Assembly Bill No. 155–Committee on Commerce and Labor

 

CHAPTER..........

 

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:

 

   Section 1. NRS 338.141 is hereby amended to read as follows:

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

submitted to any officer, department, board or commission for the

construction of any public work or improvement must include:

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

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

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

hours after the completion of the opening of the bids, the general

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

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

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

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

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

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

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

responsive.

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

subcontractor named in the bid will complete.

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

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

a subcontractor.

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

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

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

writing a change in the subcontractor and pays any increase in costs

resulting from the change; or

   (b) The substitution is approved by the awarding authority [and:] or an

authorized representative of the awarding authority. The substitution

must be approved if the awarding authority or authorized representative

of the awarding authority determines that:

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

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

offered to the subcontractor with the same general terms that all other

subcontractors on the project were offered;

     (2) The named subcontractor files for bankruptcy or becomes

insolvent; or

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

subcontract within a reasonable time or is unable to furnish a performance

bond and payment bond pursuant to NRS 339.025.

   4.  As used in this section, “general terms” means the terms and

conditions of a contract that set the basic requirements for a project and

apply without regard to the particular trade or specialty of a

subcontractor, but does not include any provision that controls or relates

to the specific portion of the project that will be completed by a

subcontractor, including, without limitation, the materials to be used by

the subcontractor or other details of the work to be performed by the

subcontractor.

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

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

the effective date of this act.

   Sec. 3.  This act becomes effective upon passage and approval.

 

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