Assembly Bill No. 155–Committee on Commerce and Labor

 

(On Behalf of Nevada League of Cities and Municipalities)

 

February 15, 2001

____________

 

Referred to Committee on Commerce and Labor

 

SUMMARY—Revises provisions governing substitution of subcontractor who is named in bid for public work or improvement. (BDR 28‑366)

 

FISCAL NOTE:            Effect on Local Government: No.

                                    Effect on the State: No.

 

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to public works; revising the provisions governing the substitution of a subcontractor who is named in a bid for a public work or improvement; 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. NRS 338.141 is hereby amended to read as follows:

1-2    338.141  1.  Except as otherwise provided in subsection 2, each bid

1-3  submitted to any officer, department, board or commission for the

1-4  construction of any public work or improvement must include:

1-5    (a) The name of each subcontractor who will provide labor or a portion

1-6  of the work or improvement to the contractor for which he will be paid an

1-7  amount exceeding 5 percent of the prime contractor’s total bid. Within 2

1-8  hours after the completion of the opening of the bids, the general

1-9  contractors who submitted the three lowest bids must submit a list [of]

1-10  containing the name of each subcontractor who will provide labor or a

1-11  portion of the work or improvement to the contractor for which he will be

1-12  paid an amount exceeding 1 percent of the prime contractor’s total bid or

1-13  $50,000, whichever is greater, and the number of the license issued to the

1-14  subcontractor pursuant to chapter 624 of NRS. If a general contractor fails

1-15  to submit such a list within the required time, his bid shall be deemed not

1-16  responsive.

1-17    (b) A description of the portion of the work or improvement which each

1-18  subcontractor named in the bid will complete.

2-1    2.  The contractor shall list in his bid pursuant to subsection 1 the name

2-2  of a subcontractor for each portion of the project that will be completed by

2-3  a subcontractor.

2-4    3.  A contractor whose bid is accepted shall not substitute any person

2-5  for a subcontractor who is named in the bid, unless:

2-6    (a) The awarding authority objects to the subcontractor, requests in

2-7  writing a change in the subcontractor and pays any increase in costs

2-8  resulting from the change; or

2-9    (b) The proposed substitution is submitted to and approved by the

2-10  awarding authority or, if authorized by the terms of the contract for the

2-11  public work or improvement, is submitted to and approved by a person

2-12  designated by the awarding authority, and:

2-13      (1) The named subcontractor, after having a reasonable opportunity,

2-14  fails or refuses to execute a written contract with the contractor whichwas

2-15  offered to the subcontractor with [the same terms that all other

2-16  subcontractors on the project were offered;] terms that reasonably

2-17  conform to the terms of the bid submitted by the subcontractor to the

2-18  contractor;

2-19      (2) The named subcontractor files for bankruptcy or becomes

2-20  insolvent; or

2-21      (3) The named subcontractor fails or refuses to perform his

2-22  subcontract within a reasonable time or is unable to furnish a performance

2-23  bond and payment bond pursuant to NRS 339.025.

2-24    Sec. 2.  The amendatory provisions of section 1 of this act do not apply

2-25  to a public work or improvement for which a bid has been submitted before

2-26  the effective date of this act.

2-27    Sec. 3.  This act becomes effective upon passage and approval.

 

2-28  H