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.
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EXPLANATION – Matter in
bolded italics is new; matter between brackets
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 thereto1-2
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 public1-4
body shall contract with a prime contractor for the construction of a1-5
public work for which the estimated cost exceeds $100,000.1-6
2. A public body may contract with a design-build team for the1-7
design and construction of a public work that is a discrete project if the1-8
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 the2-2
treatment and disposal of wastewater or sewage, the estimated cost of2-3
which exceeds $100,000,000; or2-4
(2) Any other type of public work, except a stand-alone2-5
underground utility project, the estimated cost of which exceeds2-6
$30,000,000; and2-7
(b) Contracting with a design-build team will enable the public body2-8
to:2-9
(1) Design and construct the public work at a cost that is2-10
significantly lower than the cost that the public body would incur to2-11
design and construct the public work using a different method;2-12
(2) Design and construct the public work in a shorter time than2-13
would be required to design and construct the public work using a2-14
different method, if exigent circumstances require that the public work2-15
be designed and constructed within a short time; or2-16
(3) Ensure that the design and construction of the public work is2-17
properly coordinated, if the public work is unique, highly technical and2-18
complex in nature.2-19
3. In a county whose population is 400,000 or more, a public body2-20
that is responsible for financing public works may, for its own public2-21
works and those financed by a different public body, including, without2-22
limitation, an airport if the airport is owned and operated as a2-23
department of the public body, contract with a design-build team once in2-24
each fiscal year for the design and construction of a public work if the2-25
public body determines that:2-26
(a) The estimated cost of the public work is at least $5,000,000 but less2-27
than $30,000,000; and2-28
(b) Contracting with a design-build team will enable the public body2-29
to:2-30
(1) Design and construct the public work at a cost that is2-31
significantly lower than the cost that the public body would incur to2-32
design and construct the public work using a different method;2-33
(2) Design and construct the public work in a shorter time than2-34
would be required to design and construct the public work using a2-35
different method, if exigent circumstances require that the public work2-36
be designed and constructed within a short time; or2-37
(3) Ensure that the design and construction of the public work is2-38
properly coordinated, if the public work is unique, highly technical and2-39
complex in nature.2-40
4. Notwithstanding the provisions of subsections 1, 2 and 3, a public2-41
body may contract with:2-42
(a) A nonprofit organization for the design and construction of a2-43
project to restore, enhance or develop wetlands.3-1
(b) A prime contractor, specialty contractor or design-build team with3-2
respect to a public work if the public body determines that the public3-3
work is:3-4
(1) Not part of a larger public work; and3-5
(2) Limited in scope to:3-6
(I) Removal of asbestos;3-7
(II) Replacement of equipment or systems for heating, ventilation3-8
and air-conditioning;3-9
(III) Replacement of a roof;3-10
(IV) Landscaping; or3-11
(V) Restoration, enhancement or development of wetlands.3-12
Sec. 3. 1. A public body shall not contract with a design-build team3-13
with respect to a public work unless the governing body of the public3-14
body makes the determinations, at a public hearing, that are required3-15
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 to3-17
this section shall publish notice of the hearing at least once each week3-18
for 3 consecutive weeks in:3-19
(a) A newspaper of general circulation published in the county in3-20
which the public work is proposed to be constructed or, if there is no such3-21
newspaper, in a newspaper of general circulation in the county published3-22
in this state; and3-23
(b) A newspaper of general circulation in this state.3-24
Sec. 4. 1. A public body that is required to contract with a prime3-25
contractor pursuant to subsection 1 of section 2 of this act or elects to3-26
contract with a specialty contractor pursuant to subsection 4 of section 23-27
of this act shall select the prime contractor or specialty contractor, as3-28
appropriate, in accordance with the procedures for bidding that are set3-29
forth in:3-30
(a) The provisions of sections 3 to 11, inclusive, of Assembly Bill No.3-31
298 of this session; or3-32
(b) NRS 338.140 to 338.147, inclusive, if the public body is a local3-33
government that elects to award a contract for a public work in3-34
accordance with paragraph (b) of subsection 1 of section 2 of Assembly3-35
Bill No. 298 of this session.3-36
2. A public body that contracts with a design-build team pursuant to3-37
sections 2 and 3 of this act shall select the design-build team in3-38
accordance with sections 5 to 8, inclusive, of this act.3-39
Sec. 5. 1. A public body shall advertise for preliminary proposals3-40
for the design and construction of a public work by a design-build team3-41
at least twice each week for 3 consecutive weeks in:4-1
(a) A newspaper of general circulation published in the county in4-2
which the public work is proposed to be constructed or, if there is no such4-3
newspaper, in a newspaper of general circulation in the county published4-4
in this state; and4-5
(b) A newspaper of general circulation in this state.4-6
2. A request for preliminary proposals published pursuant to4-7
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 the4-10
public work;4-11
(c) The dates on which it is anticipated that the separate phases of the4-12
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 obtain4-15
the information necessary to submit a proposal, including, without4-16
limitation, the extent to which designs must be completed for both4-17
preliminary and final proposals and any other requirements for the4-18
design and construction of the public work that the public body4-19
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; and4-25
(2) A disclosure of whether the factors that are not related to cost4-26
are, when considered as a group, more or less important in the process of4-27
evaluation than the factor of cost;4-28
(g) Notice that a design-build team desiring to submit a proposal for4-29
the public work must include with its proposal the information used by4-30
the public body to determine finalists among the design-build teams4-31
submitting proposals pursuant to subsection 2 of section 7 of this act and4-32
a description of that information;4-33
(h) A statement that a design-build team whose prime contractor4-34
holds a certificate of eligibility to receive a preference in bidding on4-35
public works issued pursuant to NRS 338.147 should submit a copy of4-36
the certificate of eligibility with its proposal;4-37
(i) A statement as to whether a design-build team that is selected as a4-38
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 partially4-40
reimbursed for the cost of preparing a final proposal and, if so, an4-41
estimate of the amount of the partial reimbursement; and5-1
(j) The date by which preliminary proposals must be submitted to the5-2
public body, which must not be less than 30 days or more than 60 days5-3
after the date on which the request for preliminary proposals is first5-4
published in a newspaper pursuant to subsection 1.5-5
Sec. 6. To qualify to participate in a project for the design and5-6
construction of a public work, a design-build team must:5-7
1. Obtain a performance bond and payment bond as required5-8
pursuant to NRS 339.025;5-9
2. Obtain insurance covering general liability and liability for errors5-10
and omissions;5-11
3. Not have been found liable for breach of contract with respect to a5-12
previous project, other than a breach for legitimate cause;5-13
4. Not have been disqualified from being awarded a contract5-14
pursuant to NRS 338.017, 338.145 or 408.333; and5-15
5. Ensure that the members of the design-build team possess the5-16
licenses and certificates required to carry out the functions of their5-17
respective professions within this state.5-18
Sec. 7. 1. At least 30 days after the date by which preliminary5-19
proposals must be submitted to the public body, the public body shall5-20
select at least three but not more than five finalists from among the5-21
design-build teams that submitted preliminary proposals. If the public5-22
body does not receive at least three preliminary proposals from design-5-23
build teams that the public body determines to be qualified pursuant to5-24
this section and section 6 of this act, the public body may not contract5-25
with a design-build team for the design and construction of the public5-26
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 a5-29
preliminary proposal satisfies the requirements of section 6 of this act;5-30
and5-31
(b) Conducting an evaluation of the qualifications of each design-5-32
build team that submitted a preliminary proposal, including, without5-33
limitation, an evaluation of:5-34
(1) The professional qualifications and experience of the members5-35
of the design-build team;5-36
(2) The performance history of the members of the design-build5-37
team concerning other recent, similar projects completed by those5-38
members, if any;5-39
(3) The safety programs established and the safety records5-40
accumulated by the members of the design-build team; and5-41
(4) The proposed plan of the design-build team to manage the5-42
design and construction of the public work that sets forth in detail the5-43
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 this6-2
act, the public body shall provide to each finalist a request for final6-3
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 relative6-6
weight to be assigned to each factor; and6-7
(b) Set forth the date by which final proposals must be submitted to6-8
the public body.6-9
2. A final proposal submitted by a design-build team pursuant to this6-10
section must be prepared thoroughly, be responsive to the criteria that the6-11
public body will use to select a design-build team to design and construct6-12
the public work described in subsection 1 and comply with the provisions6-13
of NRS 338.144. If the cost of construction is a factor in the selection of6-14
a design-build team, a design-build team whose prime contractor has6-15
submitted with its proposal a certificate of eligibility to receive a6-16
preference in bidding on public works issued pursuant to NRS 338.147 or6-17
section 11 of Assembly Bill No. 298 of this session shall be deemed to6-18
have submitted a better proposal than a competing design-build team6-19
whose prime contractor has not submitted such a certificate of eligibility6-20
if the amount proposed by the design-build team is not more than 56-21
percent higher than the amount proposed by the competing design-build6-22
team.6-23
3. At least 30 days after receiving the final proposals for the public6-24
work, the public body shall:6-25
(a) Select the most cost-effective and responsive final proposal, using6-26
the criteria set forth pursuant to subsection 1; or6-27
(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 scheduled6-30
meeting:6-31
(a) Review and ratify the selection.6-32
(b) Award the design-build contract to the design-build team whose6-33
proposal is selected.6-34
(c) Partially reimburse the unsuccessful finalists if partial6-35
reimbursement was provided for in the request for preliminary proposals6-36
pursuant to paragraph (i) of subsection 2 of section 5 of this act. The6-37
amount of reimbursement must not exceed, for each unsuccessful6-38
finalist, three percent of the total amount to be paid to the design-build6-39
team as set forth in the design-build contract.6-40
(d) Make available to the public a summary setting forth the factors6-41
used by the public body to select the successful design-build team and the6-42
ranking of the design-build teams who submitted final proposals. The7-1
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 will7-5
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 of7-7
unexpected conditions or occurrences as authorized by the contract;7-8
(b) An amount that is the maximum amount that the public body will7-9
pay for the performance of the professional services required by the7-10
contract; and7-11
(c) A date by which performance of the work required by the contract7-12
must be completed.7-13
6. A design-build team to whom a contract is awarded pursuant to7-14
this section shall:7-15
(a) Assume overall responsibility for ensuring that the design and7-16
construction of the public work is completed in a satisfactory manner;7-17
and7-18
(b) Use the work force of the prime contractor on the design-build7-19
team to construct at least 15 percent of the public work.7-20
Sec. 9. A public body may employ a registered architect or licensed7-21
professional engineer as a consultant to assist the public body in7-22
overseeing the construction of a public work. An architect or engineer so7-23
employed shall not:7-24
1. Construct the public work; or7-25
2. Assume overall responsibility for ensuring that the construction of7-26
the public work is completed in a satisfactory manner.7-27
Sec. 10. NRS 338.010 is hereby amended to read as follows: 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 a7-31
workman or workmen employed by them on public works by the day and7-32
not under a contract in writing.7-33
2. "Design-build contract" means a contract between a public body7-34
and a design-build team in which the design-build team agrees to design7-35
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 engineering7-38
contractor or a general building contractor pursuant to NRS 624.230 to7-39
624.320, inclusive; and7-40
(b) For a public work that consists of:7-41
(1) A building and its site, at least one person who holds a7-42
certificate of registration to practice architecture pursuant to chapter 6237-43
of NRS.8-1
(2) Anything other than a building and its site, at least one person8-2
who holds a certificate of registration to practice architecture pursuant to8-3
chapter 623 of NRS or is licensed as a professional engineer pursuant to8-4
chapter 625 of NRS.8-5
4. "Design professional" means a person with a professional license8-6
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 local8-9
government which requests bids for a public work in accordance with8-10
paragraph (b) of subsection 1 of section 2 of8-11
298 of this session; or8-12
(b) Determined by a public body which awarded a contract for a public8-13
work pursuant to sections 3 to 11, inclusive, of8-14
298 of this session, to be qualified to bid on that contract pursuant to8-15
section 5 of8-16
from meeting such qualifications pursuant to section 6 of8-17
8-18
6. "Local government" means every political subdivision or other8-19
entity which has the right to levy or receive money from ad valorem or8-20
other taxes or any mandatory assessments, and includes, without limitation,8-21
counties, cities, towns, boards, school districts and other districts organized8-22
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 a8-24
county or city which prepares a budget separate from that of the parent8-25
political subdivision.8-26
8-27
(a) Pay the prevailing wage required pursuant to this chapter;8-28
(b) Pay the contributions for unemployment compensation required8-29
pursuant to chapter 612 of NRS; or8-30
(c) Provide and secure compensation for employees required pursuant to8-31
chapters 616A to 617, inclusive, of NRS.8-32
8-33
(a) Contracts to8-34
(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; and8-37
(d) Contracts for the services of any subcontractor or independent8-38
contractor or is responsible for payment to any contracted subcontractors or8-39
independent contractors.8-40
8-41
district or any public agency of this state or its political subdivisions8-42
sponsoring or financing a public work.9-1
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 public9-10
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 with9-14
public funds; and9-15
(10) Any other publicly owned works and property whose cost as a9-16
whole exceeds $20,000.9-17
Each separate unit that is a part of a project is included in the cost of the9-18
project to determine whether a project meets that threshold.9-19
(b) A building for the University and Community College System of9-20
Nevada of which 25 percent or more of the costs of the building as a whole9-21
are paid from money appropriated by this state or from federal money.9-22
9-23
as such are the performance of construction work requiring special skill9-24
and whose principal contracting business involves the use of specialized9-25
building trades or crafts.9-26
12. "Stand-alone underground utility project" means an9-27
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 the9-30
conveyance of water, including facilities appurtenant thereto; and9-31
(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 and9-34
construction of which a public body is authorized to contract with a9-35
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; and9-38
(b) The amount of pension, health and welfare, vacation and holiday9-39
pay, the cost of apprenticeship training or other similar programs or other9-40
bona fide fringe benefits which are a benefit to the workman.10-1
10-2
semiskilled mechanic, semiskilled workman or unskilled workman. The10-3
term does not include a design professional .10-4
10-5
Sec. 11. NRS 338.143 is hereby amended to read as follows: 338.143 1. Except as otherwise provided in subsection 6 and NRS10-7
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) of10-9
subsection 1 of section 2 of10-10
session, or a public officer, public employee or other person responsible for10-11
awarding a contract for the construction, alteration or repair of a public10-12
work who represents that local government, shall not:10-13
(a) Commence such a project for which the estimated cost exceeds10-14
$100,000 unless it advertises in a newspaper of general circulation in this10-15
state for bids for the project; or10-16
(b) Divide such a project into separate portions to avoid the10-17
requirements of paragraph (a).10-18
2. Except as otherwise provided in subsection 6, a local government10-19
that maintains a list of properly licensed contractors who are interested in10-20
receiving offers to bid on public works projects for which the estimated10-21
cost is more than $25,000 but less than $100,000 shall solicit bids from not10-22
more than three of the contractors on the list for a contract of that value for10-23
the construction, alteration or repair of a public work. The local10-24
government shall select contractors from the list in such a manner as to10-25
afford each contractor an equal opportunity to bid on a public works10-26
project. A properly licensed contractor must submit a written request10-27
annually to the local government to remain on the list. Offers for bids10-28
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 a10-30
place and time stated in the advertisement for the inspection of all persons10-31
desiring to bid thereon and for other interested persons. Contracts for the10-32
project must be awarded on the basis of bids received.10-33
4. Any bids received in response to an advertisement for bids may be10-34
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 offered10-37
does not conform to the approved plan or specifications; or10-38
(c) The public interest would be served by such a rejection.10-39
5. Before a local government may commence a project subject to the10-40
provisions of this section, based upon a determination that the public10-41
interest would be served by rejecting any bids received in response to an10-42
advertisement for bids, it shall prepare and make available for public10-43
inspection a written statement containing:11-1
(a) A list of all persons, including supervisors, whom the local11-2
government intends to assign to the project, together with their11-3
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 on11-5
the project, together with an estimate of the number of hours each item of11-6
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 persons11-8
assigned to the project;11-9
(d) An estimate of the total cost of the project; and11-10
(e) An estimate of the amount of money the local government expects to11-11
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 and11-15
maintenance of highways subject to NRS 408.323 or 408.327;11-16
(c) Normal maintenance of the property of a school district;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 pursuant11-19
to chapter 477, Statutes of Nevada 1983 or the Virgin Valley water district11-20
created pursuant to chapter 100, Statutes of Nevada 199311-21
(e) The design and construction of a public work for which a public11-22
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: 338.143 1. Except as otherwise provided in subsection 6, a local11-26
government that awards a contract for the construction, alteration or repair11-27
of a public work in accordance with paragraph (b) of subsection 1 of11-28
section 2 of11-29
officer, public employee or other person responsible for awarding a11-30
contract for the construction, alteration or repair of a public work who11-31
represents that local government, shall not:11-32
(a) Commence such a project for which the estimated cost exceeds11-33
$100,000 unless it advertises in a newspaper of general circulation in this11-34
state for bids for the project; or11-35
(b) Divide such a project into separate portions to avoid the11-36
requirements of paragraph (a).11-37
2. Except as otherwise provided in subsection 6, a local government11-38
that maintains a list of properly licensed contractors who are interested in11-39
receiving offers to bid on public works projects for which the estimated11-40
cost is more than $25,000 but less than $100,000 shall solicit bids from not11-41
more than three of the contractors on the list for a contract of that value for11-42
the construction, alteration or repair of a public work. The local11-43
government shall select contractors from the list in such a manner as to12-1
afford each contractor an equal opportunity to bid on a public works12-2
project. A properly licensed contractor must submit a written request12-3
annually to the local government to remain on the list. Offers for bids12-4
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 a12-6
place and time stated in the advertisement for the inspection of all persons12-7
desiring to bid thereon and for other interested persons. Contracts for the12-8
project must be awarded on the basis of bids received.12-9
4. Any bids received in response to an advertisement for bids may be12-10
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 offered12-13
does not conform to the approved plan or specifications; or12-14
(c) The public interest would be served by such a rejection.12-15
5. Before a local government may commence a project subject to the12-16
provisions of this section, based upon a determination that the public12-17
interest would be served by rejecting any bids received in response to an12-18
advertisement for bids, it shall prepare and make available for public12-19
inspection a written statement containing:12-20
(a) A list of all persons, including supervisors, whom the local12-21
government intends to assign to the project, together with their12-22
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 on12-24
the project, together with an estimate of the number of hours each item of12-25
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 persons12-27
assigned to the project;12-28
(d) An estimate of the total cost of the project; and12-29
(e) An estimate of the amount of money the local government expects to12-30
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 and12-34
maintenance of highways subject to NRS 408.323 or 408.327;12-35
(c) Normal maintenance of the property of a school district;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 pursuant12-38
to chapter 477, Statutes of Nevada 1983 or the Virgin Valley water district12-39
created pursuant to chapter 100, Statutes of Nevada 1993.12-40
Sec. 13. NRS 338.147 is hereby amended to read as follows: 338.147 1. Except as otherwise provided in NRS 338.14312-42
sections 2 to 9, inclusive, of this act, a local government shall award a12-43
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 by13-2
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 the13-4
local government; and13-5
(b) At the time he submits his bid, provides to the local government a13-6
copy of a certificate of eligibility to receive a preference in bidding on13-7
public works issued to him by the state contractors’ board pursuant to13-8
subsection 3,13-9
shall be deemed to have submitted a better bid than a competing contractor13-10
who has not provided a copy of such a valid certificate of eligibility if the13-11
amount of his bid is not more than 5 percent higher than the amount bid by13-12
the competing contractor.13-13
3. The state contractors’ board shall issue a certificate of eligibility to13-14
receive a preference in bidding on public works to a general contractor who13-15
is licensed pursuant to the provisions of chapter 624 of NRS and submits to13-16
the board an affidavit from a certified public accountant setting forth that13-17
the general contractor has:13-18
(a) Paid:13-19
(1) The sales and use taxes imposed pursuant to chapters 372, 37413-20
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 land13-22
within the boundaries of this state that is managed by the Federal13-23
Government or is on an Indian reservation or Indian colony, of not less than13-24
$5,000 for each consecutive 12-month period for 60 months immediately13-25
preceding the submission of the affidavit from the certified public13-26
accountant;13-27
(2) The motor vehicle privilege tax imposed pursuant to chapter 37113-28
of NRS on the vehicles used in the operation of his business in this state of13-29
not less than $5,000 for each consecutive 12-month period for 60 months13-30
immediately preceding the submission of the affidavit from the certified13-31
public accountant; or13-32
(3) Any combination of such sales and use taxes and motor vehicle13-33
privilege tax; or13-34
(b) Acquired, by inheritance, gift or transfer through a stock option plan13-35
for employees, all the assets and liabilities of a viable, operating13-36
construction firm that possesses a:13-37
(1) License as a general contractor pursuant to the provisions of13-38
chapter 624 of NRS; and13-39
(2) Certificate of eligibility to receive a preference in bidding on13-40
public works.13-41
4. For the purposes of complying with the requirements set forth in13-42
paragraph (a) of subsection 3, a general contractor shall be deemed to have13-43
paid:14-1
(a) Sales and use taxes and motor vehicle privilege taxes paid in this14-2
state by an affiliate or parent company of the contractor, if the affiliate or14-3
parent company is also a general contractor; and14-4
(b) Sales and use taxes paid in this state by a joint venture in which the14-5
contractor is a participant, in proportion to the amount of interest the14-6
contractor has in the joint venture.14-7
5. A contractor who has received a certificate of eligibility to receive a14-8
preference in bidding on public works from the state contractors’ board14-9
pursuant to subsection 3 shall, at the time for the annual renewal of his14-10
contractors’ license pursuant to NRS 624.283, submit to the board an14-11
affidavit from a certified public accountant setting forth that the contractor14-12
has, during the immediately preceding 12 months, paid the taxes required14-13
pursuant to paragraph (a) of subsection 3 to maintain his eligibility to hold14-14
such a certificate.14-15
6. A contractor who fails to submit an affidavit to the board pursuant to14-16
subsection 5 ceases to be eligible to receive a preference in bidding on14-17
public works unless he reapplies for and receives a certificate of eligibility14-18
pursuant to subsection 3.14-19
7. If a contractor who applies to the state contractors’ board for a14-20
certificate of eligibility to receive a preference in bidding on public works14-21
submits false information to the board regarding the required payment of14-22
taxes, the contractor is not eligible to receive a preference in bidding on14-23
public works for a period of 5 years after the date on which the board14-24
becomes aware of the submission of the false information.14-25
8. If any federal statute or regulation precludes the granting of federal14-26
assistance or reduces the amount of that assistance for a particular public14-27
work because of the provisions of subsection 2, those provisions do not14-28
apply insofar as their application would preclude or reduce federal14-29
assistance for that work. The provisions of subsection 2 do not apply to any14-30
contract for a public work which is expected to cost less than $250,000.14-31
9.14-32
this act and subsection 2 of section 27 of this act, if a bid is submitted by14-33
two or more contractors as a joint venture or by one of them as a joint14-34
venturer, the provisions of subsection 2 apply only if both or all of the joint14-35
venturers separately meet the requirements of that subsection.14-36
10. The state contractors’ board shall adopt regulations and may assess14-37
reasonable fees relating to the certification of contractors for a preference14-38
in bidding on public works.14-39
11. A person or entity who believes that a contractor wrongfully holds14-40
a certificate of eligibility to receive a preference in bidding on public works14-41
may challenge the validity of the certificate by filing a written objection15-1
with the public body to which the contractor has submitted a bid or15-2
proposal on a contract for the completion of a public work. A written15-3
objection authorized pursuant to this subsection must:15-4
(a) Set forth proof or substantiating evidence to support the belief of the15-5
person or entity that the contractor wrongfully holds a certificate of15-6
eligibility to receive a preference in bidding on public works; and15-7
(b) Be filed with the public body at or after the time at which the15-8
contractor submitted the bid or proposal to the public body and before the15-9
time at which the public body awards the contract for which the bid or15-10
proposal was submitted.15-11
12. If a public body receives a written objection pursuant to subsection15-12
11, the public body shall determine whether the objection is accompanied15-13
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 not15-15
accompanied by the required proof or substantiating evidence, the public15-16
body shall dismiss the objection and may proceed immediately to award the15-17
contract. If the public body determines that the objection is accompanied15-18
by the required proof or substantiating evidence, the public body shall15-19
determine whether the contractor qualifies for the certificate pursuant to the15-20
provisions of this section and may proceed to award the contract15-21
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 ,15-24
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 by15-27
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 the15-29
local government; and15-30
(b) At the time he submits his bid, provides to the local government a15-31
copy of a certificate of eligibility to receive a preference in bidding on15-32
public works issued to him by the state contractors’ board pursuant to15-33
subsection 3,15-34
shall be deemed to have submitted a better bid than a competing contractor15-35
who has not provided a copy of such a valid certificate of eligibility if the15-36
amount of his bid is not more than 5 percent higher than the amount bid by15-37
the competing contractor.15-38
3. The state contractors’ board shall issue a certificate of eligibility to15-39
receive a preference in bidding on public works to a general contractor who15-40
is licensed pursuant to the provisions of chapter 624 of NRS and submits to15-41
the board an affidavit from a certified public accountant setting forth that15-42
the general contractor has:16-1
(a) Paid:16-2
(1) The sales and use taxes imposed pursuant to chapters 372, 37416-3
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 land16-5
within the boundaries of this state that is managed by the Federal16-6
Government or is on an Indian reservation or Indian colony, of not less than16-7
$5,000 for each consecutive 12-month period for 60 months immediately16-8
preceding the submission of the affidavit from the certified public16-9
accountant;16-10
(2) The motor vehicle privilege tax imposed pursuant to chapter 37116-11
of NRS on the vehicles used in the operation of his business in this state of16-12
not less than $5,000 for each consecutive 12-month period for 60 months16-13
immediately preceding the submission of the affidavit from the certified16-14
public accountant; or16-15
(3) Any combination of such sales and use taxes and motor vehicle16-16
privilege tax; or16-17
(b) Acquired, by inheritance, gift or transfer through a stock option plan16-18
for employees, all the assets and liabilities of a viable, operating16-19
construction firm that possesses a:16-20
(1) License as a general contractor pursuant to the provisions of16-21
chapter 624 of NRS; and16-22
(2) Certificate of eligibility to receive a preference in bidding on16-23
public works.16-24
4. For the purposes of complying with the requirements set forth in16-25
paragraph (a) of subsection 3, a general contractor shall be deemed to have16-26
paid:16-27
(a) Sales and use taxes and motor vehicle privilege taxes paid in this16-28
state by an affiliate or parent company of the contractor, if the affiliate or16-29
parent company is also a general contractor; and16-30
(b) Sales and use taxes paid in this state by a joint venture in which the16-31
contractor is a participant, in proportion to the amount of interest the16-32
contractor has in the joint venture.16-33
5. A contractor who has received a certificate of eligibility to receive a16-34
preference in bidding on public works from the state contractors’ board16-35
pursuant to subsection 3 shall, at the time for the annual renewal of his16-36
contractors’ license pursuant to NRS 624.283, submit to the board an16-37
affidavit from a certified public accountant setting forth that the contractor16-38
has, during the immediately preceding 12 months, paid the taxes required16-39
pursuant to paragraph (a) of subsection 3 to maintain his eligibility to hold16-40
such a certificate.16-41
6. A contractor who fails to submit an affidavit to the board pursuant to16-42
subsection 5 ceases to be eligible to receive a preference in bidding on17-1
public works unless he reapplies for and receives a certificate of eligibility17-2
pursuant to subsection 3.17-3
7. If a contractor who applies to the state contractors’ board for a17-4
certificate of eligibility to receive a preference in bidding on public works17-5
submits false information to the board regarding the required payment of17-6
taxes, the contractor is not eligible to receive a preference in bidding on17-7
public works for a period of 5 years after the date on which the board17-8
becomes aware of the submission of the false information.17-9
8. If any federal statute or regulation precludes the granting of federal17-10
assistance or reduces the amount of that assistance for a particular public17-11
work because of the provisions of subsection 2, those provisions do not17-12
apply insofar as their application would preclude or reduce federal17-13
assistance for that work. The provisions of subsection 2 do not apply to any17-14
contract for a public work which is expected to cost less than $250,000.17-15
9.17-16
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 venturers17-19
separately meet the requirements of that subsection.17-20
10. The state contractors’ board shall adopt regulations and may assess17-21
reasonable fees relating to the certification of contractors for a preference17-22
in bidding on public works.17-23
11. A person or entity who believes that a contractor wrongfully holds17-24
a certificate of eligibility to receive a preference in bidding on public works17-25
may challenge the validity of the certificate by filing a written objection17-26
with the public body to which the contractor has submitted a bid or17-27
proposal on a contract for the completion of a public work. A written17-28
objection authorized pursuant to this subsection must:17-29
(a) Set forth proof or substantiating evidence to support the belief of the17-30
person or entity that the contractor wrongfully holds a certificate of17-31
eligibility to receive a preference in bidding on public works; and17-32
(b) Be filed with the public body at or after the time at which the17-33
contractor submitted the bid or proposal to the public body and before the17-34
time at which the public body awards the contract for which the bid or17-35
proposal was submitted.17-36
12. If a public body receives a written objection pursuant to subsection17-37
11, the public body shall determine whether the objection is accompanied17-38
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 not17-40
accompanied by the required proof or substantiating evidence, the public17-41
body shall dismiss the objection and may proceed immediately to award the17-42
contract. If the public body determines that the objection is accompanied17-43
by the required proof or substantiating evidence, the public body shall18-1
determine whether the contractor qualifies for the certificate pursuant to the18-2
provisions of this section and may proceed to award the contract18-3
accordingly.18-4
Sec. 14. NRS 338.155 is hereby amended to read as follows: 338.15518-6
professional who is not a member of a design-build team for the provision18-7
of services in connection with a public work, the contract:18-8
18-9
18-10
the design professional.18-11
18-12
may dispute a payment or portion thereof that the design professional18-13
alleges is due.18-14
18-15
public body if the public body fails to pay the design professional within18-16
the specific period set forth in the contract pursuant to18-17
18-18
(d) That the prevailing party in an action to enforce the contract is18-19
entitled to reasonable attorney’s fees and costs.18-20
18-21
will receive if the public body pays the design professional within the18-22
specific period set forth in the contract pursuant to18-23
paragraph (a)18-24
18-25
18-26
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 finance18-29
committee when the legislature is not in regular or special session, or with18-30
the approval of the legislature by concurrent resolution when the legislature18-31
is in regular or special session, let to a contractor licensed under chapter18-32
624 of NRS a contract for services which assist the architect in the design18-33
of a project of capital improvement. The board shall for that purpose18-34
participate in the development of plans, outlines of specifications and18-35
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 for18-38
contracts for services described in subsection 1.18-39
(b) The bidding and awarding of such contracts, subject to the18-40
provisions of subsection 3.19-1
(c) The awarding of construction contracts19-2
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 design19-6
of a project of capital improvement must state separately the contractor’s19-7
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
4.19-12
19-13
19-14
19-15
19-16
19-17
19-18
19-19
to subsection 1 is a contractor subject to all provisions pertaining to a19-20
contractor in Title 28 of NRS.19-21
Sec. 15. Chapter 408 of NRS is hereby amended by adding thereto the19-22
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 the19-24
context otherwise requires, the words and terms defined in sections 17 to19-25
20, inclusive, of this act have the meanings ascribed to them in those19-26
sections.19-27
Sec. 17. "Design-build contract" means a contract between the19-28
department and a design-build team in which the design-build team19-29
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 engineering19-32
contractor or a general building contractor pursuant to NRS 624.230 to19-33
624.320, inclusive; and19-34
2. At least one person who holds a certificate of registration to19-35
practice architecture pursuant to chapter 623 of NRS or is licensed as a19-36
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 the19-41
construction of the project; and20-1
4. Contracts for the services of any subcontractor or independent20-2
contractor or is responsible for payment to any contracted subcontractors20-3
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 team20-7
for the design and construction of a project if the department determines20-8
that:20-9
(a) Except as otherwise provided in subsection 2, the estimated cost of20-10
the project exceeds $30,000,000; and20-11
(b) Contracting with a design-build team will enable the department20-12
to:20-13
(1) Design and construct the project at a cost that is significantly20-14
lower than the cost that the department would incur to design and20-15
construct the project using a different method;20-16
(2) Design and construct the project in a shorter time than would be20-17
required to complete the project using a different method, if exigent20-18
circumstances require that the project be designed and constructed20-19
within a short time; or20-20
(3) Ensure that the design and construction of the project is20-21
properly coordinated, if the project is unique, highly technical and20-22
complex in nature.20-23
2. Notwithstanding the provisions of subsection 1, the department20-24
may, once in each fiscal year, contract with a design-build team for the20-25
design and construction of a project the estimated cost of which is at least20-26
$5,000,000 but less than $30,000,000 if the department makes the20-27
determinations otherwise required pursuant to paragraph (b) of20-28
subsection 1.20-29
Sec. 22. 1. The department shall not contract with a design-build20-30
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 to20-33
this section, the department shall publish notice of the meeting at least20-34
once each week for 3 consecutive weeks in:20-35
(a) A newspaper of general circulation published in each county in20-36
which the project is proposed to be constructed or, if there is no such20-37
newspaper, in a newspaper of general circulation in each county20-38
published in this state; and20-39
(b) A newspaper of general circulation in this state.20-40
Sec. 23. If the department desires to contract with a design-build20-41
team pursuant to sections 21 and 22 of this act, the department must20-42
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 preliminary21-2
proposals for the design and construction of a project by a design-build21-3
team at least twice each week for 3 consecutive weeks in:21-4
(a) A newspaper of general circulation published in each county in21-5
which the project is proposed to be constructed or, if there is no such21-6
newspaper, in a newspaper of general circulation in each county21-7
published in this state; and21-8
(b) A newspaper of general circulation in this state.21-9
2. A request for preliminary proposals published pursuant to21-10
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 the21-13
project;21-14
(c) The dates on which it is anticipated that the separate phases of the21-15
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 the21-18
information necessary to submit a proposal, including, without21-19
limitation, the extent to which designs must be completed for both21-20
preliminary and final proposals and any other requirements for the21-21
design and construction of the project that the department determines to21-22
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, without21-26
limitation:21-27
(1) The relative weight to be assigned to each factor; and21-28
(2) A disclosure of whether the factors that are not related to cost21-29
are, when considered as a group, more or less important in the process of21-30
evaluation than the factor of cost;21-31
(g) Notice that a design-build team desiring to submit a proposal for21-32
the project must include with its proposal the information used by the21-33
department to determine finalists among the design-build teams21-34
submitting proposals pursuant to subsection 2 of section 26 of this act21-35
and a description of that information;21-36
(h) A statement that a design-build team whose prime contractor21-37
holds a certificate of eligibility to receive a preference in bidding on21-38
public works issued pursuant to NRS 338.147 should submit a copy of21-39
the certificate of eligibility with its proposal;21-40
(i) A statement as to whether a bidding design-build team that is21-41
selected as a finalist pursuant to section 26 of this act but is not awarded21-42
the design-build contract pursuant to section 27 of this act will be22-1
partially reimbursed for the cost of preparing a final proposal and, if so,22-2
an estimate of the amount of the partial reimbursement; and22-3
(j) The date by which preliminary proposals must be submitted to the22-4
department, which must not be less than 30 days or more than 60 days22-5
after the date on which the request for preliminary proposals is first22-6
published in a newspaper pursuant to subsection 1.22-7
Sec. 25. To qualify to participate in the design and construction of a22-8
project for the department, a design-build team must:22-9
1. Obtain a performance bond and payment bond as the department22-10
may require;22-11
2. Obtain insurance covering general liability and liability for errors22-12
and omissions;22-13
3. Not have been found liable for breach of contract with respect to a22-14
previous project, other than a breach for legitimate cause;22-15
4. Not have been disqualified from being awarded a contract22-16
pursuant to NRS 338.017, 338.145 or 408.333; and22-17
5. Ensure that the members of the design-build team possess the22-18
licenses and certificates required to carry out the functions of their22-19
respective professions within this state.22-20
Sec. 26. 1. At least 30 days after the date by which preliminary22-21
proposals must be submitted to the department, the department shall22-22
select at least three but not more than five finalists from among the22-23
design-build teams that submitted preliminary proposals. If the22-24
department does not receive at least three preliminary proposals from22-25
design-build teams that the department determines to be qualified22-26
pursuant to this section and section 25 of this act, the department may22-27
not contract with a design-build team for the design and construction of22-28
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 a22-31
preliminary proposal satisfies the requirements of section 25 of this act;22-32
and22-33
(b) Conducting an evaluation of the qualifications of each design-22-34
build team that submitted a preliminary proposal, including, without22-35
limitation, an evaluation of:22-36
(1) The professional qualifications and experience of the members22-37
of the design-build team;22-38
(2) The performance history of the members of the design-build22-39
team concerning other recent, similar projects completed by those22-40
members, if any;22-41
(3) The safety programs established and the safety records22-42
accumulated by the members of the design-build team; and23-1
(4) The proposed plan of the design-build team to manage the23-2
design and construction of the project that sets forth in detail the ability23-3
of the design-build team to design and construct the project.23-4
Sec. 27. 1. After selecting the finalists pursuant to section 26 of23-5
this act, the department shall provide to each finalist a request for final23-6
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 relative23-9
weight to be assigned to each factor; and23-10
(b) Set forth the date by which final proposals must be submitted to23-11
the department.23-12
2. A final proposal submitted by a design-build team pursuant to this23-13
section must be prepared thoroughly, be responsive to the criteria that the23-14
department will use to select a design-build team to design and construct23-15
the project described in subsection 1 and comply with the provisions of23-16
NRS 338.144. If the cost of construction is a factor in the selection of a23-17
design-build team, a design-build team whose prime contractor has23-18
submitted with its proposal a certificate of eligibility to receive a23-19
preference in bidding on public works issued pursuant to NRS 338.14723-20
shall be deemed to have submitted a better proposal than a competing23-21
design-build team whose prime contractor has not submitted such a23-22
certificate of eligibility if the amount proposed by the design-build team23-23
is not more than 5 percent higher than the amount proposed by the23-24
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, using23-28
the criteria set forth pursuant to subsection 1; or23-29
(b) Reject all the final proposals.23-30
4. If the department selects a final proposal pursuant to paragraph23-31
(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 whose23-34
proposal is selected.23-35
(c) Partially reimburse the unsuccessful finalists if partial23-36
reimbursement was provided for in the request for preliminary proposals23-37
pursuant to paragraph (i) of subsection 2 of section 24 of this act. The23-38
amount of reimbursement must not exceed, for each unsuccessful23-39
finalist, three percent of the total amount to be paid to the design-build23-40
team as set forth in the design-build contract.23-41
(d) Make available to the public a summary setting forth the factors23-42
used by the department to select the successful design-build team and the23-43
ranking of the design-build teams who submitted final proposals. The24-1
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 will24-5
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 of24-7
unexpected conditions or occurrences as authorized by the contract;24-8
(b) An amount that is the maximum amount that the department will24-9
pay for the performance of the professional services required by the24-10
contract; and24-11
(c) A date by which performance of the work required by the contract24-12
must be completed.24-13
6. A design-build team to whom a contract is awarded pursuant to24-14
this section shall:24-15
(a) Assume overall responsibility for ensuring that the design and24-16
construction of the project is completed in a satisfactory manner; and24-17
(b) Use the work force of the prime contractor on the design-build24-18
team to construct at least 15 percent of the project.24-19
Sec. 28. The department may employ a registered architect or24-20
licensed professional engineer as a consultant to assist the department in24-21
overseeing the construction of a project. An architect or engineer so24-22
employed shall not:24-23
1. Construct, reconstruct or improve the highway; or24-24
2. Assume overall responsibility for ensuring that the construction of24-25
the project is completed in a satisfactory manner.24-26
Sec. 29. NRS 408.215 is hereby amended to read as follows: 408.215 1. The director has charge of all the records of the24-28
department, keeping records of all proceedings pertaining to the department24-29
and keeping on file information, plans, specifications, estimates, statistics24-30
and records prepared by the department, except those financial statements24-31
described in NRS 408.33324-32
described in paragraph (d) of subsection 4 of section 27 of this act, which24-33
must not become matters of public record.24-34
2. The director may photograph, microphotograph or film or dispose of24-35
the records of the department referred to in subsection 1 as provided in24-36
NRS 239.051, 239.080 and 239.085.24-37
3. The director shall maintain an index or record of deeds or other24-38
references of title or interests in and to all lands or interests in land owned24-39
or acquired by the department.24-40
4. The director shall adopt such regulations as may be necessary to24-41
carry out and enforce the provisions of this chapter.25-1
Sec. 30. NRS 408.317 is hereby amended to read as follows: 408.317 1.25-3
inclusive, of this act, all work of construction, reconstruction,25-4
improvement and maintenance of highways as provided under the25-5
provisions of this chapter is under the supervision and direction of the25-6
director and must be performed in accordance with the plans, specifications25-7
and contracts prepared by him.25-8
2. All maintenance and repair of highways when performed by the25-9
department must be paid out of the state highway fund.25-10
Sec. 31. NRS 408.327 is hereby amended to read as follows: 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 director25-14
shall advertise for bids for such work according to the plans and25-15
specifications prepared by him.25-16
2. The advertisement must state the place where the bidders may obtain25-17
or inspect the plans and specifications and the time and place for opening25-18
the plans and specifications.25-19
3. Publication of the advertisement must be made at least once a week25-20
for 2 consecutive weeks for a total of at least two publications in a25-21
newspaper of general circulation in the county in which the major portion25-22
of the proposed improvement or construction is to be made, and the25-23
advertisement must also be published at least once a week for 2 consecutive25-24
weeks for a total of at least two publications in one or more daily papers of25-25
general circulation throughout the state. The first publication of the25-26
advertisement in the daily newspapers having general circulation25-27
throughout the state must be made not less than 15 days before the time set25-28
for opening bids.25-29
Sec. 32. NRS 408.333 is hereby amended to read as follows: 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 advertised25-33
work with the plans and specifications for such work, the director shall25-34
require from the person a statement, verified under oath, in the form of25-35
answers to questions contained in a standard form of questionnaire and25-36
financial statement, which must include a complete statement of the25-37
person’s financial ability and experience in performing public work of a25-38
similar nature.25-39
2. Such statements must be filed with the director in ample time to25-40
permit the department to verify the information contained therein in25-41
advance of furnishing proposal forms, plans and specifications to any25-42
person proposing to bid on the advertised public work, in accordance with25-43
the regulations of the department.26-1
3. Whenever the director is not satisfied with the sufficiency of the26-2
answers contained in the questionnaire and financial statement, he may26-3
refuse to furnish the person with plans and specifications and the official26-4
proposal forms on the advertised project. Any bid of any person to whom26-5
plans and specifications and the official proposal forms have not been26-6
issued in accordance with this section must be disregarded, and the certified26-7
check, cash or undertaking of such a bidder returned forthwith.26-8
4. Any person who is disqualified by the director, in accordance with26-9
the provisions of this section, may request, in writing, a hearing before the26-10
director and present again his check, cash or undertaking and such further26-11
evidence with respect to his financial responsibility, organization, plant and26-12
equipment, or experience, as might tend to justify, in his opinion, issuance26-13
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 board26-15
no later than 5 days before the opening of the bids on the project. If the26-16
appeal is sustained by the board, the person must be granted the rights and26-17
privileges of all other bidders.26-18
Sec. 33. NRS 408.337 is hereby amended to read as follows: 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 a26-22
corporate surety authorized to do business in the state, or by cash or a26-23
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 accordance26-25
with his bid and give any bond required by law and the contract and bond26-26
are not postmarked or delivered to the department within 20 days after26-27
award of the contract, the undertaking, cash or certified check is forfeited26-28
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 of26-30
him by law within the time fixed for his execution of the contract26-31
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, award26-34
it to the second lowest responsible bidder. If the second lowest responsible26-35
bidder fails or refuses to execute the contract, the director may likewise26-36
award it to the third lowest responsible bidder. On the failure or refusal to26-37
execute the contract of the second or third lowest bidder to whom a26-38
contract is so awarded, their bidder’s security is likewise forfeited to the26-39
state.26-40
5. The bidder’s security of the second and third lowest responsible26-41
bidders may be withheld by the department until the contract has been26-42
finally executed and the bond given as required under the provisions of the27-1
contract, at which time the security must be returned. The bidder’s security27-2
submitted by all other unsuccessful bidders must be returned to them within27-3
10 days after the contract is awarded.27-4
Sec. 34. NRS 408.343 is hereby amended to read as follows: 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 the27-8
address in Nevada stated in the advertisement for bids and must be opened27-9
publicly and read at the time stated in the advertisement.27-10
2. No bids may be received after the time stated in the advertisement27-11
even though bids are not opened exactly at the time stated in the27-12
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 the27-14
advertisement only by written request or telegram filed with the director27-15
and executed by the bidder or his duly authorized representative. The27-16
withdrawal of a bid does not prejudice the right of the bidder to file a new27-17
bid before the time stated in the advertisement.27-18
4. The department may reject any bid or all bids if, in the opinion of27-19
the department, the bids are unbalanced, incomplete, contain irregularities27-20
of any kind or for any good cause.27-21
5. Until the final award of the contract, the department may reject or27-22
accept any bids and may waive technical errors contained in the bids, as27-23
may be deemed best for the interests of the state.27-24
6. In awarding a contract, the department shall make the award to the27-25
lowest responsible bidder who has qualified and submitted his bid in27-26
accordance with the provisions of this chapter.27-27
Sec. 35. NRS 625.530 is hereby amended to read as follows: 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 a27-31
county, city or town, shall not engage in any public work requiring the27-32
practice of professional engineering or land surveying, unless the maps,27-33
plans, specifications, reports and estimates have been prepared by, and the27-34
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 complete27-38
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 or27-40
its political subdivisions.27-41
(c) Authorize a professional engineer, registered architect or27-42
professional land surveyor to practice in violation of any of the provisions27-43
of chapter 623 of NRS or this chapter.28-1
(d) Require the services of an architect registered pursuant to the28-2
provisions of chapter 623 of NRS for the erection of buildings or structures28-3
manufactured in an industrial plant, if those buildings or structures meet the28-4
requirements of local building codes of the jurisdiction in which they are28-5
being erected.28-6
3. The selection of a professional engineer, professional land surveyor28-7
or registered architect to perform services pursuant to subsection 1 must be28-8
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 not28-10
on the basis of competitive fees. If, after selection of the engineer, land28-11
surveyor or architect, an agreement upon a fair and reasonable fee cannot28-12
be reached with him, the public agency may terminate negotiations and28-13
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 and28-17
NRS 338.1907, a local government that awards a contract for the28-18
construction, alteration or repair of a public work in accordance28-19
with paragraph (b) of subsection 1 of section 2 of this act, or a28-20
public officer, public employee or other person responsible for28-21
awarding a contract for the construction, alteration or repair of a28-22
public work who represents that local government, shall not:28-23
(a) Commence such a project for which the estimated cost28-24
exceeds $100,000 unless it advertises in a newspaper of general28-25
circulation in this state for bids for the project; or28-26
(b) Divide such a project into separate portions to avoid the28-27
requirements of paragraph (a).28-28
2. Except as otherwise provided in subsection 6, a local28-29
government that maintains a list of properly licensed contractors28-30
who are interested in receiving offers to bid on public works28-31
projects for which the estimated cost is more than $25,000 but less28-32
than $100,000 shall solicit bids from not more than three of the28-33
contractors on the list for a contract of that value for the28-34
construction, alteration or repair of a public work. The local28-35
government shall select contractors from the list in such a manner as28-36
to afford each contractor an equal opportunity to bid on a public28-37
works project. A properly licensed contractor must submit a written28-38
request annually to the local government to remain on the list.28-39
Offers for bids which are made pursuant to this subsection must be28-40
sent by certified mail.28-41
3. Approved plans and specifications for the bids must be on28-42
file at a place and time stated in the advertisement for the inspection29-1
of all persons desiring to bid thereon and for other interested29-2
persons. Contracts for the project must be awarded on the basis of29-3
bids received.29-4
4. Any bids received in response to an advertisement for bids29-5
may be rejected if the person responsible for awarding the contract29-6
determines that:29-7
(a) The bidder is not responsive or responsible;29-8
(b) The quality of the services, materials, equipment or labor29-9
offered does not conform to the approved plan or specifications; or29-10
(c) The public interest would be served by such a rejection.29-11
5. Before a local government may commence a project subject29-12
to the provisions of this section, based upon a determination that the29-13
public interest would be served by rejecting any bids received in29-14
response to an advertisement for bids, it shall prepare and make29-15
available for public inspection a written statement containing:29-16
(a) A list of all persons, including supervisors, whom the local29-17
government intends to assign to the project, together with their29-18
classifications and an estimate of the direct and indirect costs of29-19
their labor;29-20
(b) A list of all equipment that the local government intends to29-21
use on the project, together with an estimate of the number of hours29-22
each item of equipment will be used and the hourly cost to use each29-23
item of equipment;29-24
(c) An estimate of the cost of administrative support for the29-25
persons assigned to the project;29-26
(d) An estimate of the total cost of the project; and29-27
(e) An estimate of the amount of money the local government29-28
expects to save by rejecting the bids and performing the project29-29
itself.29-30
6. This section does not apply to:29-31
(a) Any utility subject to the provisions of chapter 318 or 710 of29-32
NRS;29-33
(b) Any work of construction, reconstruction, improvement and29-34
maintenance of highways subject to NRS 408.323 or 408.327;29-35
(c) Normal maintenance of the property of a school district; or29-36
(d) The Las Vegas Valley water district created pursuant to29-37
chapter 167, Statutes of Nevada 1947, the Moapa Valley water29-38
district created pursuant to chapter 477, Statutes of Nevada 1983 or29-39
the Virgin Valley water district created pursuant to chapter 100,29-40
Statutes of Nevada 1993 .29-41
29-42
29-43
30-1
Sec. 35.4. Assembly Bill No. 298 of this session is hereby30-2
amended by adding thereto new sections designated sections 19.230-3
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 as30-5
follows:30-6
Sec. 8. 1. Except as otherwise provided in subsection 730-7
and NRS 338.1906 and 338.1907, this state, or a local30-8
government that awards a contract for the construction, alteration30-9
or repair of a public work in accordance with paragraph (a) of30-10
subsection 1 of section 2 of this act, or a public officer, public30-11
employee or other person responsible for awarding a contract for30-12
the construction, alteration or repair of a public work who30-13
represents the state or the local government, shall not:30-14
(a) Commence such a project for which the estimated cost30-15
exceeds $100,000 unless it advertises in a newspaper of general30-16
circulation in this state for bids for the project; or30-17
(b) Divide such a project into separate portions to avoid the30-18
requirements of paragraph (a).30-19
2. Except as otherwise provided in subsection 7, a public30-20
body that maintains a list of properly licensed contractors who30-21
are interested in receiving offers to bid on public works projects30-22
for which the estimated cost is more than $25,000 but less than30-23
$100,000 shall solicit bids from not more than three of the30-24
contractors on the list for a contract of that value for the30-25
construction, alteration or repair of a public work. The public30-26
body shall select contractors from the list in such a manner as to30-27
afford each contractor an equal opportunity to bid on a public30-28
works project. A properly licensed contractor must submit a30-29
written request annually to the public body to remain on the list.30-30
Offers for bids which are made pursuant to this subsection must30-31
be sent by certified mail.30-32
3. Each advertisement for bids must include a provision that30-33
sets forth:30-34
(a) The requirement that a contractor must be qualified30-35
pursuant to section 5 of this act to bid on the contract or must be30-36
exempt from meeting such qualifications pursuant to section 6 of30-37
this act; and30-38
(b) The period during which an application to qualify as a30-39
bidder on the contract must be submitted.30-40
4. Approved plans and specifications for the bids must be on30-41
file at a place and time stated in the advertisement for the30-42
inspection of all persons desiring to bid thereon and for other31-1
interested persons. Contracts for the project must be awarded on31-2
the basis of bids received.31-3
5. Any bids received in response to an advertisement for bids31-4
may be rejected if the person responsible for awarding the31-5
contract determines that:31-6
(a) The bidder is not a qualified bidder pursuant to section 531-7
of this act, unless the bidder is exempt from meeting such31-8
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 labor31-11
offered does not conform to the approved plan or specifications;31-12
or31-13
(d) The public interest would be served by such a rejection.31-14
6. Before the state or a local government may commence a31-15
project subject to the provisions of this section, based upon a31-16
determination that the public interest would be served by31-17
rejecting any bids received in response to an advertisement for31-18
bids, it shall prepare and make available for public inspection a31-19
written statement containing:31-20
(a) A list of all persons, including supervisors, whom the state31-21
or the local government intends to assign to the project, together31-22
with their classifications and an estimate of the direct and indirect31-23
costs of their labor;31-24
(b) A list of all equipment that the state or the local31-25
government intends to use on the project, together with an31-26
estimate of the number of hours each item of equipment will be31-27
used and the hourly cost to use each item of equipment;31-28
(c) An estimate of the cost of administrative support for the31-29
persons assigned to the project;31-30
(d) An estimate of the total cost of the project; and31-31
(e) An estimate of the amount of money the state or the local31-32
government expects to save by rejecting the bids and performing31-33
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 71031-36
of NRS;31-37
(b) Any work of construction, reconstruction, improvement31-38
and maintenance of highways subject to NRS 408.323 or31-39
408.327;31-40
(c) Normal maintenance of the property of a school district; or31-41
(d) The Las Vegas Valley water district created pursuant to31-42
chapter 167, Statutes of Nevada 1947, the Moapa Valley water31-43
district created pursuant to chapter 477, Statutes of Nevada 198332-1
or the Virgin Valley water district created pursuant to chapter32-2
100, Statutes of Nevada 1993 .32-3
32-4
32-5
32-6
Sec. 19.4. Section 8 of this act is hereby amended to read as32-7
follows:32-8
Sec. 8. 1. Except as otherwise provided in subsection 7 ,32-9
32-10
government that awards a contract for the construction, alteration32-11
or repair of a public work in accordance with paragraph (a) of32-12
subsection 1 of section 2 of this act, or a public officer, public32-13
employee or other person responsible for awarding a contract for32-14
the construction, alteration or repair of a public work who32-15
represents the state or the local government, shall not:32-16
(a) Commence such a project for which the estimated cost32-17
exceeds $100,000 unless it advertises in a newspaper of general32-18
circulation in this state for bids for the project; or32-19
(b) Divide such a project into separate portions to avoid the32-20
requirements of paragraph (a).32-21
2. Except as otherwise provided in subsection 7, a public32-22
body that maintains a list of properly licensed contractors who32-23
are interested in receiving offers to bid on public works projects32-24
for which the estimated cost is more than $25,000 but less than32-25
$100,000 shall solicit bids from not more than three of the32-26
contractors on the list for a contract of that value for the32-27
construction, alteration or repair of a public work. The public32-28
body shall select contractors from the list in such a manner as to32-29
afford each contractor an equal opportunity to bid on a public32-30
works project. A properly licensed contractor must submit a32-31
written request annually to the public body to remain on the list.32-32
Offers for bids which are made pursuant to this subsection must32-33
be sent by certified mail.32-34
3. Each advertisement for bids must include a provision that32-35
sets forth:32-36
(a) The requirement that a contractor must be qualified32-37
pursuant to section 5 of this act to bid on the contract or must be32-38
exempt from meeting such qualifications pursuant to section 6 of32-39
this act; and32-40
(b) The period during which an application to qualify as a32-41
bidder on the contract must be submitted.33-1
4. Approved plans and specifications for the bids must be on33-2
file at a place and time stated in the advertisement for the33-3
inspection of all persons desiring to bid thereon and for other33-4
interested persons. Contracts for the project must be awarded on33-5
the basis of bids received.33-6
5. Any bids received in response to an advertisement for bids33-7
may be rejected if the person responsible for awarding the33-8
contract determines that:33-9
(a) The bidder is not a qualified bidder pursuant to section 533-10
of this act, unless the bidder is exempt from meeting such33-11
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 labor33-14
offered does not conform to the approved plan or specifications;33-15
or33-16
(d) The public interest would be served by such a rejection.33-17
6. Before the state or a local government may commence a33-18
project subject to the provisions of this section, based upon a33-19
determination that the public interest would be served by33-20
rejecting any bids received in response to an advertisement for33-21
bids, it shall prepare and make available for public inspection a33-22
written statement containing:33-23
(a) A list of all persons, including supervisors, whom the state33-24
or the local government intends to assign to the project, together33-25
with their classifications and an estimate of the direct and indirect33-26
costs of their labor;33-27
(b) A list of all equipment that the state or the local33-28
government intends to use on the project, together with an33-29
estimate of the number of hours each item of equipment will be33-30
used and the hourly cost to use each item of equipment;33-31
(c) An estimate of the cost of administrative support for the33-32
persons assigned to the project;33-33
(d) An estimate of the total cost of the project; and33-34
(e) An estimate of the amount of money the state or the local33-35
government expects to save by rejecting the bids and performing33-36
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 71033-39
of NRS;33-40
(b) Any work of construction, reconstruction, improvement33-41
and maintenance of highways subject to NRS 408.323 or33-42
408.327;33-43
(c) Normal maintenance of the property of a school district; or34-1
(d) The Las Vegas Valley water district created pursuant to34-2
chapter 167, Statutes of Nevada 1947, the Moapa Valley water34-3
district created pursuant to chapter 477, Statutes of Nevada 198334-4
or the Virgin Valley water district created pursuant to chapter34-5
100, Statutes of Nevada 1993.34-6
Sec. 19.6. Section 11 of this act is hereby amended to read as34-7
follows:34-8
Sec. 11. 1. Except as otherwise provided in section 8 of34-9
this act ,34-10
34-11
work to the contractor who submits the best bid.34-12
2. Except as otherwise provided in subsection 8 or limited by34-13
subsection 9, for the purposes of this section, a contractor who:34-14
(a) Has been determined by the public body to be a qualified34-15
bidder pursuant to section 5 of this act or is exempt from meeting34-16
such requirements pursuant to section 6 of this act; and34-17
(b) At the time he submits his bid, provides to the public body34-18
a copy of a certificate of eligibility to receive a preference in34-19
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 competing34-22
contractor who has not provided a copy of such a valid certificate34-23
of eligibility if the amount of his bid is not more than 5 percent34-24
higher than the amount bid by the competing contractor.34-25
3. The state contractors’ board shall issue a certificate of34-26
eligibility to receive a preference in bidding on public works to a34-27
general contractor who is licensed pursuant to the provisions of34-28
chapter 624 of NRS and submits to the board an affidavit from a34-29
certified public accountant setting forth that the general34-30
contractor has:34-31
(a) Paid:34-32
(1) The sales and use taxes imposed pursuant to chapters34-33
372, 374 and 377 of NRS on materials used for construction in34-34
this state, including, without limitation, construction that is34-35
undertaken or carried out on land within the boundaries of this34-36
state that is managed by the Federal Government or is on an34-37
Indian reservation or Indian colony, of not less than $5,000 for34-38
each consecutive 12-month period for 60 months immediately34-39
preceding the submission of the affidavit from the certified public34-40
accountant;34-41
(2) The motor vehicle privilege tax imposed pursuant to34-42
chapter 371 of NRS on the vehicles used in the operation of his34-43
business in this state of not less than $5,000 for each consecutive35-1
12-month period for 60 months immediately preceding the35-2
submission of the affidavit from the certified public accountant;35-3
or35-4
(3) Any combination of such sales and use taxes and motor35-5
vehicle privilege tax; or35-6
(b) Acquired, by inheritance, gift or transfer through a stock35-7
option plan for employees, all the assets and liabilities of a35-8
viable, operating construction firm that possesses a:35-9
(1) License as a general contractor pursuant to the35-10
provisions of chapter 624 of NRS; and35-11
(2) Certificate of eligibility to receive a preference in35-12
bidding on public works.35-13
4. For the purposes of complying with the requirements set35-14
forth in paragraph (a) of subsection 3, a general contractor shall35-15
be deemed to have paid:35-16
(a) Sales and use taxes and motor vehicle privilege taxes paid35-17
in this state by an affiliate or parent company of the contractor, if35-18
the affiliate or parent company is also a general contractor; and35-19
(b) Sales and use taxes paid in this state by a joint venture in35-20
which the contractor is a participant, in proportion to the amount35-21
of interest the contractor has in the joint venture.35-22
5. A contractor who has received a certificate of eligibility to35-23
receive a preference in bidding on public works from the state35-24
contractors’ board pursuant to subsection 3 shall, at the time for35-25
the annual renewal of his contractors’ license pursuant to NRS35-26
624.283, submit to the board an affidavit from a certified public35-27
accountant setting forth that the contractor has, during the35-28
immediately preceding 12 months, paid the taxes required35-29
pursuant to paragraph (a) of subsection 3 to maintain his35-30
eligibility to hold such a certificate.35-31
6. A contractor who fails to submit an affidavit to the board35-32
pursuant to subsection 5 ceases to be eligible to receive a35-33
preference in bidding on public works unless he reapplies for and35-34
receives a certificate of eligibility pursuant to subsection 3.35-35
7. If a contractor who applies to the state contractors’ board35-36
for a certificate of eligibility to receive a preference in bidding on35-37
public works submits false information to the board regarding the35-38
required payment of taxes, the contractor is not eligible to receive35-39
a preference in bidding on public works for a period of 5 years35-40
after the date on which the board becomes aware of the35-41
submission of the false information.35-42
8. If any federal statute or regulation precludes the granting35-43
of federal assistance or reduces the amount of that assistance for36-1
a particular public work because of the provisions of subsection36-2
2, those provisions do not apply insofar as their application36-3
would preclude or reduce federal assistance for that work. The36-4
provisions of subsection 2 do not apply to any contract for a36-5
public work which is expected to cost less than $250,000.36-6
9.36-7
36-8
two or more contractors as a joint venture or by one of them as a36-9
joint venturer, the provisions of subsection 2 apply only if both or36-10
all of the joint venturers separately meet the requirements of that36-11
subsection.36-12
10. The state contractors’ board shall adopt regulations and36-13
may assess reasonable fees relating to the certification of36-14
contractors for a preference in bidding on public works.36-15
11. A person or entity who believes that a contractor36-16
wrongfully holds a certificate of eligibility to receive a preference36-17
in bidding on public works may challenge the validity of the36-18
certificate by filing a written objection with the public body to36-19
which the contractor has submitted a bid or proposal on a36-20
contract for the construction of a public work. A written36-21
objection authorized pursuant to this subsection must:36-22
(a) Set forth proof or substantiating evidence to support the36-23
belief of the person or entity that the contractor wrongfully holds36-24
a certificate of eligibility to receive a preference in bidding on36-25
public works; and36-26
(b) Be filed with the public body at or after the time at which36-27
the contractor submitted the bid or proposal to the public body36-28
and before the time at which the public body awards the contract36-29
for which the bid or proposal was submitted.36-30
12. If a public body receives a written objection pursuant to36-31
subsection 11, the public body shall determine whether the36-32
objection is accompanied by the proof or substantiating evidence36-33
required pursuant to paragraph (a) of that subsection. If the36-34
public body determines that the objection is not accompanied by36-35
the required proof or substantiating evidence, the public body36-36
shall dismiss the objection and may proceed immediately to36-37
award the contract. If the public body determines that the36-38
objection is accompanied by the required proof or substantiating36-39
evidence, the public body shall determine whether the contractor36-40
qualifies for the certificate pursuant to the provisions of this36-41
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 this37-2
session are hereby amended to read as follows:37-3
Sec. 8. 1. Except as otherwise provided in subsection 7 and37-4
NRS 338.1906 and 338.1907, this state, or a local government37-5
that awards a contract for the construction, alteration or repair of37-6
a public work in accordance with paragraph (a) of subsection 1 of37-7
section 2 of this act, or a public officer, public employee or other37-8
person responsible for awarding a contract for the construction,37-9
alteration or repair of a public work who represents the state or37-10
the local government, shall not:37-11
(a) Commence such a project for which the estimated cost37-12
exceeds $100,000 unless it advertises in a newspaper of general37-13
circulation in this state for bids for the project; or37-14
(b) Divide such a project into separate portions to avoid the37-15
requirements of paragraph (a).37-16
2. Except as otherwise provided in subsection 7, a public body37-17
that maintains a list of properly licensed contractors who are37-18
interested in receiving offers to bid on public works projects for37-19
which the estimated cost is more than $25,000 but less than37-20
$100,000 shall solicit bids from not more than three of the37-21
contractors on the list for a contract of that value for the37-22
construction, alteration or repair of a public work. The public37-23
body shall select contractors from the list in such a manner as to37-24
afford each contractor an equal opportunity to bid on a public37-25
works project. A properly licensed contractor must submit a37-26
written request annually to the public body to remain on the list.37-27
Offers for bids which are made pursuant to this subsection must37-28
be sent by certified mail.37-29
3. Each advertisement for bids must include a provision that37-30
sets forth:37-31
(a) The requirement that a contractor must be qualified37-32
pursuant to section 5 of this act to bid on the contract or must be37-33
exempt from meeting such qualifications pursuant to section 6 of37-34
this act; and37-35
(b) The period during which an application to qualify as a37-36
bidder on the contract must be submitted.37-37
4. Approved plans and specifications for the bids must be on37-38
file at a place and time stated in the advertisement for the37-39
inspection of all persons desiring to bid thereon and for other37-40
interested persons. Contracts for the project must be awarded on37-41
the basis of bids received.38-1
5. Any bids received in response to an advertisement for bids38-2
may be rejected if the person responsible for awarding the38-3
contract determines that:38-4
(a) The bidder is not a qualified bidder pursuant to section 5 of38-5
this act, unless the bidder is exempt from meeting such38-6
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 labor38-9
offered does not conform to the approved plan or specifications;38-10
or38-11
(d) The public interest would be served by such a rejection.38-12
6. Before the state or a local government may commence a38-13
project subject to the provisions of this section, based upon a38-14
determination that the public interest would be served by rejecting38-15
any bids received in response to an advertisement for bids, it shall38-16
prepare and make available for public inspection a written38-17
statement containing:38-18
(a) A list of all persons, including supervisors, whom the state38-19
or the local government intends to assign to the project, together38-20
with their classifications and an estimate of the direct and indirect38-21
costs of their labor;38-22
(b) A list of all equipment that the state or the local38-23
government intends to use on the project, together with an38-24
estimate of the number of hours each item of equipment will be38-25
used and the hourly cost to use each item of equipment;38-26
(c) An estimate of the cost of administrative support for the38-27
persons assigned to the project;38-28
(d) An estimate of the total cost of the project; and38-29
(e) An estimate of the amount of money the state or the local38-30
government expects to save by rejecting the bids and performing38-31
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 71038-34
of NRS;38-35
(b) Any work of construction, reconstruction, improvement38-36
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 to38-39
chapter 167, Statutes of Nevada 1947, the Moapa Valley water38-40
district created pursuant to chapter 477, Statutes of Nevada 198338-41
or the Virgin Valley water district created pursuant to chapter38-42
100, Statutes of Nevada 1993; or39-1
(e) The design and construction of a public work for which a39-2
public body contracts with a design-build team pursuant to39-3
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 this39-5
act and sections 2 to 9, inclusive, of Senate Bill No. 475 of this39-6
session, a public body shall award a contract for a public work to39-7
the contractor who submits the best bid.39-8
2. Except as otherwise provided in subsection 8 or limited by39-9
subsection 9, for the purposes of this section, a contractor who:39-10
(a) Has been determined by the public body to be a qualified39-11
bidder pursuant to section 5 of this act or is exempt from meeting39-12
such requirements pursuant to section 6 of this act; and39-13
(b) At the time he submits his bid, provides to the public body a39-14
copy of a certificate of eligibility to receive a preference in39-15
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 competing39-18
contractor who has not provided a copy of such a valid certificate39-19
of eligibility if the amount of his bid is not more than 5 percent39-20
higher than the amount bid by the competing contractor.39-21
3. The state contractors’ board shall issue a certificate of39-22
eligibility to receive a preference in bidding on public works to a39-23
general contractor who is licensed pursuant to the provisions of39-24
chapter 624 of NRS and submits to the board an affidavit from a39-25
certified public accountant setting forth that the general39-26
contractor has:39-27
(a) Paid:39-28
(1) The sales and use taxes imposed pursuant to chapters39-29
372, 374 and 377 of NRS on materials used for construction in39-30
this state, including, without limitation, construction that is39-31
undertaken or carried out on land within the boundaries of this39-32
state that is managed by the Federal Government or is on an39-33
Indian reservation or Indian colony, of not less than $5,000 for39-34
each consecutive 12-month period for 60 months immediately39-35
preceding the submission of the affidavit from the certified public39-36
accountant;39-37
(2) The motor vehicle privilege tax imposed pursuant to39-38
chapter 371 of NRS on the vehicles used in the operation of his39-39
business in this state of not less than $5,000 for each consecutive39-40
12-month period for 60 months immediately preceding the39-41
submission of the affidavit from the certified public accountant;39-42
or40-1
(3) Any combination of such sales and use taxes and motor40-2
vehicle privilege tax; or40-3
(b) Acquired, by inheritance, gift or transfer through a stock40-4
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 the40-7
provisions of chapter 624 of NRS; and40-8
(2) Certificate of eligibility to receive a preference in bidding40-9
on public works.40-10
4. For the purposes of complying with the requirements set40-11
forth in paragraph (a) of subsection 3, a general contractor shall40-12
be deemed to have paid:40-13
(a) Sales and use taxes and motor vehicle privilege taxes paid40-14
in this state by an affiliate or parent company of the contractor, if40-15
the affiliate or parent company is also a general contractor; and40-16
(b) Sales and use taxes paid in this state by a joint venture in40-17
which the contractor is a participant, in proportion to the amount40-18
of interest the contractor has in the joint venture.40-19
5. A contractor who has received a certificate of eligibility to40-20
receive a preference in bidding on public works from the state40-21
contractors’ board pursuant to subsection 3 shall, at the time for40-22
the annual renewal of his contractors’ license pursuant to NRS40-23
624.283, submit to the board an affidavit from a certified public40-24
accountant setting forth that the contractor has, during the40-25
immediately preceding 12 months, paid the taxes required40-26
pursuant to paragraph (a) of subsection 3 to maintain his40-27
eligibility to hold such a certificate.40-28
6. A contractor who fails to submit an affidavit to the board40-29
pursuant to subsection 5 ceases to be eligible to receive a40-30
preference in bidding on public works unless he reapplies for and40-31
receives a certificate of eligibility pursuant to subsection 3.40-32
7. If a contractor who applies to the state contractors’ board40-33
for a certificate of eligibility to receive a preference in bidding on40-34
public works submits false information to the board regarding the40-35
required payment of taxes, the contractor is not eligible to receive40-36
a preference in bidding on public works for a period of 5 years40-37
after the date on which the board becomes aware of the40-38
submission of the false information.40-39
8. If any federal statute or regulation precludes the granting40-40
of federal assistance or reduces the amount of that assistance for40-41
a particular public work because of the provisions of subsection 2,41-1
those provisions do not apply insofar as their application would41-2
preclude or reduce federal assistance for that work. The41-3
provisions of subsection 2 do not apply to any contract for a41-4
public work which is expected to cost less than $250,000.41-5
9. Except as otherwise provided in subsection 2 of section 8 of41-6
Senate Bill No. 475 of this session, if a bid is submitted by two or41-7
more contractors as a joint venture or by one of them as a joint41-8
venturer, the provisions of subsection 2 apply only if both or all of41-9
the joint venturers separately meet the requirements of that41-10
subsection.41-11
10. The state contractors’ board shall adopt regulations and41-12
may assess reasonable fees relating to the certification of41-13
contractors for a preference in bidding on public works.41-14
11. A person or entity who believes that a contractor41-15
wrongfully holds a certificate of eligibility to receive a preference41-16
in bidding on public works may challenge the validity of the41-17
certificate by filing a written objection with the public body to41-18
which the contractor has submitted a bid or proposal on a41-19
contract for the construction of a public work. A written objection41-20
authorized pursuant to this subsection must:41-21
(a) Set forth proof or substantiating evidence to support the41-22
belief of the person or entity that the contractor wrongfully holds41-23
a certificate of eligibility to receive a preference in bidding on41-24
public works; and41-25
(b) Be filed with the public body at or after the time at which41-26
the contractor submitted the bid or proposal to the public body41-27
and before the time at which the public body awards the contract41-28
for which the bid or proposal was submitted.41-29
12. If a public body receives a written objection pursuant to41-30
subsection 11, the public body shall determine whether the41-31
objection is accompanied by the proof or substantiating evidence41-32
required pursuant to paragraph (a) of that subsection. If the41-33
public body determines that the objection is not accompanied by41-34
the required proof or substantiating evidence, the public body41-35
shall dismiss the objection and may proceed immediately to award41-36
the contract. If the public body determines that the objection is41-37
accompanied by the required proof or substantiating evidence, the41-38
public body shall determine whether the contractor qualifies for41-39
the certificate pursuant to the provisions of this section and may41-40
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, their42-4
officers, agents or employees, hire, supervise and pay the wages42-5
thereof directly to a workman or workmen employed by them on42-6
public works by the day and not under a contract in writing.42-7
2. "Eligible bidder" means a person who was42-8
(a) Found to be a responsible contractor by a42-9
local government which awarded a contract for a public work42-10
accordance with paragraph (b) of subsection 1 of section 2 of this42-11
act; or42-12
(b) Determined by a public body which awarded a contract for42-13
a public work pursuant to sections 3 to 11, inclusive, of this act, to42-14
be qualified to bid on that contract pursuant to section 5 of this42-15
act or was exempt from meeting such qualifications pursuant to42-16
section 6 of this act.42-17
3. "Local government" means every political subdivision or42-18
other entity which has the right to levy or receive money from ad42-19
valorem or other taxes or any mandatory assessments, and42-20
includes, without limitation, counties, cities, towns, boards, school42-21
districts and other districts organized pursuant to chapters 244A,42-22
309, 318, 379, 474, 541, 543 and 555 of NRS, NRS 450.550 to42-23
450.750, inclusive, and any agency or department of a county or42-24
city which prepares a budget separate from that of the parent42-25
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 compensation42-29
required pursuant to chapter 612 of NRS; or42-30
(c) Provide and secure compensation for employees required42-31
pursuant to chapters 616A to 617, inclusive, of NRS.42-32
42-33
school district or any public agency of this state or its political42-34
subdivisions sponsoring or financing a public work.42-35
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 by43-2
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 in43-6
part with public funds; and43-7
(10)43-8
whose cost as a whole exceeds $20,000. Each separate unit which is43-9
a part of a project is included in the cost of the project for the43-10
purpose of determining whether a project meets this threshold.43-11
(b) A building for the University and Community College43-12
System of Nevada of which 25 percent or more of the costs of the43-13
building as a whole are paid from money appropriated by43-14
state or from federal money.43-15
43-16
(a) The basic hourly rate of pay; and43-17
(b) The amount of pension, health and welfare, vacation and43-18
holiday pay, the cost of apprenticeship training or other similar43-19
programs or other bona fide fringe benefits which are a benefit to43-20
the workman.43-21
43-22
workman, semiskilled mechanic, semiskilled workman or unskilled43-23
workman.43-24
Sec. 21. 1. This section and sections 2 to 7, inclusive, 10 to43-25
14, inclusive, 16 to 19, inclusive, and 20 of this act become43-26
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 on43-30
October 1, 2003.43-31
4. Sections 15 and 19.4 of this act become effective at 12:0143-32
a.m. on May 1, 2013.43-33
5. Sections 14, 18, 19 and 19.2 of this act expire by limitation43-34
on May 1, 2013.43-35
Sec. 35.8. Section 4 of Senate Bill No. 144 of this session is hereby43-36
amended to read as follows:43-37
Sec. 4. "Contractor" means :43-38
1. A person who:43-39
43-40
NRS or performs such work that he is not required to be licensed43-41
pursuant to chapter 624 of NRS; and43-42
43-43
or services for a public work.44-1
2. A design-build team that contracts with a public body to44-2
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 this44-5
session are hereby repealed.44-6
Sec. 37. 1. The interim advisory committee to study the use of44-7
design-build contracting within this state is hereby created. The interim44-8
advisory committee consists of 16 members who are appointed as follows:44-9
(a) One member appointed by the Northern Nevada Chapter of the44-10
Associated General Contractors.44-11
(b) One member appointed by the Southern Nevada Chapter of the44-12
Associated General Contractors.44-13
(c) One member appointed by the Northern Nevada Chapter of the44-14
Associated Builders and Contractors.44-15
(d) One member appointed by the Southern Nevada Chapter of the44-16
Associated Builders and Contractors.44-17
(e) One member appointed by the Nevada chapter of the American44-18
Institute of Architecture.44-19
(f) One member appointed by the American Consulting Engineers44-20
Council of Nevada.44-21
(g) One member appointed by the Department of Transportation of the44-22
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 of44-25
Clark County.44-26
(j) One member appointed by the governing body of the City of Las44-27
Vegas.44-28
(k) One member appointed by the governing body of the City of44-29
Henderson.44-30
(l) One member appointed by the governing body of the City of North44-31
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 of44-34
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 without44-38
compensation, travel expenses or subsistence allowances, except as they44-39
may be provided by the members’ respective agencies and organizations.44-40
3. The interim advisory committee created pursuant to subsection 144-41
shall:44-42
(a) Examine the methods of design-build contracting that are authorized44-43
to be used pursuant to the provisions of this act; and45-1
(b) Submit a report regarding its findings to the 72nd session of the45-2
Nevada Legislature, accompanied by any suggestions for legislation that45-3
the interim advisory committee determines to be advisable.45-4
Sec. 38. 1. This section and sections 35.4 and 35.6 of this act45-5
become effective on October 1, 1999.45-6
2. Sections 1 to 9, inclusive, 14 to 35, inclusive, 36 and 37 of this45-8
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. on45-15
6. Section 35.2 of this act becomes effective at 12:01 a.m. on45-17
7. Section 12 of this act becomes effective at 12:02 a.m. on May 1,45-18
2013.
45-19
TEXT OF REPEALED SECTION341.171 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 committee45-23
when the legislature is not in regular or special session, or with the45-24
approval of the legislature by concurrent resolution when the legislature is45-25
in regular or special session, let to a contractor licensed under chapter 62445-26
of NRS a single contract for both the design and construction of a project45-27
of capital improvement. The board shall for the purpose prepare a45-28
comprehensive sketch plan and narrative of the scope of the work involved45-29
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 for45-32
contracts for the design and construction of such projects. The board shall45-33
consult with the American Institute of Architects and the Associated45-34
General Contractors, or the successor of either if the named organization45-35
ceases to exist, before adopting procedures under this paragraph.45-36
(b) The board’s approval of designs and architects employed in a45-37
project.46-1
(c) The bidding and awarding of contracts for the design and46-2
construction of projects based on a final cost of the project which the46-3
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, this46-7
state, or a local government that awards a contract for the46-8
construction, alteration or repair of a public work in accordance46-9
with paragraph (a) of subsection 1 of section 2 of this act, or a46-10
public officer, public employee or other person responsible for46-11
awarding a contract for the construction, alteration or repair of a46-12
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 cost46-15
exceeds $100,000 unless it advertises in a newspaper of general46-16
circulation in this state for bids for the project; or46-17
(b) Divide such a project into separate portions to avoid the46-18
requirements of paragraph (a).46-19
2. Except as otherwise provided in subsection 7, a public body46-20
that maintains a list of properly licensed contractors who are46-21
interested in receiving offers to bid on public works projects for46-22
which the estimated cost is more than $25,000 but less than46-23
$100,000 shall solicit bids from not more than three of the46-24
contractors on the list for a contract of that value for the46-25
construction, alteration or repair of a public work. The public46-26
body shall select contractors from the list in such a manner as to46-27
afford each contractor an equal opportunity to bid on a public46-28
works project. A properly licensed contractor must submit a46-29
written request annually to the public body to remain on the list.46-30
Offers for bids which are made pursuant to this subsection must46-31
be sent by certified mail.46-32
3. Each advertisement for bids must include a provision that46-33
sets forth:46-34
(a) The requirement that a contractor must be qualified46-35
pursuant to section 5 of this act to bid on the contract or must be46-36
exempt from meeting such qualifications pursuant to section 6 of46-37
this act; and46-38
(b) The period during which an application to qualify as a46-39
bidder on the contract must be submitted.46-40
4. Approved plans and specifications for the bids must be on46-41
file at a place and time stated in the advertisement for the46-42
inspection of all persons desiring to bid thereon and for other47-1
interested persons. Contracts for the project must be awarded on47-2
the basis of bids received.47-3
5. Any bids received in response to an advertisement for bids47-4
may be rejected if the person responsible for awarding the47-5
contract determines that:47-6
(a) The bidder is not a qualified bidder pursuant to section 5 of47-7
this act, unless the bidder is exempt from meeting such47-8
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 labor47-11
offered does not conform to the approved plan or specifications;47-12
or47-13
(d) The public interest would be served by such a rejection.47-14
6. Before the state or a local government may commence a47-15
project subject to the provisions of this section, based upon a47-16
determination that the public interest would be served by rejecting47-17
any bids received in response to an advertisement for bids, it shall47-18
prepare and make available for public inspection a written47-19
statement containing:47-20
(a) A list of all persons, including supervisors, whom the state47-21
or the local government intends to assign to the project, together47-22
with their classifications and an estimate of the direct and indirect47-23
costs of their labor;47-24
(b) A list of all equipment that the state or the local47-25
government intends to use on the project, together with an47-26
estimate of the number of hours each item of equipment will be47-27
used and the hourly cost to use each item of equipment;47-28
(c) An estimate of the cost of administrative support for the47-29
persons assigned to the project;47-30
(d) An estimate of the total cost of the project; and47-31
(e) An estimate of the amount of money the state or the local47-32
government expects to save by rejecting the bids and performing47-33
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 71047-36
of NRS;47-37
(b) Any work of construction, reconstruction, improvement47-38
and maintenance of highways subject to NRS 408.323 or 408.327;47-39
(c) Normal maintenance of the property of a school district; or47-40
(d) The Las Vegas Valley water district created pursuant to47-41
chapter 167, Statutes of Nevada 1947.~