Senate Bill No. 475–Committee on Government Affairs

March 18, 1999

____________

Referred to Committee on Government Affairs

 

SUMMARY—Authorizes public body and department of transportation to use design-build method of contracting in certain circumstances. (BDR 28-517)

FISCAL NOTE: Effect on Local Government: No.

Effect on the State or on Industrial Insurance: No.

~

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).

 

AN ACT relating to public works; authorizing a public body to contract with a design-build team or specialty contractor for the design and construction of a public work in certain circumstances; authorizing a public body to contract with a nonprofit organization for the design and construction of a project to restore, enhance or develop wetlands; authorizing the department of transportation to contract with a design-build team with respect to a project for the design and construction, reconstruction or improvement of highways in certain circumstances; setting forth the method in which proposals for a design-build contract must be solicited; setting forth the method in which a design-build team must be selected; authorizing a public body or the department of transportation to employ an architect or engineer to oversee the construction of a public work or project; creating an interim advisory committee to study the use of design-build contracting; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

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

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:

3-30 (a) The provisions of sections 3 to 11, inclusive, of Assembly Bill No.

3-31 298 of this session; or

3-32 (b) NRS 338.140 to 338.147, inclusive, if the public body is a local

3-33 government that elects to award a contract for a public work in

3-34 accordance with paragraph (b) of subsection 1 of section 2 of Assembly

3-35 Bill No. 298 of this session.

3-36 2. A public body that contracts with a design-build team pursuant to

3-37 sections 2 and 3 of this act shall select the design-build team in

3-38 accordance with sections 5 to 8, inclusive, of this act.

3-39 Sec. 5. 1. A public body shall advertise for preliminary proposals

3-40 for the design and construction of a public work by a design-build team

3-41 at least twice each week for 3 consecutive weeks in:

4-1 (a) A newspaper of general circulation published in the county in

4-2 which the public work is proposed to be constructed or, if there is no such

4-3 newspaper, in a newspaper of general circulation in the county published

4-4 in this state; and

4-5 (b) A newspaper of general circulation in this state.

4-6 2. A request for preliminary proposals published pursuant to

4-7 subsection 1 must include, without limitation:

4-8 (a) A description of the public work to be designed and constructed;

4-9 (b) Separate estimates of the costs of designing and constructing the

4-10 public work;

4-11 (c) The dates on which it is anticipated that the separate phases of the

4-12 design and construction of the public work will begin and end;

4-13 (d) A statement setting forth the place and time in which a design-

4-14 build team desiring to submit a proposal for the public work may obtain

4-15 the information necessary to submit a proposal, including, without

4-16 limitation, the extent to which designs must be completed for both

4-17 preliminary and final proposals and any other requirements for the

4-18 design and construction of the public work that the public body

4-19 determines to be necessary;

4-20 (e) A list of the requirements set forth in section 6 of this act;

4-21 (f) A list of the factors that the public body will use to evaluate design-

4-22 build teams who submit a proposal for the public work, including,

4-23 without limitation:

4-24 (1) The relative weight to be assigned to each factor; and

4-25 (2) A disclosure of whether the factors that are not related to cost

4-26 are, when considered as a group, more or less important in the process of

4-27 evaluation than the factor of cost;

4-28 (g) Notice that a design-build team desiring to submit a proposal for

4-29 the public work must include with its proposal the information used by

4-30 the public body to determine finalists among the design-build teams

4-31 submitting proposals pursuant to subsection 2 of section 7 of this act and

4-32 a description of that information;

4-33 (h) A statement that a design-build team whose prime contractor

4-34 holds a certificate of eligibility to receive a preference in bidding on

4-35 public works issued pursuant to NRS 338.147 should submit a copy of

4-36 the certificate of eligibility with its proposal;

4-37 (i) A statement as to whether a design-build team that is selected as a

4-38 finalist pursuant to section 7 of this act but is not awarded the design-

4-39 build contract pursuant to section 8 of this act will be partially

4-40 reimbursed for the cost of preparing a final proposal and, if so, an

4-41 estimate of the amount of the partial reimbursement; and

5-1 (j) The date by which preliminary proposals must be submitted to the

5-2 public body, which must not be less than 30 days or more than 60 days

5-3 after the date on which the request for preliminary proposals is first

5-4 published in a newspaper pursuant to subsection 1.

5-5 Sec. 6. To qualify to participate in a project for the design and

5-6 construction of a public work, a design-build team must:

5-7 1. Obtain a performance bond and payment bond as required

5-8 pursuant to NRS 339.025;

5-9 2. Obtain insurance covering general liability and liability for errors

5-10 and omissions;

5-11 3. Not have been found liable for breach of contract with respect to a

5-12 previous project, other than a breach for legitimate cause;

5-13 4. Not have been disqualified from being awarded a contract

5-14 pursuant to NRS 338.017, 338.145 or 408.333; and

5-15 5. Ensure that the members of the design-build team possess the

5-16 licenses and certificates required to carry out the functions of their

5-17 respective professions within this state.

5-18 Sec. 7. 1. At least 30 days after the date by which preliminary

5-19 proposals must be submitted to the public body, the public body shall

5-20 select at least three but not more than five finalists from among the

5-21 design-build teams that submitted preliminary proposals. If the public

5-22 body does not receive at least three preliminary proposals from design-

5-23 build teams that the public body determines to be qualified pursuant to

5-24 this section and section 6 of this act, the public body may not contract

5-25 with a design-build team for the design and construction of the public

5-26 work.

5-27 2. The public body shall select finalists pursuant to subsection 1 by:

5-28 (a) Verifying that each design-build team which submitted a

5-29 preliminary proposal satisfies the requirements of section 6 of this act;

5-30 and

5-31 (b) Conducting an evaluation of the qualifications of each design-

5-32 build team that submitted a preliminary proposal, including, without

5-33 limitation, an evaluation of:

5-34 (1) The professional qualifications and experience of the members

5-35 of the design-build team;

5-36 (2) The performance history of the members of the design-build

5-37 team concerning other recent, similar projects completed by those

5-38 members, if any;

5-39 (3) The safety programs established and the safety records

5-40 accumulated by the members of the design-build team; and

5-41 (4) The proposed plan of the design-build team to manage the

5-42 design and construction of the public work that sets forth in detail the

5-43 ability of the design-build team to design and construct the public work.

6-1 Sec. 8. 1. After selecting the finalists pursuant to section 7 of this

6-2 act, the public body shall provide to each finalist a request for final

6-3 proposals for the public work. The request for final proposals must:

6-4 (a) Set forth the factors that the public body will use to select a design-

6-5 build team to design and construct the public work, including the relative

6-6 weight to be assigned to each factor; and

6-7 (b) Set forth the date by which final proposals must be submitted to

6-8 the public body.

6-9 2. A final proposal submitted by a design-build team pursuant to this

6-10 section must be prepared thoroughly, be responsive to the criteria that the

6-11 public body will use to select a design-build team to design and construct

6-12 the public work described in subsection 1 and comply with the provisions

6-13 of NRS 338.144. If the cost of construction is a factor in the selection of

6-14 a design-build team, a design-build team whose prime contractor has

6-15 submitted with its proposal a certificate of eligibility to receive a

6-16 preference in bidding on public works issued pursuant to NRS 338.147 or

6-17 section 11 of Assembly Bill No. 298 of this session shall be deemed to

6-18 have submitted a better proposal than a competing design-build team

6-19 whose prime contractor has not submitted such a certificate of eligibility

6-20 if the amount proposed by the design-build team is not more than 5

6-21 percent higher than the amount proposed by the competing design-build

6-22 team.

6-23 3. At least 30 days after receiving the final proposals for the public

6-24 work, the public body shall:

6-25 (a) Select the most cost-effective and responsive final proposal, using

6-26 the criteria set forth pursuant to subsection 1; or

6-27 (b) Reject all the final proposals.

6-28 4. If a public body selects a final proposal pursuant to paragraph (a)

6-29 of subsection 3, the public body shall, at its next regularly scheduled

6-30 meeting:

6-31 (a) Review and ratify the selection.

6-32 (b) Award the design-build contract to the design-build team whose

6-33 proposal is selected.

6-34 (c) Partially reimburse the unsuccessful finalists if partial

6-35 reimbursement was provided for in the request for preliminary proposals

6-36 pursuant to paragraph (i) of subsection 2 of section 5 of this act. The

6-37 amount of reimbursement must not exceed, for each unsuccessful

6-38 finalist, three percent of the total amount to be paid to the design-build

6-39 team as set forth in the design-build contract.

6-40 (d) Make available to the public a summary setting forth the factors

6-41 used by the public body to select the successful design-build team and the

6-42 ranking of the design-build teams who submitted final proposals. The

7-1 public body shall not release to a third party, or otherwise make public,

7-2 financial or proprietary information submitted by a design-build team.

7-3 5. A contract awarded pursuant to this section must specify:

7-4 (a) An amount that is the maximum amount that the public body will

7-5 pay for the performance of all the work required by the contract,

7-6 excluding any amount related to costs that may be incurred as a result of

7-7 unexpected conditions or occurrences as authorized by the contract;

7-8 (b) An amount that is the maximum amount that the public body will

7-9 pay for the performance of the professional services required by the

7-10 contract; and

7-11 (c) A date by which performance of the work required by the contract

7-12 must be completed.

7-13 6. A design-build team to whom a contract is awarded pursuant to

7-14 this section shall:

7-15 (a) Assume overall responsibility for ensuring that the design and

7-16 construction of the public work is completed in a satisfactory manner;

7-17 and

7-18 (b) Use the work force of the prime contractor on the design-build

7-19 team to construct at least 15 percent of the public work.

7-20 Sec. 9. A public body may employ a registered architect or licensed

7-21 professional engineer as a consultant to assist the public body in

7-22 overseeing the construction of a public work. An architect or engineer so

7-23 employed shall not:

7-24 1. Construct the public work; or

7-25 2. Assume overall responsibility for ensuring that the construction of

7-26 the public work is completed in a satisfactory manner.

7-27 Sec. 10. NRS 338.010 is hereby amended to read as follows:

7-28 338.010 As used in this chapter:

7-29 1. "Day labor" means all cases where public bodies, their officers,

7-30 agents or employees, hire, supervise and pay the wages thereof directly to a

7-31 workman or workmen employed by them on public works by the day and

7-32 not under a contract in writing.

7-33 2. "Design-build contract" means a contract between a public body

7-34 and a design-build team in which the design-build team agrees to design

7-35 and construct a public work.

7-36 3. "Design-build team" means an entity that consists of:

7-37 (a) At least one person who is licensed as a general engineering

7-38 contractor or a general building contractor pursuant to NRS 624.230 to

7-39 624.320, inclusive; and

7-40 (b) For a public work that consists of:

7-41 (1) A building and its site, at least one person who holds a

7-42 certificate of registration to practice architecture pursuant to chapter 623

7-43 of NRS.

8-1 (2) Anything other than a building and its site, at least one person

8-2 who holds a certificate of registration to practice architecture pursuant to

8-3 chapter 623 of NRS or is licensed as a professional engineer pursuant to

8-4 chapter 625 of NRS.

8-5 4. "Design professional" means a person with a professional license

8-6 or certificate issued pursuant to chapter 623, 623A or 625 of NRS.

8-7 5. "Eligible bidder" means a person who is:

8-8 (a) Found to be a responsible and responsive contractor by a local

8-9 government which requests bids for a public work in accordance with

8-10 paragraph (b) of subsection 1 of section 2 of [this act;] Assembly Bill No.

8-11 298 of this session; or

8-12 (b) Determined by a public body which awarded a contract for a public

8-13 work pursuant to sections 3 to 11, inclusive, of [this act,] Assembly Bill No.

8-14 298 of this session, to be qualified to bid on that contract pursuant to

8-15 section 5 of [this act] Assembly Bill No. 298 of this session or was exempt

8-16 from meeting such qualifications pursuant to section 6 of [this act.

8-17 3.] Assembly Bill No. 298 of this session.

8-18 6. "Local government" means every political subdivision or other

8-19 entity which has the right to levy or receive money from ad valorem or

8-20 other taxes or any mandatory assessments, and includes, without limitation,

8-21 counties, cities, towns, boards, school districts and other districts organized

8-22 pursuant to chapters 244A, 309, 318, 379, 474, 541, 543 and 555 of NRS,

8-23 NRS 450.550 to 450.750, inclusive, and any agency or department of a

8-24 county or city which prepares a budget separate from that of the parent

8-25 political subdivision.

8-26 [4.] 7. "Offense" means failing to:

8-27 (a) Pay the prevailing wage required pursuant to this chapter;

8-28 (b) Pay the contributions for unemployment compensation required

8-29 pursuant to chapter 612 of NRS; or

8-30 (c) Provide and secure compensation for employees required pursuant to

8-31 chapters 616A to 617, inclusive, of NRS.

8-32 [5.] 8. "Prime contractor" means a person who:

8-33 (a) Contracts to [complete] construct an entire project;

8-34 (b) Coordinates all work performed on the entire project;

8-35 (c) Uses his own work force to perform all or a part of the construction,

8-36 repair or reconstruction of the project; and

8-37 (d) Contracts for the services of any subcontractor or independent

8-38 contractor or is responsible for payment to any contracted subcontractors or

8-39 independent contractors.

8-40 [6.] 9. "Public body" means the state, county, city, town, school

8-41 district or any public agency of this state or its political subdivisions

8-42 sponsoring or financing a public work.

9-1 [7.] 10. "Public work" means any project for the new construction,

9-2 repair or reconstruction of:

9-3 (a) A project financed in whole or in part from public money for:

9-4 (1) Public buildings;

9-5 (2) Jails and prisons;

9-6 (3) Public roads;

9-7 (4) Public highways;

9-8 (5) Public streets and alleys;

9-9 (6) Public utilities which are financed in whole or in part by public

9-10 money;

9-11 (7) Publicly owned water mains and sewers;

9-12 (8) Public parks and playgrounds;

9-13 (9) Public convention facilities which are financed at least in part with

9-14 public funds; and

9-15 (10) Any other publicly owned works and property whose cost as a

9-16 whole exceeds $20,000.

9-17 Each separate unit that is a part of a project is included in the cost of the

9-18 project to determine whether a project meets that threshold.

9-19 (b) A building for the University and Community College System of

9-20 Nevada of which 25 percent or more of the costs of the building as a whole

9-21 are paid from money appropriated by this state or from federal money.

9-22 [8.] 11. "Specialty contractor" means a contractor whose operations

9-23 as such are the performance of construction work requiring special skill

9-24 and whose principal contracting business involves the use of specialized

9-25 building trades or crafts.

9-26 12. "Stand-alone underground utility project" means an

9-27 underground utility project that is not integrated into a larger project,

9-28 including, without limitation:

9-29 (a) An underground sewer line or an underground pipeline for the

9-30 conveyance of water, including facilities appurtenant thereto; and

9-31 (b) A project for the construction or installation of a storm drain,

9-32 including facilities appurtenant thereto,

9-33 that is not located at the site of a public work for the design and

9-34 construction of which a public body is authorized to contract with a

9-35 design-build team pursuant to subsection 2 of section 2 of this act.

9-36 13. "Wages" means:

9-37 (a) The basic hourly rate of pay; and

9-38 (b) The amount of pension, health and welfare, vacation and holiday

9-39 pay, the cost of apprenticeship training or other similar programs or other

9-40 bona fide fringe benefits which are a benefit to the workman.

10-1 [9.] 14. "Workman" means a skilled mechanic, skilled workman,

10-2 semiskilled mechanic, semiskilled workman or unskilled workman. The

10-3 term does not include a design professional . [as that term is defined in

10-4 NRS 338.155.]

10-5 Sec. 11. NRS 338.143 is hereby amended to read as follows:

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

10-7 338.1907, a local government that awards a contract for the construction,

10-8 alteration or repair of a public work in accordance with paragraph (b) of

10-9 subsection 1 of section 2 of [this act,] Assembly Bill No. 298 of this

10-10 session, or a public officer, public employee or other person responsible for

10-11 awarding a contract for the construction, alteration or repair of a public

10-12 work who represents that local government, shall not:

10-13 (a) Commence such a project for which the estimated cost exceeds

10-14 $100,000 unless it advertises in a newspaper of general circulation in this

10-15 state for bids for the project; or

10-16 (b) Divide such a project into separate portions to avoid the

10-17 requirements of paragraph (a).

10-18 2. Except as otherwise provided in subsection 6, a local government

10-19 that maintains a list of properly licensed contractors who are interested in

10-20 receiving offers to bid on public works projects for which the estimated

10-21 cost is more than $25,000 but less than $100,000 shall solicit bids from not

10-22 more than three of the contractors on the list for a contract of that value for

10-23 the construction, alteration or repair of a public work. The local

10-24 government shall select contractors from the list in such a manner as to

10-25 afford each contractor an equal opportunity to bid on a public works

10-26 project. A properly licensed contractor must submit a written request

10-27 annually to the local government to remain on the list. Offers for bids

10-28 which are made pursuant to this subsection must be sent by certified mail.

10-29 3. Approved plans and specifications for the bids must be on file at a

10-30 place and time stated in the advertisement for the inspection of all persons

10-31 desiring to bid thereon and for other interested persons. Contracts for the

10-32 project must be awarded on the basis of bids received.

10-33 4. Any bids received in response to an advertisement for bids may be

10-34 rejected if the person responsible for awarding the contract determines that:

10-35 (a) The bidder is not responsive or responsible;

10-36 (b) The quality of the services, materials, equipment or labor offered

10-37 does not conform to the approved plan or specifications; or

10-38 (c) The public interest would be served by such a rejection.

10-39 5. Before a local government may commence a project subject to the

10-40 provisions of this section, based upon a determination that the public

10-41 interest would be served by rejecting any bids received in response to an

10-42 advertisement for bids, it shall prepare and make available for public

10-43 inspection a written statement containing:

11-1 (a) A list of all persons, including supervisors, whom the local

11-2 government intends to assign to the project, together with their

11-3 classifications and an estimate of the direct and indirect costs of their labor;

11-4 (b) A list of all equipment that the local government intends to use on

11-5 the project, together with an estimate of the number of hours each item of

11-6 equipment will be used and the hourly cost to use each item of equipment;

11-7 (c) An estimate of the cost of administrative support for the persons

11-8 assigned to the project;

11-9 (d) An estimate of the total cost of the project; and

11-10 (e) An estimate of the amount of money the local government expects to

11-11 save by rejecting the bids and performing the project itself.

11-12 6. This section does not apply to:

11-13 (a) Any utility subject to the provisions of chapter 318 or 710 of NRS;

11-14 (b) Any work of construction, reconstruction, improvement and

11-15 maintenance of highways subject to NRS 408.323 or 408.327;

11-16 (c) Normal maintenance of the property of a school district; [or]

11-17 (d) The Las Vegas Valley water district created pursuant to chapter 167,

11-18 Statutes of Nevada 1947, the Moapa Valley water district created pursuant

11-19 to chapter 477, Statutes of Nevada 1983 or the Virgin Valley water district

11-20 created pursuant to chapter 100, Statutes of Nevada 1993 [.] ; or

11-21 (e) The design and construction of a public work for which a public

11-22 body contracts with a design-build team pursuant to sections 2 to 9,

11-23 inclusive, of this act.

11-24 Sec. 12. NRS 338.143 is hereby amended to read as follows:

11-25 338.143 1. Except as otherwise provided in subsection 6, a local

11-26 government that awards a contract for the construction, alteration or repair

11-27 of a public work in accordance with paragraph (b) of subsection 1 of

11-28 section 2 of [this act,] Assembly Bill No. 298 of this session, or a public

11-29 officer, public employee or other person responsible for awarding a

11-30 contract for the construction, alteration or repair of a public work who

11-31 represents that local government, shall not:

11-32 (a) Commence such a project for which the estimated cost exceeds

11-33 $100,000 unless it advertises in a newspaper of general circulation in this

11-34 state for bids for the project; or

11-35 (b) Divide such a project into separate portions to avoid the

11-36 requirements of paragraph (a).

11-37 2. Except as otherwise provided in subsection 6, a local government

11-38 that maintains a list of properly licensed contractors who are interested in

11-39 receiving offers to bid on public works projects for which the estimated

11-40 cost is more than $25,000 but less than $100,000 shall solicit bids from not

11-41 more than three of the contractors on the list for a contract of that value for

11-42 the construction, alteration or repair of a public work. The local

11-43 government shall select contractors from the list in such a manner as to

12-1 afford each contractor an equal opportunity to bid on a public works

12-2 project. A properly licensed contractor must submit a written request

12-3 annually to the local government to remain on the list. Offers for bids

12-4 which are made pursuant to this subsection must be sent by certified mail.

12-5 3. Approved plans and specifications for the bids must be on file at a

12-6 place and time stated in the advertisement for the inspection of all persons

12-7 desiring to bid thereon and for other interested persons. Contracts for the

12-8 project must be awarded on the basis of bids received.

12-9 4. Any bids received in response to an advertisement for bids may be

12-10 rejected if the person responsible for awarding the contract determines that:

12-11 (a) The bidder is not responsive or responsible;

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

12-13 does not conform to the approved plan or specifications; or

12-14 (c) The public interest would be served by such a rejection.

12-15 5. Before a local government may commence a project subject to the

12-16 provisions of this section, based upon a determination that the public

12-17 interest would be served by rejecting any bids received in response to an

12-18 advertisement for bids, it shall prepare and make available for public

12-19 inspection a written statement containing:

12-20 (a) A list of all persons, including supervisors, whom the local

12-21 government intends to assign to the project, together with their

12-22 classifications and an estimate of the direct and indirect costs of their labor;

12-23 (b) A list of all equipment that the local government intends to use on

12-24 the project, together with an estimate of the number of hours each item of

12-25 equipment will be used and the hourly cost to use each item of equipment;

12-26 (c) An estimate of the cost of administrative support for the persons

12-27 assigned to the project;

12-28 (d) An estimate of the total cost of the project; and

12-29 (e) An estimate of the amount of money the local government expects to

12-30 save by rejecting the bids and performing the project itself.

12-31 6. This section does not apply to:

12-32 (a) Any utility subject to the provisions of chapter 318 or 710 of NRS;

12-33 (b) Any work of construction, reconstruction, improvement and

12-34 maintenance of highways subject to NRS 408.323 or 408.327;

12-35 (c) Normal maintenance of the property of a school district; [or]

12-36 (d) The Las Vegas Valley water district created pursuant to chapter 167,

12-37 Statutes of Nevada 1947, the Moapa Valley water district created pursuant

12-38 to chapter 477, Statutes of Nevada 1983 or the Virgin Valley water district

12-39 created pursuant to chapter 100, Statutes of Nevada 1993.

12-40 Sec. 13. NRS 338.147 is hereby amended to read as follows:

12-41 338.147 1. Except as otherwise provided in NRS 338.143 [,] and

12-42 sections 2 to 9, inclusive, of this act, a local government shall award a

12-43 contract for a public work to the contractor who submits the best bid.

13-1 2. Except as otherwise provided in subsection 8 or limited by

13-2 subsection 9, for the purposes of this section, a contractor who:

13-3 (a) Has been found to be a responsible and responsive contractor by the

13-4 local government; and

13-5 (b) At the time he submits his bid, provides to the local government a

13-6 copy of a certificate of eligibility to receive a preference in bidding on

13-7 public works issued to him by the state contractors’ board pursuant to

13-8 subsection 3,

13-9 shall be deemed to have submitted a better bid than a competing contractor

13-10 who has not provided a copy of such a valid certificate of eligibility if the

13-11 amount of his bid is not more than 5 percent higher than the amount bid by

13-12 the competing contractor.

13-13 3. The state contractors’ board shall issue a certificate of eligibility to

13-14 receive a preference in bidding on public works to a general contractor who

13-15 is licensed pursuant to the provisions of chapter 624 of NRS and submits to

13-16 the board an affidavit from a certified public accountant setting forth that

13-17 the general contractor has:

13-18 (a) Paid:

13-19 (1) The sales and use taxes imposed pursuant to chapters 372, 374

13-20 and 377 of NRS on materials used for construction in this state, including,

13-21 without limitation, construction that is undertaken or carried out on land

13-22 within the boundaries of this state that is managed by the Federal

13-23 Government or is on an Indian reservation or Indian colony, of not less than

13-24 $5,000 for each consecutive 12-month period for 60 months immediately

13-25 preceding the submission of the affidavit from the certified public

13-26 accountant;

13-27 (2) The motor vehicle privilege tax imposed pursuant to chapter 371

13-28 of NRS on the vehicles used in the operation of his business in this state of

13-29 not less than $5,000 for each consecutive 12-month period for 60 months

13-30 immediately preceding the submission of the affidavit from the certified

13-31 public accountant; or

13-32 (3) Any combination of such sales and use taxes and motor vehicle

13-33 privilege tax; or

13-34 (b) Acquired, by inheritance, gift or transfer through a stock option plan

13-35 for employees, all the assets and liabilities of a viable, operating

13-36 construction firm that possesses a:

13-37 (1) License as a general contractor pursuant to the provisions of

13-38 chapter 624 of NRS; and

13-39 (2) Certificate of eligibility to receive a preference in bidding on

13-40 public works.

13-41 4. For the purposes of complying with the requirements set forth in

13-42 paragraph (a) of subsection 3, a general contractor shall be deemed to have

13-43 paid:

14-1 (a) Sales and use taxes and motor vehicle privilege taxes paid in this

14-2 state by an affiliate or parent company of the contractor, if the affiliate or

14-3 parent company is also a general contractor; and

14-4 (b) Sales and use taxes paid in this state by a joint venture in which the

14-5 contractor is a participant, in proportion to the amount of interest the

14-6 contractor has in the joint venture.

14-7 5. A contractor who has received a certificate of eligibility to receive a

14-8 preference in bidding on public works from the state contractors’ board

14-9 pursuant to subsection 3 shall, at the time for the annual renewal of his

14-10 contractors’ license pursuant to NRS 624.283, submit to the board an

14-11 affidavit from a certified public accountant setting forth that the contractor

14-12 has, during the immediately preceding 12 months, paid the taxes required

14-13 pursuant to paragraph (a) of subsection 3 to maintain his eligibility to hold

14-14 such a certificate.

14-15 6. A contractor who fails to submit an affidavit to the board pursuant to

14-16 subsection 5 ceases to be eligible to receive a preference in bidding on

14-17 public works unless he reapplies for and receives a certificate of eligibility

14-18 pursuant to subsection 3.

14-19 7. If a contractor who applies to the state contractors’ board for a

14-20 certificate of eligibility to receive a preference in bidding on public works

14-21 submits false information to the board regarding the required payment of

14-22 taxes, the contractor is not eligible to receive a preference in bidding on

14-23 public works for a period of 5 years after the date on which the board

14-24 becomes aware of the submission of the false information.

14-25 8. If any federal statute or regulation precludes the granting of federal

14-26 assistance or reduces the amount of that assistance for a particular public

14-27 work because of the provisions of subsection 2, those provisions do not

14-28 apply insofar as their application would preclude or reduce federal

14-29 assistance for that work. The provisions of subsection 2 do not apply to any

14-30 contract for a public work which is expected to cost less than $250,000.

14-31 9. [If] Except as otherwise provided in subsection 2 of section 8 of

14-32 this act and subsection 2 of section 27 of this act, if a bid is submitted by

14-33 two or more contractors as a joint venture or by one of them as a joint

14-34 venturer, the provisions of subsection 2 apply only if both or all of the joint

14-35 venturers separately meet the requirements of that subsection.

14-36 10. The state contractors’ board shall adopt regulations and may assess

14-37 reasonable fees relating to the certification of contractors for a preference

14-38 in bidding on public works.

14-39 11. A person or entity who believes that a contractor wrongfully holds

14-40 a certificate of eligibility to receive a preference in bidding on public works

14-41 may challenge the validity of the certificate by filing a written objection

15-1 with the public body to which the contractor has submitted a bid or

15-2 proposal on a contract for the completion of a public work. A written

15-3 objection authorized pursuant to this subsection must:

15-4 (a) Set forth proof or substantiating evidence to support the belief of the

15-5 person or entity that the contractor wrongfully holds a certificate of

15-6 eligibility to receive a preference in bidding on public works; and

15-7 (b) Be filed with the public body at or after the time at which the

15-8 contractor submitted the bid or proposal to the public body and before the

15-9 time at which the public body awards the contract for which the bid or

15-10 proposal was submitted.

15-11 12. If a public body receives a written objection pursuant to subsection

15-12 11, the public body shall determine whether the objection is accompanied

15-13 by the proof or substantiating evidence required pursuant to paragraph (a)

15-14 of that subsection. If the public body determines that the objection is not

15-15 accompanied by the required proof or substantiating evidence, the public

15-16 body shall dismiss the objection and may proceed immediately to award the

15-17 contract. If the public body determines that the objection is accompanied

15-18 by the required proof or substantiating evidence, the public body shall

15-19 determine whether the contractor qualifies for the certificate pursuant to the

15-20 provisions of this section and may proceed to award the contract

15-21 accordingly.

15-22 Sec. 13.5. NRS 338.147 is hereby amended to read as follows:

15-23 338.147 1. Except as otherwise provided in NRS 338.143 , [and

15-24 sections 2 to 9, inclusive, of this act,] a local government shall award a

15-25 contract for a public work to the contractor who submits the best bid.

15-26 2. Except as otherwise provided in subsection 8 or limited by

15-27 subsection 9, for the purposes of this section, a contractor who:

15-28 (a) Has been found to be a responsible and responsive contractor by the

15-29 local government; and

15-30 (b) At the time he submits his bid, provides to the local government a

15-31 copy of a certificate of eligibility to receive a preference in bidding on

15-32 public works issued to him by the state contractors’ board pursuant to

15-33 subsection 3,

15-34 shall be deemed to have submitted a better bid than a competing contractor

15-35 who has not provided a copy of such a valid certificate of eligibility if the

15-36 amount of his bid is not more than 5 percent higher than the amount bid by

15-37 the competing contractor.

15-38 3. The state contractors’ board shall issue a certificate of eligibility to

15-39 receive a preference in bidding on public works to a general contractor who

15-40 is licensed pursuant to the provisions of chapter 624 of NRS and submits to

15-41 the board an affidavit from a certified public accountant setting forth that

15-42 the general contractor has:

16-1 (a) Paid:

16-2 (1) The sales and use taxes imposed pursuant to chapters 372, 374

16-3 and 377 of NRS on materials used for construction in this state, including,

16-4 without limitation, construction that is undertaken or carried out on land

16-5 within the boundaries of this state that is managed by the Federal

16-6 Government or is on an Indian reservation or Indian colony, of not less than

16-7 $5,000 for each consecutive 12-month period for 60 months immediately

16-8 preceding the submission of the affidavit from the certified public

16-9 accountant;

16-10 (2) The motor vehicle privilege tax imposed pursuant to chapter 371

16-11 of NRS on the vehicles used in the operation of his business in this state of

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

16-13 immediately preceding the submission of the affidavit from the certified

16-14 public accountant; or

16-15 (3) Any combination of such sales and use taxes and motor vehicle

16-16 privilege tax; or

16-17 (b) Acquired, by inheritance, gift or transfer through a stock option plan

16-18 for employees, all the assets and liabilities of a viable, operating

16-19 construction firm that possesses a:

16-20 (1) License as a general contractor pursuant to the provisions of

16-21 chapter 624 of NRS; and

16-22 (2) Certificate of eligibility to receive a preference in bidding on

16-23 public works.

16-24 4. For the purposes of complying with the requirements set forth in

16-25 paragraph (a) of subsection 3, a general contractor shall be deemed to have

16-26 paid:

16-27 (a) Sales and use taxes and motor vehicle privilege taxes paid in this

16-28 state by an affiliate or parent company of the contractor, if the affiliate or

16-29 parent company is also a general contractor; and

16-30 (b) Sales and use taxes paid in this state by a joint venture in which the

16-31 contractor is a participant, in proportion to the amount of interest the

16-32 contractor has in the joint venture.

16-33 5. A contractor who has received a certificate of eligibility to receive a

16-34 preference in bidding on public works from the state contractors’ board

16-35 pursuant to subsection 3 shall, at the time for the annual renewal of his

16-36 contractors’ license pursuant to NRS 624.283, submit to the board an

16-37 affidavit from a certified public accountant setting forth that the contractor

16-38 has, during the immediately preceding 12 months, paid the taxes required

16-39 pursuant to paragraph (a) of subsection 3 to maintain his eligibility to hold

16-40 such a certificate.

16-41 6. A contractor who fails to submit an affidavit to the board pursuant to

16-42 subsection 5 ceases to be eligible to receive a preference in bidding on

17-1 public works unless he reapplies for and receives a certificate of eligibility

17-2 pursuant to subsection 3.

17-3 7. If a contractor who applies to the state contractors’ board for a

17-4 certificate of eligibility to receive a preference in bidding on public works

17-5 submits false information to the board regarding the required payment of

17-6 taxes, the contractor is not eligible to receive a preference in bidding on

17-7 public works for a period of 5 years after the date on which the board

17-8 becomes aware of the submission of the false information.

17-9 8. If any federal statute or regulation precludes the granting of federal

17-10 assistance or reduces the amount of that assistance for a particular public

17-11 work because of the provisions of subsection 2, those provisions do not

17-12 apply insofar as their application would preclude or reduce federal

17-13 assistance for that work. The provisions of subsection 2 do not apply to any

17-14 contract for a public work which is expected to cost less than $250,000.

17-15 9. [Except as otherwise provided in subsection 2 of section 8 of this act

17-16 and subsection 2 of section 27 of this act, if] If a bid is submitted by two or

17-17 more contractors as a joint venture or by one of them as a joint venturer,

17-18 the provisions of subsection 2 apply only if both or all of the joint venturers

17-19 separately meet the requirements of that subsection.

17-20 10. The state contractors’ board shall adopt regulations and may assess

17-21 reasonable fees relating to the certification of contractors for a preference

17-22 in bidding on public works.

17-23 11. A person or entity who believes that a contractor wrongfully holds

17-24 a certificate of eligibility to receive a preference in bidding on public works

17-25 may challenge the validity of the certificate by filing a written objection

17-26 with the public body to which the contractor has submitted a bid or

17-27 proposal on a contract for the completion of a public work. A written

17-28 objection authorized pursuant to this subsection must:

17-29 (a) Set forth proof or substantiating evidence to support the belief of the

17-30 person or entity that the contractor wrongfully holds a certificate of

17-31 eligibility to receive a preference in bidding on public works; and

17-32 (b) Be filed with the public body at or after the time at which the

17-33 contractor submitted the bid or proposal to the public body and before the

17-34 time at which the public body awards the contract for which the bid or

17-35 proposal was submitted.

17-36 12. If a public body receives a written objection pursuant to subsection

17-37 11, the public body shall determine whether the objection is accompanied

17-38 by the proof or substantiating evidence required pursuant to paragraph (a)

17-39 of that subsection. If the public body determines that the objection is not

17-40 accompanied by the required proof or substantiating evidence, the public

17-41 body shall dismiss the objection and may proceed immediately to award the

17-42 contract. If the public body determines that the objection is accompanied

17-43 by the required proof or substantiating evidence, the public body shall

18-1 determine whether the contractor qualifies for the certificate pursuant to the

18-2 provisions of this section and may proceed to award the contract

18-3 accordingly.

18-4 Sec. 14. NRS 338.155 is hereby amended to read as follows:

18-5 338.155 [1.] If a public body enters into a contract with a design

18-6 professional who is not a member of a design-build team for the provision

18-7 of services in connection with a public work, the contract:

18-8 [(a)] 1. Must set forth:

18-9 [(1)] (a) The specific period within which the public body must pay

18-10 the design professional.

18-11 [(2)] (b) The specific period and manner in which the public body

18-12 may dispute a payment or portion thereof that the design professional

18-13 alleges is due.

18-14 [(3)] (c) The terms of any penalty that will be imposed upon the

18-15 public body if the public body fails to pay the design professional within

18-16 the specific period set forth in the contract pursuant to [subparagraph (1).

18-17 (4)] paragraph (a).

18-18 (d) That the prevailing party in an action to enforce the contract is

18-19 entitled to reasonable attorney’s fees and costs.

18-20 [(b)] 2. May set forth the terms of any discount that the public body

18-21 will receive if the public body pays the design professional within the

18-22 specific period set forth in the contract pursuant to [subparagraph (1) of]

18-23 paragraph (a) [.

18-24 2. As used in this section, "design professional" means a person with a

18-25 professional license or certificate issued pursuant to chapter 623, 623A or

18-26 625 of NRS.] of subsection 1.

18-27 Sec. 14.5. NRS 341.161 is hereby amended to read as follows:

18-28 341.161 1. The board may, with the approval of the interim finance

18-29 committee when the legislature is not in regular or special session, or with

18-30 the approval of the legislature by concurrent resolution when the legislature

18-31 is in regular or special session, let to a contractor licensed under chapter

18-32 624 of NRS a contract for services which assist the architect in the design

18-33 of a project of capital improvement. The board shall for that purpose

18-34 participate in the development of plans, outlines of specifications and

18-35 estimates of costs.

18-36 2. The board shall adopt regulations establishing procedures for:

18-37 (a) The determination of the qualifications of contractors to bid for

18-38 contracts for services described in subsection 1.

18-39 (b) The bidding and awarding of such contracts, subject to the

18-40 provisions of subsection 3.

19-1 (c) The awarding of construction contracts [, subject to the provisions of

19-2 subsection 4,] based on a final cost of the project which the contractor

19-3 guarantees will not be exceeded.

19-4 (d) The scheduling and controlling of projects.

19-5 3. Bids on contracts for services which assist the architect in the design

19-6 of a project of capital improvement must state separately the contractor’s

19-7 cost for:

19-8 (a) Assisting the architect in the design of the project.

19-9 (b) Obtaining all bids for subcontracts.

19-10 (c) Administering the construction contract.

19-11 4. [A contractor who is:

19-12 (a) Qualified under the regulations of the board to bid for a contract for

19-13 services described in subsection 1; and

19-14 (b) Awarded that contract,

19-15 is entitled to be awarded the construction contract for the project if his

19-16 work under the contract for services is satisfactory to the board and he

19-17 guarantees a final cost for the project which the board is willing to accept.

19-18 5.] A person who furnishes services under a contract awarded pursuant

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

19-20 contractor in Title 28 of NRS.

19-21 Sec. 15. Chapter 408 of NRS is hereby amended by adding thereto the

19-22 provisions set forth as sections 16 to 28, inclusive, of this act.

19-23 Sec. 16. As used in sections 16 to 28, inclusive, of this act, unless the

19-24 context otherwise requires, the words and terms defined in sections 17 to

19-25 20, inclusive, of this act have the meanings ascribed to them in those

19-26 sections.

19-27 Sec. 17. "Design-build contract" means a contract between the

19-28 department and a design-build team in which the design-build team

19-29 agrees to design and construct a project.

19-30 Sec. 18. "Design-build team" means an entity that consists of:

19-31 1. At least one person who is licensed as a general engineering

19-32 contractor or a general building contractor pursuant to NRS 624.230 to

19-33 624.320, inclusive; and

19-34 2. At least one person who holds a certificate of registration to

19-35 practice architecture pursuant to chapter 623 of NRS or is licensed as a

19-36 professional engineer pursuant to chapter 625 of NRS.

19-37 Sec. 19. "Prime contractor" means a person who:

19-38 1. Contracts to construct an entire project;

19-39 2. Coordinates all work performed on the entire project;

19-40 3. Uses his own workforce to perform all or a part of the

19-41 construction of the project; and

20-1 4. Contracts for the services of any subcontractor or independent

20-2 contractor or is responsible for payment to any contracted subcontractors

20-3 or independent contractors.

20-4 Sec. 20. "Project" means a project for the construction,

20-5 reconstruction or improvement of a highway.

20-6 Sec. 21. 1. The department may contract with a design-build team

20-7 for the design and construction of a project if the department determines

20-8 that:

20-9 (a) Except as otherwise provided in subsection 2, the estimated cost of

20-10 the project exceeds $30,000,000; and

20-11 (b) Contracting with a design-build team will enable the department

20-12 to:

20-13 (1) Design and construct the project at a cost that is significantly

20-14 lower than the cost that the department would incur to design and

20-15 construct the project using a different method;

20-16 (2) Design and construct the project in a shorter time than would be

20-17 required to complete the project using a different method, if exigent

20-18 circumstances require that the project be designed and constructed

20-19 within a short time; or

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

20-21 properly coordinated, if the project is unique, highly technical and

20-22 complex in nature.

20-23 2. Notwithstanding the provisions of subsection 1, the department

20-24 may, once in each fiscal year, contract with a design-build team for the

20-25 design and construction of a project the estimated cost of which is at least

20-26 $5,000,000 but less than $30,000,000 if the department makes the

20-27 determinations otherwise required pursuant to paragraph (b) of

20-28 subsection 1.

20-29 Sec. 22. 1. The department shall not contract with a design-build

20-30 team with respect to a project unless the board makes the determinations,

20-31 at a public meeting, that are required pursuant to section 21 of this act.

20-32 2. If the department is required to hold a public meeting pursuant to

20-33 this section, the department shall publish notice of the meeting at least

20-34 once each week for 3 consecutive weeks in:

20-35 (a) A newspaper of general circulation published in each county in

20-36 which the project is proposed to be constructed or, if there is no such

20-37 newspaper, in a newspaper of general circulation in each county

20-38 published in this state; and

20-39 (b) A newspaper of general circulation in this state.

20-40 Sec. 23. If the department desires to contract with a design-build

20-41 team pursuant to sections 21 and 22 of this act, the department must

20-42 select the design-build team in accordance with sections 24 to 27,

20-43 inclusive, of this act.

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

21-2 proposals for the design and construction of a project by a design-build

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

21-4 (a) A newspaper of general circulation published in each county in

21-5 which the project is proposed to be constructed or, if there is no such

21-6 newspaper, in a newspaper of general circulation in each county

21-7 published in this state; and

21-8 (b) A newspaper of general circulation in this state.

21-9 2. A request for preliminary proposals published pursuant to

21-10 subsection 1 must include, without limitation:

21-11 (a) A description of the proposed project;

21-12 (b) Separate estimates of the costs of designing and constructing the

21-13 project;

21-14 (c) The dates on which it is anticipated that the separate phases of the

21-15 design and construction of the project will begin and end;

21-16 (d) A statement setting forth the place and time in which a design-

21-17 build team desiring to submit a proposal for the project may obtain the

21-18 information necessary to submit a proposal, including, without

21-19 limitation, the extent to which designs must be completed for both

21-20 preliminary and final proposals and any other requirements for the

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

21-22 be necessary;

21-23 (e) A list of the requirements set forth in section 25 of this act;

21-24 (f) A list of the factors that the department will use to evaluate design-

21-25 build teams who submit a proposal for the project, including, without

21-26 limitation:

21-27 (1) The relative weight to be assigned to each factor; and

21-28 (2) A disclosure of whether the factors that are not related to cost

21-29 are, when considered as a group, more or less important in the process of

21-30 evaluation than the factor of cost;

21-31 (g) Notice that a design-build team desiring to submit a proposal for

21-32 the project must include with its proposal the information used by the

21-33 department to determine finalists among the design-build teams

21-34 submitting proposals pursuant to subsection 2 of section 26 of this act

21-35 and a description of that information;

21-36 (h) A statement that a design-build team whose prime contractor

21-37 holds a certificate of eligibility to receive a preference in bidding on

21-38 public works issued pursuant to NRS 338.147 should submit a copy of

21-39 the certificate of eligibility with its proposal;

21-40 (i) A statement as to whether a bidding design-build team that is

21-41 selected as a finalist pursuant to section 26 of this act but is not awarded

21-42 the design-build contract pursuant to section 27 of this act will be

22-1 partially reimbursed for the cost of preparing a final proposal and, if so,

22-2 an estimate of the amount of the partial reimbursement; and

22-3 (j) The date by which preliminary proposals must be submitted to the

22-4 department, which must not be less than 30 days or more than 60 days

22-5 after the date on which the request for preliminary proposals is first

22-6 published in a newspaper pursuant to subsection 1.

22-7 Sec. 25. To qualify to participate in the design and construction of a

22-8 project for the department, a design-build team must:

22-9 1. Obtain a performance bond and payment bond as the department

22-10 may require;

22-11 2. Obtain insurance covering general liability and liability for errors

22-12 and omissions;

22-13 3. Not have been found liable for breach of contract with respect to a

22-14 previous project, other than a breach for legitimate cause;

22-15 4. Not have been disqualified from being awarded a contract

22-16 pursuant to NRS 338.017, 338.145 or 408.333; and

22-17 5. Ensure that the members of the design-build team possess the

22-18 licenses and certificates required to carry out the functions of their

22-19 respective professions within this state.

22-20 Sec. 26. 1. At least 30 days after the date by which preliminary

22-21 proposals must be submitted to the department, the department shall

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

22-23 design-build teams that submitted preliminary proposals. If the

22-24 department does not receive at least three preliminary proposals from

22-25 design-build teams that the department determines to be qualified

22-26 pursuant to this section and section 25 of this act, the department may

22-27 not contract with a design-build team for the design and construction of

22-28 the project.

22-29 2. The department shall select finalists pursuant to subsection 1 by:

22-30 (a) Verifying that each design-build team which submitted a

22-31 preliminary proposal satisfies the requirements of section 25 of this act;

22-32 and

22-33 (b) Conducting an evaluation of the qualifications of each design-

22-34 build team that submitted a preliminary proposal, including, without

22-35 limitation, an evaluation of:

22-36 (1) The professional qualifications and experience of the members

22-37 of the design-build team;

22-38 (2) The performance history of the members of the design-build

22-39 team concerning other recent, similar projects completed by those

22-40 members, if any;

22-41 (3) The safety programs established and the safety records

22-42 accumulated by the members of the design-build team; and

23-1 (4) The proposed plan of the design-build team to manage the

23-2 design and construction of the project that sets forth in detail the ability

23-3 of the design-build team to design and construct the project.

23-4 Sec. 27. 1. After selecting the finalists pursuant to section 26 of

23-5 this act, the department shall provide to each finalist a request for final

23-6 proposals for the project. The request for final proposals must:

23-7 (a) Set forth the factors that the department will use to select a design-

23-8 build team to design and construct the project, including the relative

23-9 weight to be assigned to each factor; and

23-10 (b) Set forth the date by which final proposals must be submitted to

23-11 the department.

23-12 2. A final proposal submitted by a design-build team pursuant to this

23-13 section must be prepared thoroughly, be responsive to the criteria that the

23-14 department will use to select a design-build team to design and construct

23-15 the project described in subsection 1 and comply with the provisions of

23-16 NRS 338.144. If the cost of construction is a factor in the selection of a

23-17 design-build team, a design-build team whose prime contractor has

23-18 submitted with its proposal a certificate of eligibility to receive a

23-19 preference in bidding on public works issued pursuant to NRS 338.147

23-20 shall be deemed to have submitted a better proposal than a competing

23-21 design-build team whose prime contractor has not submitted such a

23-22 certificate of eligibility if the amount proposed by the design-build team

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

23-24 competing design-build team.

23-25 3. At least 30 days after receiving the final proposals for the project,

23-26 the department shall:

23-27 (a) Select the most cost-effective and responsive final proposal, using

23-28 the criteria set forth pursuant to subsection 1; or

23-29 (b) Reject all the final proposals.

23-30 4. If the department selects a final proposal pursuant to paragraph

23-31 (a) of subsection 3, the department shall hold a public meeting to:

23-32 (a) Review and ratify the selection.

23-33 (b) Award the design-build contract to the design-build team whose

23-34 proposal is selected.

23-35 (c) Partially reimburse the unsuccessful finalists if partial

23-36 reimbursement was provided for in the request for preliminary proposals

23-37 pursuant to paragraph (i) of subsection 2 of section 24 of this act. The

23-38 amount of reimbursement must not exceed, for each unsuccessful

23-39 finalist, three percent of the total amount to be paid to the design-build

23-40 team as set forth in the design-build contract.

23-41 (d) Make available to the public a summary setting forth the factors

23-42 used by the department to select the successful design-build team and the

23-43 ranking of the design-build teams who submitted final proposals. The

24-1 department shall not release to a third party, or otherwise make public,

24-2 financial or proprietary information submitted by a design-build team.

24-3 5. A contract awarded pursuant to this section must specify:

24-4 (a) An amount that is the maximum amount that the department will

24-5 pay for the performance of all the work required by the contract,

24-6 excluding any amount related to costs that may be incurred as a result of

24-7 unexpected conditions or occurrences as authorized by the contract;

24-8 (b) An amount that is the maximum amount that the department will

24-9 pay for the performance of the professional services required by the

24-10 contract; and

24-11 (c) A date by which performance of the work required by the contract

24-12 must be completed.

24-13 6. A design-build team to whom a contract is awarded pursuant to

24-14 this section shall:

24-15 (a) Assume overall responsibility for ensuring that the design and

24-16 construction of the project is completed in a satisfactory manner; and

24-17 (b) Use the work force of the prime contractor on the design-build

24-18 team to construct at least 15 percent of the project.

24-19 Sec. 28. The department may employ a registered architect or

24-20 licensed professional engineer as a consultant to assist the department in

24-21 overseeing the construction of a project. An architect or engineer so

24-22 employed shall not:

24-23 1. Construct, reconstruct or improve the highway; or

24-24 2. Assume overall responsibility for ensuring that the construction of

24-25 the project is completed in a satisfactory manner.

24-26 Sec. 29. NRS 408.215 is hereby amended to read as follows:

24-27 408.215 1. The director has charge of all the records of the

24-28 department, keeping records of all proceedings pertaining to the department

24-29 and keeping on file information, plans, specifications, estimates, statistics

24-30 and records prepared by the department, except those financial statements

24-31 described in NRS 408.333 [,] and the financial or proprietary information

24-32 described in paragraph (d) of subsection 4 of section 27 of this act, which

24-33 must not become matters of public record.

24-34 2. The director may photograph, microphotograph or film or dispose of

24-35 the records of the department referred to in subsection 1 as provided in

24-36 NRS 239.051, 239.080 and 239.085.

24-37 3. The director shall maintain an index or record of deeds or other

24-38 references of title or interests in and to all lands or interests in land owned

24-39 or acquired by the department.

24-40 4. The director shall adopt such regulations as may be necessary to

24-41 carry out and enforce the provisions of this chapter.

25-1 Sec. 30. NRS 408.317 is hereby amended to read as follows:

25-2 408.317 1. [All] Except as otherwise provided in sections 16 to 28,

25-3 inclusive, of this act, all work of construction, reconstruction,

25-4 improvement and maintenance of highways as provided under the

25-5 provisions of this chapter is under the supervision and direction of the

25-6 director and must be performed in accordance with the plans, specifications

25-7 and contracts prepared by him.

25-8 2. All maintenance and repair of highways when performed by the

25-9 department must be paid out of the state highway fund.

25-10 Sec. 31. NRS 408.327 is hereby amended to read as follows:

25-11 408.327 Except as otherwise provided in sections 16 to 28, inclusive,

25-12 of this act:

25-13 1. Whenever the provisions of NRS 408.323 do not apply, the director

25-14 shall advertise for bids for such work according to the plans and

25-15 specifications prepared by him.

25-16 2. The advertisement must state the place where the bidders may obtain

25-17 or inspect the plans and specifications and the time and place for opening

25-18 the plans and specifications.

25-19 3. Publication of the advertisement must be made at least once a week

25-20 for 2 consecutive weeks for a total of at least two publications in a

25-21 newspaper of general circulation in the county in which the major portion

25-22 of the proposed improvement or construction is to be made, and the

25-23 advertisement must also be published at least once a week for 2 consecutive

25-24 weeks for a total of at least two publications in one or more daily papers of

25-25 general circulation throughout the state. The first publication of the

25-26 advertisement in the daily newspapers having general circulation

25-27 throughout the state must be made not less than 15 days before the time set

25-28 for opening bids.

25-29 Sec. 32. NRS 408.333 is hereby amended to read as follows:

25-30 408.333 Except as otherwise provided in sections 16 to 28, inclusive,

25-31 of this act:

25-32 1. Before furnishing any person proposing to bid on any advertised

25-33 work with the plans and specifications for such work, the director shall

25-34 require from the person a statement, verified under oath, in the form of

25-35 answers to questions contained in a standard form of questionnaire and

25-36 financial statement, which must include a complete statement of the

25-37 person’s financial ability and experience in performing public work of a

25-38 similar nature.

25-39 2. Such statements must be filed with the director in ample time to

25-40 permit the department to verify the information contained therein in

25-41 advance of furnishing proposal forms, plans and specifications to any

25-42 person proposing to bid on the advertised public work, in accordance with

25-43 the regulations of the department.

26-1 3. Whenever the director is not satisfied with the sufficiency of the

26-2 answers contained in the questionnaire and financial statement, he may

26-3 refuse to furnish the person with plans and specifications and the official

26-4 proposal forms on the advertised project. Any bid of any person to whom

26-5 plans and specifications and the official proposal forms have not been

26-6 issued in accordance with this section must be disregarded, and the certified

26-7 check, cash or undertaking of such a bidder returned forthwith.

26-8 4. Any person who is disqualified by the director, in accordance with

26-9 the provisions of this section, may request, in writing, a hearing before the

26-10 director and present again his check, cash or undertaking and such further

26-11 evidence with respect to his financial responsibility, organization, plant and

26-12 equipment, or experience, as might tend to justify, in his opinion, issuance

26-13 to him of the plans and specifications for the work.

26-14 5. Such a person may appeal the decision of the director to the board

26-15 no later than 5 days before the opening of the bids on the project. If the

26-16 appeal is sustained by the board, the person must be granted the rights and

26-17 privileges of all other bidders.

26-18 Sec. 33. NRS 408.337 is hereby amended to read as follows:

26-19 408.337 Except as otherwise provided in sections 16 to 28, inclusive,

26-20 of this act:

26-21 1. All bids must be accompanied by an undertaking executed by a

26-22 corporate surety authorized to do business in the state, or by cash or a

26-23 certified check in an amount equal to at least 5 percent of the amount bid.

26-24 2. If the successful bidder fails to execute the contract in accordance

26-25 with his bid and give any bond required by law and the contract and bond

26-26 are not postmarked or delivered to the department within 20 days after

26-27 award of the contract, the undertaking, cash or certified check is forfeited

26-28 and the proceeds must be paid into the state highway fund.

26-29 3. The failure of the successful bidder to furnish any bond required of

26-30 him by law within the time fixed for his execution of the contract

26-31 constitutes a failure to execute the contract.

26-32 4. If the director deems it is for the best interests of the state, he may,

26-33 on refusal or failure of the successful bidder to execute the contract, award

26-34 it to the second lowest responsible bidder. If the second lowest responsible

26-35 bidder fails or refuses to execute the contract, the director may likewise

26-36 award it to the third lowest responsible bidder. On the failure or refusal to

26-37 execute the contract of the second or third lowest bidder to whom a

26-38 contract is so awarded, their bidder’s security is likewise forfeited to the

26-39 state.

26-40 5. The bidder’s security of the second and third lowest responsible

26-41 bidders may be withheld by the department until the contract has been

26-42 finally executed and the bond given as required under the provisions of the

27-1 contract, at which time the security must be returned. The bidder’s security

27-2 submitted by all other unsuccessful bidders must be returned to them within

27-3 10 days after the contract is awarded.

27-4 Sec. 34. NRS 408.343 is hereby amended to read as follows:

27-5 408.343 Except as otherwise provided in sections 16 to 28, inclusive,

27-6 of this act:

27-7 1. All bids must be submitted under sealed cover and received at the

27-8 address in Nevada stated in the advertisement for bids and must be opened

27-9 publicly and read at the time stated in the advertisement.

27-10 2. No bids may be received after the time stated in the advertisement

27-11 even though bids are not opened exactly at the time stated in the

27-12 advertisement. No bid may be opened before that time.

27-13 3. Any bid may be withdrawn at any time before the time stated in the

27-14 advertisement only by written request or telegram filed with the director

27-15 and executed by the bidder or his duly authorized representative. The

27-16 withdrawal of a bid does not prejudice the right of the bidder to file a new

27-17 bid before the time stated in the advertisement.

27-18 4. The department may reject any bid or all bids if, in the opinion of

27-19 the department, the bids are unbalanced, incomplete, contain irregularities

27-20 of any kind or for any good cause.

27-21 5. Until the final award of the contract, the department may reject or

27-22 accept any bids and may waive technical errors contained in the bids, as

27-23 may be deemed best for the interests of the state.

27-24 6. In awarding a contract, the department shall make the award to the

27-25 lowest responsible bidder who has qualified and submitted his bid in

27-26 accordance with the provisions of this chapter.

27-27 Sec. 35. NRS 625.530 is hereby amended to read as follows:

27-28 625.530 Except as otherwise provided in sections 2 to 9, inclusive,

27-29 and 16 to 28, inclusive, of this act:

27-30 1. The State of Nevada or any of its political subdivisions, including a

27-31 county, city or town, shall not engage in any public work requiring the

27-32 practice of professional engineering or land surveying, unless the maps,

27-33 plans, specifications, reports and estimates have been prepared by, and the

27-34 work executed under the supervision of, a professional engineer,

27-35 professional land surveyor or registered architect.

27-36 2. The provisions of this section do not:

27-37 (a) Apply to any public work wherein the expenditure for the complete

27-38 project of which the work is a part does not exceed $35,000.

27-39 (b) Include any maintenance work undertaken by the State of Nevada or

27-40 its political subdivisions.

27-41 (c) Authorize a professional engineer, registered architect or

27-42 professional land surveyor to practice in violation of any of the provisions

27-43 of chapter 623 of NRS or this chapter.

28-1 (d) Require the services of an architect registered pursuant to the

28-2 provisions of chapter 623 of NRS for the erection of buildings or structures

28-3 manufactured in an industrial plant, if those buildings or structures meet the

28-4 requirements of local building codes of the jurisdiction in which they are

28-5 being erected.

28-6 3. The selection of a professional engineer, professional land surveyor

28-7 or registered architect to perform services pursuant to subsection 1 must be

28-8 made on the basis of the competence and qualifications of the engineer,

28-9 land surveyor or architect for the type of services to be performed and not

28-10 on the basis of competitive fees. If, after selection of the engineer, land

28-11 surveyor or architect, an agreement upon a fair and reasonable fee cannot

28-12 be reached with him, the public agency may terminate negotiations and

28-13 select another engineer, land surveyor or architect.

28-14 Sec. 35.2. Section 11 of this act is hereby amended to read as follows:

28-15 Sec. 11. NRS 338.143 is hereby amended to read as follows:

28-16 338.143 1. Except as otherwise provided in subsection 6 and

28-17 NRS 338.1907, a local government that awards a contract for the

28-18 construction, alteration or repair of a public work in accordance

28-19 with paragraph (b) of subsection 1 of section 2 of this act, or a

28-20 public officer, public employee or other person responsible for

28-21 awarding a contract for the construction, alteration or repair of a

28-22 public work who represents that local government, shall not:

28-23 (a) Commence such a project for which the estimated cost

28-24 exceeds $100,000 unless it advertises in a newspaper of general

28-25 circulation in this state for bids for the project; or

28-26 (b) Divide such a project into separate portions to avoid the

28-27 requirements of paragraph (a).

28-28 2. Except as otherwise provided in subsection 6, a local

28-29 government that maintains a list of properly licensed contractors

28-30 who are interested in receiving offers to bid on public works

28-31 projects for which the estimated cost is more than $25,000 but less

28-32 than $100,000 shall solicit bids from not more than three of the

28-33 contractors on the list for a contract of that value for the

28-34 construction, alteration or repair of a public work. The local

28-35 government shall select contractors from the list in such a manner as

28-36 to afford each contractor an equal opportunity to bid on a public

28-37 works project. A properly licensed contractor must submit a written

28-38 request annually to the local government to remain on the list.

28-39 Offers for bids which are made pursuant to this subsection must be

28-40 sent by certified mail.

28-41 3. Approved plans and specifications for the bids must be on

28-42 file at a place and time stated in the advertisement for the inspection

29-1 of all persons desiring to bid thereon and for other interested

29-2 persons. Contracts for the project must be awarded on the basis of

29-3 bids received.

29-4 4. Any bids received in response to an advertisement for bids

29-5 may be rejected if the person responsible for awarding the contract

29-6 determines that:

29-7 (a) The bidder is not responsive or responsible;

29-8 (b) The quality of the services, materials, equipment or labor

29-9 offered does not conform to the approved plan or specifications; or

29-10 (c) The public interest would be served by such a rejection.

29-11 5. Before a local government may commence a project subject

29-12 to the provisions of this section, based upon a determination that the

29-13 public interest would be served by rejecting any bids received in

29-14 response to an advertisement for bids, it shall prepare and make

29-15 available for public inspection a written statement containing:

29-16 (a) A list of all persons, including supervisors, whom the local

29-17 government intends to assign to the project, together with their

29-18 classifications and an estimate of the direct and indirect costs of

29-19 their labor;

29-20 (b) A list of all equipment that the local government intends to

29-21 use on the project, together with an estimate of the number of hours

29-22 each item of equipment will be used and the hourly cost to use each

29-23 item of equipment;

29-24 (c) An estimate of the cost of administrative support for the

29-25 persons assigned to the project;

29-26 (d) An estimate of the total cost of the project; and

29-27 (e) An estimate of the amount of money the local government

29-28 expects to save by rejecting the bids and performing the project

29-29 itself.

29-30 6. This section does not apply to:

29-31 (a) Any utility subject to the provisions of chapter 318 or 710 of

29-32 NRS;

29-33 (b) Any work of construction, reconstruction, improvement and

29-34 maintenance of highways subject to NRS 408.323 or 408.327;

29-35 (c) Normal maintenance of the property of a school district; or

29-36 (d) The Las Vegas Valley water district created pursuant to

29-37 chapter 167, Statutes of Nevada 1947, the Moapa Valley water

29-38 district created pursuant to chapter 477, Statutes of Nevada 1983 or

29-39 the Virgin Valley water district created pursuant to chapter 100,

29-40 Statutes of Nevada 1993 . [; or

29-41 (e) The design and construction of a public work for which a

29-42 public body contracts with a design-build team pursuant to sections

29-43 2 to 9, inclusive, of this act.]

30-1 Sec. 35.4. Assembly Bill No. 298 of this session is hereby

30-2 amended by adding thereto new sections designated sections 19.2

30-3 through 19.6, following sec. 19, to read as follows:

30-4 Sec. 19.2. Section 8 of this act is hereby amended to read as

30-5 follows:

30-6 Sec. 8. 1. Except as otherwise provided in subsection 7

30-7 and NRS 338.1906 and 338.1907, this state, or a local

30-8 government that awards a contract for the construction, alteration

30-9 or repair of a public work in accordance with paragraph (a) of

30-10 subsection 1 of section 2 of this act, or a public officer, public

30-11 employee or other person responsible for awarding a contract for

30-12 the construction, alteration or repair of a public work who

30-13 represents the state or the local government, shall not:

30-14 (a) Commence such a project for which the estimated cost

30-15 exceeds $100,000 unless it advertises in a newspaper of general

30-16 circulation in this state for bids for the project; or

30-17 (b) Divide such a project into separate portions to avoid the

30-18 requirements of paragraph (a).

30-19 2. Except as otherwise provided in subsection 7, a public

30-20 body that maintains a list of properly licensed contractors who

30-21 are interested in receiving offers to bid on public works projects

30-22 for which the estimated cost is more than $25,000 but less than

30-23 $100,000 shall solicit bids from not more than three of the

30-24 contractors on the list for a contract of that value for the

30-25 construction, alteration or repair of a public work. The public

30-26 body shall select contractors from the list in such a manner as to

30-27 afford each contractor an equal opportunity to bid on a public

30-28 works project. A properly licensed contractor must submit a

30-29 written request annually to the public body to remain on the list.

30-30 Offers for bids which are made pursuant to this subsection must

30-31 be sent by certified mail.

30-32 3. Each advertisement for bids must include a provision that

30-33 sets forth:

30-34 (a) The requirement that a contractor must be qualified

30-35 pursuant to section 5 of this act to bid on the contract or must be

30-36 exempt from meeting such qualifications pursuant to section 6 of

30-37 this act; and

30-38 (b) The period during which an application to qualify as a

30-39 bidder on the contract must be submitted.

30-40 4. Approved plans and specifications for the bids must be on

30-41 file at a place and time stated in the advertisement for the

30-42 inspection of all persons desiring to bid thereon and for other

31-1 interested persons. Contracts for the project must be awarded on

31-2 the basis of bids received.

31-3 5. Any bids received in response to an advertisement for bids

31-4 may be rejected if the person responsible for awarding the

31-5 contract determines that:

31-6 (a) The bidder is not a qualified bidder pursuant to section 5

31-7 of this act, unless the bidder is exempt from meeting such

31-8 qualifications pursuant to section 6 of this act;

31-9 (b) The bidder is not responsive;

31-10 (c) The quality of the services, materials, equipment or labor

31-11 offered does not conform to the approved plan or specifications;

31-12 or

31-13 (d) The public interest would be served by such a rejection.

31-14 6. Before the state or a local government may commence a

31-15 project subject to the provisions of this section, based upon a

31-16 determination that the public interest would be served by

31-17 rejecting any bids received in response to an advertisement for

31-18 bids, it shall prepare and make available for public inspection a

31-19 written statement containing:

31-20 (a) A list of all persons, including supervisors, whom the state

31-21 or the local government intends to assign to the project, together

31-22 with their classifications and an estimate of the direct and indirect

31-23 costs of their labor;

31-24 (b) A list of all equipment that the state or the local

31-25 government intends to use on the project, together with an

31-26 estimate of the number of hours each item of equipment will be

31-27 used and the hourly cost to use each item of equipment;

31-28 (c) An estimate of the cost of administrative support for the

31-29 persons assigned to the project;

31-30 (d) An estimate of the total cost of the project; and

31-31 (e) An estimate of the amount of money the state or the local

31-32 government expects to save by rejecting the bids and performing

31-33 the project itself.

31-34 7. This section does not apply to:

31-35 (a) Any utility subject to the provisions of chapter 318 or 710

31-36 of NRS;

31-37 (b) Any work of construction, reconstruction, improvement

31-38 and maintenance of highways subject to NRS 408.323 or

31-39 408.327;

31-40 (c) Normal maintenance of the property of a school district; or

31-41 (d) The Las Vegas Valley water district created pursuant to

31-42 chapter 167, Statutes of Nevada 1947, the Moapa Valley water

31-43 district created pursuant to chapter 477, Statutes of Nevada 1983

32-1 or the Virgin Valley water district created pursuant to chapter

32-2 100, Statutes of Nevada 1993 . [; or

32-3 (e) The design and construction of a public work for which a

32-4 public body contracts with a design-build team pursuant to

32-5 sections 2 to 9, inclusive, of Senate Bill No. 475 of this session.]

32-6 Sec. 19.4. Section 8 of this act is hereby amended to read as

32-7 follows:

32-8 Sec. 8. 1. Except as otherwise provided in subsection 7 ,

32-9 [and NRS 338.1906 and 338.1907,] this state, or a local

32-10 government that awards a contract for the construction, alteration

32-11 or repair of a public work in accordance with paragraph (a) of

32-12 subsection 1 of section 2 of this act, or a public officer, public

32-13 employee or other person responsible for awarding a contract for

32-14 the construction, alteration or repair of a public work who

32-15 represents the state or the local government, shall not:

32-16 (a) Commence such a project for which the estimated cost

32-17 exceeds $100,000 unless it advertises in a newspaper of general

32-18 circulation in this state for bids for the project; or

32-19 (b) Divide such a project into separate portions to avoid the

32-20 requirements of paragraph (a).

32-21 2. Except as otherwise provided in subsection 7, a public

32-22 body that maintains a list of properly licensed contractors who

32-23 are interested in receiving offers to bid on public works projects

32-24 for which the estimated cost is more than $25,000 but less than

32-25 $100,000 shall solicit bids from not more than three of the

32-26 contractors on the list for a contract of that value for the

32-27 construction, alteration or repair of a public work. The public

32-28 body shall select contractors from the list in such a manner as to

32-29 afford each contractor an equal opportunity to bid on a public

32-30 works project. A properly licensed contractor must submit a

32-31 written request annually to the public body to remain on the list.

32-32 Offers for bids which are made pursuant to this subsection must

32-33 be sent by certified mail.

32-34 3. Each advertisement for bids must include a provision that

32-35 sets forth:

32-36 (a) The requirement that a contractor must be qualified

32-37 pursuant to section 5 of this act to bid on the contract or must be

32-38 exempt from meeting such qualifications pursuant to section 6 of

32-39 this act; and

32-40 (b) The period during which an application to qualify as a

32-41 bidder on the contract must be submitted.

33-1 4. Approved plans and specifications for the bids must be on

33-2 file at a place and time stated in the advertisement for the

33-3 inspection of all persons desiring to bid thereon and for other

33-4 interested persons. Contracts for the project must be awarded on

33-5 the basis of bids received.

33-6 5. Any bids received in response to an advertisement for bids

33-7 may be rejected if the person responsible for awarding the

33-8 contract determines that:

33-9 (a) The bidder is not a qualified bidder pursuant to section 5

33-10 of this act, unless the bidder is exempt from meeting such

33-11 qualifications pursuant to section 6 of this act;

33-12 (b) The bidder is not responsive;

33-13 (c) The quality of the services, materials, equipment or labor

33-14 offered does not conform to the approved plan or specifications;

33-15 or

33-16 (d) The public interest would be served by such a rejection.

33-17 6. Before the state or a local government may commence a

33-18 project subject to the provisions of this section, based upon a

33-19 determination that the public interest would be served by

33-20 rejecting any bids received in response to an advertisement for

33-21 bids, it shall prepare and make available for public inspection a

33-22 written statement containing:

33-23 (a) A list of all persons, including supervisors, whom the state

33-24 or the local government intends to assign to the project, together

33-25 with their classifications and an estimate of the direct and indirect

33-26 costs of their labor;

33-27 (b) A list of all equipment that the state or the local

33-28 government intends to use on the project, together with an

33-29 estimate of the number of hours each item of equipment will be

33-30 used and the hourly cost to use each item of equipment;

33-31 (c) An estimate of the cost of administrative support for the

33-32 persons assigned to the project;

33-33 (d) An estimate of the total cost of the project; and

33-34 (e) An estimate of the amount of money the state or the local

33-35 government expects to save by rejecting the bids and performing

33-36 the project itself.

33-37 7. This section does not apply to:

33-38 (a) Any utility subject to the provisions of chapter 318 or 710

33-39 of NRS;

33-40 (b) Any work of construction, reconstruction, improvement

33-41 and maintenance of highways subject to NRS 408.323 or

33-42 408.327;

33-43 (c) Normal maintenance of the property of a school district; or

34-1 (d) The Las Vegas Valley water district created pursuant to

34-2 chapter 167, Statutes of Nevada 1947, the Moapa Valley water

34-3 district created pursuant to chapter 477, Statutes of Nevada 1983

34-4 or the Virgin Valley water district created pursuant to chapter

34-5 100, Statutes of Nevada 1993.

34-6 Sec. 19.6. Section 11 of this act is hereby amended to read as

34-7 follows:

34-8 Sec. 11. 1. Except as otherwise provided in section 8 of

34-9 this act , [and sections 2 to 9, inclusive, of Senate Bill No. 475 of

34-10 this session,] a public body shall award a contract for a public

34-11 work to the contractor who submits the best bid.

34-12 2. Except as otherwise provided in subsection 8 or limited by

34-13 subsection 9, for the purposes of this section, a contractor who:

34-14 (a) Has been determined by the public body to be a qualified

34-15 bidder pursuant to section 5 of this act or is exempt from meeting

34-16 such requirements pursuant to section 6 of this act; and

34-17 (b) At the time he submits his bid, provides to the public body

34-18 a copy of a certificate of eligibility to receive a preference in

34-19 bidding on public works issued to him by the state contractors’

34-20 board pursuant to subsection 3,

34-21 shall be deemed to have submitted a better bid than a competing

34-22 contractor who has not provided a copy of such a valid certificate

34-23 of eligibility if the amount of his bid is not more than 5 percent

34-24 higher than the amount bid by the competing contractor.

34-25 3. The state contractors’ board shall issue a certificate of

34-26 eligibility to receive a preference in bidding on public works to a

34-27 general contractor who is licensed pursuant to the provisions of

34-28 chapter 624 of NRS and submits to the board an affidavit from a

34-29 certified public accountant setting forth that the general

34-30 contractor has:

34-31 (a) Paid:

34-32 (1) The sales and use taxes imposed pursuant to chapters

34-33 372, 374 and 377 of NRS on materials used for construction in

34-34 this state, including, without limitation, construction that is

34-35 undertaken or carried out on land within the boundaries of this

34-36 state that is managed by the Federal Government or is on an

34-37 Indian reservation or Indian colony, of not less than $5,000 for

34-38 each consecutive 12-month period for 60 months immediately

34-39 preceding the submission of the affidavit from the certified public

34-40 accountant;

34-41 (2) The motor vehicle privilege tax imposed pursuant to

34-42 chapter 371 of NRS on the vehicles used in the operation of his

34-43 business in this state of not less than $5,000 for each consecutive

35-1 12-month period for 60 months immediately preceding the

35-2 submission of the affidavit from the certified public accountant;

35-3 or

35-4 (3) Any combination of such sales and use taxes and motor

35-5 vehicle privilege tax; or

35-6 (b) Acquired, by inheritance, gift or transfer through a stock

35-7 option plan for employees, all the assets and liabilities of a

35-8 viable, operating construction firm that possesses a:

35-9 (1) License as a general contractor pursuant to the

35-10 provisions of chapter 624 of NRS; and

35-11 (2) Certificate of eligibility to receive a preference in

35-12 bidding on public works.

35-13 4. For the purposes of complying with the requirements set

35-14 forth in paragraph (a) of subsection 3, a general contractor shall

35-15 be deemed to have paid:

35-16 (a) Sales and use taxes and motor vehicle privilege taxes paid

35-17 in this state by an affiliate or parent company of the contractor, if

35-18 the affiliate or parent company is also a general contractor; and

35-19 (b) Sales and use taxes paid in this state by a joint venture in

35-20 which the contractor is a participant, in proportion to the amount

35-21 of interest the contractor has in the joint venture.

35-22 5. A contractor who has received a certificate of eligibility to

35-23 receive a preference in bidding on public works from the state

35-24 contractors’ board pursuant to subsection 3 shall, at the time for

35-25 the annual renewal of his contractors’ license pursuant to NRS

35-26 624.283, submit to the board an affidavit from a certified public

35-27 accountant setting forth that the contractor has, during the

35-28 immediately preceding 12 months, paid the taxes required

35-29 pursuant to paragraph (a) of subsection 3 to maintain his

35-30 eligibility to hold such a certificate.

35-31 6. A contractor who fails to submit an affidavit to the board

35-32 pursuant to subsection 5 ceases to be eligible to receive a

35-33 preference in bidding on public works unless he reapplies for and

35-34 receives a certificate of eligibility pursuant to subsection 3.

35-35 7. If a contractor who applies to the state contractors’ board

35-36 for a certificate of eligibility to receive a preference in bidding on

35-37 public works submits false information to the board regarding the

35-38 required payment of taxes, the contractor is not eligible to receive

35-39 a preference in bidding on public works for a period of 5 years

35-40 after the date on which the board becomes aware of the

35-41 submission of the false information.

35-42 8. If any federal statute or regulation precludes the granting

35-43 of federal assistance or reduces the amount of that assistance for

36-1 a particular public work because of the provisions of subsection

36-2 2, those provisions do not apply insofar as their application

36-3 would preclude or reduce federal assistance for that work. The

36-4 provisions of subsection 2 do not apply to any contract for a

36-5 public work which is expected to cost less than $250,000.

36-6 9. [Except as otherwise provided in subsection 2 of section 8

36-7 of Senate Bill No. 475 of this session, if] If a bid is submitted by

36-8 two or more contractors as a joint venture or by one of them as a

36-9 joint venturer, the provisions of subsection 2 apply only if both or

36-10 all of the joint venturers separately meet the requirements of that

36-11 subsection.

36-12 10. The state contractors’ board shall adopt regulations and

36-13 may assess reasonable fees relating to the certification of

36-14 contractors for a preference in bidding on public works.

36-15 11. A person or entity who believes that a contractor

36-16 wrongfully holds a certificate of eligibility to receive a preference

36-17 in bidding on public works may challenge the validity of the

36-18 certificate by filing a written objection with the public body to

36-19 which the contractor has submitted a bid or proposal on a

36-20 contract for the construction of a public work. A written

36-21 objection authorized pursuant to this subsection must:

36-22 (a) Set forth proof or substantiating evidence to support the

36-23 belief of the person or entity that the contractor wrongfully holds

36-24 a certificate of eligibility to receive a preference in bidding on

36-25 public works; and

36-26 (b) Be filed with the public body at or after the time at which

36-27 the contractor submitted the bid or proposal to the public body

36-28 and before the time at which the public body awards the contract

36-29 for which the bid or proposal was submitted.

36-30 12. If a public body receives a written objection pursuant to

36-31 subsection 11, the public body shall determine whether the

36-32 objection is accompanied by the proof or substantiating evidence

36-33 required pursuant to paragraph (a) of that subsection. If the

36-34 public body determines that the objection is not accompanied by

36-35 the required proof or substantiating evidence, the public body

36-36 shall dismiss the objection and may proceed immediately to

36-37 award the contract. If the public body determines that the

36-38 objection is accompanied by the required proof or substantiating

36-39 evidence, the public body shall determine whether the contractor

36-40 qualifies for the certificate pursuant to the provisions of this

36-41 section and may proceed to award the contract accordingly.

37-1 Sec. 35.6. Sections 8, 11, 12 and 21 of Assembly Bill No. 298 of this

37-2 session are hereby amended to read as follows:

37-3 Sec. 8. 1. Except as otherwise provided in subsection 7 and

37-4 NRS 338.1906 and 338.1907, this state, or a local government

37-5 that awards a contract for the construction, alteration or repair of

37-6 a public work in accordance with paragraph (a) of subsection 1 of

37-7 section 2 of this act, or a public officer, public employee or other

37-8 person responsible for awarding a contract for the construction,

37-9 alteration or repair of a public work who represents the state or

37-10 the local government, shall not:

37-11 (a) Commence such a project for which the estimated cost

37-12 exceeds $100,000 unless it advertises in a newspaper of general

37-13 circulation in this state for bids for the project; or

37-14 (b) Divide such a project into separate portions to avoid the

37-15 requirements of paragraph (a).

37-16 2. Except as otherwise provided in subsection 7, a public body

37-17 that maintains a list of properly licensed contractors who are

37-18 interested in receiving offers to bid on public works projects for

37-19 which the estimated cost is more than $25,000 but less than

37-20 $100,000 shall solicit bids from not more than three of the

37-21 contractors on the list for a contract of that value for the

37-22 construction, alteration or repair of a public work. The public

37-23 body shall select contractors from the list in such a manner as to

37-24 afford each contractor an equal opportunity to bid on a public

37-25 works project. A properly licensed contractor must submit a

37-26 written request annually to the public body to remain on the list.

37-27 Offers for bids which are made pursuant to this subsection must

37-28 be sent by certified mail.

37-29 3. Each advertisement for bids must include a provision that

37-30 sets forth:

37-31 (a) The requirement that a contractor must be qualified

37-32 pursuant to section 5 of this act to bid on the contract or must be

37-33 exempt from meeting such qualifications pursuant to section 6 of

37-34 this act; and

37-35 (b) The period during which an application to qualify as a

37-36 bidder on the contract must be submitted.

37-37 4. Approved plans and specifications for the bids must be on

37-38 file at a place and time stated in the advertisement for the

37-39 inspection of all persons desiring to bid thereon and for other

37-40 interested persons. Contracts for the project must be awarded on

37-41 the basis of bids received.

38-1 5. Any bids received in response to an advertisement for bids

38-2 may be rejected if the person responsible for awarding the

38-3 contract determines that:

38-4 (a) The bidder is not a qualified bidder pursuant to section 5 of

38-5 this act, unless the bidder is exempt from meeting such

38-6 qualifications pursuant to section 6 of this act;

38-7 (b) The bidder is not responsive;

38-8 (c) The quality of the services, materials, equipment or labor

38-9 offered does not conform to the approved plan or specifications;

38-10 or

38-11 (d) The public interest would be served by such a rejection.

38-12 6. Before the state or a local government may commence a

38-13 project subject to the provisions of this section, based upon a

38-14 determination that the public interest would be served by rejecting

38-15 any bids received in response to an advertisement for bids, it shall

38-16 prepare and make available for public inspection a written

38-17 statement containing:

38-18 (a) A list of all persons, including supervisors, whom the state

38-19 or the local government intends to assign to the project, together

38-20 with their classifications and an estimate of the direct and indirect

38-21 costs of their labor;

38-22 (b) A list of all equipment that the state or the local

38-23 government intends to use on the project, together with an

38-24 estimate of the number of hours each item of equipment will be

38-25 used and the hourly cost to use each item of equipment;

38-26 (c) An estimate of the cost of administrative support for the

38-27 persons assigned to the project;

38-28 (d) An estimate of the total cost of the project; and

38-29 (e) An estimate of the amount of money the state or the local

38-30 government expects to save by rejecting the bids and performing

38-31 the project itself.

38-32 7. This section does not apply to:

38-33 (a) Any utility subject to the provisions of chapter 318 or 710

38-34 of NRS;

38-35 (b) Any work of construction, reconstruction, improvement

38-36 and maintenance of highways subject to NRS 408.323 or 408.327;

38-37 (c) Normal maintenance of the property of a school district;

38-38 (d) The Las Vegas Valley water district created pursuant to

38-39 chapter 167, Statutes of Nevada 1947, the Moapa Valley water

38-40 district created pursuant to chapter 477, Statutes of Nevada 1983

38-41 or the Virgin Valley water district created pursuant to chapter

38-42 100, Statutes of Nevada 1993; or

39-1 (e) The design and construction of a public work for which a

39-2 public body contracts with a design-build team pursuant to

39-3 sections 2 to 9, inclusive, of Senate Bill No. 475 of this session.

39-4 Sec. 11. 1. Except as otherwise provided in section 8 of this

39-5 act and sections 2 to 9, inclusive, of Senate Bill No. 475 of this

39-6 session, a public body shall award a contract for a public work to

39-7 the contractor who submits the best bid.

39-8 2. Except as otherwise provided in subsection 8 or limited by

39-9 subsection 9, for the purposes of this section, a contractor who:

39-10 (a) Has been determined by the public body to be a qualified

39-11 bidder pursuant to section 5 of this act or is exempt from meeting

39-12 such requirements pursuant to section 6 of this act; and

39-13 (b) At the time he submits his bid, provides to the public body a

39-14 copy of a certificate of eligibility to receive a preference in

39-15 bidding on public works issued to him by the state contractors’

39-16 board pursuant to subsection 3,

39-17 shall be deemed to have submitted a better bid than a competing

39-18 contractor who has not provided a copy of such a valid certificate

39-19 of eligibility if the amount of his bid is not more than 5 percent

39-20 higher than the amount bid by the competing contractor.

39-21 3. The state contractors’ board shall issue a certificate of

39-22 eligibility to receive a preference in bidding on public works to a

39-23 general contractor who is licensed pursuant to the provisions of

39-24 chapter 624 of NRS and submits to the board an affidavit from a

39-25 certified public accountant setting forth that the general

39-26 contractor has:

39-27 (a) Paid:

39-28 (1) The sales and use taxes imposed pursuant to chapters

39-29 372, 374 and 377 of NRS on materials used for construction in

39-30 this state, including, without limitation, construction that is

39-31 undertaken or carried out on land within the boundaries of this

39-32 state that is managed by the Federal Government or is on an

39-33 Indian reservation or Indian colony, of not less than $5,000 for

39-34 each consecutive 12-month period for 60 months immediately

39-35 preceding the submission of the affidavit from the certified public

39-36 accountant;

39-37 (2) The motor vehicle privilege tax imposed pursuant to

39-38 chapter 371 of NRS on the vehicles used in the operation of his

39-39 business in this state of not less than $5,000 for each consecutive

39-40 12-month period for 60 months immediately preceding the

39-41 submission of the affidavit from the certified public accountant;

39-42 or

40-1 (3) Any combination of such sales and use taxes and motor

40-2 vehicle privilege tax; or

40-3 (b) Acquired, by inheritance, gift or transfer through a stock

40-4 option plan for employees, all the assets and liabilities of a viable,

40-5 operating construction firm that possesses a:

40-6 (1) License as a general contractor pursuant to the

40-7 provisions of chapter 624 of NRS; and

40-8 (2) Certificate of eligibility to receive a preference in bidding

40-9 on public works.

40-10 4. For the purposes of complying with the requirements set

40-11 forth in paragraph (a) of subsection 3, a general contractor shall

40-12 be deemed to have paid:

40-13 (a) Sales and use taxes and motor vehicle privilege taxes paid

40-14 in this state by an affiliate or parent company of the contractor, if

40-15 the affiliate or parent company is also a general contractor; and

40-16 (b) Sales and use taxes paid in this state by a joint venture in

40-17 which the contractor is a participant, in proportion to the amount

40-18 of interest the contractor has in the joint venture.

40-19 5. A contractor who has received a certificate of eligibility to

40-20 receive a preference in bidding on public works from the state

40-21 contractors’ board pursuant to subsection 3 shall, at the time for

40-22 the annual renewal of his contractors’ license pursuant to NRS

40-23 624.283, submit to the board an affidavit from a certified public

40-24 accountant setting forth that the contractor has, during the

40-25 immediately preceding 12 months, paid the taxes required

40-26 pursuant to paragraph (a) of subsection 3 to maintain his

40-27 eligibility to hold such a certificate.

40-28 6. A contractor who fails to submit an affidavit to the board

40-29 pursuant to subsection 5 ceases to be eligible to receive a

40-30 preference in bidding on public works unless he reapplies for and

40-31 receives a certificate of eligibility pursuant to subsection 3.

40-32 7. If a contractor who applies to the state contractors’ board

40-33 for a certificate of eligibility to receive a preference in bidding on

40-34 public works submits false information to the board regarding the

40-35 required payment of taxes, the contractor is not eligible to receive

40-36 a preference in bidding on public works for a period of 5 years

40-37 after the date on which the board becomes aware of the

40-38 submission of the false information.

40-39 8. If any federal statute or regulation precludes the granting

40-40 of federal assistance or reduces the amount of that assistance for

40-41 a particular public work because of the provisions of subsection 2,

41-1 those provisions do not apply insofar as their application would

41-2 preclude or reduce federal assistance for that work. The

41-3 provisions of subsection 2 do not apply to any contract for a

41-4 public work which is expected to cost less than $250,000.

41-5 9. Except as otherwise provided in subsection 2 of section 8 of

41-6 Senate Bill No. 475 of this session, if a bid is submitted by two or

41-7 more contractors as a joint venture or by one of them as a joint

41-8 venturer, the provisions of subsection 2 apply only if both or all of

41-9 the joint venturers separately meet the requirements of that

41-10 subsection.

41-11 10. The state contractors’ board shall adopt regulations and

41-12 may assess reasonable fees relating to the certification of

41-13 contractors for a preference in bidding on public works.

41-14 11. A person or entity who believes that a contractor

41-15 wrongfully holds a certificate of eligibility to receive a preference

41-16 in bidding on public works may challenge the validity of the

41-17 certificate by filing a written objection with the public body to

41-18 which the contractor has submitted a bid or proposal on a

41-19 contract for the construction of a public work. A written objection

41-20 authorized pursuant to this subsection must:

41-21 (a) Set forth proof or substantiating evidence to support the

41-22 belief of the person or entity that the contractor wrongfully holds

41-23 a certificate of eligibility to receive a preference in bidding on

41-24 public works; and

41-25 (b) Be filed with the public body at or after the time at which

41-26 the contractor submitted the bid or proposal to the public body

41-27 and before the time at which the public body awards the contract

41-28 for which the bid or proposal was submitted.

41-29 12. If a public body receives a written objection pursuant to

41-30 subsection 11, the public body shall determine whether the

41-31 objection is accompanied by the proof or substantiating evidence

41-32 required pursuant to paragraph (a) of that subsection. If the

41-33 public body determines that the objection is not accompanied by

41-34 the required proof or substantiating evidence, the public body

41-35 shall dismiss the objection and may proceed immediately to award

41-36 the contract. If the public body determines that the objection is

41-37 accompanied by the required proof or substantiating evidence, the

41-38 public body shall determine whether the contractor qualifies for

41-39 the certificate pursuant to the provisions of this section and may

41-40 proceed to award the contract accordingly.

42-1 Sec. 12. NRS 338.010 is hereby amended to read as follows:

42-2 338.010 As used in this chapter:

42-3 1. "Day labor" means all cases where public bodies, their

42-4 officers, agents or employees, hire, supervise and pay the wages

42-5 thereof directly to a workman or workmen employed by them on

42-6 public works by the day and not under a contract in writing.

42-7 2. "Eligible bidder" means a person who was [found] :

42-8 (a) Found to be a responsible contractor by a [public body]

42-9 local government which awarded a contract for a public work [.] in

42-10 accordance with paragraph (b) of subsection 1 of section 2 of this

42-11 act; or

42-12 (b) Determined by a public body which awarded a contract for

42-13 a public work pursuant to sections 3 to 11, inclusive, of this act, to

42-14 be qualified to bid on that contract pursuant to section 5 of this

42-15 act or was exempt from meeting such qualifications pursuant to

42-16 section 6 of this act.

42-17 3. "Local government" means every political subdivision or

42-18 other entity which has the right to levy or receive money from ad

42-19 valorem or other taxes or any mandatory assessments, and

42-20 includes, without limitation, counties, cities, towns, boards, school

42-21 districts and other districts organized pursuant to chapters 244A,

42-22 309, 318, 379, 474, 541, 543 and 555 of NRS, NRS 450.550 to

42-23 450.750, inclusive, and any agency or department of a county or

42-24 city which prepares a budget separate from that of the parent

42-25 political subdivision.

42-26 4. "Offense" means failing to:

42-27 (a) Pay the prevailing wage required pursuant to this chapter;

42-28 (b) Pay the contributions for unemployment compensation

42-29 required pursuant to chapter 612 of NRS; or

42-30 (c) Provide and secure compensation for employees required

42-31 pursuant to chapters 616A to 617, inclusive, of NRS.

42-32 [4.] 5. "Public body" means the state, county, city, town,

42-33 school district or any public agency of this state or its political

42-34 subdivisions sponsoring or financing a public work.

42-35 [5.] 6. "Public work" means any project for the new

42-36 construction, repair or reconstruction of:

42-37 (a) A project financed in whole or in part from public money for:

42-38 (1) Public buildings;

42-39 (2) Jails and prisons;

42-40 (3) Public roads;

42-41 (4) Public highways;

42-42 (5) Public streets and alleys;

43-1 (6) Public utilities which are financed in whole or in part by

43-2 public money;

43-3 (7) Publicly owned water mains and sewers;

43-4 (8) Public parks and playgrounds;

43-5 (9) Public convention facilities which are financed at least in

43-6 part with public funds; and

43-7 (10) [All] Any other publicly owned works and property

43-8 whose cost as a whole exceeds $20,000. Each separate unit which is

43-9 a part of a project is included in the cost of the project for the

43-10 purpose of determining whether a project meets this threshold.

43-11 (b) A building for the University and Community College

43-12 System of Nevada of which 25 percent or more of the costs of the

43-13 building as a whole are paid from money appropriated by [the] this

43-14 state or from federal money.

43-15 [6.] 7. "Wages" means:

43-16 (a) The basic hourly rate of pay; and

43-17 (b) The amount of pension, health and welfare, vacation and

43-18 holiday pay, the cost of apprenticeship training or other similar

43-19 programs or other bona fide fringe benefits which are a benefit to

43-20 the workman.

43-21 [7.] 8. "Workman" means a skilled mechanic, skilled

43-22 workman, semiskilled mechanic, semiskilled workman or unskilled

43-23 workman.

43-24 Sec. 21. 1. This section and sections 2 to 7, inclusive, 10 to

43-25 14, inclusive, 16 to 19, inclusive, and 20 of this act become

43-26 effective on October 1, 1999.

43-27 2. Section 8 of this act becomes effective on October 1, 1999,

43-28 and expires by limitation on October 1, 2003.

43-29 3. Sections 19.2 and 19.6 of this act become effective on

43-30 October 1, 2003.

43-31 4. Sections 15 and 19.4 of this act become effective at 12:01

43-32 a.m. on May 1, 2013.

43-33 5. Sections 14, 18, 19 and 19.2 of this act expire by limitation

43-34 on May 1, 2013.

43-35 Sec. 35.8. Section 4 of Senate Bill No. 144 of this session is hereby

43-36 amended to read as follows:

43-37 Sec. 4. "Contractor" means : [a]

43-38 1. A person who:

43-39 [1.] (a) Is licensed pursuant to the provisions of chapter 624 of

43-40 NRS or performs such work that he is not required to be licensed

43-41 pursuant to chapter 624 of NRS; and

43-42 [2.] (b) Contracts with a public body to provide labor, materials

43-43 or services for a public work.

44-1 2. A design-build team that contracts with a public body to

44-2 design and construct a public work pursuant to sections 2 to 9,

44-3 inclusive, of Senate Bill No. 475 of this session.

44-4 Sec. 36. NRS 341.171 and section 9 of Assembly Bill No. 298 of this

44-5 session are hereby repealed.

44-6 Sec. 37. 1. The interim advisory committee to study the use of

44-7 design-build contracting within this state is hereby created. The interim

44-8 advisory committee consists of 16 members who are appointed as follows:

44-9 (a) One member appointed by the Northern Nevada Chapter of the

44-10 Associated General Contractors.

44-11 (b) One member appointed by the Southern Nevada Chapter of the

44-12 Associated General Contractors.

44-13 (c) One member appointed by the Northern Nevada Chapter of the

44-14 Associated Builders and Contractors.

44-15 (d) One member appointed by the Southern Nevada Chapter of the

44-16 Associated Builders and Contractors.

44-17 (e) One member appointed by the Nevada chapter of the American

44-18 Institute of Architecture.

44-19 (f) One member appointed by the American Consulting Engineers

44-20 Council of Nevada.

44-21 (g) One member appointed by the Department of Transportation of the

44-22 State of Nevada.

44-23 (h) One member appointed by the Southern Nevada Water Authority.

44-24 (i) One member appointed by the Board of County Commissioners of

44-25 Clark County.

44-26 (j) One member appointed by the governing body of the City of Las

44-27 Vegas.

44-28 (k) One member appointed by the governing body of the City of

44-29 Henderson.

44-30 (l) One member appointed by the governing body of the City of North

44-31 Las Vegas.

44-32 (m) One member appointed by the Nevada Contractors Association.

44-33 (n) One member appointed by the Board of County Commissioners of

44-34 Washoe County.

44-35 (o) One member appointed by the governing body of the City of Reno.

44-36 (p) One member appointed by the governing body of the City of Sparks.

44-37 2. Members of the interim advisory committee shall serve without

44-38 compensation, travel expenses or subsistence allowances, except as they

44-39 may be provided by the members’ respective agencies and organizations.

44-40 3. The interim advisory committee created pursuant to subsection 1

44-41 shall:

44-42 (a) Examine the methods of design-build contracting that are authorized

44-43 to be used pursuant to the provisions of this act; and

45-1 (b) Submit a report regarding its findings to the 72nd session of the

45-2 Nevada Legislature, accompanied by any suggestions for legislation that

45-3 the interim advisory committee determines to be advisable.

45-4 Sec. 38. 1. This section and sections 35.4 and 35.6 of this act

45-5 become effective on October 1, 1999.

45-6 2. Sections 1 to 9, inclusive, 14 to 35, inclusive, 36 and 37 of this
45-7 act become effective on October 1, 1999, and expire by limitation on

45-8 October 1, 2003.

45-9 3. Sections 10, 13 and 35.8 of this act become effective at 12:01 a.m.

45-10 on October 1, 1999, and expire by limitation on October 1, 2003.

45-11 4. Section 11 of this act becomes effective at 12:01 a.m. on October 1,

45-12 1999, and expires by limitation on May 1, 2013.

45-13 5. Section 13.5 of this act becomes effective at 12:01 a.m. on
45-14 October 1, 2003.

45-15 6. Section 35.2 of this act becomes effective at 12:01 a.m. on
45-16 October 1, 2003 and expires by limitation on May 1, 2013.

45-17 7. Section 12 of this act becomes effective at 12:02 a.m. on May 1,

45-18 2013.

 

45-19 TEXT OF REPEALED SECTION

 

45-20 341.171 Single contract for design and construction of capital

45-21 improvement: Legislative approval; regulations.

45-22 1. The board may, with the approval of the interim finance committee

45-23 when the legislature is not in regular or special session, or with the

45-24 approval of the legislature by concurrent resolution when the legislature is

45-25 in regular or special session, let to a contractor licensed under chapter 624

45-26 of NRS a single contract for both the design and construction of a project

45-27 of capital improvement. The board shall for the purpose prepare a

45-28 comprehensive sketch plan and narrative of the scope of the work involved

45-29 in a project.

45-30 2. The board shall adopt regulations establishing procedures for:

45-31 (a) The determination of the qualifications of contractors to bid for

45-32 contracts for the design and construction of such projects. The board shall

45-33 consult with the American Institute of Architects and the Associated

45-34 General Contractors, or the successor of either if the named organization

45-35 ceases to exist, before adopting procedures under this paragraph.

45-36 (b) The board’s approval of designs and architects employed in a

45-37 project.

46-1 (c) The bidding and awarding of contracts for the design and

46-2 construction of projects based on a final cost of the project which the

46-3 contractor guarantees will not be exceeded.

46-4 (d) The scheduling and controlling of projects.

46-5 Section 9 of Assembly Bill No. 298 of this session:

46-6 Sec. 9. 1. Except as otherwise provided in subsection 7, this

46-7 state, or a local government that awards a contract for the

46-8 construction, alteration or repair of a public work in accordance

46-9 with paragraph (a) of subsection 1 of section 2 of this act, or a

46-10 public officer, public employee or other person responsible for

46-11 awarding a contract for the construction, alteration or repair of a

46-12 public work who represents the state or the local government,

46-13 shall not:

46-14 (a) Commence such a project for which the estimated cost

46-15 exceeds $100,000 unless it advertises in a newspaper of general

46-16 circulation in this state for bids for the project; or

46-17 (b) Divide such a project into separate portions to avoid the

46-18 requirements of paragraph (a).

46-19 2. Except as otherwise provided in subsection 7, a public body

46-20 that maintains a list of properly licensed contractors who are

46-21 interested in receiving offers to bid on public works projects for

46-22 which the estimated cost is more than $25,000 but less than

46-23 $100,000 shall solicit bids from not more than three of the

46-24 contractors on the list for a contract of that value for the

46-25 construction, alteration or repair of a public work. The public

46-26 body shall select contractors from the list in such a manner as to

46-27 afford each contractor an equal opportunity to bid on a public

46-28 works project. A properly licensed contractor must submit a

46-29 written request annually to the public body to remain on the list.

46-30 Offers for bids which are made pursuant to this subsection must

46-31 be sent by certified mail.

46-32 3. Each advertisement for bids must include a provision that

46-33 sets forth:

46-34 (a) The requirement that a contractor must be qualified

46-35 pursuant to section 5 of this act to bid on the contract or must be

46-36 exempt from meeting such qualifications pursuant to section 6 of

46-37 this act; and

46-38 (b) The period during which an application to qualify as a

46-39 bidder on the contract must be submitted.

46-40 4. Approved plans and specifications for the bids must be on

46-41 file at a place and time stated in the advertisement for the

46-42 inspection of all persons desiring to bid thereon and for other

47-1 interested persons. Contracts for the project must be awarded on

47-2 the basis of bids received.

47-3 5. Any bids received in response to an advertisement for bids

47-4 may be rejected if the person responsible for awarding the

47-5 contract determines that:

47-6 (a) The bidder is not a qualified bidder pursuant to section 5 of

47-7 this act, unless the bidder is exempt from meeting such

47-8 qualifications pursuant to section 6 of this act;

47-9 (b) The bidder is not responsive or responsible;

47-10 (c) The quality of the services, materials, equipment or labor

47-11 offered does not conform to the approved plan or specifications;

47-12 or

47-13 (d) The public interest would be served by such a rejection.

47-14 6. Before the state or a local government may commence a

47-15 project subject to the provisions of this section, based upon a

47-16 determination that the public interest would be served by rejecting

47-17 any bids received in response to an advertisement for bids, it shall

47-18 prepare and make available for public inspection a written

47-19 statement containing:

47-20 (a) A list of all persons, including supervisors, whom the state

47-21 or the local government intends to assign to the project, together

47-22 with their classifications and an estimate of the direct and indirect

47-23 costs of their labor;

47-24 (b) A list of all equipment that the state or the local

47-25 government intends to use on the project, together with an

47-26 estimate of the number of hours each item of equipment will be

47-27 used and the hourly cost to use each item of equipment;

47-28 (c) An estimate of the cost of administrative support for the

47-29 persons assigned to the project;

47-30 (d) An estimate of the total cost of the project; and

47-31 (e) An estimate of the amount of money the state or the local

47-32 government expects to save by rejecting the bids and performing

47-33 the project itself.

47-34 7. This section does not apply to:

47-35 (a) Any utility subject to the provisions of chapter 318 or 710

47-36 of NRS;

47-37 (b) Any work of construction, reconstruction, improvement

47-38 and maintenance of highways subject to NRS 408.323 or 408.327;

47-39 (c) Normal maintenance of the property of a school district; or

47-40 (d) The Las Vegas Valley water district created pursuant to

47-41 chapter 167, Statutes of Nevada 1947.

~