(REPRINTED WITH ADOPTED AMENDMENTS)
FIRST REPRINTA.B. 428
Assembly Bill No. 428–Assemblyman Hettrick
March 19, 2001
____________
Referred to Committee on Government Affairs
SUMMARY—Revises provisions governing state public works board. (BDR 28‑229)
FISCAL NOTE: Effect on Local Government: No.
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EXPLANATION
– Matter in bolded italics is new; matter
between brackets [omitted material] is material to be omitted.
Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).
AN ACT relating to 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; 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 341 of NRS is hereby amended by adding thereto
1-2 the provisions set forth as sections 2 and 3 of this act.
1-3 Sec. 2. 1. The board may, with the approval of the interim finance
1-4 committee when the legislature is not in regular or special session, or
1-5 with the approval of the legislature by concurrent resolution when the
1-6 legislature is in regular or special session, enter into a contract for
1-7 services with a contractor licensed pursuant to chapter 624 of NRS to
1-8 assist the board:
1-9 (a) In the development of designs, plans, specifications and estimates
1-10 of costs for a proposed construction project.
1-11 (b) In the review of designs, plans, specifications and estimates of
1-12 costs for a proposed construction project to ensure that the designs,
1-13 plans, specifications and estimates of costs are complete and that the
1-14 project is feasible to construct.
1-15 2. The board is not required to advertise for bids for a contract for
1-16 services pursuant to subsection 1, but may solicit bids from not fewer
2-1 than three licensed contractors and may award the contract to the lowest
2-2 responsible and responsive bidder.
2-3 3. The board shall adopt regulations establishing procedures for:
2-4 (a) The determination of the qualifications of contractors to bid for
2-5 the contracts for services described in subsection 1.
2-6 (b) The bidding and awarding of such contracts.
2-7 4. If a proposed construction project for which a contractor is
2-8 awarded a contract for services by the board pursuant to subsection 1 is
2-9 advertised pursuant to NRS 341.148, that contractor may submit a bid for
2-10 the contract for the proposed construction project if he is qualified
2-11 pursuant to NRS 338.1377.
2-12 Sec. 3. If an appointed member of the board fails to attend three
2-13 successive meetings of the board, the board shall notify the governor of
2-14 that fact, in writing, within 5 days after the third successive meeting that
2-15 the member fails to attend. Upon receipt of the notice, the governor may
2-16 appoint a person to replace the member for the unexpired term of that
2-17 member.
2-18 Sec. 4. NRS 341.020 is hereby amended to read as follows:
2-19 341.020 1. The state public works board, consisting of the director of
2-20 the department of administration and six members [to be] appointed by the
2-21 governor, is hereby created within the department of administration.
2-22 2. At least one of the appointed members must have a comprehensive
2-23 knowledge of the principles of administration and at least one of the
2-24 appointed members must have a working knowledge of the principles of
2-25 engineering or architecture.
2-26 Sec. 5. NRS 341.145 is hereby amended to read as follows:
2-27 341.145 The board:
2-28 1. [After consulting with the interim finance committee, has] Has final
2-29 authority [for approval as] to approve the architecture of all buildings,
2-30 plans, designs, types of construction, major repairs and designs of
2-31 landscaping.
2-32 2. Shall determine whether any rebates are available from a public
2-33 utility for installing devices in any state building which are designed to
2-34 decrease the use of energy in the building. If such a rebate is available, the
2-35 board shall apply for the rebate.
2-36 3. Shall solicit bids for and let all contracts for new construction or
2-37 major repairs.
2-38 4. May negotiate with the lowest responsible and responsive bidder on
2-39 any contract to obtain a revised bid if:
2-40 (a) The bid is less than the appropriation made by the legislature for that
2-41 building project; and
2-42 (b) The bid does not exceed the relevant budget item for that building
2-43 project as established by the board by more than 10 percent.
2-44 5. May reject any or all bids.
2-45 6. After the contract is let, shall supervise and inspect construction and
2-46 major repairs. The cost of supervision and inspection must be financed
2-47 from the capital construction program approved by the legislature.
2-48 7. Shall obtain approval from the interim finance committee when
2-49 the legislature is not in regular or special session, or from the legislature
3-1 by concurrent resolution when the legislature is in regular or special
3-2 session, for any change in the scope of the design or construction of a
3-3 project as that project was authorized by the legislature. The board shall
3-4 adopt by regulation criteria for determining whether a change in the
3-5 scope of the design or construction of a project requires such approval.
3-6 8. May authorize change orders, before or during construction:
3-7 (a) In any amount, where the change represents a reduction in the
3-8 awarded contract price.
3-9 (b) Not to exceed in the aggregate 10 percent of the total awarded
3-10 contract price, where the change represents an increase in that price.
3-11 [8.] 9. Shall specify in any contract with a design professional the
3-12 period within which the design professional must prepare and submit to
3-13 the board a change order that has been authorized by the design
3-14 professional. As used in this subsection, “design professional” means a
3-15 person with a professional license or certificate issued pursuant to
3-16 chapter 623, 623A or 625 of NRS.
3-17 10. Has final authority to accept each building as completed or to
3-18 require necessary alterations to conform to the contract, and to file the
3-19 notice of completion.
3-20 Sec. 6. NRS 341.148 is hereby amended to read as follows:
3-21 341.148 1. Except as otherwise provided in subsection 2, the board
3-22 shall advertise in a newspaper of general circulation in the State of Nevada
3-23 for separate sealed bids for each construction project. Approved plans and
3-24 specifications for the construction must be on file at a place and time stated
3-25 in the advertisement for the inspection of all persons desiring to bid thereon
3-26 and for other interested persons. The board may accept bids on either the
3-27 whole or a part of the construction, equipment and furnishings, and may let
3-28 separate contracts for different and separate portions of any project, or a
3-29 combination contract for structural, mechanical and electrical construction
3-30 if savings will result to the lowest responsible and responsive bidder.
3-31 2. The board is not required to advertise for sealed bids for
3-32 construction projects if the estimated cost is less than $25,000, but the
3-33 board may solicit firm written bids from not less than two licensed
3-34 contractors doing business in the area and may award the contract to the
3-35 lowest responsible and responsive bidder or reject all bids.
3-36 Sec. 7. NRS 341.161 is hereby amended to read as follows:
3-37 341.161 1. The board may, with the approval of the interim finance
3-38 committee when the legislature is not in regular or special session, or with
3-39 the approval of the legislature by concurrent resolution when the legislature
3-40 is in regular or special session, let to a contractor licensed under chapter
3-41 624 of NRS a contract for services which assist the [architect] board in the
3-42 design and construction of a project of capital improvement. [The board
3-43 shall for that purpose participate in the development of plans, outlines of
3-44 specifications and estimates of costs.]
3-45 2. The board shall adopt regulations establishing procedures for:
3-46 (a) The determination of the qualifications of contractors to bid for
3-47 contracts for services described in subsection 1.
3-48 (b) The bidding and awarding of such contracts, subject to the
3-49 provisions of subsection 3.
4-1 (c) The awarding of construction contracts based on a final cost of the
4-2 project which the contractor guarantees will not be exceeded.
4-3 (d) The scheduling and controlling of projects.
4-4 3. Bids on contracts for services which assist the [architect] board in
4-5 the design and construction of a project of capital improvement must state
4-6 separately the contractor’s cost for:
4-7 (a) Assisting the [architect] board in the design and construction of the
4-8 project.
4-9 (b) Obtaining all bids for subcontracts.
4-10 (c) Administering the construction contract.
4-11 4. A person who furnishes services under a contract awarded pursuant
4-12 to subsection 1 is a contractor subject to all provisions pertaining to a
4-13 contractor in Title 28 of NRS.
4-14 Sec. 8. NRS 341.161 is hereby amended to read as follows:
4-15 341.161 1. The board may, with the approval of the interim finance
4-16 committee when the legislature is not in regular or special session, or with
4-17 the approval of the legislature by concurrent resolution when the legislature
4-18 is in regular or special session, let to a contractor licensed under chapter
4-19 624 of NRS a contract for services which assist the [architect] board in the
4-20 design and construction of a project of capital improvement. [The board
4-21 shall for that purpose participate in the development of plans, outlines of
4-22 specifications and estimates of costs.]
4-23 2. The board shall adopt regulations establishing procedures for:
4-24 (a) The determination of the qualifications of contractors to bid for
4-25 contracts for services described in subsection 1.
4-26 (b) The bidding and awarding of such contracts, subject to the
4-27 provisions of subsection 3.
4-28 (c) The awarding of construction contracts, subject to the provisions of
4-29 subsection 4, based on a final cost of the project which the contractor
4-30 guarantees will not be exceeded.
4-31 (d) The scheduling and controlling of projects.
4-32 3. Bids on contracts for services which assist the [architect] board in
4-33 the design and construction of a project of capital improvement must state
4-34 separately the contractor’s cost for:
4-35 (a) Assisting the [architect] board in the design and construction of the
4-36 project.
4-37 (b) Obtaining all bids for subcontracts.
4-38 (c) Administering the construction contract.
4-39 4. A contractor who is:
4-40 (a) Qualified under the regulations of the board to bid for a contract for
4-41 services described in subsection 1; and
4-42 (b) Awarded that contract,
4-43 is entitled to be awarded the construction contract for the project if his
4-44 work under the contract for services is satisfactory to the board and he
4-45 guarantees a final cost for the project which the board is willing to accept.
4-46 5. A person who furnishes services under a contract awarded pursuant
4-47 to subsection 1 is a contractor subject to all provisions pertaining to a
4-48 contractor in Title 28 of NRS.
5-1 Sec. 9. NRS 218.6827 is hereby amended to read as follows:
5-2 218.6827 1. Except as otherwise provided in subsections 2 and 3, the
5-3 interim finance committee may exercise the powers conferred upon it by
5-4 law only when the legislature is not in regular or special session.
5-5 2. During a regular session, the interim finance committee may also
5-6 perform the duties imposed on it by subsection 5 of NRS 284.115,
5-7 subsection 2 of NRS 321.335, NRS 322.007, subsection 2 of NRS 323.020,
5-8 NRS 323.050, subsection 1 of NRS 323.100, [subsection 1 of NRS
5-9 341.145,] NRS 353.220, 353.224, 353.2705 to 353.2771, inclusive, and
5-10 353.335, paragraph (b) of subsection 4 of NRS 407.0762, NRS 428.375,
5-11 439.630, subsection 6 of NRS 445B.830 and NRS 538.650. In performing
5-12 those duties, the senate standing committee on finance and the assembly
5-13 standing committee on ways and means may meet separately and transmit
5-14 the results of their respective votes to the chairman of the interim finance
5-15 committee to determine the action of the interim finance committee as a
5-16 whole.
5-17 3. During a regular or special session, the interim finance committee
5-18 may exercise the powers and duties conferred upon it pursuant to the
5-19 provisions of NRS 353.2705 to 353.2771, inclusive.
5-20 4. If the interim finance committee determines that a fundamental
5-21 review of the base budget of a state agency is necessary, it shall, by
5-22 resolution, notify the legislative commission of that finding for assignment
5-23 of the review to a legislative committee for the fundamental review of the
5-24 base budgets of state agencies established pursuant to NRS 218.5382.
5-25 Sec. 10. Notwithstanding the amendatory provisions of NRS 341.020,
5-26 each member of the state public works board continues to serve on the
5-27 board until the expiration of his term.
5-28 Sec. 11. 1. This section and sections 1 to 7, inclusive, 9 and 10 of
5-29 this act become effective on July 1, 2001.
5-30 2. Section 7 of this act expires by limitation on October 1, 2003.
5-31 3. Section 8 of this act becomes effective at 12:01 a.m. on October 1,
5-32 2003.
5-33 H