement was provided for in the request for preliminary proposals

6-25 pursuant to paragraph (i) of subsection 2 of section 5 of this act. The

6-26 amount of reimbursement must not exceed, for each unsuccessful

6-27 finalist, three percent of the total amount to be paid to the design-build

6-28 team as set forth in the design-build contract.

6-29 (d) Make available to the public a summary setting forth the factors

6-30 used by the public body to select the successful design-build team and the

6-31 ranking of the design-build teams who submitted final proposals. The

6-32 public body shall not release to a third party, or otherwise make public,

6-33 financial or proprietary information submitted by a design-build team.

6-34 5. A contract awarded pursuant to this section must specify:

6-35 (a) An amount that is the maximum amount that the public body will

6-36 pay for the performance of all the work required by the contract;

6-37 (b) An amount that is the maximum amount that the public body will

6-38 pay for the performance of the professional services required by the

6-39 contract; and

6-40 (c) A date by which performance of the work required by the contract

6-41 must be completed.

6-42 6. A design-build team to whom a contract is awarded pursuant to

6-43 this section shall:

7-1 (a) Assume overall responsibility for ensuring that the design and

7-2 construction of the public work is completed in a satisfactory manner;

7-3 and

7-4 (b) Use the work force of the prime contractor on the design-build

7-5 team to construct at least 15 percent of the public work.

7-6 Sec. 9. A public body may employ a registered architect or licensed

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

7-8 overseeing the construction of a public work. An architect or engineer so

7-9 employed shall not:

7-10 1. Design or construct the public work; or

7-11 2. Assume overall responsibility for ensuring that the design or

7-12 construction of the public work is completed in a satisfactory manner.

7-13 Sec. 10. NRS 338.010 is hereby amended to read as follows:

7-14 338.010 As used in this chapter:

7-42 pursuant to chapter 612 of NRS; or

8-1 (c) Provide and secure compensation for employees required pursuant to

8-2 chapters 616A to 617, inclusive, of NRS.

8-3 [4.] 7. "Prime contractor" means a person who:

8-4 (a) Contracts to construct an entire project;

8-5 (b) Coordinates all work performed on the entire project;

8-6 (c) Uses his own workforce to perform all or a part of the

8-7 construction, repair or reconstruction of the project; and

8-8 (d) Contracts for the services of any subcontractor or independent

8-9 contractor or is responsible for payment to any contracted subcontractors

8-10 or independent contractors.

8-11 8. "Public body" means the state, county, city, town, school district or

8-12 any public agency of this state or its political subdivisions sponsoring or

8-13 financing a public work.

8-14 [5.] 9. "Public work" means any project for the new construction,

8-15 repair or reconstruction of:

8-16 (a) A project financed in whole or in part from public money for:

8-17 (1) Public buildings;

8-18 (2) Jails and prisons;

8-19 (3) Public roads;

8-20 (4) Public highways;

8-21 (5) Public streets and alleys;

8-22 (6) Public utilities which are financed in whole or in part by public

8-23 money;

8-24 (7) Publicly owned water mains and sewers;

8-25 (8) Public parks and playgrounds;

8-26 (9) Public convention facilities which are financed at least in part with

8-27 public funds; and

8-28 (10) All other publicly owned works and property whose cost as a

8-29 whole exceeds $20,000. Each separate unit which is a part of a project is

8-30 included in the cost of the project for the purpose of determining whether a

8-31 project meets this threshold.

8-32 (b) A building for the University and Community College System of

8-33 Nevada of which 25 percent or more of the costs of the building as a whole

8-34 are paid from money appropriated by the state or federal money.

8-35 [6.] 10. "Specialty contractor" means a contractor whose operations

8-36 as such are the performance of construction work requiring special skill

8-37 and whose principal contracting business involves the use of specialized

8-38 building trades or crafts.

8-39 11. "Stand-alone underground utility project" means an

8-40 underground utility project that is not integrated into a larger project,

8-41 including, without limitation:

8-42 (a) An underground sewer line or an underground pipeline for the

8-43 conveyance of water, including facilities appurtenant thereto; and

9-1 (b) A project for the construction or installation of a storm drain,

9-2 including facilities appurtenant thereto,

9-3 that is not located at the site of a public work for the design and

9-4 construction of which a public body is authorized to contract with a

9-5 design-build team pursuant to subsection 2 of section 2 of this act.

9-6 12. "Wages" means:

9-7 (a) The basic hourly rate of pay; and

9-8 (b) The amount of pension, health and welfare, vacation and holiday

9-9 pay, the cost of apprenticeship training or other similar programs or other

9-10 bona fide fringe benefits which are a benefit to the workman.

9-11 [7.] 13. "Workman" means a skilled mechanic, skilled workman,

9-12 semiskilled mechanic, semiskilled workman or unskilled workman. The

9-13 term does not include a design professional.

9-14 Sec. 11. NRS 338.143 is hereby amended to read as follows:

9-15 338.143 1. Except as otherwise provided in subsection 6 and NRS

9-42 (a) The bidder is not responsive or responsible;

10-1 (b) The quality of the services, materials, equipment or labor offered

10-2 does not conform to the approved plan or specifications; or

10-3 (c) The public interest would be served by such a rejection.

10-4 5. Before an agency or political subdivision of the state may commence

10-5 a project subject to the provisions of this section, based upon a

10-6 determination that the public interest would be served by rejecting any bids

10-7 received in response to an advertisement for bids, it shall prepare and make

10-8 available for public inspection a written statement containing:

10-9 (a) A list of all persons, including supervisors, who the agency or

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

10-11 classifications and an estimate of the direct and indirect costs of their labor;

10-12 (b) A list of all equipment that the agency or political subdivision

10-13 intends to use on the project, together with an estimate of the number of

10-14 hours each item of equipment will be used and the hourly cost to use each

10-15 item of equipment;

10-16 (c) An estimate of the cost of administrative support for the persons

10-17 assigned to the project;

10-18 (d) An estimate of the total cost of the project; and

10-19 (e) An estimate of the amount of money the agency or political

10-20 subdivision expects to save by rejecting the bids and performing the project

10-21 itself.

10-22 6. This section does not apply to:

10-23 (a) Any utility subject to the provisions of chapter 318 or 710 of NRS;

10-24 (b) Any work of construction, reconstruction, improvement and

10-25 maintenance of highways subject to NRS 408.323 or 408.327;

10-26 (c) Normal maintenance of the property of a school district; [or]

10-27 (d) The Las Vegas Valley water district created pursuant to chapter 167,

10-28 Statutes of Nevada 1947 [.] ; or

10-29 (e) The design and construction of a public work for which a public

10-30 body contracts with a design-build team pursuant to sections 2 to 9,

10-31 inclusive, of this act.

10-32 Sec. 12. NRS 338.143 is hereby amended to read as follows:

10-33 338.143 1. Except as otherwise provided in subsection 6, an agency

10-43 maintains a list of properly licensed contractors who are interested in

11-1 receiving offers to bid on public works projects for which the estimated

11-2 cost is more than $25,000 but less than $100,000 shall solicit bids from not

11-3 more than three of the contractors on the list for a contract of that value for

11-4 the construction, alteration or repair of a public work. The public body

11-5 shall select contractors from the list in such a manner as to afford each

11-6 contractor an equal opportunity to bid on a public works project. A

11-7 properly licensed contractor must submit a written request annually to the

11-8 public body to remain on the list. Offers for bids which are made pursuant

11-9 to this subsection must be sent by certified mail.

11-10 3. Approved plans and specifications for the bids must be on file at a

11-11 place and time stated in the advertisement for the inspection of all persons

11-12 desiring to bid thereon and for other interested persons. Contracts for the

11-13 project must be awarded on the basis of bids received.

11-14 4. Any or all bids received in response to an advertisement for bids

11-15 may be rejected if the person responsible for awarding the contract

11-16 determines that:

11-17 (a) The bidder is not responsive or responsible;

11-18 (b) The quality of the services, materials, equipment or labor offered

11-19 does not conform to the approved plan or specifications; or

11-20 (c) The public interest would be served by such a rejection.

11-21 5. Before an agency or political subdivision of the state may commence

11-22 a project subject to the provisions of this section, based upon a

11-23 determination that the public interest would be served by rejecting any bids

11-24 received in response to an advertisement for bids, it shall prepare and make

11-25 available for public inspection a written statement containing:

11-26 (a) A list of all persons, including supervisors, who the agency or

11-27 political subdivision intends to assign to the project, together with their

11-28 classifications and an estimate of the direct and indirect costs of their labor;

11-29 (b) A list of all equipment that the agency or political subdivision

11-30 intends to use on the project, together with an estimate of the number of

11-31 hours each item of equipment will be used and the hourly cost to use each

11-32 item of equipment;

11-33 (c) An estimate of the cost of administrative support for the persons

11-34 assigned to the project;

11-35 (d) An estimate of the total cost of the project; and

11-36 (e) An estimate of the amount of money the agency or political

11-37 subdivision expects to save by rejecting the bids and performing the project

11-38 itself.

11-39 6. This section does not apply to:

11-40 (a) Any utility subject to the provisions of chapter 318 or 710 of NRS;

11-41 (b) Any work of construction, reconstruction, improvement and

11-42 maintenance of highways subject to NRS 408.323 or 408.327;

11-43 (c) Normal maintenance of the property of a school district; [or]

12-1 (d) The Las Vegas Valley water district created pursuant to chapter 167,

12-2 Statutes of Nevada 1947 [.] ; or

12-3 (e) The design and construction of a public work for which a public

12-4 body contracts with a design-build team pursuant to sections 2 to 9,

12-5 inclusive, of this act.

12-6 Sec. 13. NRS 338.147 is hereby amended to read as follows:

12-7 338.147 1. [A] Except as otherwise provided in NRS 338.143 and

12-42 privilege tax [,

13-1 shall be deemed to have submitted a better bid than a competing contractor

13-2 who has not provided proof of the payment of those taxes if the amount of

13-3 his bid is not more than 5 percent higher than the amount bid by the

13-4 competing contractor.

13-5 3. A contractor who has previously provided the public body awarding

13-6 a contract with the proof of payment required pursuant to subsection 2 may

13-7 update such proof on or before April 1, July 1, September 1 and December

13-8 1 rather than with each bid.

13-9 4.] ; or

13-10 (b) Acquired, by inheritance, gift or transfer through a stock option

13-11 plan for employees, all the assets and liabilities of a viable, operating

13-12 construction firm that possesses a:

13-13 (1) License as a general contractor pursuant to the provisions of

13-14 chapter 624 of NRS; and

13-15 (2) Certificate of eligibility to receive a preference in bidding on

13-16 public works.

13-17 4. For the purposes of complying with the requirements set forth in

13-18 paragraph (a) of subsection 3, a general contractor shall be deemed to

13-19 have paid:

13-20 (a) Sales and use taxes and motor vehicle privilege taxes paid in this

13-21 state by an affiliate or parent company of the contractor, if the affiliate

13-22 or parent company is also a general contractor; and

13-23 (b) Sales and use taxes paid in this state by a joint venture in which

13-24 the contractor is a participant, in proportion to the amount of interest the

13-25 contractor has in the joint venture.

13-26 5. A contractor who has received a certificate of eligibility to receive

13-27 a preference in bidding on public works from the state contractors’ board

13-28 pursuant to subsection 3 shall, at the time for the annual renewal of his

13-29 contractors’ license pursuant to NRS 624.283, submit to the board an

13-30 affidavit from a certified public accountant setting forth that the

13-31 contractor has, during the immediately preceding 12 months, paid the

13-32 taxes required pursuant to paragraph (a) of subsection 3 to maintain his

13-33 eligibility to hold such a certificate.

13-34 6. A contractor who fails to submit an affidavit to the board pursuant

13-35 to subsection 5 ceases to be eligible to receive a preference in bidding on

13-36 public works unless he reapplies for and receives a certificate of

13-37 eligibility pursuant to subsection 3.

13-38 7. If a contractor who applies to the state contractors’ board for a

13-39 certificate of eligibility to receive a preference in bidding on public works

13-40 submits false information to the board regarding the required payment of

13-41 taxes, the contractor is not eligible to receive a preference in bidding on

13-42 public works for a period of 5 years after the date on which the board

13-43 becomes aware of the submission of the false information.

14-1 8. If any federal statute or regulation precludes the granting of federal

14-2 assistance or reduces the amount of that assistance for a particular public

14-3 work because of the provisions of subsection 2, those provisions do not

14-4 apply insofar as their application would preclude or reduce federal

14-5 assistance for that work. The provisions of subsection 2 do not apply to any

14-6 contract for a public work which is expected to cost less than $250,000.

14-7 [5.] 9. Except as otherwise provided in [subsection 6,] subsection 2 of

14-8 section 8 of this act and subsection 2 of section 27 of this act, if a bid is

14-9 submitted by two or more contractors as a joint venture or by one of them

14-10 as a joint venturer, the provisions of subsection 2 apply only if both or all

14-11 of the joint venturers separately meet the requirements of that subsection.

14-12 [6. Except as otherwise provided in subsection 8, if a bid is submitted

14-13 by a joint venture and one or more of the joint venturers has responsibility

14-14 for the performance of the contract as described in subsection 7, the

14-15 provisions of subsection 2 apply only to those joint venturers who have

14-16 such responsibility.

14-17 7. For the purposes of subsection 6, a joint venturer has responsibility

14-18 for the performance of a contract if he has at least one of the following

14-19 duties or obligations delegated to him in writing in the contract creating the

14-20 joint venture:

14-21 (a) Supplying the labor necessary to perform the contract and paying the

14-22 labor and any related taxes and benefits;

14-23 (b) Supplying the equipment necessary to perform the contract and

14-24 paying any charges related to the equipment;

14-25 (c) Contracting with and making payments to any subcontractors; or

14-26 (d) Performing the recordkeeping for the joint venture and making any

14-27 payments to persons who provide goods or services related to the

14-28 performance of the contract.

14-29 8. The provisions of subsection 6 do not apply to a joint venture which

14-30 is formed for the sole purpose of circumventing any of the requirements of

14-31 this section.]

14-32 10. The state contractors’ board shall adopt regulations and may

14-33 assess reasonable fees relating to the certification of contractors for a

14-34 preference in bidding on public works.

14-35 11. A person or entity who believes that a contractor wrongfully

14-36 holds a certificate of eligibility to receive a preference in bidding on

14-37 public works may challenge the validity of the certificate by filing a

14-38 written objection with the public body to which the contractor has

14-39 submitted a bid or proposal on a contract for the construction of a public

14-40 work. A written objection authorized pursuant to this subsection must:

14-41 (a) Set forth proof or substantiating evidence to support the belief of

14-42 the person or entity that the contractor wrongfully holds a certificate of

14-43 eligibility to receive a preference in bidding on public works; and

15-1 (b) Be filed with the public body at or after the time at which the

15-2 contractor submitted the bid or proposal to the public body and before

15-3 the time at which the public body awards the contract for which the bid

15-4 or proposal was submitted.

15-5 12. If a public body receives a written objection pursuant to

15-6 subsection 11, the public body shall determine whether the objection is

15-7 accompanied by the proof or substantiating evidence required pursuant

15-8 to paragraph (a) of that subsection. If the public body determines that the

15-9 objection is not accompanied by the required proof or substantiating

15-10 evidence, the public body shall dismiss the objection and may proceed

15-11 immediately to award the contract. If the public body determines that the

15-12 objection is accompanied by the required proof or substantiating

15-13 evidence, the public body shall determine whether the contractor

15-14 qualifies for the certificate pursuant to the provisions of this section and

15-15 may proceed to award the contract accordingly.

15-16 Sec. 13.5. NRS 338.147 is hereby amended to read as follows:

15-17 338.147 1. [A] Except as otherwise provided in NRS 338.143, a

15-18 public body shall award a contract for a public work to the contractor who

15-19 submits the best bid.

15-20 2. Except as otherwise provided in subsection [4] 8 or limited by

15-21 subsection [5,] 9, for the purposes of this section, a contractor who:

15-22 (a) Has been found to be a responsible and responsive contractor by the

15-23 public body; and

15-24 (b) At the time he submits his bid, provides to the public body [proof of

15-25 the payment of:] a copy of a certificate of eligibility to receive a

15-26 preference in bidding on public works issued to him by the state

15-27 contractors’ board pursuant to subsection 3,

15-28 shall be deemed to have submitted a better bid than a competing

15-29 contractor who has not provided a copy of such a valid certificate of

15-30 eligibility if the amount of his bid is not more than 5 percent higher than

15-31 the amount bid by the competing contractor.

15-32 3. The state contractors’ board shall issue a certificate of eligibility to

15-33 receive a preference in bidding on public works to a general contractor

15-34 who is licensed pursuant to the provisions of chapter 624 of NRS and

15-35 submits to the board an affidavit from a certified public accountant

15-36 setting forth that the general contractor has:

15-37 (a) Paid:

15-38 (1) The sales and use taxes imposed pursuant to chapters 372, 374

15-39 and 377 of NRS on materials used for construction in this state, including,

15-40 without limitation, construction that is undertaken or carried out on land

15-41 within the boundaries of this state that is managed by the Federal

15-42 Government or is on an Indian reservation or Indian colony, of not less

16-1 than $5,000 for each consecutive 12-month period for 60 months

16-2 immediately preceding the submission of [his bid;] the affidavit from the

16-3 certified public accountant;

16-4 (2) The motor vehicle privilege tax imposed pursuant to chapter 371

16-5 of NRS on the vehicles used in the operation of his business in this state of

16-6 not less than $5,000 for each consecutive 12-month period for 60 months

16-7 immediately preceding the submission of [his bid;] the affidavit from the

16-8 certified public accountant; or

16-9 (3) Any combination of such sales and use taxes and motor vehicle

16-10 privilege tax [,

16-11 shall be deemed to have submitted a better bid than a competing contractor

16-12 who has not provided proof of the payment of those taxes if the amount of

16-13 his bid is not more than 5 percent higher than the amount bid by the

16-14 competing contractor.

16-15 3. A contractor who has previously provided the public body awarding

16-16 a contract with the proof of payment required pursuant to subsection 2 may

16-17 update such proof on or before April 1, July 1, September 1 and December

16-18 1 rather than with each bid.

16-19 4.] ; or

16-20 (b) Acquired, by inheritance, gift or transfer through a stock option

16-21 plan for employees, all the assets and liabilities of a viable, operating

16-22 construction firm that possesses a:

16-23 (1) License as a general contractor pursuant to the provisions of

16-24 chapter 624 of NRS; and

16-25 (2) Certificate of eligibility to receive a preference in bidding on

16-26 public works.

16-27 4. For the purposes of complying with the requirements set forth in

16-28 paragraph (a) of subsection 3, a general contractor shall be deemed to

16-29 have paid:

16-30 (a) Sales and use taxes and motor vehicle privilege taxes paid in this

16-31 state by an affiliate or parent company of the contractor, if the affiliate

16-32 or parent company is also a general contractor; and

16-33 (b) Sales and use taxes paid in this state by a joint venture in which

16-34 the contractor is a participant, in proportion to the amount of interest the

16-35 contractor has in the joint venture.

16-36 5. A contractor who has received a certificate of eligibility to receive

16-37 a preference in bidding on public works from the state contractors’ board

16-38 pursuant to subsection 3 shall, at the time for the annual renewal of his

16-39 contractors’ license pursuant to NRS 624.283, submit to the board an

16-40 affidavit from a certified public accountant setting forth that the

16-41 contractor has, during the immediately preceding 12 months, paid the

16-42 taxes required pursuant to paragraph (a) of subsection 3 to maintain his

16-43 eligibility to hold such a certificate.

17-1 6. A contractor who fails to submit an affidavit to the board pursuant

17-2 to subsection 5 ceases to be eligible to receive a preference in bidding on

17-3 public works unless he reapplies for and receives a certificate of

17-4 eligibility pursuant to subsection 3.

17-5 7. If a contractor who applies to the state contractors’ board for a

17-6 certificate of eligibility to receive a preference in bidding on public works

17-7 submits false information to the board regarding the required payment of

17-8 taxes, the contractor is not eligible to receive a preference in bidding on

17-9 public works for a period of 5 years after the date on which the board

17-10 becomes aware of the submission of the false information.

17-11 8. If any federal statute or regulation precludes the granting of federal

17-12 assistance or reduces the amount of that assistance for a particular public

17-13 work because of the provisions of subsection 2, those provisions do not

17-14 apply insofar as their application would preclude or reduce federal

17-15 assistance for that work. The provisions of subsection 2 do not apply to any

17-16 contract for a public work which is expected to cost less than $250,000.

17-17 [5. Except as otherwise provided in subsection 6, if]

17-18 9. If a bid is submitted by two or more contractors as a joint venture or

17-19 by one of them as a joint venturer, the provisions of subsection 2 apply only

17-20 if both or all of the joint venturers separately meet the requirements of that

17-21 subsection.

17-22 [6. Except as otherwise provided in subsection 8, if a bid is submitted

17-23 by a joint venture and one or more of the joint venturers has responsibility

17-24 for the performance of the contract as described in subsection 7, the

17-25 provisions of subsection 2 apply only to those joint venturers who have

17-26 such responsibility.

17-27 7. For the purposes of subsection 6, a joint venturer has responsibility

17-28 for the performance of a contract if he has at least one of the following

17-29 duties or obligations delegated to him in writing in the contract creating the

17-30 joint venture:

17-31 (a) Supplying the labor necessary to perform the contract and paying the

17-32 labor and any related taxes and benefits;

17-33 (b) Supplying the equipment necessary to perform the contract and

17-34 paying any charges related to the equipment;

17-35 (c) Contracting with and making payments to any subcontractors; or

17-36 (d) Performing the recordkeeping for the joint venture and making any

17-37 payments to persons who provide goods or services related to the

17-38 performance of the contract.

17-39 8. The provisions of subsection 6 do not apply to a joint venture which

17-40 is formed for the sole purpose of circumventing any of the requirements of

17-41 this section.]

18-1 10. The state contractors’ board shall adopt regulations and may

18-2 assess reasonable fees relating to the certification of contractors for a

18-3 preference in bidding on public works.

18-4 11. A person or entity who believes that a contractor wrongfully

18-5 holds a certificate of eligibility to receive a preference in bidding on

18-6 public works may challenge the validity of the certificate by filing a

18-7 written objection with the public body to which the contractor has

18-8 submitted a bid or proposal on a contract for the construction of a public

18-9 work. A written objection authorized pursuant to this subsection must:

18-10 (a) Set forth proof or substantiating evidence to support the belief of

18-11 the person or entity that the contractor wrongfully holds a certificate of

18-12 eligibility to receive a preference in bidding on public works; and

18-13 (b) Be filed with the public body at or after the time at which the

18-14 contractor submitted the bid or proposal to the public body and before

18-15 the time at which the public body awards the contract for which the bid

18-16 or proposal was submitted.

18-17 12. If a public body receives a written objection pursuant to

18-18 subsection 11, the public body shall determine whether the objection is

18-19 accompanied by the proof or substantiating evidence required pursuant

18-20 to paragraph (a) of that subsection. If the public body determines that the

18-21 objection is not accompanied by the required proof or substantiating

18-22 evidence, the public body shall dismiss the objection and may proceed

18-23 immediately to award the contract. If the public body determines that the

18-24 objection is accompanied by the required proof or substantiating

18-25 evidence, the public body shall determine whether the contractor

18-26 qualifies for the certificate pursuant to the provisions of this section and

18-27 may proceed to award the contract accordingly.

18-28 Sec. 14. NRS 338.155 is hereby amended to read as follows:

18-29 338.155 [1.] If a public body enters into a contract with a design

18-43 entitled to reasonable attorney’s fees and costs.

19-1 [(b)] 2. May set forth the terms of any discount that the public body

19-2 will receive if the public body pays the design professional within the

19-3 specific period set forth in the contract pursuant to [subparagraph (1) of]

19-4 paragraph (a) [.

19-5 2. As used in this section, "design professional" means a person with a

19-6 professional license or certificate issued pursuant to chapter 623, 623A or

19-7 625 of NRS.] of subsection 1.

19-8 Sec. 14.5. NRS 341.161 is hereby amended to read as follows:

19-9 341.161 1. The board may, with the approval of the interim finance

19-10 committee when the legislature is not in regular or special session, or with

19-11 the approval of the legislature by concurrent resolution when the legislature

19-12 is in regular or special session, let to a contractor licensed under chapter

19-13 624 of NRS a contract for services which assist the architect in the design

19-14 of a project of capital improvement. The board shall for that purpose

19-15 participate in the development of plans, outlines of specifications and

19-16 estimates of costs.

19-17 2. The board shall adopt regulations establishing procedures for:

19-18 (a) The determination of the qualifications of contractors to bid for

19-19 contracts for services described in subsection 1.

19-20 (b) The bidding and awarding of such contracts, subject to the

19-21 provisions of subsection 3.

19-22 (c) The awarding of construction contracts [, subject to the provisions of

19-23 subsection 4,] based on a final cost of the project which the contractor

19-24 guarantees will not be exceeded.

19-25 (d) The scheduling and controlling of projects.

19-26 3. Bids on contracts for services which assist the architect in the design

19-27 of a project of capital improvement must state separately the contractor’s

19-28 cost for:

19-29 (a) Assisting the architect in the design of the project.

19-30 (b) Obtaining all bids for subcontracts.

19-31 (c) Administering the construction contract.

19-32 4. [A contractor who is:

19-33 (a) Qualified under the regulations of the board to bid for a contract for

19-34 services described in subsection 1; and

19-35 (b) Awarded that contract,

19-36 is entitled to be awarded the construction contract for the project if his

19-37 work under the contract for services is satisfactory to the board and he

19-38 guarantees a final cost for the project which the board is willing to accept.

19-39 5.] A person who furnishes services under a contract awarded pursuant

19-40 to subsection 1 is a contractor subject to all provisions pertaining to a

19-41 contractor in Title 28 of NRS.

20-1 Sec. 15. Chapter 408 of NRS is hereby amended by adding thereto the

20-2 provisions set forth as sections 16 to 28, inclusive, of this act.

20-3 Sec. 16. As used in sections 16 to 28, inclusive, of this act, unless the

20-4 context otherwise requires, the words and terms defined in sections 17 to

20-5 20, inclusive, of this act have the meanings ascribed to them in those

20-6 sections.

20-7 Sec. 17. "Design-build contract" means a contract between the

20-8 department and a design-build team in which the design-build team

20-9 agrees to design and construct a project.

20-10 Sec. 18. "Design-build team" means an entity that consists of:

20-11 1. At least one person who is licensed as a general engineering

20-12 contractor or a general building contractor pursuant to NRS 624.230 to

20-13 624.320, inclusive; and

20-14 2. At least one person who holds a certificate of registration to

20-15 practice architecture pursuant to chapter 623 of NRS or is licensed as a

20-16 professional engineer pursuant to chapter 625 of NRS.

20-17 Sec. 19. "Prime contractor" means a person who:

20-18 1. Contracts to construct an entire project;

20-19 2. Coordinates all work performed on the entire project;

20-20 3. Uses his own workforce to perform all or a part of the

20-21 construction of the project; and

20-22 4. Contracts for the services of any subcontractor or independent

20-23 contractor or is responsible for payment to any contracted subcontractors

20-24 or independent contractors.

20-25 Sec. 20. "Project" means a project for the construction,

20-26 reconstruction or improvement of a highway.

20-27 Sec. 21. 1. The department may contract with a design-build team

20-28 for the design and construction of a project if the department determines

20-29 that:

20-30 (a) Except as otherwise provided in subsection 2, the estimated cost of

20-31 the project exceeds $30,000,000; and

20-32 (b) Contracting with a design-build team will enable the department

20-33 to:

20-34 (1) Design and construct the project at a cost that is significantly

20-35 lower than the cost that the department would incur to design and

20-36 construct the project using a different method;

20-37 (2) Design and construct the project in a shorter time than would be

20-38 required to complete the project using a different method, if exigent

20-39 circumstances require that the project be designed and constructed

20-40 within a short time; or

20-41 (3) Ensure that the design and construction of the project is

20-42 properly coordinated, if the project is unique, highly technical and

20-43 complex in nature.

21-1 2. Notwithstanding the provisions of subsection 1, the department

21-2 may, once in each fiscal year, contract with a design-build team for the

21-3 design and construction of a project the estimated cost of which is at least

21-4 $5,000,000 but less than $30,000,000 if the department makes the

21-5 determinations otherwise required pursuant to paragraph (b) of

21-6 subsection 1.

21-7 Sec. 22. 1. The department shall not contract with a design-build

21-8 team with respect to a project unless the board makes the determinations,

21-9 at a public meeting, that are required pursuant to section 21 of this act.

21-10 2. If the department is required to hold a public meeting pursuant to

21-11 this section, the department shall publish notice of the meeting at least

21-12 once each week for 3 consecutive weeks in:

21-13 (a) A newspaper of general circulation published in each county in

21-14 which the project is proposed to be constructed or, if there is no such

21-15 newspaper, in a newspaper of general circulation in each county

21-16 published in this state; and

21-17 (b) A newspaper of general circulation in this state.

21-18 Sec. 23. If the department desires to contract with a design-build

21-19 team pursuant to sections 21 and 22 of this act, the department must

21-20 select the design-build team in accordance with sections 24 to 27,

21-21 inclusive, of this act.

21-22 Sec. 24. 1. The department shall advertise for preliminary

21-23 proposals for the design and construction of a project by a design-build

21-24 team at least twice each week for 3 consecutive weeks in:

21-25 (a) A newspaper of general circulation published in each county in

21-26 which the project is proposed to be constructed or, if there is no such

21-27 newspaper, in a newspaper of general circulation in each county

21-28 published in this state; and

21-29 (b) A newspaper of general circulation in this state.

21-30 2. A request for preliminary proposals published pursuant to

21-31 subsection 1 must include, without limitation:

21-32 (a) A description of the proposed project;

21-33 (b) Separate estimates of the costs of designing and constructing the

21-34 project;

21-35 (c) The dates on which it is anticipated that the separate phases of the

21-36 design and construction of the project will begin and end;

21-37 (d) A statement setting forth the place and time in which a design-

21-38 build team desiring to submit a proposal for the project may obtain the

21-39 information necessary to submit a proposal, including, without

21-40 limitation, the extent to which designs must be completed for both

21-41 preliminary and final proposals and any other requirements for the

21-42 design and construction of the project that the department determines to

21-43 be necessary;

22-1 (e) A list of the requirements set forth in section 25 of this act;

22-2 (f) A list of the factors that the department will use to evaluate design-

22-3 build teams who submit a proposal for the project, including, without

22-4 limitation:

22-5 (1) The relative weight to be assigned to each factor; and

22-6 (2) A disclosure of whether the factors that are not related to cost

22-7 are, when considered as a group, more or less important in the process of

22-8 evaluation than the factor of cost;

22-9 (g) Notice that a design-build team desiring to submit a proposal for

22-10 the project must include with its proposal the information used by the

22-11 department to determine finalists among the design-build teams

22-12 submitting proposals pursuant to subsection 2 of section 26 of this act

22-13 and a description of that information;

22-14 (h) A statement that a design-build team whose prime contractor

22-15 holds a certificate of eligibility to receive a preference in bidding on

22-16 public works issued pursuant to NRS 338.147 should submit a copy of

22-17 the certificate of eligibility with its proposal;

22-18 (i) A statement as to whether a bidding design-build team that is

22-19 selected as a finalist pursuant to section 26 of this act but is not awarded

22-20 the design-build contract pursuant to section 27 of this act will be

22-21 partially reimbursed for the cost of preparing a final proposal and, if so,

22-22 an estimate of the amount of the partial reimbursement; and

22-23 (j) The date by which preliminary proposals must be submitted to the

22-24 department, which must not be less than 30 days or more than 60 days

22-25 after the date on which the request for preliminary proposals is first

22-26 published in a newspaper pursuant to subsection 1.

22-27 Sec. 25. To qualify to participate in the design and construction of a

22-28 project for the department, a design-build team must:

22-29 1. Obtain a performance bond and payment bond as the department

22-30 may require;

22-31 2. Obtain insurance covering general liability and liability for errors

22-32 and omissions;

22-33 3. Not have been found liable for breach of contract with respect to a

22-34 previous project, other than a breach for legitimate cause;

22-35 4. Not have been disqualified from being awarded a contract

22-36 pursuant to NRS 338.017, 338.145 or 408.333; and

22-37 5. Ensure that the members of the design-build team possess the

22-38 licenses and certificates required to carry out the functions of their

22-39 respective professions within this state.

22-40 Sec. 26. 1. At least 30 days after the date by which preliminary

22-41 proposals must be submitted to the department, the department shall

22-42 select at least three but not more than five finalists from among the

22-43 design-build teams that submitted preliminary proposals. If the

23-1 department does not receive at least three preliminary proposals from

23-2 design-build teams that the department determines to be qualified

23-3 pursuant to this section and section 25 of this act, the department may

23-4 not contract with a design-build team for the design and construction of

23-5 the project.

23-6 2. The department shall select finalists pursuant to subsection 1 by:

23-7 (a) Verifying that each design-build team which submitted a

23-8 preliminary proposal satisfies the requirements of section 25 of this act;

23-9 and

23-10 (b) Conducting an evaluation of the qualifications of each design-

23-11 build team that submitted a preliminary proposal, including, without

23-12 limitation, an evaluation of:

23-13 (1) The professional qualifications and experience of the members

23-14 of the design-build team;

23-15 (2) The performance history of the members of the design-build

23-16 team concerning other recent, similar projects completed by those

23-17 members, if any;

23-18 (3) The safety programs established and the safety records

23-19 accumulated by the members of the design-build team; and

23-20 (4) The proposed plan of the design-build team to manage the

23-21 design and construction of the project that sets forth in detail the ability

23-22 of the design-build team to design and construct the project.

23-23 Sec. 27. 1. After selecting the finalists pursuant to section 26 of

23-24 this act, the department shall provide to each finalist a request for final

23-25 proposals for the project. The request for final proposals must:

23-26 (a) Set forth the factors that the department will use to select a design-

23-27 build team to design and construct the project, including the relative

23-28 weight to be assigned to each factor; and

23-29 (b) Set forth the date by which final proposals must be submitted to

23-30 the department.

23-31 2. A final proposal submitted by a design-build team pursuant to this

23-32 section must be prepared thoroughly, be responsive to the criteria that the

23-33 department will use to select a design-build team to design and construct

23-34 the project described in subsection 1 and comply with the provisions of

23-35 NRS 338.144. If the cost of construction is a factor in the selection of a

23-36 design-build team, a design-build team whose prime contractor has

23-37 submitted with its proposal a certificate of eligibility to receive a

23-38 preference in bidding on public works issued pursuant to NRS 338.147

23-39 shall be deemed to have submitted a better proposal than a competing

23-40 design-build team whose prime contractor has not submitted such a

23-41 certificate of eligibility if the amount proposed by the design-build team

23-42 is not more than 5 percent higher than the amount proposed by the

23-43 competing design-build team.

24-1 3. At least 30 days after receiving the final proposals for the project,

24-2 the department shall:

24-3 (a) Select the most cost-effective and responsive final proposal, using

24-4 the criteria set forth pursuant to subsection 1; or