AB428_EN

Assembly Bill No. 428–Assemblyman Hettrick

CHAPTER..........

AN ACT relating to the state public works board; authorizing the board to enter into a contract with a contractor to assist the board in the development and review of designs, plans, specifications and estimates of costs for a proposed construction project; requiring the board to notify the governor if a member of the board fails to attend three successive meetings of the board; authorizing the governor to replace such a member for the unexpired term of the member; establishing qualifications for appointed members of the board; requiring the board to obtain the approval of the legislature or interim finance committee for certain changes to a project; requiring the inclusion of certain provisions concerning change orders in a contract with a design professional; removing the provision requiring the director of the department of administration to serve as the chairman of the board; requiring the chairman of the board to be elected from among the appointed members of the board; 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. Chapter 341 of NRS is hereby amended by adding thereto

the provisions set forth as sections 2 and 3 of this act.

Sec. 2. 1. The board may, with the approval of the interim finance

committee when the legislature is not in regular or special session, or

with the approval of the legislature by concurrent resolution when the

legislature is in regular or special session, enter into a contract for

services with a contractor licensed pursuant to chapter 624 of NRS to

assist the board:

(a) In the development of designs, plans, specifications and estimates

of costs for a proposed construction project.

(b) In the review of designs, plans, specifications and estimates of

costs for a proposed construction project to ensure that the designs,

plans, specifications and estimates of costs are complete and that the

project is feasible to construct.

2. The board is not required to advertise for bids for a contract for

services pursuant to subsection 1, but may solicit bids from not fewer

than three licensed contractors and may award the contract to the lowest

responsible and responsive bidder.

3. The board shall adopt regulations establishing procedures for:

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

the contracts for services described in subsection 1.

(b) The bidding and awarding of such contracts.

4. If a proposed construction project for which a contractor is

awarded a contract for services by the board pursuant to subsection 1 is

advertised pursuant to NRS 341.148, that contractor may submit a bid

for the contract for the proposed construction project if he is qualified

pursuant to NRS 338.1377.

Sec. 3. If an appointed member of the board fails to attend three

successive meetings of the board, the board shall notify the governor of

that fact, in writing, within 5 days after the third successive meeting that

the member fails to attend. Upon receipt of the notice, the governor may

appoint a person to replace the member for the unexpired term of that

member.

Sec. 4. NRS 341.020 is hereby amended to read as follows:

341.020 1. The state public works board, consisting of the director of

the department of administration and six members [to be] appointed by the

governor, is hereby created within the department of administration.

2. At least one of the appointed members must have a comprehensive

knowledge of the principles of administration and at least one of the

appointed members must have a working knowledge of the principles of

engineering or architecture.

Sec. 5. NRS 341.060 is hereby amended to read as follows:

341.060 Within a reasonable time after the appointment of the

members of the board, the board shall meet upon the call of the governor

and shall organize and elect a chairman and vice chairman [.] from

among the members appointed pursuant to NRS 341.020.

Sec. 6. NRS 341.070 is hereby amended to read as follows:

341.070 The board shall [adopt] :

1. Adopt such rules for the regulation of its proceedings and the

transaction of its business as it deems proper.

2. Meet at least once every 3 months.

Sec. 7. NRS 341.145 is hereby amended to read as follows:

341.145 The board:

1. [After consulting with the interim finance committee, has] Has final

authority [for approval as] to approve the architecture of all buildings,

plans, designs, types of construction, major repairs and designs of

landscaping.

2. Shall determine whether any rebates are available from a public

utility for installing devices in any state building which are designed to

decrease the use of energy in the building. If such a rebate is available, the

board shall apply for the rebate.

3. Shall solicit bids for and let all contracts for new construction or

major repairs.

4. May negotiate with the lowest responsible and responsive bidder on

any contract to obtain a revised bid if:

(a) The bid is less than the appropriation made by the legislature for that

building project; and

(b) The bid does not exceed the relevant budget item for that building

project as established by the board by more than 10 percent.

5. May reject any or all bids.

6. After the contract is let, shall supervise and inspect construction and

major repairs. The cost of supervision and inspection must be financed

from the capital construction program approved by the legislature.

7. Shall obtain approval from the interim finance committee when

the legislature is not in regular or special session, or from the legislature

by concurrent resolution when the legislature is in regular or special

session, for any change in the scope of the design or construction of a

project as that project was authorized by the legislature. The board shall

adopt by regulation criteria for determining whether a change in the

scope of the design or construction of a project requires such approval.

8. May authorize change orders, before or during construction:

(a) In any amount, where the change represents a reduction in the

awarded contract price.

(b) Not to exceed in the aggregate 10 percent of the total awarded

contract price, where the change represents an increase in that price.

[8.] 9. Shall specify in any contract with a design professional the

period within which the design professional must prepare and submit to

the board a change order that has been authorized by the design

professional. As used in this subsection, “design professional” means a

person with a professional license or certificate issued pursuant to

chapter 623, 623A or 625 of NRS.

10. Has final authority to accept each building as completed or to

require necessary alterations to conform to the contract, and to file the

notice of completion.

Sec. 8. NRS 341.148 is hereby amended to read as follows:

341.148 1. Except as otherwise provided in subsection 2, the board

shall advertise in a newspaper of general circulation in the State of Nevada

for separate sealed bids for each construction project. Approved plans and

specifications for the construction must be on file at a place and time

stated in the advertisement for the inspection of all persons desiring to bid

thereon and for other interested persons. The board may accept bids on

either the whole or a part of the construction, equipment and furnishings,

and may let separate contracts for different and separate portions of any

project, or a combination contract for structural, mechanical and electrical

construction if savings will result to the lowest responsible and responsive

bidder.

2. The board is not required to advertise for sealed bids for

construction projects if the estimated cost is less than $25,000, but the

board may solicit firm written bids from not less than two licensed

contractors doing business in the area and may award the contract to the

lowest responsible and responsive bidder or reject all bids.

Sec. 9. NRS 341.161 is hereby amended to read as follows:

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

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

the approval of the legislature by concurrent resolution when the

legislature is in regular or special session, let to a contractor licensed under

chapter 624 of NRS a contract for services which assist the [architect]

board in the design and construction of a project of capital improvement.

[The board shall for that purpose participate in the development of plans,

outlines of specifications and estimates of costs.]

2. The board shall adopt regulations establishing procedures for:

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

contracts for services described in subsection 1.

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

provisions of subsection 3.

project which the contractor guarantees will not be exceeded.

(d) The scheduling and controlling of projects.

3. Bids on contracts for services which assist the [architect] board in

the design and construction of a project of capital improvement must state

separately the contractor’s cost for:

(a) Assisting the [architect] board in the design and construction of the

project.

(b) Obtaining all bids for subcontracts.

4. A person who furnishes services under a contract awarded pursuant

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

contractor in Title 28 of NRS.

Sec. 10. NRS 341.161 is hereby amended to read as follows:

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

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

the approval of the legislature by concurrent resolution when the

legislature is in regular or special session, let to a contractor licensed under

chapter 624 of NRS a contract for services which assist the [architect]

board in the design and construction of a project of capital improvement.

[The board shall for that purpose participate in the development of plans,

outlines of specifications and estimates of costs.]

2. The board shall adopt regulations establishing procedures for:

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

contracts for services described in subsection 1.

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

provisions of subsection 3.

subsection 4, based on a final cost of the project which the contractor

guarantees will not be exceeded.

(d) The scheduling and controlling of projects.

3. Bids on contracts for services which assist the [architect] board in

the design and construction of a project of capital improvement must state

separately the contractor’s cost for:

(a) Assisting the [architect] board in the design and construction of the

project.

(b) Obtaining all bids for subcontracts.

4. A contractor who is:

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

services described in subsection 1; and

(b) Awarded that contract,

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

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

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

5. A person who furnishes services under a contract awarded pursuant

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

contractor in Title 28 of NRS.

Sec. 11. NRS 218.6827 is hereby amended to read as follows:

218.6827 1. Except as otherwise provided in subsections 2 and 3, the

interim finance committee may exercise the powers conferred upon it by

law only when the legislature is not in regular or special session.

2. During a regular session, the interim finance committee may also

perform the duties imposed on it by subsection 5 of NRS 284.115,

subsection 2 of NRS 321.335, NRS 322.007, subsection 2 of NRS

323.020, NRS 323.050, subsection 1 of NRS 323.100, [subsection 1 of

NRS 341.145,] NRS 353.220, 353.224, 353.2705 to 353.2771, inclusive,

and 353.335, paragraph (b) of subsection 4 of NRS 407.0762, NRS

428.375, 439.630, subsection 6 of NRS 445B.830 and NRS 538.650. In

performing

those duties, the senate standing committee on finance and the assembly

standing committee on ways and means may meet separately and transmit

the results of their respective votes to the chairman of the interim finance

committee to determine the action of the interim finance committee as a

whole.

3. During a regular or special session, the interim finance committee

may exercise the powers and duties conferred upon it pursuant to the

provisions of NRS 353.2705 to 353.2771, inclusive.

4. If the interim finance committee determines that a fundamental

review of the base budget of a state agency is necessary, it shall, by

resolution, notify the legislative commission of that finding for assignment

of the review to a legislative committee for the fundamental review of the

base budgets of state agencies established pursuant to NRS 218.5382.

Sec. 12. NRS 232.215 is hereby amended to read as follows:

232.215 The director:

1. Shall appoint a chief of the:

(a) Risk management division;

(b) Buildings and grounds division;

(d) State printing division;

(e) Administrative services division;

(f) Division of internal audits; and

(g) Motor pool division, if separately established.

2. Shall appoint a chief of the budget division, or may serve in this

position if he has the qualifications required by NRS 353.175.

3. Shall serve as chief of the hearings division and shall appoint the

hearing officers and compensation officers. The director may designate

one of the appeals officers in the division to supervise the administrative,

technical and procedural activities of the division.

4. [Shall serve as chairman of the state public works board.

5.] Is responsible for the administration, through the divisions of the

department, of the provisions of chapters 331, 333, 336 and 344 of NRS,

NRS 353.150 to 353.246, inclusive, and 353A.031 to 353A.100, inclusive,

and all other provisions of law relating to the functions of the divisions of

the department.

[6.] 5. Is responsible for the administration of the laws of this state

relating to the negotiation and procurement of medical services and other

benefits for state agencies.

[7.] 6. Has such other powers and duties as are provided by law.

Sec. 13. Notwithstanding the amendatory provisions of NRS 341.020,

each member of the state public works board continues to serve on the

board until the expiration of his term.

Sec. 14. 1. This section and sections 1 to 9, inclusive, 11, 12 and 13

of this act become effective on July 1, 2001.

2. Section 9 of this act expires by limitation on October 1, 2003.

3. Section 10 of this act becomes effective at 12:01 a.m. on October 1,

2003.

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