Senate Bill No. 279-Committee on Government Affairs
April 8, 1997
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Referred to Committee on Government Affairs
SUMMARY--Prohibits public body from requiring contractor or subcontractor to enter into certain agreements as condition of bidding on, being awarded or performing work under contract for public work. (BDR 28-774)
FISCAL NOTE: Effect on Local Government: Yes.
Effect on the State or on Industrial Insurance: No.
EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.
AN ACT relating to public works projects; prohibiting a public body from requiring a contractor or subcontractor to enter into certain agreements as a condition of bidding on, being awarded or performing work under a contract for a public work; providing a penalty; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1 Chapter 338 of NRS is hereby amended by adding thereto a new section to read as follows:
A public body that awards a contract for a public work shall not, as a condition of bidding on the contract, being awarded the contract or performing work under the contract, require a contractor or subcontractor to enter into any agreement with:
1. The employees of the contractor or subcontractor;
2. Any representatives of the employees of the contractor or subcontractor;
3. A labor organization; or
4. Any combination thereof,
that affects the selection of any employees of the contractor or subcontractor who will perform work on the construction, alteration or repair of the public work.
Sec. 2. NRS 338.090 is hereby amended to read as follows:
338.0901. Any person, including the officers, agents or employees of a public body, who violates any of the provisions of NRS 338.010 to 338.080, inclusive, and section 1 of this act is guilty of a misdemeanor.
2. The labor commissioner, in addition to any other penalty provided in this chapter:
(a) Shall assess a person who, after a hearing, is found to have failed to pay the prevailing wage required pursuant to NRS 338.020 to 338.090, inclusive, an amount equal to the difference between the prevailing wages required to be paid and the wages he actually paid; and
(b) May in addition impose an administrative fine not to exceed the costs he incurred to investigate and prosecute the matter.
Sec. 3. NRS 271.335 is hereby amended to read as follows:
271.3351. No contract for doing construction work for acquiring or improving the project contemplated may be made or awarded, nor may the governing body incur any expense or liability in relation thereto, except for maps, plats, diagrams, estimates, plans, specifications and notices, until after the hearing upon the provisional order and notice thereof provided for herein have been given and had.
2. This section does not prevent the governing body from advertising by publication for proposals for doing the work whenever the governing body sees fit, but the contract may not be made or awarded before the time stated in subsection 1.
3. In the case of construction work done by independent contract for any project, or portion thereof, in any improvement district, the municipality shall request competitive bids, and proceed thereon, pursuant to the provisions of chapter 338 of NRS.
4. The municipality may waive any irregularity in the form of any bid.
5. Any contract may be let on a lump sum or on a unit basis.
6. No contract may be entered into for such work unless the contractor gives an undertaking with a sufficient surety or sureties approved by the governing body and in an amount fixed by it for the faithful performance of the contract and for payment of the contract.
7. Upon default in the performance of any contract, any designated official, as directed by motion of the governing body, may advertise and relet the remainder of the work without further ordinance or resolution and deduct the cost from the original contract price and recover any excess cost by suit on the original bond, or otherwise.
8. All contracts must provide among other things that the person entering into the contract with the municipality will pay for all materials furnished and labor and services rendered for the performance of the contract, and that any person furnishing the materials or rendering the services may maintain an action to recover for them against the obligor in the undertaking as though the person was named therein.
9. A contract or agreement made in violation of the provisions of this section is voidable, and no action may be maintained thereon by any party thereto against the municipality.
10. To the extent the municipality makes any payment thereunder, such a contract or agreement is valid, and any such payment may be included in any cost defrayed by the levy of assessments, unless theretofore the municipality elects to void the contract or agreement in its entirety and to recover any such payment from the party to whom made.
11. The governing body, except as expressly limited in this section [,] or as otherwise provided in section 1 of this act, may, in the letting of contracts, impose such conditions upon bidders with regard to bonds and securities, and such guaranties of good and faithful performance and completion of any work and the keeping of the work in repair, and providing for any further matter or thing in connection therewith, as may be considered by the governing body to be advantageous to the municipality and to all interested.
Sec. 4. The provisions of subsection 1 of NRS 354.599 do not apply to any additional expenses of a local government that are related to the provisions of this act.
Sec. 5. This act becomes effective upon passage and approval.