Assembly Bill No. 547

Assembly Bill No. 547-Committee on Government Affairs

CHAPTER

598

AN ACT relating to public works projects; requiring the state public works board to adopt criteria and procedures to determine the qualifications of applicants to be bidders on contracts for public works projects of this state; requiring certain general contractors to require certain subcontractors to provide a bond; and providing other matters properly relating thereto.

[Approved July 16, 1997]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. NRS 339.025 is hereby amended to read as follows:
339.025 1. Before any contract, except one subject to the provisions of chapter 408 of NRS, exceeding $20,000 for any project for the new construction, repair or reconstruction of any public building or other public work or public improvement of any contracting body is awarded to any contractor, he [must] shall furnish to the contracting body the following bonds which become binding upon the award of the contract to the contractor:
(a) A performance bond in an amount to be fixed by the contracting body, but not less than 50 percent of the contract amount, conditioned upon the faithful performance of the contract in accordance with the plans, specifications and conditions of the contract. The bond must be solely for the protection of the contracting body which awarded the contract.
(b) A payment bond in an amount to be fixed by the contracting body, but not less than 50 percent of the contract amount. The bond must be solely for the protection of claimants supplying labor or materials to the contractor to whom the contract was awarded, or to any of his subcontractors, in the prosecution of the work provided for in such contract.
2. If a general contractor has been awarded a contract, except one subject to the provisions of chapter 408 of NRS, by the state public works board for any project for new construction, repair or reconstruction of any public building or other public work or public improvement, each of his subcontractors who will perform work on the contract that exceeds $50,000 or 1 percent of the proposed project, whichever amount is greater, shall furnish a bond to the board in an amount to be fixed by the board.
3. Each of the bonds required pursuant to this section must be executed by one or more surety companies authorized to do business in the State of Nevada. If the contracting body is the State of Nevada or any officer, employee, board, bureau, commission, department, agency or institution thereof, the bonds must be payable to the State of Nevada. If the contracting body is other than one of those enumerated in this subsection, the bonds must be payable to the other contracting body.
[3.] 4. Each of the bonds must be filed in the office of the contracting body which awarded the contract for which the bonds were given.
[4.] 5. Nothing in this section prohibits a contracting body from requiring bonds.
Sec. 2. Chapter 341 of NRS is hereby amended by adding thereto a new section to read as follows:
1. The board shall adopt regulations establishing the criteria and procedures for determining the qualification of applicants to be bidders on contracts for public works projects of this state. The board shall use the criteria and procedures to award contracts for public works projects of this state.
2. The criteria adopted by the board pursuant to subsection 1 must include, without limitation, an evaluation of:
(a) The financial ability of the applicant to provide the necessary bond for the contract;
(b) The principal personnel of the applicant;
(c) The performance history of the applicant concerning other recent projects completed by the applicant in this state;
(d) Any breach of contract of the applicant on a prior contract, other than a breach for legitimate cause;
(e) Whether the applicant has ever been disqualified from being awarded a contract pursuant to NRS 338.017 or 338.145; and
(f) The safety program and safety record of the applicant.
3. The regulations adopted pursuant to this section must include, without limitation, a procedure and deadlines for:
(a) Investigating an applicant and determining whether he is qualified to bid on a contract for a public works project of this state based on the criteria established pursuant to this section;
(b) Notifying an applicant of the determination of the board regarding his application; and
(c) A hearing and appeal by an applicant whose application for qualification has been denied by the board.
4. The board shall, not less than 45 days before advertising for bids concerning a public works project, notify by advertisement in a newspaper of general circulation in this state that the contract for the public works project requires a determination that the applicant is qualified to bid on the contract pursuant to this section.
5. An applicant determined to be qualified by the board pursuant to this section must apply each year to renew his qualification in the manner provided in the regulations adopted pursuant to this section.
6. Any information and data pertaining to the net worth of an applicant which are gathered by or provided to the board for a determination of qualification pursuant to this section are confidential and not open to public inspection.
Sec. 3. This act becomes effective upon passage and approval for the purpose of adopting the regulations required pursuant to section 2 of this act and on October 1, 1997, for all other purposes.
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