Assembly Bill No. 425–Assemblyman Parks

 

March 17, 2003

____________

 

Referred to Committee on Commerce and Labor

 

SUMMARY—Revises provisions regarding public works. (BDR 28‑405)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: No.

 

~

 

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

 

AN ACT relating to public works; providing for a hearing for unsuccessful bidders; revising the exemption of contracts necessary to contend with certain emergencies from the requirements relating to contracts for public works; authorizing a public body to require a person who is found to have failed to pay the prevailing wage to pay the costs incurred by the public body for its investigation; requiring a governing body to adopt certain criteria regarding the past performance of a contractor in the qualification of bidders on public works; revising certain provisions regarding advertising for bids; removing certain provisions regarding the maintenance of lists of licensed contractors by public bodies for bidding on certain contracts; revising provisions governing the naming of subcontractors; requiring an authorized representative to make certain reports to public bodies regarding certain contracts; revising certain provisions regarding objections to the award of a certificate of eligibility for a preference in bidding; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

 

2-1  Section 1. Chapter 338 of NRS is hereby amended by adding

2-2  thereto a new section to read as follows:

2-3  1.  A person who makes an unsuccessful bid may file a notice

2-4  of appeal with a hearing officer designated by the public body to

2-5  hear such appeals within 5 business days after:

2-6  (a) The date of award, as entered on the bid record; and

2-7  (b) The notice of award has been posted in at least three public

2-8  buildings, including, without limitation, the location of the using

2-9  agency.

2-10      2.  The notice of appeal must include a written statement

2-11  setting forth with specificity the reasons the person filing the

2-12  notice believes the applicable provisions of law were not adhered

2-13  to in awarding the contract.

2-14      3.  A person filing a notice of appeal must post a bond with

2-15  good and solvent surety authorized to do business in this state or

2-16  submit other security, in a form approved by the public body, to

2-17  the public body who shall hold the bond or other security until a

2-18  determination is made on the appeal. A bond posted or other

2-19  security submitted with a notice of appeal must be in an amount

2-20  equal to 25 percent of the total value of the bid submitted by the

2-21  person filing the notice of appeal.

2-22      4.  A notice of appeal filed in accordance with the provisions

2-23  of this section operates as a stay of action in relation to any

2-24  contract until a determination is made by the hearing officer on

2-25  the appeal.

2-26      5.  A person who makes an unsuccessful bid may not seek any

2-27  type of judicial intervention until the hearing officer has made a

2-28  determination on the appeal.

2-29      6.  Neither a public body nor any authorized representative of

2-30  the public body is liable for any costs, expenses, attorney’s fees,

2-31  loss of income or other damages sustained by a person who makes

2-32  an unsuccessful bid, whether or not the person files a notice of

2-33  appeal pursuant to this section.

2-34      7.  If the appeal is upheld and the award is cancelled, the

2-35  bond posted or other security submitted with the notice of appeal

2-36  must be returned to the person who posted the bond or submitted

2-37  the security. If the appeal is rejected and the award is upheld, a

2-38  claim may be made against the bond or other security by the

2-39  public body in an amount equal to the expenses incurred by the

2-40  public body because of the unsuccessful appeal. The hearing

2-41  officer shall hold a hearing on the claim. Any money not awarded

2-42  by the hearing officer must be returned to the person who posted

2-43  the bond or submitted the security.

2-44      Sec. 2.  NRS 338.010 is hereby amended to read as follows:

2-45      338.010  As used in this chapter:

3-1  1.  “Authorized representative” means a person designated by

3-2  a governing body to be responsible for the development and award

3-3  of contracts for public works pursuant to this chapter.

3-4  2.  “Contract” means a written contract entered into between

3-5  a contractor and a person or public body for the provision of

3-6  labor, materials, equipment or supplies for a construction project.

3-7  3.  “Contractor” means:

3-8  (a) A person who is licensed pursuant to the provisions of

3-9  chapter 624 of NRS or performs such work that he is not required

3-10  to be licensed pursuant to chapter 624 of NRS.

3-11      (b) A design-build team.

3-12      4.  “Day labor” means all cases where public bodies, their

3-13  officers, agents or employees, hire, supervise and pay the wages

3-14  thereof directly to a workman or workmen employed by them on

3-15  public works by the day and not under a contract in writing.

3-16      [2.] 5.  “Design-build contract” means a contract between a

3-17  public body and a design-build team in which the design-build team

3-18  agrees to design and construct a public work.

3-19      [3.] 6.  “Design-build team” means an entity that consists of:

3-20      (a) At least one person who is licensed as a general engineering

3-21  contractor or a general building contractor pursuant to chapter 624

3-22  of NRS; and

3-23      (b) For a public work that consists of:

3-24          (1) A building and its site, at least one person who holds a

3-25  certificate of registration to practice architecture pursuant to chapter

3-26  623 of NRS.

3-27          (2) Anything other than a building and its site, at least one

3-28  person who holds a certificate of registration to practice architecture

3-29  pursuant to chapter 623 of NRS or landscape architecture pursuant

3-30  to chapter 623A of NRS or who is licensed as a professional

3-31  engineer pursuant to chapter 625 of NRS.

3-32      [4.] 7.  “Design professional” means:

3-33      (a) A person who is licensed as a professional engineer pursuant

3-34  to chapter 625 of NRS;

3-35      (b) A person who is licensed as a professional land surveyor

3-36  pursuant to chapter 625 of NRS;

3-37      (c) A person who holds a certificate of registration to engage in

3-38  the practice of architecture , interior design or residential design

3-39  pursuant to chapter 623 of NRS;

3-40      (d) A person who holds a certificate of registration to engage in

3-41  the practice of landscape architecture pursuant to chapter 623A of

3-42  NRS; or

3-43      (e) A business entity that engages in the practice of professional

3-44  engineering, land surveying, architecture or landscape architecture.

3-45      [5.] 8.  “Eligible bidder” means a person who is:

4-1  (a) Found to be a responsible and responsive contractor by a

4-2  local government or its authorized representative which requests

4-3  bids for a public work in accordance with paragraph [(b)] (c) of

4-4  subsection 1 of NRS 338.1373; or

4-5  (b) Determined by a public body or its authorized

4-6  representative which awarded a contract for a public work pursuant

4-7  to NRS 338.1375 to 338.139, inclusive, to be qualified to bid on that

4-8  contract pursuant to NRS 338.1379 . [or was exempt from meeting

4-9  such qualifications pursuant to NRS 338.1383.

4-10      6.] 9.  “General contractor” means a person who is licensed to

4-11  conduct business in one, or both, of the following branches of the

4-12  contracting business:

4-13      (a) General engineering contracting, as described in subsection 2

4-14  of NRS 624.215.

4-15      (b) General building contracting, as described in subsection 3 of

4-16  NRS 624.215.

4-17      10.  “Governing body” means the board, council, commission

4-18  or other body in which the general legislative and fiscal powers of

4-19  a local government are vested.

4-20      [7.] 11.  “Local government” means every political subdivision

4-21  or other entity which has the right to levy or receive money from ad

4-22  valorem or other taxes or any mandatory assessments, and includes,

4-23  without limitation, counties, cities, towns, boards, school districts

4-24  and other districts organized pursuant to chapters 244A, 309, 318,

4-25  379, 474, 538, 541, 543 and 555 of NRS, NRS 450.550 to 450.750,

4-26  inclusive, and any agency or department of a county or city which

4-27  prepares a budget separate from that of the parent political

4-28  subdivision.

4-29      [8.] 12.  “Offense” means failing to:

4-30      (a) Pay the prevailing wage required pursuant to this chapter;

4-31      (b) Pay the contributions for unemployment compensation

4-32  required pursuant to chapter 612 of NRS;

4-33      (c) Provide and secure compensation for employees required

4-34  pursuant to chapters 616A to 617, inclusive, of NRS; or

4-35      (d) Comply with subsection 4 or 5 of NRS 338.070.

4-36      [9.] 13.  “Prime contractor” means a [person] contractor who:

4-37      (a) Contracts to construct an entire project;

4-38      (b) Coordinates all work performed on the entire project;

4-39      (c) Uses his own workforce to perform all or a part of the

4-40  [construction, repair or reconstruction of the project;] public work;

4-41  and

4-42      (d) Contracts for the services of any subcontractor or

4-43  independent contractor or is responsible for payment to any

4-44  contracted subcontractors or independent contractors.

5-1  The term includes, without limitation, a general contractor or a

5-2  specialty contractor who is authorized to bid on a project pursuant to

5-3  NRS 338.139 or 338.148.

5-4  [10.] 14.  “Public body” means the State, county, city, town,

5-5  school district or any public agency of this state or its political

5-6  subdivisions sponsoring or financing a public work.

5-7  [11.] 15.  “Public work” means any project for the new

5-8  construction, repair or reconstruction of:

5-9  (a) A project financed in whole or in part from public money

5-10  for:

5-11          (1) Public buildings;

5-12          (2) Jails and prisons;

5-13          (3) Public roads;

5-14          (4) Public highways;

5-15          (5) Public streets and alleys;

5-16          (6) Public utilities ; [which are financed in whole or in part

5-17  by public money;]

5-18          (7) Publicly owned water mains and sewers;

5-19          (8) Public parks and playgrounds;

5-20          (9) Public convention facilities which are financed at least in

5-21  part with public funds; and

5-22          (10) All other publicly owned works and property . [whose

5-23  cost as a whole exceeds $20,000. Each separate unit that is a part of

5-24  a project is included in the cost of the project to determine whether a

5-25  project meets that threshold.]

5-26      (b) A building for the University and Community College

5-27  System of Nevada of which 25 percent or more of the costs of the

5-28  building as a whole are paid from money appropriated by this state

5-29  or from federal money.

5-30      [12.] 16.  “Specialty contractor” means a person who is

5-31  licensed to conduct business as described in subsection 4 of

5-32  NRS 624.215.

5-33      [13.] 17.  “Stand-alone underground utility project” means an

5-34  underground utility project that is not integrated into a larger

5-35  project, including, without limitation:

5-36      (a) An underground sewer line or an underground pipeline for

5-37  the conveyance of water, including facilities appurtenant thereto;

5-38  and

5-39      (b) A project for the construction or installation of a storm drain,

5-40  including facilities appurtenant thereto,

5-41  that is not located at the site of a public work for the design and

5-42  construction of which a public body is authorized to contract with a

5-43  design-build team pursuant to subsection 2 of NRS 338.1711.

5-44      [14.] 18.  “Subcontract” means a written contract entered

5-45  into between:

6-1  (a) A contractor and a subcontractor or supplier; or

6-2  (b) A subcontractor and another subcontractor or supplier, for

6-3  the provision of labor, materials, equipment or supplies for a

6-4  construction project.

6-5  19.  “Subcontractor” means a person who:

6-6  (a) Is licensed pursuant to the provisions of chapter 624 of

6-7  NRS or performs such work that he is not required to be licensed

6-8  pursuant to chapter 624 of NRS; and

6-9  (b) Contracts with a contractor, another subcontractor or a

6-10  supplier to provide labor, materials or services for a construction

6-11  project.

6-12      20.  “Supplier” means a person who provides materials,

6-13  equipment or supplies for a construction project.

6-14      21.  “Wages” means:

6-15      (a) The basic hourly rate of pay; and

6-16      (b) The amount of pension, health and welfare, vacation and

6-17  holiday pay, the cost of apprenticeship training or other similar

6-18  programs or other bona fide fringe benefits which are a benefit to

6-19  the workman.

6-20      [15.] 22.  “Workman” means a skilled mechanic, skilled

6-21  workman, semiskilled mechanic, semiskilled workman or unskilled

6-22  workman. The term does not include a design professional.

6-23      Sec. 3.  NRS 338.011 is hereby amended to read as follows:

6-24      338.011  The requirements of this chapter do not apply to a

6-25  contract [awarded in compliance with chapter 332 or 333 of NRS

6-26  which is:

6-27      1.  Directly] :

6-28      1.  Awarded in compliance with chapter 332 or 333 of NRS

6-29  which is directly related to the normal operation of the public body

6-30  or the normal maintenance of its property.

6-31      2.  Awarded to meet an emergency which results from a natural

6-32  or man-made disaster and which threatens the health, safety or

6-33  welfare of the public. If the public body or its authorized

6-34  representative determines that an emergency exists, a contract or

6-35  contracts necessary to contend with the emergency may be let

6-36  without complying with the requirements of this chapter. If such

6-37  emergency action was taken by the authorized representative, the

6-38  authorized representative shall report the contract or contracts to

6-39  the public body at the next regularly scheduled meeting of the

6-40  public body.

6-41      Sec. 4.  NRS 338.013 is hereby amended to read as follows:

6-42      338.013  1.  A public body that advertises for bids for a public

6-43  work shall request from the Labor Commissioner, and include in the

6-44  advertisement, an identifying number with his designation of the

7-1  work. That number must be included in any bid submitted in

7-2  response to the advertisement.

7-3  2.  Each public body which awards a contract for any public

7-4  work shall report its award to the Labor Commissioner within 10

7-5  days after the award, giving the name and address of [each

7-6  contractor who will be engaged on the work] the contractor to

7-7  whom the public body awarded the contract and the identifying

7-8  number[.] for the public work.

7-9  3.  Each contractor engaged on a public work shall report to the

7-10  Labor Commissioner and the public body that awarded the

7-11  contract the name and address of each subcontractor whom he

7-12  engages for work on the project within 10 days after the

7-13  subcontractor commences work on the contract[.] and the

7-14  identifying number for the public work.

7-15      4.  The public body which awarded the contract shall report the

7-16  completion of all work performed under the contract to the Labor

7-17  Commissioner before the final payment of money due the contractor

7-18  by the public body.

7-19      Sec. 5.  NRS 338.030 is hereby amended to read as follows:

7-20      338.030  1.  The public body awarding any contract for public

7-21  work, or otherwise undertaking any public work, shall ascertain

7-22  from the Labor Commissioner the prevailing wage in the county in

7-23  which the public work is to be performed for each craft or type of

7-24  work.

7-25      2.  To establish a prevailing wage in each county, including

7-26  Carson City, the Labor Commissioner shall, annually, survey

7-27  contractors who have performed work in the county. Within 30 days

7-28  after the determination is issued:

7-29      (a) A public body or person entitled under subsection 5 to be

7-30  heard may submit an objection to the Labor Commissioner with

7-31  evidence to substantiate that a different wage prevails; and

7-32      (b) Any person may submit information to the Labor

7-33  Commissioner that would support a change in the prevailing wage

7-34  of a craft or type of work by 50 cents or more per hour in any

7-35  county.

7-36      3.  The Labor Commissioner shall hold a hearing in the locality

7-37  in which the work is to be executed if he:

7-38      (a) Is in doubt as to the prevailing wage; or

7-39      (b) Receives an objection or information pursuant to

7-40  subsection 2.

7-41  The Labor Commissioner may hold only one hearing a year on the

7-42  prevailing wage of any craft or type of work in any county.

7-43      4.  Notice of the hearing must be advertised in a newspaper

7-44  nearest to the locality of the work once a week for 2 weeks before

7-45  the time of the hearing.

8-1  5.  At the hearing, any public body, the crafts affiliated with the

8-2  state federation of labor or other recognized national labor

8-3  organizations, and the contractors of the locality or their

8-4  representatives must be heard. From the evidence presented, the

8-5  Labor Commissioner shall determine the prevailing wage.

8-6  6.  The wages so determined must be filed by the Labor

8-7  Commissioner and must be available to any public body which

8-8  awards a contract for any public work.

8-9  7.  Nothing contained in NRS 338.020 to 338.090, inclusive,

8-10  may be construed to authorize the fixing of any wage below any rate

8-11  which may now or hereafter be established as a minimum wage for

8-12  any person employed upon any public work, or employed by any

8-13  officer or agent of any [political subdivision of the State of Nevada.]

8-14  public body.

8-15      Sec. 6.  NRS 338.035 is hereby amended to read as follows:

8-16      338.035  The obligation of a contractor engaged on a public

8-17  work or subcontractor engaged on a public work to pay wages in

8-18  accordance with the determination of the Labor Commissioner may

8-19  be discharged by the making of payments in cash, or by making

8-20  contributions to a third person pursuant to a fund, plan or program in

8-21  the name of the workman.

8-22      Sec. 7.  NRS 338.060 is hereby amended to read as follows:

8-23      338.060  1.  A contractor engaged on a public [works] work

8-24  shall forfeit, as a penalty to the public body [in] on behalf of which

8-25  the contract has been made and awarded to the contractor, not less

8-26  than $20 nor more than $50 for each calendar day or portion thereof

8-27  that each workman employed on the public work:

8-28      (a) Is paid less than the designated rate for any work done under

8-29  the contract, by the contractor or any subcontractor [under him.]

8-30  engaged on the public work.

8-31      (b) Is not reported to the public body awarding the contract as

8-32  required pursuant to NRS 338.070.

8-33  The public body awarding the contract shall cause a stipulation to

8-34  this effect to be inserted in the contract.

8-35      2.  The Labor Commissioner shall, by regulation, establish a

8-36  sliding scale based on the size of the [contractor’s] business of a

8-37  contractor engaged on a public work to determine the amount of

8-38  the penalty to be imposed pursuant to subsection 1.

8-39      3.  If a penalty is imposed pursuant to this section, the costs of

8-40  the proceeding, including investigative costs and attorney’s fees,

8-41  may be recovered by the Labor Commissioner[.] or the public

8-42  body.

8-43      Sec. 8.  NRS 338.070 is hereby amended to read as follows:

8-44      338.070  1.  Any public body [and its officers or agents]

8-45  awarding a contract shall:

9-1  (a) Investigate possible violations of the provisions of NRS

9-2  338.010 to 338.090, inclusive, committed in the course of the

9-3  execution of the contract, and determine whether a violation has

9-4  been committed and inform the Labor Commissioner of any such

9-5  violations; and

9-6  (b) When making payments to the contractor engaged on the

9-7  public work of money becoming due under the contract, withhold

9-8  and retain all sums forfeited pursuant to the provisions of NRS

9-9  338.010 to 338.090, inclusive.

9-10      2.  No sum may be withheld, retained or forfeited, except from

9-11  the final payment, without a full investigation being made by the

9-12  awarding public body . [or its agents.]

9-13      3.  It is lawful for any contractor engaged on a public work to

9-14  withhold from any subcontractor [under him] engaged on the public

9-15  work sufficient sums to cover any penalties withheld from [him] the

9-16  contractor by the awarding public body on account of the failure of

9-17  the subcontractor to comply with the terms of NRS 338.010 to

9-18  338.090, inclusive. If payment has already been made to the

9-19  subcontractor, the contractor may recover from [him] the

9-20  subcontractor the amount of the penalty or forfeiture in a suit at

9-21  law.

9-22      4.  [The] A contractor engaged on a public work and each

9-23  subcontractor engaged on the public work shall keep or cause to be

9-24  kept an accurate record showing the name, the occupation and the

9-25  actual per diem, wages and benefits paid to each workman

9-26  employed by [him] the contractor and subcontractor in connection

9-27  with the public work.

9-28      5.  The record maintained pursuant to subsection 4 must be

9-29  open at all reasonable hours to the inspection of the public body

9-30  awarding the contract . [, and its officers and agents.] The contractor

9-31  engaged on the public work or subcontractor engaged on the public

9-32  work shall ensure that a copy of the record for each calendar month

9-33  is received by the public body awarding the contract no later than

9-34  [10] 15 days after the end of the month. The copy must be open to

9-35  public inspection as provided in NRS 239.010. The record in the

9-36  possession of the public body awarding the contract may be

9-37  discarded by the public body 2 years after final payment is made by

9-38  the public body for the public work.

9-39      6.  Any contractor or subcontractor, or agent or representative

9-40  thereof, performing work for a public work who neglects to comply

9-41  with the provisions of this section is guilty of a misdemeanor.

9-42      Sec. 9.  NRS 338.080 is hereby amended to read as follows:

9-43      338.080  None of the provisions of NRS 338.020 to 338.090,

9-44  inclusive, apply to:

10-1      1.  Any work, construction, alteration, repair or other

10-2  employment performed, undertaken or carried out, by or for any

10-3  railroad company or any person operating the same, whether such

10-4  work, construction, alteration or repair is incident to or in

10-5  conjunction with a contract to which [this state or any of its political

10-6  subdivisions] a public body is a party, or otherwise.

10-7      2.  Apprentices recorded under the provisions of chapter 610 of

10-8  NRS.

10-9      3.  Any contract for a public work whose cost is less than

10-10  $100,000. A unit of the project must not be separated from the total

10-11  project, even if that unit is to be completed at a later time, in order to

10-12  lower the cost of the project below $100,000.

10-13     Sec. 10.  NRS 338.090 is hereby amended to read as follows:

10-14     338.090  1.  Any person, including the officers, agents or

10-15  employees of a public body, who violates any of the provisions of

10-16  NRS 338.010 to 338.090, inclusive, or any regulation adopted

10-17  pursuant thereto, is guilty of a misdemeanor.

10-18     2.  The Labor Commissioner, in addition to any other penalty

10-19  provided in this chapter:

10-20     (a) Shall assess a person who, after a hearing, is found to have

10-21  failed to pay the prevailing wage required pursuant to NRS 338.020

10-22  to 338.090, inclusive, an amount equal to the difference between the

10-23  prevailing wages required to be paid and the wages [he] that the

10-24  contractor or subcontractor actually paid; and

10-25     (b) May, in addition, impose an administrative fine not to

10-26  exceed the costs [he] incurred by the Labor Commissioner to

10-27  investigate and prosecute the matter.

10-28     3.  If the Labor Commissioner finds that a person has failed to

10-29  pay the prevailing wage required pursuant to NRS 338.020 to

10-30  338.090, inclusive, the public body may, in addition to any other

10-31  penalty or administrative fine provided in this chapter, require the

10-32  person to pay the actual costs incurred by the public body to

10-33  investigate the matter.

10-34     Sec. 11.  NRS 338.125 is hereby amended to read as follows:

10-35     338.125  1.  It is unlawful for any contractor in connection

10-36  with the performance of work under a contract with [the State, or

10-37  any of its political subdivisions,] a public body, when payment of

10-38  the contract price, or any part of such payment, is to be made from

10-39  public money, to refuse to employ or to discharge from employment

10-40  any person because of his race, color, creed, national origin, sex,

10-41  sexual orientation or age, or to discriminate against a person with

10-42  respect to hire, tenure, advancement, compensation or other terms,

10-43  conditions or privileges of employment because of his race, creed,

10-44  color, national origin, sex, sexual orientation or age.

11-1      2.  Contracts [negotiated] between contractors and [the State, or

11-2  any of its political subdivisions,] public bodies must contain the

11-3  following contractual provisions:

 

11-4      In connection with the performance of work under this

11-5  contract, the contractor agrees not to discriminate against any

11-6  employee or applicant for employment because of race, creed,

11-7  color, national origin, sex, sexual orientation or age,

11-8  including, without limitation, with regard to employment,

11-9  upgrading, demotion or transfer, recruitment or recruitment

11-10  advertising, layoff or termination, rates of pay or other forms

11-11  of compensation, and selection for training, including,

11-12  without limitation, apprenticeship.

11-13     The contractor further agrees to insert this provision in all

11-14  subcontracts hereunder, except subcontracts for standard

11-15  commercial supplies or raw materials.

 

11-16     3.  Any violation of such provision by a contractor constitutes a

11-17  material breach of contract.

11-18     4.  As used in this section, “sexual orientation” means having or

11-19  being perceived as having an orientation for heterosexuality,

11-20  homosexuality or bisexuality.

11-21     Sec. 12.  NRS 338.130 is hereby amended to read as follows:

11-22     338.130  1.  In all cases where persons are employed in the

11-23  construction of public works, preference [shall] must be given[,] by

11-24  a public body, the qualifications of the applicants being equal:

11-25     (a) First: To honorably discharged soldiers, sailors and marines

11-26  of the United States who are citizens of the State of Nevada.

11-27     (b) Second: To other citizens of the State of Nevada.

11-28     2.  Nothing in this section shall be construed to prevent the

11-29  working of prisoners by [the State of Nevada, or by any political

11-30  subdivision of the State, on street or road work or other] a public

11-31  body on a public work.

11-32     3.  In each contract for the construction of public works a

11-33  [proviso shall] clause must be inserted to the effect that if the

11-34  provisions of this section are not complied with by the contractor[,]

11-35  engaged on the public work, the contract [shall be] is void, and any

11-36  failure or refusal to comply with any of the provisions of this section

11-37  [shall render] renders any such contract void. All boards,

11-38  commissions, officers, agents and employees having the power to

11-39  enter into contracts for the expenditure of public money on public

11-40  works shall file in the Office of the Labor Commissioner the names

11-41  and addresses of all contractors holding contracts with the [State of

11-42  Nevada, or with any political subdivision of the State. Upon] public

11-43  body and upon the letting of new contracts the names and addresses

12-1  of such new contractors [shall] must likewise be filed[.] with the

12-2  Labor Commissioner. Upon the demand of the Labor

12-3  Commissioner , a contractor shall furnish a list of the names and

12-4  addresses of all subcontractors [in his employ.] employed by the

12-5  contractor engaged on a public work.

12-6      4.  Subject to the exceptions contained in this section, no money

12-7  [shall] may be paid out of the State Treasury or out of the treasury

12-8  of any political subdivision of the State to any person employed on

12-9  any work mentioned in this section unless there has been

12-10  compliance with the provisions of this section.

12-11     5.  Any contractor [with the State of Nevada or with any

12-12  political subdivision of the State] engaged on a public work or any

12-13  other person who violates any of the provisions of this section [shall

12-14  be] is guilty of a misdemeanor. The penalties provided for in this

12-15  section [shall] do not apply where violations thereof are due to

12-16  misrepresentations made by the employee or employees.

12-17     Sec. 13.  NRS 338.1373 is hereby amended to read as follows:

12-18     338.1373  1.  A local government or its authorized

12-19  representative shall award a contract for [the construction, alteration

12-20  or repair of] a public work pursuant to the provisions of:

12-21     (a) NRS 338.1377 to 338.139, inclusive; [or]

12-22     (b) NRS 338.143 to 338.148, inclusive[.] ; or

12-23     (c) NRS 338.1711 to 338.1727, inclusive.

12-24     2.  The provisions of NRS 338.1375 to [338.1383,] 338.1381,

12-25  inclusive, and 338.139 and 338.1711 to 338.1727, inclusive, do not

12-26  apply with respect to contracts for the construction, reconstruction,

12-27  improvement and maintenance of highways that are awarded by the

12-28  Department of Transportation pursuant to NRS 408.313 to 408.433,

12-29  inclusive.

12-30     Sec. 14.  NRS 338.1375 is hereby amended to read as follows:

12-31     338.1375  1.  The State Public Works Board shall not accept a

12-32  bid on a contract for a public work unless the [person] contractor

12-33  who submits the bid has qualified pursuant to NRS 338.1379 to bid

12-34  on that contract.

12-35     2.  The State Public Works Board shall by regulation adopt

12-36  criteria for the qualification of bidders on contracts for public works

12-37  of this state. The criteria adopted by the State Public Works Board

12-38  pursuant to this section must be used by the State Public Works

12-39  Board to determine the qualification of bidders on contracts for

12-40  public works of this state.

12-41     3.  The criteria adopted by the State Public Works Board

12-42  pursuant to this section:

12-43     (a) Must be adopted in such a form that the determination of

12-44  whether an applicant is qualified to bid on a contract for a public

13-1  work does not require or allow the exercise of discretion by any one

13-2  person.

13-3      (b) May include only:

13-4          (1) The financial ability of the applicant to perform a

13-5  contract;

13-6          (2) The principal personnel of the applicant;

13-7          (3) Whether the applicant has breached any contracts with a

13-8  public [agency] body or person in this state or any other state;

13-9          (4) Whether the applicant has been disqualified from being

13-10  awarded a contract pursuant to NRS 338.017 or 338.1387; and

13-11         (5) The performance history of the applicant concerning

13-12  other recent, similar contracts, if any, completed by the applicant.

13-13     Sec. 15.  NRS 338.1377 is hereby amended to read as follows:

13-14     338.1377  1.  [Except as otherwise provided in NRS

13-15  338.1383,] If the governing body of each local government that

13-16  sponsors or finances a public work elects to award contracts for

13-17  public works pursuant to the provisions of NRS 338.1377 to

13-18  338.139, inclusive, the governing body shall adopt criteria for the

13-19  qualification of bidders on contracts for public works of the local

13-20  government. The governing body shall use the criteria to determine

13-21  the qualification of bidders on contracts for public works of the local

13-22  government.

13-23     2.  Before adopting criteria pursuant to this section, the

13-24  governing body [of a local government] shall hold at least one

13-25  public hearing to solicit and evaluate public opinion regarding the

13-26  criteria to be adopted. Notice of such a hearing must be provided by

13-27  mail at least 10 days before the hearing to:

13-28     (a) Construction trade associations in this state; and

13-29     (b) Labor unions representing trades in the building industry in

13-30  this state.

13-31     3.  The criteria adopted by a governing body pursuant to this

13-32  section to determine whether an applicant is qualified to bid on a

13-33  contract for a public work:

13-34     (a) Must be adopted in such a form that the determination of

13-35  whether an applicant is qualified to bid on a contract for a public

13-36  work does not require or allow the exercise of discretion by any one

13-37  person.

13-38     (b) May include only:

13-39         (1) The financial ability of the applicant to perform a

13-40  contract;

13-41         (2) The principal personnel of the applicant;

13-42         (3) Whether the applicant has breached any contracts with a

13-43  public [agency] body or person in this state or any other state; [and]

13-44         (4) Whether the applicant has been disqualified from being

13-45  awarded a contract pursuant to NRS 338.017 or 338.1387[.] ; and

14-1          (5) The performance history of the applicant on other

14-2  recent contracts, if any, that have been completed by the applicant

14-3  and which are similar to the work that the governing body

14-4  requires.

14-5      Sec. 16.  NRS 338.1379 is hereby amended to read as follows:

14-6      338.1379  1.  [Except as otherwise provided in NRS 338.1383,

14-7  a person] A contractor who wishes to qualify as a bidder on a

14-8  contract for a public work must submit an application to the State

14-9  Public Works Board or the governing body.

14-10     2.  Upon receipt of an application pursuant to subsection 1, the

14-11  State Public Works Board or the governing body shall:

14-12     (a) Investigate the applicant to determine whether he is qualified

14-13  to bid on a contract; and

14-14     (b) After conducting the investigation, determine whether the

14-15  applicant is qualified to bid on a contract. The determination must

14-16  be made within [30] 45 days after receipt of the application.

14-17     3.  The State Public Works Board or the governing body shall

14-18  notify each applicant in writing of its determination. If an

14-19  application is denied, the notice must set forth the reasons for the

14-20  denial and inform the applicant of his right to a hearing pursuant to

14-21  NRS 338.1381.

14-22     4.  The State Public Works Board or the governing body [of a

14-23  local government] may determine an applicant is qualified to bid:

14-24     (a) On a specific project;

14-25     (b) On more than one project over a period of 12 months; or

14-26     (c) On more than one project over a period of 24 months.

14-27     5.  The State Public Works Board shall not use any criteria

14-28  other than criteria adopted by regulation pursuant to NRS 338.1375

14-29  in determining whether to approve or deny an application.

14-30     6.  The governing body [of a local government] shall not use

14-31  any criteria other than the criteria described in NRS 338.1377 in

14-32  determining whether to approve or deny an application.

14-33     7.  Financial information and other data pertaining to the net

14-34  worth of an applicant which is gathered by or provided to the State

14-35  Public Works Board or a governing body to determine the financial

14-36  ability of an applicant to perform a contract is confidential and not

14-37  open to public inspection.

14-38     Sec. 17.  NRS 338.1381 is hereby amended to read as follows:

14-39     338.1381  1.  If, within 10 days after receipt of the notice

14-40  denying his application[,] pursuant to NRS 338.1379, the applicant

14-41  files a written request for a hearing with the State Public Works

14-42  Board or the governing body , [of the local government,] the Board

14-43  or governing body shall set the matter for a hearing within [10] 20

14-44  days after receipt of the request. The hearing must be held not later

14-45  than [20] 30 days after the receipt of the request for a hearing.

15-1      2.  The hearing must be held at a time and place prescribed by

15-2  the Board or governing body. At least 10 days before the date set for

15-3  the hearing, the Board or governing body shall serve the applicant

15-4  with written notice of the hearing. The notice may be served by

15-5  personal delivery to the applicant or by certified mail to the last

15-6  known business or residential address of the applicant.

15-7      3.  The Board or governing body shall issue a decision [on the

15-8  matter within 5 days after] at the hearing . [and notify the applicant,

15-9  in writing, of its decision within 5 days after it is issued.] The

15-10  decision of the Board or governing body is a final decision for

15-11  purposes of judicial review.

15-12     Sec. 18.  NRS 338.1385 is hereby amended to read as follows:

15-13     338.1385  1.  Except as otherwise provided in subsection [7] 8

15-14  and NRS 338.1906 and 338.1907, this state, or the governing body

15-15  of a local government or its authorized representative that awards a

15-16  contract for [the construction, alteration or repair of] a public work

15-17  in accordance with paragraph (a) of subsection 1 of NRS 338.1373,

15-18  [or a public officer, public employee or other person responsible for

15-19  awarding a contract for the construction, alteration or repair of a

15-20  public work who represents the State or the local government, shall

15-21  not:

15-22     (a) Commence [such a project] a public work for which the

15-23  estimated cost exceeds $100,000 unless it advertises in a newspaper

15-24  [of general circulation in this state] qualified pursuant to chapter

15-25  238 of NRS that is published in the county where the public work

15-26  will be performed for bids for the [project; or] public work. If no

15-27  qualified newspaper is published in the county where the public

15-28  work will be performed, the required advertisement must be

15-29  published in some qualified newspaper that is printed in the State

15-30  of Nevada and has a general circulation in the county.

15-31     (b) Divide [such a project] a public work into separate portions

15-32  to avoid the requirements of paragraph (a).

15-33     2.  [Except as otherwise provided in subsection 7, a public body

15-34  that maintains a list of properly licensed contractors who are

15-35  interested in receiving offers to bid on public works projects for

15-36  which the estimated cost is more than $25,000 but less than

15-37  $100,000 shall solicit bids from not more than three of the

15-38  contractors on the list for a contract of that value for the

15-39  construction, alteration or repair of a public work. The public body

15-40  shall select contractors from the list in such a manner as to afford

15-41  each contractor an equal opportunity to bid on a public works

15-42  project. A properly licensed contractor must submit a written

15-43  request annually to the public body to remain on the list. Offers for

15-44  bids which are made pursuant to this subsection must be sent by

15-45  certified mail.] At least once each quarter, the authorized

16-1  representative of a public body shall report to the public body any

16-2  contract that he awarded pursuant to subsection 1 in the

16-3  immediately preceding quarter.

16-4      3.  Each advertisement for bids must include a provision that

16-5  sets forth[:

16-6      (a) The] the requirement that a contractor must be qualified

16-7  pursuant to NRS 338.1379 to bid on the contract . [or must be

16-8  exempt from meeting such qualifications pursuant to NRS

16-9  338.1383; and

16-10     (b) The period during which an application to qualify as a bidder

16-11  on the contract must be submitted.]

16-12     4.  Approved plans and specifications for the bids must be on

16-13  file at a place and time stated in the advertisement for the inspection

16-14  of all persons desiring to bid thereon and for other interested

16-15  persons. Contracts for the project must be awarded on the basis of

16-16  bids received.

16-17     5.  Except as otherwise provided in subsection 6 and NRS

16-18  338.1389, a public body shall award a contract to the lowest

16-19  responsive and responsible bidder.

16-20     6.  Any bids received in response to an advertisement for bids

16-21  may be rejected if the [person] public body or its authorized

16-22  representative responsible for awarding the contract determines

16-23  that:

16-24     (a) The bidder is not a qualified bidder pursuant to NRS

16-25  338.1379 ; [, unless the bidder is exempt from meeting such

16-26  qualifications pursuant to NRS 338.1383;]

16-27     (b) The bidder is not responsive[;] or responsible;

16-28     (c) The quality of the services, materials, equipment or labor

16-29  offered does not conform to the approved [plan] plans or

16-30  specifications; or

16-31     (d) The public interest would be served by such a rejection.

16-32     [6.  Before the State or a local government may]

16-33     7.  Before a public body may commence the performance of a

16-34  [project subject] public work itself pursuant to the provisions of

16-35  this section, based upon a determination that the public interest

16-36  would be served by rejecting any bids received in response to an

16-37  advertisement for bids, [it] the public body shall prepare and make

16-38  available for public inspection a written statement containing:

16-39     (a) A list of all persons, including supervisors, whom the [State

16-40  or the local government] public body intends to assign to the

16-41  [project,] public work, together with their classifications and an

16-42  estimate of the direct and indirect costs of their labor;

16-43     (b) A list of all equipment that the [State or the local

16-44  government] public body intends to use on the [project,] public

16-45  work, together with an estimate of the number of hours each item of

17-1  equipment will be used and the hourly cost to use each item of

17-2  equipment;

17-3      (c) An estimate of the cost of administrative support for the

17-4  persons assigned to the [project;] public work;

17-5      (d) An estimate of the total cost of the [project;] public work,

17-6  including the fair market value of or, if known, the actual cost of

17-7  all materials, supplies, labor and equipment to be used for the

17-8  public work; and

17-9      (e) An estimate of the amount of money the [State or the local

17-10  government] public body expects to save by rejecting the bids and

17-11  performing the [project itself.

17-12     7.] public work itself.

17-13     8.  This section does not apply to:

17-14     (a) Any utility subject to the provisions of chapter 318 or 710 of

17-15  NRS;

17-16     (b) Any work of construction, reconstruction, improvement and

17-17  maintenance of highways subject to NRS 408.323 or 408.327;

17-18     (c) Normal maintenance of the property of a school district;

17-19     (d) The Las Vegas Valley Water District created pursuant to

17-20  chapter 167, Statutes of Nevada 1947, the Moapa Valley Water

17-21  District created pursuant to chapter 477, Statutes of Nevada 1983 or

17-22  the Virgin Valley Water District created pursuant to chapter 100,

17-23  Statutes of Nevada 1993; or

17-24     (e) The design and construction of a public work for which a

17-25  public body contracts with a design-build team pursuant to NRS

17-26  338.1711 to 338.1727.

17-27     Sec. 19.  NRS 338.1385 is hereby amended to read as follows:

17-28     338.1385  1.  Except as otherwise provided in subsection 8,

17-29  this state, or a local government or its authorized representative

17-30  that awards a contract for [the construction, alteration or repair of] a

17-31  public work in accordance with paragraph (a) of subsection 1 of

17-32  NRS 338.1373, [or a public officer, public employee or other person

17-33  responsible for awarding a contract for the construction, alteration

17-34  or repair of a public work who represents the State or the local

17-35  government,] shall not:

17-36     (a) Commence [such a project] a public work for which the

17-37  estimated cost exceeds $100,000 unless it advertises in a newspaper

17-38  [of general circulation in this state] qualified pursuant to chapter

17-39  238 of NRS that is published in the county where the public work

17-40  will be performed for bids for the [project; or] public work. If no

17-41  qualified newspaper is published in the county where the public

17-42  work will be performed, the required advertisement must be

17-43  published in some qualified newspaper that is printed in the State

17-44  of Nevada and having a general circulation within the county.

18-1      (b) Divide [such a project] a public work into separate portions

18-2  to avoid the requirements of paragraph (a).

18-3      2.  [Except as otherwise provided in subsection 8, a public body

18-4  that maintains a list of properly licensed contractors who are

18-5  interested in receiving offers to bid on public works projects for

18-6  which the estimated cost is more than $25,000 but less than

18-7  $100,000 shall solicit bids from not more than three of the

18-8  contractors on the list for a contract of that value for the

18-9  construction, alteration or repair of a public work. The public body

18-10  shall select contractors from the list in such a manner as to afford

18-11  each contractor an equal opportunity to bid on a public works

18-12  project. A properly licensed contractor must submit a written

18-13  request annually to the public body to remain on the list. Offers for

18-14  bids which are made pursuant to this subsection must be sent by

18-15  certified mail.] At least once each quarter, the authorized

18-16  representative of a public body shall report to the public body any

18-17  contract that he awarded pursuant to subsection 1 in the

18-18  immediately preceding quarter.

18-19     3.  Each advertisement for bids must include a provision that

18-20  sets forth[:

18-21     (a) The] the requirement that a contractor must be qualified

18-22  pursuant to NRS 338.1379 to bid on the contract . [or must be

18-23  exempt from meeting such qualifications pursuant to NRS

18-24  338.1383; and

18-25     (b) The period during which an application to qualify as a bidder

18-26  on the contract must be submitted.]

18-27     4.  Approved plans and specifications for the bids must be on

18-28  file at a place and time stated in the advertisement for the inspection

18-29  of all persons desiring to bid thereon and for other interested

18-30  persons. Contracts for the project must be awarded on the basis of

18-31  bids received.

18-32     5.  Except as otherwise provided in subsection 6 and the

18-33  provisions of NRS 338.1389, a public body shall award a contract

18-34  to the lowest responsive and responsible bidder.

18-35     6.  Any bids received in response to an advertisement for bids

18-36  may be rejected if the [person] public body or its authorized

18-37  representative responsible for awarding the contract determines

18-38  that:

18-39     (a) The bidder is not a qualified bidder pursuant to NRS

18-40  338.1379 ; [, unless the bidder is exempt from meeting such

18-41  qualifications pursuant to NRS 338.1383;]

18-42     (b) The bidder is not responsive[;] or responsible;

18-43     (c) The quality of the services, materials, equipment or labor

18-44  offered does not conform to the approved [plan] plans or

18-45  specifications; or

19-1      (d) The public interest would be served by such a rejection.

19-2      [6.  Before the State or a local government]

19-3      7.  Before a public body may commence the performance of a

19-4  [project subject] public work itself pursuant to the provisions of

19-5  this section, based upon a determination that the public interest

19-6  would be served by rejecting any bids received in response to an

19-7  advertisement for bids, [it] the public body shall prepare and make

19-8  available for public inspection a written statement containing:

19-9      (a) A list of all persons, including supervisors, whom the [State

19-10  or the local government] public body intends to assign to the

19-11  [project,] public work, together with their classifications and an

19-12  estimate of the direct and indirect costs of their labor;

19-13     (b) A list of all equipment that the [State or the local

19-14  government] public body intends to use on the [project,] public

19-15  work, together with an estimate of the number of hours each item of

19-16  equipment will be used and the hourly cost to use each item of

19-17  equipment;

19-18     (c) An estimate of the cost of administrative support for the

19-19  persons assigned to the [project;]

19-20  public work;

19-21     (d) An estimate of the total cost of the [project;] public work,

19-22  including, the fair market value of or, if known, the actual cost of

19-23  all materials, supplies, labor and equipment to be used for the

19-24  public work; and

19-25     (e) An estimate of the amount of money the [State or the local

19-26  government] public body expects to save by rejecting the bids and

19-27  performing the [project itself.

19-28     7.  In preparing the estimated cost of a project pursuant to

19-29  subsection 6, the State or a local government must include the fair

19-30  market value of, or, if known, the actual cost of, all materials,

19-31  supplies, labor and equipment to be used for the project.] public

19-32  work itself.

19-33     8.  This section does not apply to:

19-34     (a) Any utility subject to the provisions of chapter 318 or 710 of

19-35  NRS;

19-36     (b) Any work of construction, reconstruction, improvement and

19-37  maintenance of highways subject to NRS 408.323 or 408.327;

19-38     (c) Normal maintenance of the property of a school district; or

19-39     (d) The Las Vegas Valley Water District created pursuant to

19-40  chapter 167, Statutes of Nevada 1947, the Moapa Valley Water

19-41  District created pursuant to chapter 477, Statutes of Nevada 1983 or

19-42  the Virgin Valley Water District created pursuant to chapter 100,

19-43  Statutes of Nevada 1993; or

20-1      (e) The design and construction of a public work for which a

20-2  public body contracts with a design-build team pursuant to NRS

20-3  338.1711 to 338.1727, inclusive.

20-4      Sec. 20.  NRS 338.1387 is hereby amended to read as follows:

20-5      338.1387  1.  A public body or its authorized representative

20-6  awarding a contract for a public work shall not award the contract to

20-7  a person who, at the time of the bid, is not properly licensed under

20-8  the provisions of chapter 624 of NRS or if the contract would

20-9  exceed the limit of his license. A subcontractor who is named by

20-10  [the] a contractor who submitted a bid on the contract as a

20-11  subcontractor who will provide a portion of the work on the public

20-12  work pursuant to NRS 338.141 and who is not properly licensed

20-13  for that portion of the work shall be deemed unacceptable. If the

20-14  subcontractor is deemed unacceptable[,] pursuant to this

20-15  subsection, the contractor shall provide an acceptable subcontractor

20-16  . [before the award of the contract.]

20-17     2.  If, after awarding the contract, but before commencement of

20-18  the work, the public body or its authorized representative discovers

20-19  that the person to whom the contract was awarded is not licensed, or

20-20  that the contract would exceed his license, the public body or its

20-21  authorized representative shall [reject the bid] rescind the award of

20-22  the contract and may accept the next lowest bid for that public work

20-23  from a responsive bidder who was determined by the public body or

20-24  its authorized representative to be a qualified bidder pursuant to

20-25  NRS 338.1379 [or was exempt from meeting such qualifications

20-26  pursuant to NRS 338.1373 or 338.1383] without requiring that new

20-27  bids be submitted.

20-28     Sec. 21.  NRS 338.1389 is hereby amended to read as follows:

20-29     338.1389  1.  Except as otherwise provided in subsection 10

20-30  and NRS 338.1385 , [and 338.1711 to 338.1727, inclusive,] a public

20-31  body or its authorized representative shall award a contract for a

20-32  public work for which the estimated cost exceeds $250,000 to the

20-33  contractor who submits the best bid.

20-34     2.  Except as otherwise provided in subsection 10 or limited by

20-35  subsection 11, [for the purposes of this section, a contractor who:

20-36     (a) Has] a bid that is:

20-37     (a) Submitted by a contractor who has been determined by the

20-38  public body to be a qualified bidder pursuant to NRS 338.1379 [or

20-39  is exempt from meeting such requirements pursuant to NRS

20-40  338.1373 or 338.1383; and

20-41     (b) At the time he submits his bid, provides to the public body] ;

20-42     (b) Accompanied by a copy of a valid certificate of eligibility to

20-43  receive a preference in bidding on public works issued to [him] the

20-44  contractor by the State Contractors’ Board pursuant to subsection 3

20-45  or 4[,

21-1  shall be deemed to have submitted a better bid than a competing

21-2  contractor who has not provided a copy of such a valid certificate of

21-3  eligibility if the amount of his bid is not] ; and

21-4      (c) Not more than 5 percent higher than the [amount] bid

21-5  submitted by the [competing contractor.] next lowest responsive

21-6  and responsible bidder whose bid is not accompanied by a copy of

21-7  a valid certificate of eligibility to receive a preference in bidding

21-8  on public works issued to him by the State Contractors’ Board

21-9  pursuant to subsection 3 or 4,

21-10  shall be deemed to be the best bid for the purposes of this section.

21-11     3.  The State Contractors’ Board shall issue a certificate of

21-12  eligibility to receive a preference in bidding on public works to a

21-13  general contractor who is licensed pursuant to the provisions of

21-14  chapter 624 of NRS and submits to the Board an affidavit from a

21-15  certified public accountant setting forth that the general contractor

21-16  has, while licensed as a general contractor in this state:

21-17     (a) Paid directly, on his own behalf:

21-18         (1) The sales and use taxes imposed pursuant to chapters

21-19  372, 374 and 377 of NRS on materials used for construction in this

21-20  state, including, without limitation, construction that is undertaken

21-21  or carried out on land within the boundaries of this state that is

21-22  managed by the Federal Government or is on an Indian reservation

21-23  or Indian colony, of not less than $5,000 for each consecutive

21-24  12-month period for 60 months immediately preceding the

21-25  submission of the affidavit from the certified public accountant;

21-26         (2) The governmental services tax imposed pursuant to

21-27  chapter 371 of NRS on the vehicles used in the operation of his

21-28  business in this state of not less than $5,000 for each consecutive

21-29  12-month period for 60 months immediately preceding the

21-30  submission of the affidavit from the certified public accountant; or

21-31         (3) Any combination of such sales and use taxes and

21-32  governmental services tax; or

21-33     (b) Acquired, by purchase, inheritance, gift or transfer through a

21-34  stock option plan, all the assets and liabilities of a viable, operating

21-35  construction firm that possesses a:

21-36         (1) License as a general contractor pursuant to the provisions

21-37  of chapter 624 of NRS; and

21-38         (2) Certificate of eligibility to receive a preference in bidding

21-39  on public works.

21-40     4.  The State Contractors’ Board shall issue a certificate of

21-41  eligibility to receive a preference in bidding on public works to a

21-42  specialty contractor who is licensed pursuant to the provisions of

21-43  chapter 624 of NRS and submits to the Board an affidavit from a

21-44  certified public accountant setting forth that the specialty contractor

21-45  has, while licensed as a specialty contractor in this state:

22-1      (a) Paid directly, on his own behalf:

22-2          (1) The sales and use taxes pursuant to chapters 372, 374 and

22-3  377 of NRS on materials used for construction in this state,

22-4  including, without limitation, construction that is undertaken or

22-5  carried out on land within the boundaries of this state that is

22-6  managed by the Federal Government or is on an Indian reservation

22-7  or Indian colony, of not less than $5,000 for each consecutive

22-8  12-month period for 60 months immediately preceding the

22-9  submission of the affidavit from the certified public accountant;

22-10         (2) The governmental services tax imposed pursuant to

22-11  chapter 371 of NRS on the vehicles used in the operation of his

22-12  business in this state of not less than $5,000 for each consecutive

22-13  12-month period for 60 months immediately preceding the

22-14  submission of the affidavit from the certified public accountant; or

22-15         (3) Any combination of such sales and use taxes and

22-16  governmental services tax; or

22-17     (b) Acquired, by purchase, inheritance, gift or transfer through a

22-18  stock option plan, all the assets and liabilities of a viable, operating

22-19  construction firm that possesses a:

22-20         (1) License as a specialty contractor pursuant to the

22-21  provisions of chapter 624 of NRS; and

22-22         (2) Certificate of eligibility to receive a preference in bidding

22-23  on public works.

22-24     5.  For the purposes of complying with the requirements set

22-25  forth in paragraph (a) of subsection 3 and paragraph (a) of

22-26  subsection 4, a contractor shall be deemed to have paid:

22-27     (a) Sales and use taxes and governmental services taxes that

22-28  were paid in this state by an affiliate or parent company of the

22-29  contractor, if the affiliate or parent company is also a general

22-30  contractor or specialty contractor, as applicable; and

22-31     (b) Sales and use taxes that were paid in this state by a joint

22-32  venture in which the contractor is a participant, in proportion to the

22-33  amount of interest the contractor has in the joint venture.

22-34     6.  A contractor who has received a certificate of eligibility to

22-35  receive a preference in bidding on public works from the State

22-36  Contractors’ Board pursuant to subsection 3 or 4 shall, at the time

22-37  for the annual renewal of his contractor’s license pursuant to NRS

22-38  624.283, submit to the Board an affidavit from a certified public

22-39  accountant setting forth that the contractor has, during the

22-40  immediately preceding 12 months, paid the taxes required pursuant

22-41  to paragraph (a) of subsection 3 or paragraph (a) of subsection 4, as

22-42  applicable, to maintain his eligibility to hold such a certificate.

22-43     7.  A contractor who fails to submit an affidavit to the Board

22-44  pursuant to subsection 6 ceases to be eligible to receive a preference

23-1  in bidding on public works unless he reapplies for and receives a

23-2  certificate of eligibility pursuant to subsection 3 or 4, as applicable.

23-3      8.  If a contractor holds more than one contractor’s license, he

23-4  must submit a separate application for each license pursuant to

23-5  which he wishes to qualify for a preference in bidding. Upon

23-6  issuance, the certificate of eligibility to receive a preference in

23-7  bidding on public works becomes part of the contractor’s license for

23-8  which the contractor submitted the application.

23-9      9.  If a contractor who applies to the State Contractors’ Board

23-10  for a certificate of eligibility to receive a preference in bidding on

23-11  public works submits false information to the Board regarding the

23-12  required payment of taxes, the contractor is not eligible to receive a

23-13  preference in bidding on public works for a period of 5 years after

23-14  the date on which the Board becomes aware of the submission of the

23-15  false information.

23-16     10.  If any federal statute or regulation precludes the granting of

23-17  federal assistance or reduces the amount of that assistance for a

23-18  particular public work because of the provisions of subsection 2,

23-19  those provisions do not apply insofar as their application would

23-20  preclude or reduce federal assistance for that work. [The provisions

23-21  of subsection 2 do not apply to any contract for a public work which

23-22  is expected to cost less than $250,000.]

23-23     11.  If a bid is submitted by two or more contractors as a joint

23-24  venture or by one of them as a joint venturer, the [provisions of

23-25  subsection 2 apply] bid may be deemed the best bid only if both or

23-26  all of the joint venturers separately meet the requirements of [that

23-27  subsection.] subsection 2.

23-28     12.  The State Contractors’ Board shall adopt regulations and

23-29  may assess reasonable fees relating to the certification of contractors

23-30  for a preference in bidding on public works.

23-31     13.  A person or entity who believes that a contractor

23-32  wrongfully holds a certificate of eligibility to receive a preference in

23-33  bidding on public works may challenge the validity of the certificate

23-34  by filing a written objection with the public body to which the

23-35  contractor has submitted a bid [or proposal] on a contract for the

23-36  construction of a public work. A written objection authorized

23-37  pursuant to this subsection must:

23-38     (a) Set forth proof or substantiating evidence to support the

23-39  belief of the person or entity that the contractor wrongfully holds a

23-40  certificate of eligibility to receive a preference in bidding on public

23-41  works; and

23-42     (b) Be filed with the public body [at or after the time at which

23-43  the contractor submitted the bid or proposal to the public body and

23-44  before the time at which the public body awards the contract for

23-45  which the bid or proposal was submitted.] not later than 3 business

24-1  days after the opening of the bids by the public body or its

24-2  authorized representative.

24-3      14.  If a public body receives a written objection pursuant to

24-4  subsection 13, the public body shall determine whether the objection

24-5  is accompanied by the proof or substantiating evidence required

24-6  pursuant to paragraph (a) of that subsection. If the public body

24-7  determines that the objection is not accompanied by the required

24-8  proof or substantiating evidence, the public body shall dismiss the

24-9  objection and the public body or its authorized representative may

24-10  proceed immediately to award the contract. If the public body

24-11  determines that the objection is accompanied by the required proof

24-12  or substantiating evidence, the public body shall determine whether

24-13  the contractor qualifies for the certificate pursuant to the provisions

24-14  of this section and the public body or its authorized representative

24-15  may proceed to award the contract accordingly.

24-16     Sec. 22.  NRS 338.139 is hereby amended to read as follows:

24-17     338.139  1.  A public body or its authorized representative

24-18  may award a contract for [the construction, alteration or repair of] a

24-19  public work pursuant to NRS 338.1375 to 338.1389, inclusive, to a

24-20  specialty contractor if:

24-21     (a) The majority of the work to be performed on the [project]

24-22  public work to which the contract pertains consists of specialty

24-23  contracting for which the specialty contractor is licensed; and

24-24     (b) The [project] public work to which the contract pertains is

24-25  not part of a larger public work.

24-26     2.  If a public body or its authorized representative awards a

24-27  contract to a specialty contractor pursuant to NRS 338.1375 to

24-28  338.1389, inclusive, all work to be performed on the [project] public

24-29  work to which the contract pertains that is outside the scope of the

24-30  license of the specialty contractor must be performed by a

24-31  subcontractor who is licensed to perform such work.

24-32     Sec. 23.  NRS 338.140 is hereby amended to read as follows:

24-33     338.140  1.  [An agency of this state, a political subdivision,

24-34  municipal corporation or district, a public officer or a person

24-35  charged with the letting of contracts for the construction, alteration

24-36  or repair of public works] A public body shall not draft or cause to

24-37  be drafted specifications for bids, in connection with [the

24-38  construction, alteration or repair of public works:]

24-39  a public work:

24-40     (a) In such a manner as to limit the bidding, directly or

24-41  indirectly, to any one specific concern.

24-42     (b) Except in those instances where the product is designated to

24-43  match others in use on a particular public improvement either

24-44  completed or in the course of completion, calling for a designated

24-45  material, product, thing or service by specific brand or trade name

25-1  unless the specification lists at least two brands or trade names of

25-2  comparable quality or utility and is followed by the words “or

25-3  equal” so that bidders may furnish any equal material, product, thing

25-4  or service.

25-5      (c) In such a manner as to hold the bidder to whom such

25-6  contract is awarded responsible for extra costs incurred as a result of

25-7  errors or omissions by the public [agency] body in the contract

25-8  documents.

25-9      (d) In such a manner as to require a bidder to furnish to the

25-10  public [agency,] body, whether before or after the bid is submitted,

25-11  documents generated in the preparation or determination of prices

25-12  included in the bid, except when requested by the public [agency]

25-13  body for:

25-14         (1) A determination of the price of additional work

25-15  performed pursuant to a change order;

25-16         (2) An evaluation of claims for costs incurred for the

25-17  performance of additional work;

25-18         (3) Preparation for arbitration or litigation; or

25-19         (4) Any combination thereof.

25-20  A document furnished to a public [agency] body pursuant to this

25-21  paragraph is confidential and must be returned to the bidder.

25-22     2.  In those cases involving a unique or novel product

25-23  application required to be used in the public interest, or where only

25-24  one brand or trade name is known to the [specifying agency,] public

25-25  body, it may list only one.

25-26     3.  Specifications must provide a period of time of at least 7

25-27  days after award of the contract for submission of data

25-28  substantiating a request for a substitution of “an equal” item.

25-29     Sec. 24.  NRS 338.141 is hereby amended to read as follows:

25-30     338.141  1.  [Except as otherwise provided in subsection 2,

25-31  each] Each bid submitted to [any officer, department, board or

25-32  commission for the construction of] a public body for any public

25-33  work [or improvement] must include:

25-34     (a) The name of each subcontractor who will provide labor or

25-35  a portion of the work on the public work which is estimated to

25-36  exceed 3 percent of the estimated cost of the public work; or

25-37     (b) The name of each subcontractor who will provide labor or a

25-38  portion of the work [or improvement] on the public work to the

25-39  contractor for which [he] the subcontractor will be paid an amount

25-40  exceeding 5 percent of the prime contractor’s total bid. Within 2

25-41  hours after the completion of the opening of the bids, the contractors

25-42  who submitted the three lowest bids must submit a list containing

25-43  the name of each subcontractor who will provide labor or a portion

25-44  of the work [or improvement] on the public work to the contractor

25-45  for which [he] the subcontractor will be paid an amount exceeding

26-1  1 percent of the prime contractor’s total bid or $50,000, whichever

26-2  is greater, and the number of the license issued to the subcontractor

26-3  pursuant to chapter 624 of NRS. [If a contractor fails to submit such

26-4  a list within the required time, his bid shall be deemed not

26-5  responsive.

26-6      b) A description of the portion of the work or improvement

26-7  which each subcontractor named in the bid will complete.

26-8      2.  The contractor shall list in his bid pursuant to subsection 1

26-9  the name of a subcontractor for each portion of the project that will

26-10  be completed by a subcontractor.]

26-11     2.  The lists required by subsection 1 must include a

26-12  description of the labor or portion of the work which each

26-13  subcontractor named in the list will provide to the contractor.

26-14     3.  A contractor shall include his name on a list required by

26-15  subsection 1 if he will perform any of the work required to be

26-16  listed pursuant to subsection 1.

26-17     4.  If a contractor does not submit a list required by subsection

26-18  1, his bid shall be deemed not responsive.

26-19     5.  A contractor whose bid is accepted shall not substitute a

26-20  subcontractor for any [person for a] subcontractor who is named in

26-21  the bid, unless:

26-22     (a) The [awarding authority] public body or its authorized

26-23  representative objects to the subcontractor, requests in writing a

26-24  change in the subcontractor and pays any increase in costs resulting

26-25  from the change; or

26-26     (b) The substitution is approved by the [awarding authority or

26-27  an] public body or its authorized representative . [of the awarding

26-28  authority.] The substitution must be approved if the [awarding

26-29  authority] public body or its authorized representative [of the

26-30  awarding authority] determines that:

26-31         (1) The named subcontractor, after having a reasonable

26-32  opportunity, fails or refuses to execute a written contract with the

26-33  contractor which was offered to the named subcontractor with the

26-34  same general terms that all other subcontractors on the project were

26-35  offered;

26-36         (2) The named subcontractor files for bankruptcy or becomes

26-37  insolvent; [or]

26-38         (3) The named subcontractor fails or refuses to perform his

26-39  subcontract within a reasonable time or is unable to furnish a

26-40  performance bond and payment bond pursuant to NRS 339.025[.

26-41     4.] ; or

26-42         (4) The named subcontractor is not properly licensed to

26-43  provide that labor or portion of the work.

26-44     6.  If a contractor indicates pursuant to subsection 3 that he

26-45  will perform a portion of work on the public work and thereafter

27-1  requests to substitute a subcontractor to perform such work, the

27-2  contractor shall provide to the public body a written explanation in

27-3  the form required by the public body which contains the reasons

27-4  that:

27-5      (a) A subcontractor was not originally contemplated to be used

27-6  on that portion of the public work; and

27-7      (b) The substitution is in the best interest of the public body.

27-8      7.  As used in this section, “general terms” means the terms and

27-9  conditions of a contract that set the basic requirements for a

27-10  [project] public work and apply without regard to the particular

27-11  trade or specialty of a subcontractor, but does not include any

27-12  provision that controls or relates to the specific portion of the

27-13  [project] public work that will be completed by a subcontractor,

27-14  including, without limitation, the materials to be used by the

27-15  subcontractor or other details of the work to be performed by the

27-16  subcontractor.

27-17     Sec. 25.  NRS 338.143 is hereby amended to read as follows:

27-18     338.143  1.  Except as otherwise provided in subsection [6] 7

27-19  and NRS 338.1907, a local government or its authorized

27-20  representative that awards a contract for [the construction, alteration

27-21  or repair of] a public work in accordance with paragraph (b) of

27-22  subsection 1 of NRS 338.1373[, or a public officer, public

27-23  employee or other person responsible for awarding a contract for the

27-24  construction, alteration or repair of a public work who represents

27-25  that local government,] shall not:

27-26     (a) Commence [such a project] a public work for which the

27-27  estimated cost exceeds $100,000 unless it advertises in a newspaper

27-28  [of general circulation in this state] qualified pursuant to chapter

27-29  238 of NRS that is published in the county where the project will

27-30  be performed for bids for the [project; or] public work. If no

27-31  qualified newspaper is published in the county where the public

27-32  work will be performed, the required advertisement must be

27-33  published in some qualified newspaper that is printed in the State

27-34  of Nevada and has a general circulation in the county.

27-35     (b) Divide [such a project] a public work into separate portions

27-36  to avoid the requirements of paragraph (a).

27-37     2.  [Except as otherwise provided in subsection 6, a local

27-38  government that maintains a list of properly licensed contractors

27-39  who are interested in receiving offers to bid on public works

27-40  projects for which the estimated cost is more than $25,000 but less

27-41  than $100,000 shall solicit bids from not more than three of the

27-42  contractors on the list for a contract of that value for the

27-43  construction, alteration or repair of a public work. The local

27-44  government shall select contractors from the list in such a manner as

27-45  to afford each contractor an equal opportunity to bid on a public

28-1  works project. A properly licensed contractor must submit a written

28-2  request annually to the local government to remain on the list.

28-3  Offers for bids which are made pursuant to this subsection must be

28-4  sent by certified mail.] At least once each quarter, the authorized

28-5  representative of a local government shall report to the local

28-6  government any contract that he awarded pursuant to subsection 1

28-7  in the immediately preceding quarter.

28-8      3.  Approved plans and specifications for the bids must be on

28-9  file at a place and time stated in the advertisement for the inspection

28-10  of all persons desiring to bid thereon and for other interested

28-11  persons. Contracts for the project must be awarded on the basis of

28-12  bids received.

28-13     4.  Except as otherwise provided in subsection 5 and NRS

28-14  338.147, the local government or its authorized representative

28-15  shall award a contract to the lowest responsive and responsible

28-16  bidder.

28-17     5.  Any bids received in response to an advertisement for bids

28-18  may be rejected if the [person] local government or its authorized

28-19  representative responsible for awarding the contract determines

28-20  that:

28-21     (a) The bidder is not responsive or responsible;

28-22     (b) The quality of the services, materials, equipment or labor

28-23  offered does not conform to the approved [plan] plans or

28-24  specifications; or

28-25     (c) The public interest would be served by such a rejection.

28-26     [5.] 6.  Before a local government may commence the

28-27  performance of a [project subject] public work itself pursuant to

28-28  the provisions of this section, based upon a determination that the

28-29  public interest would be served by rejecting any bids received in

28-30  response to an advertisement for bids, [it] the local government

28-31  shall prepare and make available for public inspection a written

28-32  statement containing:

28-33     (a) A list of all persons, including supervisors, whom the local

28-34  government intends to assign to the [project,] public work, together

28-35  with their classifications and an estimate of the direct and indirect

28-36  costs of their labor;

28-37     (b) A list of all equipment that the local government intends to

28-38  use on the [project,] public work, together with an estimate of the

28-39  number of hours each item of equipment will be used and the hourly

28-40  cost to use each item of equipment;

28-41     (c) An estimate of the cost of administrative support for the

28-42  persons assigned to the [project;] public work;

28-43     (d) An estimate of the total cost of the [project;] public work,

28-44  including the fair market value of or, if known, the actual cost of

29-1  all materials, supplies, labor and equipment to be used for the

29-2  public work; and

29-3      (e) An estimate of the amount of money the local government

29-4  expects to save by rejecting the bids and performing the [project

29-5  itself.

29-6      6.] public work itself.

29-7      7.  This section does not apply to:

29-8      (a) Any utility subject to the provisions of chapter 318 or 710 of

29-9  NRS;

29-10     (b) Any work of construction, reconstruction, improvement and

29-11  maintenance of highways subject to NRS 408.323 or 408.327;

29-12     (c) Normal maintenance of the property of a school district;

29-13     (d) The Las Vegas Valley Water District created pursuant to

29-14  chapter 167, Statutes of Nevada 1947, the Moapa Valley Water

29-15  District created pursuant to chapter 477, Statutes of Nevada 1983 or

29-16  the Virgin Valley Water District created pursuant to chapter 100,

29-17  Statutes of Nevada 1993; or

29-18     (e) The design and construction of a public work for which a

29-19  public body contracts with a design-build team pursuant to NRS

29-20  338.1711 to 338.1727, inclusive.

29-21     Sec. 26.  NRS 338.143 is hereby amended to read as follows:

29-22     338.143  1.  Except as otherwise provided in subsection 7, a

29-23  local government or its authorized representative that awards a

29-24  contract for [the construction, alteration or repair of] a public work

29-25  in accordance with paragraph (b) of subsection 1 of NRS 338.1373

29-26  [, or a public officer, public employee or other person responsible

29-27  for awarding a contract for the construction, alteration or repair of a

29-28  public work who represents that local government,] shall not:

29-29     (a) Commence [such a project] a public work for which the

29-30  estimated cost exceeds $100,000 unless it advertises in a newspaper

29-31  [of general circulation in this state] qualified pursuant to chapter

29-32  238 or NRS that is published in the county where the public work

29-33  will be performed for bids for the [project; or] public work. If no

29-34  qualified newspaper is published within the county where the

29-35  public work will be performed, the required advertisement must be

29-36  published in some qualified newspaper that is printed in the State

29-37  of Nevada and has a general circulation within the county.

29-38     (b) Divide [such a project] a public work into separate portions

29-39  to avoid the requirements of paragraph (a).

29-40     2.  [Except as otherwise provided in subsection 7, a local

29-41  government that maintains a list of properly licensed contractors

29-42  who are interested in receiving offers to bid on public works

29-43  projects for which the estimated cost is more than $25,000 but less

29-44  than $100,000 shall solicit bids from not more than three of the

29-45  contractors on the list for a contract of that value for the

30-1  construction, alteration or repair of a public work. The local

30-2  government shall select contractors from the list in such a manner as

30-3  to afford each contractor an equal opportunity to bid on a public

30-4  works project. A properly licensed contractor must submit a written

30-5  request annually to the local government to remain on the list.

30-6  Offers for bids which are made pursuant to this subsection must be

30-7  sent by certified mail.] At least once each quarter, the authorized

30-8  representative of a local government shall report to the local

30-9  government any contract that he awarded pursuant to subsection 1

30-10  in the immediately preceding quarter.

30-11     3.  Approved plans and specifications for the bids must be on

30-12  file at a place and time stated in the advertisement for the inspection

30-13  of all persons desiring to bid thereon and for other interested

30-14  persons. Contracts for the project must be awarded on the basis of

30-15  bids received.

30-16     4. Except as otherwise provided in subsection 5 and NRS

30-17  338.147, the local government or its authorized representative

30-18  shall award a contract to the lowest responsive and responsible

30-19  bidder.

30-20     5.  Any bids received in response to an advertisement for bids

30-21  may be rejected if the [person] local government or its authorized

30-22  representative responsible for awarding the contract determines

30-23  that:

30-24     (a) The bidder is not responsive or responsible;

30-25     (b) The quality of the services, materials, equipment or labor

30-26  offered does not conform to the approved [plan] plans or

30-27  specifications; or

30-28     (c) The public interest would be served by such a rejection.

30-29     [5.] 6.  Before a local government may commence the

30-30  performance of a [project subject] public work itself pursuant to

30-31  the provisions of this section, based upon a determination that the

30-32  public interest would be served by rejecting any bids received in

30-33  response to an advertisement for bids, [it] the local government

30-34  shall prepare and make available for public inspection a written

30-35  statement containing:

30-36     (a) A list of all persons, including supervisors, whom the local

30-37  government intends to assign to the [project,] public work, together

30-38  with their classifications and an estimate of the direct and indirect

30-39  costs of their labor;

30-40     (b) A list of all equipment that the local government intends to

30-41  use on the [project,] public work, together with an estimate of the

30-42  number of hours each item of equipment will be used and the hourly

30-43  cost to use each item of equipment;

30-44     (c) An estimate of the cost of administrative support for the

30-45  persons assigned to the [project;] public work;

31-1      (d) An estimate of the total cost of the [project;] public work,

31-2  including the fair market value of or, if known, the actual cost of,

31-3  all materials, supplies, labor and equipment to be used for the

31-4  public work; and

31-5      (e) An estimate of the amount of money the local government

31-6  expects to save by rejecting the bids and performing the [project

31-7  itself.

31-8      6.  In preparing the estimated cost of a project pursuant to

31-9  subsection 5, a local government must include the fair market value

31-10  of, or, if known, the actual cost of, all materials, supplies, labor and

31-11  equipment to be used for the project.] public work itself.

31-12     7.  This section does not apply to:

31-13     (a) Any utility subject to the provisions of chapter 318 or 710 of

31-14  NRS;

31-15     (b) Any work of construction, reconstruction, improvement and

31-16  maintenance of highways subject to NRS 408.323 or 408.327;

31-17     (c) Normal maintenance of the property of a school district;

31-18     (d) The Las Vegas Valley Water District created pursuant to

31-19  chapter 167, Statutes of Nevada 1947, the Moapa Valley Water

31-20  District created pursuant to chapter 477, Statutes of Nevada 1983 or

31-21  the Virgin Valley Water District created pursuant to chapter 100,

31-22  Statutes of Nevada 1993; or

31-23     (e) The design and construction of a public work for which a

31-24  public body contracts with a design-build team pursuant to NRS

31-25  338.1711 to 338.1727, inclusive.

31-26     Sec. 27.  NRS 338.145 is hereby amended to read as follows:

31-27     338.145  1.  A local government or its authorized

31-28  representative awarding a contract for a public work shall not award

31-29  the contract to a person who, at the time of the bid, is not properly

31-30  licensed under the provisions of chapter 624 of NRS or if the

31-31  contract would exceed the limit of his license. A subcontractor who

31-32  is named by [the] a contractor who submits a bid to a local

31-33  government or its authorized representative as a subcontractor

31-34  who will provide a portion of the work on the public work

31-35  pursuant to NRS 338.141 and who is not properly licensed for that

31-36  portion of the work shall be deemed unacceptable. If the

31-37  subcontractor is deemed unacceptable[,] pursuant to this

31-38  subsection, the contractor shall provide an acceptable subcontractor

31-39  . [before the award of the contract.]

31-40     2.  If, after awarding the contract, but before commencement of

31-41  the work, the local government or its authorized representative

31-42  discovers that the person to whom the contract was awarded is not

31-43  licensed, or that the contract would exceed his license, the local

31-44  government or its authorized representative shall [reject the bid]

31-45  rescind the award of the contract and may accept the next lowest

32-1  bid for that public work from a responsive and responsible bidder

32-2  without requiring that new bids be submitted.

32-3      Sec. 28.  NRS 338.147 is hereby amended to read as follows:

32-4      338.147  1.  Except as otherwise provided in subsection 10

32-5  and NRS 338.143 , [and 338.1711 to 338.1727, inclusive,] a local

32-6  government or its authorized representative shall award a contract

32-7  for a public work for which the estimated cost exceeds $250,000 to

32-8  the contractor who submits the best bid.

32-9      2.  Except as otherwise provided in subsection 10 or limited by

32-10  subsection 11, [for the purposes of this section, a contractor who:

32-11     (a) Has] a bid that is:

32-12     (a) Submitted by a contractor who has been found to be a

32-13  responsible and responsive contractor by the local government[;

32-14  and

32-15     (b) At the time he submits his bid, provides to the local

32-16  government a] or its authorized representative;

32-17     (b) Accompanied by a copy of a valid certificate of eligibility to

32-18  receive a preference in bidding on public works issued to [him] the

32-19  contractor by the State Contractors’ Board pursuant to subsection 3

32-20  or 4[,

32-21  shall be deemed to have submitted a better bid than a competing

32-22  contractor who has not provided a copy of such a valid certificate of

32-23  eligibility if the amount of his bid is not] ; and

32-24     (c) Not more than 5 percent higher than the [amount bid] bid

32-25  submitted by the [competing contractor.] next lowest responsive

32-26  and responsible bidder whose bid is not accompanied by a copy of

32-27  a valid certificate of eligibility to receive a preference in bidding

32-28  on public works issued to him by the State Contractors’ Board

32-29  pursuant to subsection 3 or 4,

32-30  shall be deemed to be the best bid for the purposes of this section.

32-31     3.  The State Contractors’ Board shall issue a certificate of

32-32  eligibility to receive a preference in bidding on public works to a

32-33  general contractor who is licensed pursuant to the provisions of

32-34  chapter 624 of NRS and submits to the Board an affidavit from a

32-35  certified public accountant setting forth that the general contractor

32-36  has, while licensed as a general contractor in this state:

32-37     (a) Paid directly, on his own behalf:

32-38         (1) The sales and use taxes imposed pursuant to chapters

32-39  372, 374 and 377 of NRS on materials used for construction in this

32-40  state, including, without limitation, construction that is undertaken

32-41  or carried out on land within the boundaries of this state that is

32-42  managed by the Federal Government or is on an Indian reservation

32-43  or Indian colony, of not less than $5,000 for each consecutive

32-44  12-month period for 60 months immediately preceding the

32-45  submission of the affidavit from the certified public accountant;

33-1          (2) The governmental services tax imposed pursuant to

33-2  chapter 371 of NRS on the vehicles used in the operation of his

33-3  business in this state of not less than $5,000 for each consecutive

33-4  12-month period for 60 months immediately preceding the

33-5  submission of the affidavit from the certified public accountant; or

33-6          (3) Any combination of such sales and use taxes and

33-7  governmental services tax; or

33-8      (b) Acquired, by purchase, inheritance, gift or transfer through a

33-9  stock option plan, all the assets and liabilities of a viable, operating

33-10  construction firm that possesses a:

33-11         (1) License as a general contractor pursuant to the provisions

33-12  of chapter 624 of NRS; and

33-13         (2) Certificate of eligibility to receive a preference in bidding

33-14  on public works.

33-15     4.  The State Contractors’ Board shall issue a certificate of

33-16  eligibility to receive a preference in bidding on public works to a

33-17  specialty contractor who is licensed pursuant to the provisions of

33-18  chapter 624 of NRS and submits to the Board an affidavit from a

33-19  certified public accountant setting forth that the specialty contractor

33-20  has, while licensed as a specialty contractor in this state:

33-21     (a) Paid directly, on his own behalf:

33-22         (1) The sales and use taxes pursuant to chapters 372, 374 and

33-23  377 of NRS on materials used for construction in this state,

33-24  including, without limitation, construction that is undertaken or

33-25  carried out on land within the boundaries of this state that is

33-26  managed by the Federal Government or is on an Indian reservation

33-27  or Indian colony, of not less than $5,000 for each consecutive

33-28  12-month period for 60 months immediately preceding the

33-29  submission of the affidavit from the certified public accountant;

33-30         (2) The governmental services tax imposed pursuant to

33-31  chapter 371 of NRS on the vehicles used in the operation of his

33-32  business in this state of not less than $5,000 for each consecutive

33-33  12-month period for 60 months immediately preceding the

33-34  submission of the affidavit from the certified public accountant; or

33-35         (3) Any combination of such sales and use taxes and

33-36  governmental services tax; or

33-37     (b) Acquired, by purchase, inheritance, gift or transfer through a

33-38  stock option plan, all the assets and liabilities of a viable, operating

33-39  construction firm that possesses a:

33-40         (1) License as a specialty contractor pursuant to the

33-41  provisions of chapter 624 of NRS; and

33-42         (2) Certificate of eligibility to receive a preference in bidding

33-43  on public works.

34-1      5.  For the purposes of complying with the requirements set

34-2  forth in paragraph (a) of subsection 3 and paragraph (a) of

34-3  subsection 4, a contractor shall be deemed to have paid:

34-4      (a) Sales and use taxes and governmental services taxes paid in

34-5  this state by an affiliate or parent company of the contractor, if the

34-6  affiliate or parent company is also a general contractor or specialty

34-7  contractor, as applicable; and

34-8      (b) Sales and use taxes paid in this state by a joint venture in

34-9  which the contractor is a participant, in proportion to the amount of

34-10  interest the contractor has in the joint venture.

34-11     6.  A contractor who has received a certificate of eligibility to

34-12  receive a preference in bidding on public works from the State

34-13  Contractors’ Board pursuant to subsection 3 or 4 shall, at the time

34-14  for the annual renewal of his contractor’s license pursuant to NRS

34-15  624.283, submit to the Board an affidavit from a certified public

34-16  accountant setting forth that the contractor has, during the

34-17  immediately preceding 12 months, paid the taxes required pursuant

34-18  to paragraph (a) of subsection 3 or paragraph (a) of subsection 4, as

34-19  applicable, to maintain his eligibility to hold such a certificate.

34-20     7.  A contractor who fails to submit an affidavit to the Board

34-21  pursuant to subsection 6 ceases to be eligible to receive a preference

34-22  in bidding on public works unless he reapplies for and receives a

34-23  certificate of eligibility pursuant to subsection 3 or 4, as applicable.

34-24     8.  If a contractor holds more than one contractor’s license, he

34-25  must submit a separate application for each license pursuant to

34-26  which he wishes to qualify for a preference in bidding. Upon

34-27  issuance, the certificate of eligibility to receive a preference in

34-28  bidding on public works becomes part of the contractor’s license for

34-29  which the contractor submitted the application.

34-30     9.  If a contractor who applies to the State Contractors’ Board

34-31  for a certificate of eligibility to receive a preference in bidding on

34-32  public works submits false information to the Board regarding the

34-33  required payment of taxes, the contractor is not eligible to receive a

34-34  preference in bidding on public works for a period of 5 years after

34-35  the date on which the Board becomes aware of the submission of the

34-36  false information.

34-37     10.  If any federal statute or regulation precludes the granting of

34-38  federal assistance or reduces the amount of that assistance for a

34-39  particular public work because of the provisions of subsection 2,

34-40  those provisions do not apply insofar as their application would

34-41  preclude or reduce federal assistance for that work. [The provisions

34-42  of subsection 2 do not apply to any contract for a public work which

34-43  is expected to cost less than $250,000.]

34-44     11.  If a bid is submitted by two or more contractors as a joint

34-45  venture or by one of them as a joint venturer, [the provisions of

35-1  subsection 2 apply] the bid may be deemed a best bid only if both or

35-2  all of the joint venturers separately meet the requirements of [that

35-3  subsection.] subsection 2.

35-4      12.  The State Contractors’ Board shall adopt regulations and

35-5  may assess reasonable fees relating to the certification of contractors

35-6  for a preference in bidding on public works.

35-7      13.  A person or entity who believes that a contractor

35-8  wrongfully holds a certificate of eligibility to receive a preference in

35-9  bidding on public works may challenge the validity of the certificate

35-10  by filing a written objection with the [public body] local

35-11  government to which the contractor has submitted a bid [or

35-12  proposal] on a contract for the [completion] construction of a public

35-13  work. A written objection authorized pursuant to this subsection

35-14  must:

35-15     (a) Set forth proof or substantiating evidence to support the

35-16  belief of the person or entity that the contractor wrongfully holds a

35-17  certificate of eligibility to receive a preference in bidding on public

35-18  works; and

35-19     (b) Be filed with the [public body at or after the time at which

35-20  the contractor submitted the bid or proposal to the public body and

35-21  before the time at which the public body awards the contract for

35-22  which the bid or proposal was submitted.

35-23     14.  If a public body] local government not later than 3

35-24  business days after the date the local government sets for the

35-25  opening of the bids.

35-26     14.  If a local government receives a written objection pursuant

35-27  to subsection 13, the [public body] local government shall

35-28  determine whether the objection is accompanied by the proof or

35-29  substantiating evidence required pursuant to paragraph (a) of that

35-30  subsection. If the [public body] local government determines that

35-31  the objection is not accompanied by the required proof or

35-32  substantiating evidence, the [public body] local government shall

35-33  dismiss the objection and the local government or its authorized

35-34  representative may proceed immediately to award the contract. If

35-35  the [public body] local government determines that the objection is

35-36  accompanied by the required proof or substantiating evidence, the

35-37  [public body] local government shall determine whether the

35-38  contractor qualifies for the certificate pursuant to the provisions of

35-39  this section and the local government or its authorized

35-40  representative may proceed to award the contract accordingly.

35-41     Sec. 29.  NRS 338.148 is hereby amended to read as follows:

35-42     338.148  1.  A local government or its authorized

35-43  representative may award a contract for [the construction, alteration

35-44  or repair of] a public work to a specialty contractor pursuant to NRS

35-45  338.147 if:

36-1      (a) The majority of the work to be performed on the [project]

36-2  public work to which the contract pertains consists of specialty

36-3  contracting for which the specialty contractor is licensed; and

36-4      (b) The [project] public work to which the contract pertains is

36-5  not part of a larger public work.

36-6      2.  If a local government or its authorized representative

36-7  awards a contract to a specialty contractor pursuant to NRS 338.143

36-8  or 338.147, all work to be performed on the [project] public work to

36-9  which the contract pertains that is outside the scope of the license of

36-10  the specialty contractor must be performed by a subcontractor who

36-11  is licensed to perform such work.

36-12     Sec. 30.  NRS 338.150 is hereby amended to read as follows:

36-13     338.150  1.  [Any agency of this state and any political

36-14  subdivision, municipal corporation or district and any public officer

36-15  or person] Except as otherwise provided in subsection 3, any

36-16  public body charged with the drafting of specifications for [the

36-17  construction, alteration or repair of public works,] a public work

36-18  shall include in the specifications a clause permitting arbitration of a

36-19  dispute arising between the [agency and a] public body and the

36-20  contractor engaged on a public work if the dispute cannot otherwise

36-21  be settled.

36-22     2.  Any dispute requiring arbitration must be handled in

36-23  accordance with the construction industry’s rules for arbitration as

36-24  administered by the American Arbitration Association or the

36-25  Nevada Arbitration Association.

36-26     3.  The provisions of subsection 1 do not require the

36-27  Department of Transportation to include such a clause in any

36-28  contract entered into by the Department.

36-29     Sec. 31.  NRS 338.155 is hereby amended to read as follows:

36-30     338.155  [1.] If a public body enters into a contract with a

36-31  design professional who is not a member of a design-build team, for

36-32  the provision of services in connection with a public work, the

36-33  contract:

36-34     [(a)] 1.  Must set forth:

36-35         [(1)] (a) The specific period within which the public body

36-36  must pay the design professional.

36-37         [(2)] (b) The specific period and manner in which the public

36-38  body may dispute a payment or portion thereof that the design

36-39  professional alleges is due.

36-40         [(3)] (c) The terms of any penalty that will be imposed upon

36-41  the public body if the public body fails to pay the design

36-42  professional within the specific period set forth in the contract

36-43  pursuant to [subparagraph (1).

36-44         (4)] paragraph (a).

37-1      (d) That the prevailing party in an action to enforce the contract

37-2  is entitled to reasonable attorney’s fees and costs.

37-3      [(b)] 2.  May set forth the terms of any discount that the public

37-4  body will receive if the public body pays the design professional

37-5  within the specific period set forth in the contract pursuant to

37-6  [subparagraph (1) of] paragraph (a)[.

37-7      (c)] of subsection 1.

37-8      3.  May set forth the terms by which the design professional

37-9  agrees to name the public body, at the cost of the public body, as an

37-10  additional insured in an insurance policy held by the design

37-11  professional.

37-12     [(d)] 4.  Except as otherwise provided in [paragraph (e),]

37-13  subsection 5, must not require the design professional to defend,

37-14  indemnify or hold harmless the public body or the employees,

37-15  officers or agents of that public body from any liability, damage,

37-16  loss, claim, action or proceeding caused by the negligence, errors,

37-17  omissions, recklessness or intentional misconduct of the employees,

37-18  officers or agents of the public body.

37-19     [(e)] 5.  May require the design professional to defend,

37-20  indemnify and hold harmless the public body, and the employees,

37-21  officers and agents of the public body from any liabilities, damages,

37-22  losses, claims, actions or proceedings, including, without limitation,

37-23  reasonable attorneys’ fees, that are caused by the negligence, errors,

37-24  omissions, recklessness or intentional misconduct of the design

37-25  professional or the employees or agents of the design professional in

37-26  the performance of the contract.

37-27     [2.  Any provision of a contract that is in violation of paragraph

37-28  (d) of subsection 1 is declared to be contrary to the public policy of

37-29  this state and is void.]

37-30     Sec. 32.  NRS 338.1711 is hereby amended to read as follows:

37-31     338.1711  1.  Except as otherwise provided in this section, a

37-32  public body shall contract with a prime contractor for the

37-33  construction of a public work for which the estimated cost exceeds

37-34  $100,000.

37-35     2.  A public body may contract with a design-build team for the

37-36  design and construction of a public work that is a discrete project if

37-37  the public body determines that:

37-38     (a) The public work is:

37-39         (1) A plant or facility for the treatment and pumping of water

37-40  or the treatment and disposal of wastewater or sewage, the estimated

37-41  cost of which exceeds $100,000,000; or

37-42         (2) Any other type of public work, except a stand-alone

37-43  underground utility project, the estimated cost of which exceeds

37-44  $30,000,000; and

38-1      (b) Contracting with a design-build team will enable the public

38-2  body to:

38-3          (1) Design and construct the public work at a cost that is

38-4  significantly lower than the cost that the public body would incur to

38-5  design and construct the public work using a different method;

38-6          (2) Design and construct the public work in a shorter time

38-7  than would be required to design and construct the public work

38-8  using a different method, if exigent circumstances require that the

38-9  public work be designed and constructed within a short time; or

38-10         (3) Ensure that the design and construction of the public

38-11  work is properly coordinated, if the public work is unique, highly

38-12  technical and complex in nature.

38-13     3.  Each state agency and each local government may contract

38-14  with a design-build team once in each fiscal year for the design and

38-15  construction of a public work if the governing body of the entity that

38-16  is responsible for financing the public work determines that:

38-17     (a) The estimated cost of the public work is:

38-18         (1) At least $250,000 but less than $30,000,000 if the public

38-19  work is the construction of a park and appurtenances thereto, the

38-20  rehabilitation or remodeling of a public building, or the construction

38-21  of an addition to a public building;

38-22         (2) At least $500,000 but less than $30,000,000 if the public

38-23  work is the construction of a new public building;

38-24         (3) At least $5,000,000 but less than $100,000,000 if the

38-25  public work is the construction, alteration or repair of a plant or

38-26  facility for the treatment and pumping of water or the treatment and

38-27  disposal of wastewater or sewage; or

38-28         (4) At least $5,000,000 but less than $30,000,000 if the

38-29  public work is the construction, alteration or repair of any other

38-30  fixed works as described in subsection 2 of NRS 624.215; and

38-31     (b) Contracting with a design-build team will enable the public

38-32  body to:

38-33         (1) Design and construct the public work at a cost that is

38-34  significantly lower than the cost that the public body would incur to

38-35  design and construct the public work using a different method;

38-36         (2) Design and construct the public work in a shorter time

38-37  than would be required to design and construct the public work

38-38  using a different method, if exigent circumstances require that the

38-39  public work be designed and constructed within a short time; or

38-40         (3) Ensure that the design and construction of the public

38-41  work is properly coordinated, if the public work is unique, highly

38-42  technical and complex in nature.

38-43     4.  Notwithstanding the provisions of subsections 1, 2 and 3, a

38-44  public body may contract with:

39-1      (a) A nonprofit organization for the design and construction of a

39-2  project to restore, enhance or develop wetlands.

39-3      (b) A prime contractor or design‑build team with respect to a

39-4  public work if the public body determines that the public work is:

39-5          (1) Not part of a larger public work; and

39-6          (2) Limited in scope to:

39-7              (I) Removal of asbestos;

39-8              (II) Replacement of equipment or systems for heating,

39-9  ventilation and air‑conditioning;

39-10             (III) Replacement of a roof;

39-11             (IV) Landscaping; or

39-12             (V) Restoration, enhancement or development of

39-13  wetlands.

39-14     5.  A public body that is required to contract with a prime

39-15  contractor pursuant to subsection 1 or elects to contract with a

39-16  prime contractor pursuant to subsection 4 shall select the prime

39-17  contractor in accordance with the procedures for bidding that are

39-18  set forth in:

39-19     (a) The provisions of NRS 338.1375 to 338.139, inclusive; or

39-20     (b) NRS 338.143 to 338.148, inclusive, if the public body is a

39-21  local government that elects to award a contract for a public work

39-22  in accordance with paragraph (b) of subsection 1 of

39-23  NRS 338.1373.

39-24     6.  As used in this section, “state agency” includes an agency,

39-25  bureau, board, commission, department, division or any other unit of

39-26  the Legislative Department, Judicial Department or Executive

39-27  Department of State Government or the University and Community

39-28  College System of Nevada.

39-29     Sec. 33.  NRS 338.1713 is hereby amended to read as follows:

39-30     338.1713  1.  A public body shall not contract with a design-

39-31  build team with respect to a public work unless the [governing body

39-32  of the] public body makes the determinations, at a public hearing,

39-33  that are required pursuant to subsection 2, 3 or 4 of NRS 338.1711,

39-34  as applicable.

39-35     2.  A public body that is required to hold a public hearing

39-36  pursuant to this section shall publish notice of the hearing in a

39-37  newspaper [of] qualified pursuant to chapter 238 of NRS that is

39-38  published in the county where the work will be performed. If no

39-39  qualified newspaper is published in the county where the public

39-40  work will be performed, the required advertisement must be

39-41  published in some qualified newspaper that is printed in the State

39-42  of Nevada and has a general circulation in [this state.] the county.

39-43     Sec. 34.  NRS 338.1715 is hereby amended to read as follows:

39-44     338.1715  [1.  A public body that is required to contract with a

39-45  prime contractor pursuant to subsection 1 of NRS 338.1711 or elects

40-1  to contract with a prime contractor pursuant to subsection 4 of NRS

40-2  338.1711 shall select the prime contractor in accordance with the

40-3  procedures for bidding that are set forth in:

40-4      (a) The provisions of NRS 338.1375 to 338.139, inclusive; or

40-5      (b) NRS 338.143 to 338.148, inclusive, if the public body is a

40-6  local government that elects to award a contract for a public work in

40-7  accordance with paragraph (b) of subsection 1 of NRS 338.1373.

40-8      2.] A public body that contracts with a design-build team

40-9  pursuant to NRS 338.1711 and 338.1713 shall select the design-

40-10  build team in accordance with the provisions of NRS 338.1721 to

40-11  338.1727, inclusive.

40-12     Sec. 35.  NRS 338.1717 is hereby amended to read as follows:

40-13     338.1717  A public body may employ a registered architect ,

40-14  landscape architect or licensed professional engineer as a

40-15  consultant to assist the public body in overseeing the construction of

40-16  a public work. An architect , landscape architect or engineer so

40-17  employed shall not:

40-18     1.  Construct the public work; or

40-19     2.  Assume overall responsibility for ensuring that the

40-20  construction of the public work is completed in a satisfactory

40-21  manner.

40-22     Sec. 36.  NRS 338.1723 is hereby amended to read as follows:

40-23     338.1723  1.  A public body shall advertise for preliminary

40-24  proposals for the design and construction of a public work by a

40-25  design-build team in a newspaper [of] qualified pursuant to chapter

40-26  238 of NRS that is published in the county where the public work

40-27  will be performed. If no qualified newspaper is published within

40-28  the county where the public will be performed, the required

40-29  advertisement must be published in some qualified newspaper that

40-30  is printed in the State of Nevada and has a general circulation in

40-31  [this state.] the county.

40-32     2.  A request for preliminary proposals published pursuant to

40-33  subsection 1 must include, without limitation:

40-34     (a) A description of the public work to be designed and

40-35  constructed;

40-36     (b) Separate estimates of the costs of designing and constructing

40-37  the public work;

40-38     (c) The dates on which it is anticipated that the separate phases

40-39  of the design and construction of the public work will begin and

40-40  end;

40-41     (d) The date by which preliminary proposals must be submitted

40-42  to the public body, which must not be less than 30 days after the

40-43  date that the request for preliminary proposals is first published in a

40-44  newspaper pursuant to subsection 1; and

41-1      (e) A statement setting forth the place and time in which a

41-2  design-build team desiring to submit a proposal for the public work

41-3  may obtain the information necessary to submit a proposal,

41-4  including, without limitation, the information set forth in

41-5  subsection 3.

41-6      3.  A public body shall maintain at the time and place set forth

41-7  in the request for preliminary proposals the following information

41-8  for inspection by a design-build team desiring to submit a proposal

41-9  for the public work:

41-10     (a) The extent to which designs must be completed for both

41-11  preliminary and final proposals and any other requirements for the

41-12  design and construction of the public work that the public body

41-13  determines to be necessary;

41-14     (b) A list of the requirements set forth in NRS 338.1721;

41-15     (c) A list of the factors that the public body will use to evaluate

41-16  design-build teams who submit a proposal for the public work,

41-17  including, without limitation:

41-18         (1) The relative weight to be assigned to each factor pursuant

41-19  to NRS 338.1727; and

41-20         (2) A disclosure of whether the factors that are not related to

41-21  cost are, when considered as a group, more or less important in the

41-22  process of evaluation than the factor of cost;

41-23     (d) Notice that a design-build team desiring to submit a proposal

41-24  for the public work must include with its proposal the information

41-25  used by the public body to determine finalists among the design-

41-26  build teams submitting proposals pursuant to subsection 2 of NRS

41-27  338.1725 and a description of that information;

41-28     (e) A statement that a design-build team whose prime contractor

41-29  holds a certificate of eligibility to receive a preference in bidding on

41-30  public works issued pursuant to NRS 338.1389 or 338.147 should

41-31  submit a copy of the certificate of eligibility with its proposal; and

41-32     (f) A statement as to whether a design-build team that is selected

41-33  as a finalist pursuant to NRS 338.1725 but is not awarded the

41-34  design-build contract pursuant to NRS 338.1727 will be partially

41-35  reimbursed for the cost of preparing a final proposal and, if so, an

41-36  estimate of the amount of the partial reimbursement.

41-37     Sec. 37.  NRS 338.1727 is hereby amended to read as follows:

41-38     338.1727  1.  After selecting the finalists pursuant to NRS

41-39  338.1725, the public body shall provide to each finalist a request for

41-40  final proposals for the public work. The request for final proposals

41-41  must:

41-42     (a) Set forth the factors that the public body will use to select a

41-43  design-build team to design and construct the public work, including

41-44  the relative weight to be assigned to each factor; and

42-1      (b) Set forth the date by which final proposals must be

42-2  submitted to the public body.

42-3      2.  Except as otherwise provided in this subsection, in assigning

42-4  the relative weight to each factor for selecting a design-build team

42-5  pursuant to subsection 1, the public body shall assign, without

42-6  limitation, a relative weight of 5 percent to the possession of a

42-7  certificate of eligibility to receive a preference in bidding on public

42-8  works and a relative weight of at least 30 percent to the proposed

42-9  cost of design and construction of the public work. If any federal

42-10  statute or regulation precludes the granting of federal assistance or

42-11  reduces the amount of that assistance for a particular public work

42-12  because of the provisions of this subsection relating to preference in

42-13  bidding on public works, those provisions of this subsection do not

42-14  apply insofar as their application would preclude or reduce federal

42-15  assistance for that public work.

42-16     3.  A final proposal submitted by a design-build team pursuant

42-17  to this section must be prepared thoroughly, be responsive to the

42-18  criteria that the public body will use to select a design-build team to

42-19  design and construct the public work described in subsection 1 and

42-20  comply with the provisions of NRS 338.141.

42-21     4.  After receiving the final proposals for the public work, the

42-22  public body , at a regularly scheduled meeting, shall:

42-23     (a) Select the most cost-effective and responsive final proposal,

42-24  using the criteria set forth pursuant to subsections 1 and 2; or

42-25     (b) Reject all the final proposals.

42-26     5.  If a public body selects a final proposal pursuant to

42-27  paragraph (a) of subsection 4, the public body shall, at [its next] a

42-28  regularly scheduled meeting:

42-29     (a) Review and ratify the selection.

42-30     (b) Award the design-build contract to the design-build team

42-31  whose proposal is selected.

42-32     (c) Partially reimburse the unsuccessful finalists if partial

42-33  reimbursement was provided for in the request for preliminary

42-34  proposals pursuant to paragraph (f) of subsection 3 of NRS

42-35  338.1723. The amount of reimbursement must not exceed, for each

42-36  unsuccessful finalist, 3 percent of the total amount to be paid to the

42-37  design-build team as set forth in the design-build contract.

42-38     (d) Make available to the public a summary setting forth the

42-39  factors used by the public body to select the successful design-build

42-40  team and the ranking of the design-build teams who submitted final

42-41  proposals. The public body shall not release to a third party, or

42-42  otherwise make public, financial or proprietary information

42-43  submitted by a design-build team.

42-44     6.  A contract awarded pursuant to this section:

42-45     (a) Must specify:

43-1          (1) An amount that is the maximum amount that the public

43-2  body will pay for the performance of all the work required by the

43-3  contract, excluding any amount related to costs that may be incurred

43-4  as a result of unexpected conditions or occurrences as authorized by

43-5  the contract;

43-6          (2) An amount that is the maximum amount that the public

43-7  body will pay for the performance of the professional services

43-8  required by the contract; and

43-9          (3) A date by which performance of the work required by the

43-10  contract must be completed.

43-11     (b) May set forth the terms by which the design-build team

43-12  agrees to name the public body, at the cost of the public body, as an

43-13  additional insured in an insurance policy held by the design-build

43-14  team.

43-15     (c) Except as otherwise provided in paragraph (d), must not

43-16  require the design professional to defend, indemnify or hold

43-17  harmless the public body or the employees, officers or agents of that

43-18  public body from any liability, damage, loss, claim, action or

43-19  proceeding caused by the negligence, errors, omissions, recklessness

43-20  or intentional misconduct of the employees, officers and agents of

43-21  the public body.

43-22     (d) May require the design-build team to defend, indemnify and

43-23  hold harmless the public body, and the employees, officers and

43-24  agents of the public body from any liabilities, damages, losses,

43-25  claims, actions or proceedings, including, without limitation,

43-26  reasonable attorneys’ fees, that are caused by the negligence, errors,

43-27  omissions, recklessness or intentional misconduct of the design-

43-28  build team or the employees or agents of the design-build team in

43-29  the performance of the contract.

43-30     7.  [Any provision of a contract that is in violation of paragraph

43-31  (c) of subsection 6 is declared to be contrary to the public policy of

43-32  this state and is void.

43-33     8.] A design-build team to whom a contract is awarded

43-34  pursuant to this section shall:

43-35     (a) Assume overall responsibility for ensuring that the design

43-36  and construction of the public work is completed in a satisfactory

43-37  manner; and

43-38     (b) Use the workforce of the prime contractor on the design-

43-39  build team to construct at least 15 percent of the public work.

43-40     Sec. 38.  NRS 338.175 is hereby amended to read as follows:

43-41     338.175  A public body shall notify the State Board of

43-42  Architecture, Interior Design and Residential Design or the State

43-43  Board of Landscape Architecture, as applicable, in writing if a

43-44  registered architect, interior designer , [or] residential designer[:] or

43-45  landscape architect:

44-1      1.  Submits plans for a project which are substantially

44-2  incomplete; or

44-3      2.  Submits plans for the same project which are rejected by the

44-4  public body at least three times.

44-5      Sec. 39.  NRS 338.177 is hereby amended to read as follows:

44-6      338.177  1.  Real property acquired by the governing body of

44-7  a local government for a public work may be leased, pending the

44-8  completion of the public work but for not more than 5 years, upon

44-9  such terms and conditions as the governing body [of the local

44-10  government] prescribes.

44-11     2.  The governing body [of the local government] shall:

44-12     (a) Adopt the procedures for entering into such a lease at a

44-13  public hearing held thereon; and

44-14     (b) Offer to lease the property to the person from whom it was

44-15  acquired before offering to lease the property to any other person.

44-16     3.  Except as otherwise provided in this subsection, revenue

44-17  from the lease must be used to maintain the property in order to

44-18  mitigate any adverse effect upon the adjacent area. Any revenue

44-19  from the lease that is not needed to maintain the property must be

44-20  used to offset the cost of the public work for which the property was

44-21  acquired.

44-22     Sec. 40.  NRS 338.180 is hereby amended to read as follows:

44-23     338.180  1.  The Legislature of the State of Nevada declares

44-24  that:

44-25     (a) The primary purpose of this section is to provide, subject to

44-26  the limitations set forth in this section, for the removal and

44-27  elimination of architectural barriers to the physically handicapped in

44-28  public buildings and facilities designed after July 1, 1973, in order

44-29  to encourage and facilitate the employment of the physically

44-30  handicapped and to make public buildings accessible to and usable

44-31  by the physically handicapped; and

44-32     (b) It is the intent of the Legislature that insofar as possible all

44-33  buildings and facilities used by the public be accessible to, and

44-34  functional for, the physically handicapped, without loss of function,

44-35  space or facility where the general public is concerned.

44-36     2.  All plans and specifications for the construction of public

44-37  buildings and facilities owned by [the State of Nevada or by a

44-38  political subdivision thereof] a public body must, after July 1, 1973,

44-39  provide facilities and features for the physically handicapped so that

44-40  buildings which are normally used by the public are constructed

44-41  with entrance ramps, toilet facilities, drinking fountains, doors and

44-42  public telephones accessible to and usable by the physically

44-43  handicapped. In addition, all plans and specifications for the

44-44  construction or alteration of public buildings and facilities owned by

45-1  [the State of Nevada or a political subdivision thereof] a public body

45-2  must comply with the applicable requirements of the:

45-3      (a) Americans with Disabilities Act of 1990, 42 U.S.C. §§

45-4  12101 et seq., and the regulations adopted pursuant thereto,

45-5  including, without limitation, the Americans with Disabilities Act

45-6  Accessibility Guidelines for Buildings and Facilities set forth in

45-7  Appendix A of Part 36 of Title 28 of the Code of Federal

45-8  Regulations;

45-9      (b) Minimum Guidelines and Requirements for Accessible

45-10  Design, 36 C.F.R. §§ 1190.1 et seq.; and

45-11     (c) Fair Housing Act, 42 U.S.C. § 3604, and the regulations

45-12  adopted pursuant thereto.

45-13  The requirements of paragraph (a) of this subsection are not

45-14  satisfied if the plans and specifications comply solely with the

45-15  Uniform Federal Accessibility Standards set forth in Appendix A of

45-16  Part 101-19.6 of Title 41 of the Code of Federal Regulations.

45-17     3.  [The State of Nevada and each political subdivision thereof]

45-18  All public bodies shall, in the design, construction and alteration of

45-19  public buildings and facilities comply with the applicable

45-20  requirements of the:

45-21     (a) Americans with Disabilities Act of 1990, 42 U.S.C. §§

45-22  12101 et seq., and the regulations adopted pursuant thereto,

45-23  including, without limitation, the Americans with Disabilities Act

45-24  Accessibility Guidelines for Buildings and Facilities set forth in

45-25  Appendix A of Part 36 of Title 28 of the Code of Federal

45-26  Regulations;

45-27     (b) Minimum Guidelines and Requirements for Accessible

45-28  Design, 36 C.F.R. §§ 1190.1 et seq.; and

45-29     (c) Fair Housing Act, 42 U.S.C. § 3604, and the regulations

45-30  adopted pursuant thereto.

45-31  The requirements of paragraph (a) of this subsection are not

45-32  satisfied if the [State of Nevada or a political subdivision thereof]

45-33  public body complies solely with the Uniform Federal Accessibility

45-34  Standards set forth in Appendix A of Part 101-19.6 of Title 41 of the

45-35  Code of Federal Regulations.

45-36     4.  In each public building and facility owned by [this state or a

45-37  political subdivision of this state,] a public body, each entrance to a

45-38  corridor which leads to a toilet facility must be marked with a sign

45-39  which:

45-40     (a) Conforms to the requirements related to signage contained in

45-41  §§ 4.30 et seq. of the Americans with Disabilities Act Accessibility

45-42  Guidelines for Buildings and Facilities set forth in Appendix A of

45-43  Part 36 of Title 28 of the Code of Federal Regulations; and

45-44     (b) Uses symbols, raised letters and Braille to:

46-1          (1) Identify the toilet facility and the gender of persons who

46-2  may use the toilet facility; and

46-3          (2) If the toilet facility is for the exclusive use of persons of

46-4  one gender:

46-5              (I) Indicate that the toilet facility is for the exclusive use

46-6  of persons of that gender; and

46-7              (II) Provide direction to a toilet facility that may be used

46-8  by persons of the other gender.

46-9      5.  The State Public Works Board shall verify that all public

46-10  buildings and facilities owned by the State of Nevada conform with

46-11  the requirements of this section. Each political subdivision shall

46-12  verify that all public buildings and facilities owned by the political

46-13  subdivision conform with the requirements of this section.

46-14     6.  A person may report a violation of this section to the

46-15  Attorney General.

46-16     7.  Upon receiving a report pursuant to subsection 6, the

46-17  Attorney General shall notify the public body responsible for the

46-18  alleged violation. Not later than 30 days after receiving such a

46-19  notification, the public body shall:

46-20     (a) Present evidence to the Attorney General that it is in

46-21  compliance with this section; or

46-22     (b) Begin any action necessary to comply with the requirements

46-23  of this section and notify the Attorney General of the date on which

46-24  it will be in compliance with those requirements.

46-25     8.  If the public body responsible for the alleged violation fails

46-26  to comply with this section, the Attorney General shall take such

46-27  action as is necessary to ensure compliance with this section,

46-28  including, without limitation, commencing proceedings in a court of

46-29  competent jurisdiction, if appropriate.

46-30     Sec. 41.  NRS 338.1907 is hereby amended to read as follows:

46-31     338.1907  1.  The governing body of a local government may

46-32  designate one or more energy retrofit coordinators for the buildings

46-33  occupied by the local government.

46-34     2.  If such a coordinator is designated, upon request by or

46-35  consultation with an officer or employee of the local government

46-36  who is responsible for the budget of a department, board,

46-37  commission or other entity of the local government, the coordinator

46-38  may request the approval of the governing body to advertise a

46-39  request for proposals to retrofit a building, or any portion thereof,

46-40  that is occupied by the department, board, commission or other

46-41  entity, to make the use of energy in the building, or portion thereof,

46-42  more efficient.

46-43     3.  Upon approval of the governing body, the coordinator shall

46-44  prepare a request for proposals for the retrofitting of one or more

46-45  buildings, or any portion thereof, which includes:

47-1      (a) The name and location of the coordinator;

47-2      (b) A brief description of the requirements for the initial audit of

47-3  the use of energy and the retrofitting;

47-4      (c) Where and how specifications of the requirements for the

47-5  initial audit of the use of energy and the retrofitting may be

47-6  obtained;

47-7      (d) The date and time not later than which proposals must be

47-8  received by the coordinator; and

47-9      (e) The date and time when responses will be opened.

47-10     4.  The request for proposals must be published in [at least one

47-11  newspaper of] a newspaper qualified pursuant to chapter 238 of

47-12  NRS that is published in the county where the work will be

47-13  performed. If no qualified newspaper is published in the county

47-14  where the public work will be performed, the required

47-15  advertisement must be published in some qualified newspaper that

47-16  is printed in the State of Nevada and has a general circulation in

47-17  the county [in which the local government is located.] where the

47-18  work will be performed.

47-19     5.  After receiving the proposals but before making a decision

47-20  on the proposals, the coordinator shall consider:

47-21     (a) The best interests of the local government;

47-22     (b) The experience and financial stability of the persons

47-23  submitting the proposals;

47-24     (c) Whether the proposals conform with the terms of the request

47-25  for proposals;

47-26     (d) The prices of the proposals; and

47-27     (e) Any other factor disclosed in the request for proposals.

47-28     6.  The coordinator shall determine the relative weight of each

47-29  factor before a request for proposals is advertised. The weight of

47-30  each factor must not be disclosed before the date proposals are

47-31  required to be submitted to the coordinator.

47-32     7.  After reviewing the proposals, if the coordinator determines

47-33  that sufficient energy could be saved to justify retrofitting the

47-34  building or buildings, or portion thereof, the coordinator shall select

47-35  the best proposal and request the approval of the governing body to

47-36  award the contract. The request for approval must include the

47-37  proposed method of financing the audit and retrofit, which may

47-38  include an installment contract, a shared savings contract or any

47-39  other contract for a reasonable financing arrangement. Such a

47-40  contract may commit the local government to make payments

47-41  beyond the fiscal year in which the contract is executed or beyond

47-42  the terms of office of the governing body, or both.

47-43     8.  Before approving a retrofit pursuant to this section, the

47-44  governing body shall evaluate any projects that would utilize shared

47-45  savings as a method of payment or any method of financing that

48-1  would commit the local government to make payments beyond the

48-2  fiscal year in which the contract is executed or beyond the terms of

48-3  office of the governing body to ensure that:

48-4      (a) The amount of energy to be saved will likely justify the cost

48-5  of the retrofit; and

48-6      (b) The local government is likely to continue to occupy the

48-7  building for the entire period required to recoup the cost of the

48-8  retrofit in energy savings.

48-9      9.  Upon approval of the governing body, the coordinator shall

48-10  execute the contract and notify each officer or employee who is

48-11  responsible for the budget of a department, board, commission or

48-12  other entity which occupies a portion of a building that will be

48-13  retrofitted of the amount of money it will be required to pay

48-14  annually for its portion of the retrofit.

48-15     10.  NRS 338.1385 and 338.143 do not apply to a project for

48-16  which a request for proposals is advertised and the contract is

48-17  awarded pursuant to the provisions of this section.

48-18     Sec. 42.  NRS 338.515 is hereby amended to read as follows:

48-19     338.515  1.  Except as otherwise provided in NRS 338.525, a

48-20  public body and its officers or agents awarding a contract for a

48-21  public work shall pay or cause to be paid to a contractor the progress

48-22  payments due under the contract within 30 days after the date the

48-23  public body receives the progress bill or within a shorter period if

48-24  the provisions of the contract so provide. Not more than 90 percent

48-25  of the amount of any progress payment may be paid until 50 percent

48-26  of the work required by the contract has been performed. Thereafter

48-27  the public body may pay any of the remaining progress payments

48-28  without withholding additional retainage if, in the opinion of the

48-29  public body, satisfactory progress is being made in the work.

48-30     2.  Except as otherwise provided in NRS 338.525, a public

48-31  body shall identify in the contract and pay or cause to be paid to a

48-32  contractor the actual cost of the supplies, materials and equipment

48-33  that:

48-34     (a) Are identified in the contract;

48-35     (b) Have been delivered and stored at a location, and in the time

48-36  and manner, specified in a contract by the contractor or a

48-37  subcontractor or supplier for use in [the construction, repair or

48-38  reconstruction of the] a public work; and

48-39     (c) Are in short supply or were specially made for the public

48-40  work,

48-41  within 30 days after the public body receives a progress bill from

48-42  the contractor for those supplies, materials or equipment.

48-43     3.  A public body shall pay or cause to be paid to the contractor

48-44  at the end of each quarter interest for the quarter on any amount

48-45  withheld by the public body pursuant to NRS 338.400 to 338.645,

49-1  inclusive, at a rate equal to the rate quoted by at least three financial

49-2  institutions as the highest rate paid on a certificate of deposit whose

49-3  duration is approximately 90 days on the first day of the quarter. If

49-4  the amount due to a contractor pursuant to this subsection for any

49-5  quarter is less than $500, the public body may hold the interest until:

49-6      (a) The end of a subsequent quarter after which the amount of

49-7  interest due is $500 or more;

49-8      (b) The end of the fourth consecutive quarter for which no

49-9  interest has been paid to the contractor; or

49-10     (c) The amount withheld under the contract is due pursuant to

49-11  NRS 338.520,

49-12  whichever occurs first.

49-13     4.  If the Labor Commissioner has reason to believe that an

49-14  employee has a valid and enforceable claim for wages against a

49-15  contractor[,] or subcontractor, he may require the public body to

49-16  withhold from any payment due the contractor under this section

49-17  and pay the Labor Commissioner instead, an amount equal to the

49-18  amount claimed by the employee. This amount must be paid to the

49-19  employee by the Labor Commissioner if the claim is resolved in his

49-20  favor, otherwise it must be returned to the public body for payment

49-21  to the contractor.

49-22     Sec. 43.  NRS 338.560 is hereby amended to read as follows:

49-23     338.560  1.  A contractor may withhold from a progress

49-24  payment or retainage payment an amount sufficient to pay [the] :

49-25     (a) The expenses the contractor reasonably expects to incur as a

49-26  result of the failure of his subcontractor or supplier to comply with

49-27  the subcontract or applicable building code, law or regulation.

49-28     (b) An amount withheld from payment to the contractor by a

49-29  public body pursuant to subsection 4 of NRS 338.515 for a claim

49-30  for wages against the subcontractor.

49-31     2.  A contractor shall, within 10 days after he receives:

49-32     (a) A progress payment or retainage payment from the public

49-33  body for an amount that is less than the amount set forth in the

49-34  applicable progress bill or retainage bill; or

49-35     (b) A progress bill or retainage bill from his subcontractor or

49-36  supplier,

49-37  give a written notice to his subcontractor or supplier of any amount

49-38  that will be withheld pursuant to this section.

49-39     3.  The written notice must:

49-40     (a) Set forth:

49-41         (1) The amount of the progress payment or retainage

49-42  payment that will be withheld from his subcontractor or supplier;

49-43  and

49-44         (2) A detailed explanation of the reason the contractor will

49-45  withhold that amount, including, without limitation, a specific

50-1  reference to the provision or section of the subcontract, or

50-2  documents related thereto, or applicable building code, law or

50-3  regulation with which his subcontractor or supplier has failed to

50-4  comply; and

50-5      (b) Be signed by an authorized agent of the contractor.

50-6      4.  The contractor shall pay to his subcontractor or supplier the

50-7  amount withheld by the public body or the contractor within 10 days

50-8  after:

50-9      (a) The contractor receives a written notice of the correction of

50-10  the condition that is the reason for the withholding, signed by an

50-11  authorized agent of the subcontractor or supplier; or

50-12     (b) The public body pays to the contractor the amount

50-13  withheld,

50-14  whichever occurs later.

50-15     Sec. 44.  NRS 338.595 is hereby amended to read as follows:

50-16     338.595  1.  If a subcontractor and another subcontractor or

50-17  supplier enter into a subcontract for a public work, the subcontractor

50-18  may withhold as retainage not more than 10 percent from the

50-19  amount of any progress payment due under a subcontract which is

50-20  made before 50 percent of the work has been completed under the

50-21  subcontract. The subcontractor shall pay any additional progress

50-22  payments due under the subcontract without withholding any

50-23  additional retainage if, in the opinion of the subcontractor,

50-24  satisfactory progress is being made in the work under the

50-25  subcontract. The payment must be equal to that paid by the

50-26  contractor to him for the work performed or supplies provided by

50-27  his subcontractor or supplier.

50-28     2.  If the subcontractor receives a payment of interest earned on

50-29  the retainage or an amount withheld from a progress payment, he

50-30  shall, within 10 days after receiving the money, pay to each of his

50-31  subcontractors or suppliers that portion of the interest received from

50-32  the contractor which is attributable to the retainage or amount

50-33  withheld from a progress payment by [him to] the subcontractor to

50-34  his subcontractor or supplier.

50-35     Sec. 45.  NRS 338.600 is hereby amended to read as follows:

50-36     338.600  1.  A subcontractor may withhold from a progress

50-37  payment or retainage payment an amount sufficient to pay the

50-38  expenses the subcontractor reasonably expects to incur as a result of

50-39  the failure of his subcontractor or supplier to comply with the

50-40  subcontract or applicable building code, law or regulation.

50-41     2.  A subcontractor shall, within 10 days after he receives:

50-42     (a) A progress payment or retainage payment from a contractor

50-43  for an amount that is less than the amount set forth in the applicable

50-44  progress bill or retainage bill; or

51-1      (b) A progress bill or retainage bill from his subcontractor or

51-2  supplier,

51-3  give a written notice to his subcontractor or supplier of any amount

51-4  that will be withheld pursuant to this section.

51-5      3.  The written notice must:

51-6      (a) Set forth:

51-7          (1) The amount of the progress payment or retainage

51-8  payment that will be withheld from his subcontractor or supplier;

51-9  and

51-10         (2) A detailed explanation of the reason the subcontractor

51-11  will withhold that amount, including, without limitation, a specific

51-12  reference to the provision or section of the subcontract, or

51-13  documents related thereto, or applicable building code, law or

51-14  regulation with which the subcontractor or supplier has failed to

51-15  comply; and

51-16     (b) Be signed by an authorized agent of the subcontractor.

51-17     4.  The subcontractor shall pay to his subcontractor or supplier

51-18  the amount withheld by the public body, contractor or subcontractor

51-19  within 10 days after:

51-20     (a) The subcontractor receives a written notice of the correction

51-21  of the condition that is the reason for the withholding, signed by an

51-22  authorized agent of his subcontractor or supplier; or

51-23     (b) The contractor pays to [him] the subcontractor the amount

51-24  withheld,

51-25  whichever occurs later.

51-26     Sec. 46.  NRS 338.1383 is hereby repealed.

51-27     Sec. 47.  1.  This section and sections 1 to 18, inclusive, 20 to

51-28  25, inclusive, and 27 to 46, inclusive, of this act become effective on

51-29  July 1, 2003.

51-30     2.  Sections 18 and 25 of this act expire by limitation on

51-31  April 30, 2013.

51-32     3.  Sections 19 and 26 of this act become effective on May 1,

51-33  2013.

 

51-34  TEXT OF REPEALED SECTION

 

51-35     338.1383  Requirements for acceptance of bids by local

51-36   government which has not adopted criteria for qualification of

51-37   bidders. If a local government does not adopt criteria for the

51-38   qualification of bidders on a public work pursuant to NRS

51-39   338.1377, the governing body may only accept a bid on a contract

51-40   for a public work from a person who holds:

52-1      1.  An unlimited contractor’s license issued by the State

52-2  Contractors’ Board in the branch of general engineering contracting

52-3   or general building contracting, or in both branches, and:

52-4      (a) At the time he submits his bid, he provides a bid bond equal

52-5   to 10 percent of the amount of the bid; and

52-6      (b) At the time the contract is awarded, he provides a

52-7   performance bond, a labor and material bond and a guaranty bond,

52-8   each equal to 100 percent of the amount of the contract; or

52-9      2.  A contractor’s license issued by the State Contractors’ Board

52-10   that is designated in any classification if he:

52-11     (a) Has, in the 5 years immediately preceding the submission of

52-12   the bid, been found to be a responsible contractor in the

52-13   classification in which his contractor’s license is designated;

52-14     (b) Provides a bid bond, a performance bond, a guaranty bond,

52-15   and a labor and material bond in such amounts as the governing

52-16   body may require; and

52-17     (c) Employs a person determined by the State Contractors’

52-18   Board to be qualified to supervise each classification of

52-19   construction upon which the person submitting the bid is bidding.

 

52-20  H