SB19_EN

Senate Bill No. 19–Committee on Government Affairs

CHAPTER..........

AN ACT relating to public works; providing for an expedited process by which the State or a local government solicits bids and awards contracts for certain smaller public works projects to properly licensed contractors or completes such projects itself; providing that such an expedited process does not relieve the State or a local government from certain duties; 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 the provisions set forth as sections 2 to 7, inclusive, of this

act.

Sec. 2. If the estimated cost of a public work is $100,000 or

less, this state or a local government shall:

1. Award a contract for the completion of the project to a

properly licensed contractor in accordance with section 3 of this

act; or

2. Perform the project itself in accordance with section 4 of

this act.

Sec. 3. 1. Before this state or a local government awards a

contract for the completion of a public works project in

accordance with subsection 1 of section 2 of this act, the State or

the local government must:

(a) If the estimated cost of the public work is more than

$25,000 but not more than $100,000, solicit bids from at least

three properly licensed contractors; and

(b) If the estimated cost of the public work is $25,000 or less,

solicit a bid from at least one properly licensed contractor.

2. Any bids received in response to a solicitation for bids

made pursuant to this section may be rejected if the State or the

local government determines that:

(a) The quality of the services, materials, equipment or labor

offered does not conform to the approved plan or specifications;

(b) The bidder is not responsive or responsible; or

3. At least once each quarter, the State and each local

government shall prepare a report detailing, for each public

works project over $25,000 for which a contract for its completion

is awarded pursuant to paragraph (a) of subsection 1, if any:

(a) The name of the contractor to whom the contract was

awarded;

(b) The amount of the contract awarded;

(d) The names of all contractors from whom bids were

solicited.

4. A report prepared pursuant to subsection 3 is a public

record and must be maintained on file at the administrative

offices of the applicable public body.

5. The provisions of this section do not relieve this state from

the duty to award the contract for the public work to a bidder who

is:

(a) Qualified pursuant to the applicable provisions of NRS

338.1375 to 338.1383, inclusive; and

(b) The lowest responsive and responsible bidder, if bids are

required to be solicited from more than one properly licensed

contractor pursuant to subsection 1.

Sec. 4. 1. If the State or a local government proposes to

perform a public works project itself in accordance with

subsection 2 of section 2 of this act, the public officer responsible

for the management of the public works projects of the State or

the local government, as applicable, must, if the estimated cost of

the public work is more than $25,000 but not more than $100,000

and before work on the project is commenced, prepare a signed

attestation regarding the decision of the State or the local

government to perform the project itself.

2. An attestation prepared pursuant to subsection 1:

(a) Must set forth:

(1) The estimated cost of the project;

(2) A general statement as to why the State or the local

government has decided to perform the project itself; and

(3) A general statement that the project will adhere to the

same quality and standards as would be required of a properly

licensed contractor if the project had been awarded to a properly

licensed contractor;

(b) Is a public record and must be maintained on file at the

administrative offices of the applicable public body.

Sec. 5. If the estimated cost of a public work is $100,000 or

less, a local government shall:

1. Award a contract for the completion of the project to a

properly licensed contractor in accordance with section 6 of this

act; or

2. Perform the project itself in accordance with section 7 of

this act.

Sec. 6. 1. Before a local government awards a contract for

the completion of a public works project in accordance with

subsection 1 of section 5 of this act, the local government must:

(a) If the estimated cost of the public work is more than

$25,000 but not more than $100,000, solicit bids from at least

three properly licensed contractors; and

(b) If the estimated cost of the public work is $25,000 or less,

solicit a bid from at least one properly licensed contractor.

2. Any bids received in response to a solicitation for bids

made pursuant to this section may be rejected if the local

government determines that:

(a) The quality of the services, materials, equipment or labor

offered does not conform to the approved plan or specifications;

(b) The bidder is not responsive or responsible; or

3. At least once each quarter, a local government shall

prepare a report detailing, for each public works project over

$25,000 for which a contract for its completion is awarded

pursuant to paragraph (a) of subsection 1, if any:

(a) The name of the contractor to whom the contract was

awarded;

(b) The amount of the contract awarded;

(d) The names of all contractors from whom bids were

solicited.

4. A report prepared pursuant to subsection 3 is a public

record and must be maintained on file at the administrative

offices of the applicable public body.

5. The provisions of this section do not relieve a local

government from the duty to award the contract for the public

work to a bidder who is the lowest responsive and responsible

bidder, if bids are required to be solicited from more than one

properly licensed contractor pursuant to subsection 1 of this

section.

Sec. 7. 1. If a local government proposes to perform a

public works project itself in accordance with subsection 2 of

section 5 of this act, the public officer responsible for the

management of the public works projects of the local government

must, if the estimated cost of the public work is more than

$25,000 but not more than $100,000 and before work on the

project is commenced, prepare a signed attestation regarding the

decision of the local government to perform the project itself.

2. An attestation prepared pursuant to subsection 1:

(a) Must set forth:

(1) The estimated cost of the project;

(2) A general statement as to why the local government has

decided to perform the project itself; and

(3) A general statement that the project will adhere to the

same quality and standards as would be required of a properly

licensed contractor if the project had been awarded to a properly

licensed contractor;

(b) Is a public record and must be maintained on file at the

administrative offices of the local government.

Sec. 8. NRS 338.010 is hereby amended to read as follows:

338.010 As used in this chapter:

1. “Day labor” means all cases where public bodies, their

officers, agents or employees, hire, supervise and pay the wages

thereof directly to a workman or workmen employed by them on

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

2. “Design-build contract” means a contract between a public

body and a design-build team in which the design-build team agrees

to design and construct a public work.

3. “Design-build team” means an entity that consists of:

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

contractor or a general building contractor pursuant to chapter 624

of NRS; and

(b) For a public work that consists of:

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

certificate of registration to practice architecture pursuant to chapter

623 of NRS.

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

person who holds a certificate of registration to practice

architecture pursuant to chapter 623 of NRS or is licensed as a

professional engineer pursuant to chapter 625 of NRS.

4. “Design professional” means:

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

to chapter 625 of NRS;

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

pursuant to chapter 625 of NRS;

the practice of architecture pursuant to chapter 623 of NRS;

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

the practice of landscape architecture pursuant to chapter 623A of

NRS; or

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

engineering, land surveying, architecture or landscape architecture.

5. “Eligible bidder” means a person who is:

(a) Found to be a responsible and responsive contractor by a

local government which requests bids for a public work in

accordance with paragraph (b) of subsection 1 of NRS 338.1373; or

(b) Determined by a public body which awarded a contract for a

public work pursuant to NRS 338.1375 to 338.139, inclusive, and

sections 2, 3 and 4 of this act, to be qualified to bid on that contract

pursuant to NRS 338.1379 or was exempt from meeting such

qualifications pursuant to NRS 338.1383.

6. “General contractor” means a person who is licensed to

conduct business in one, or both, of the following branches of the

contracting business:

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

of NRS 624.215.

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

NRS 624.215.

7. “Local government” means every political subdivision or

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

valorem or other taxes or any mandatory assessments, and includes,

without limitation, counties, cities, towns, boards, school districts

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

379, 474, 541, 543 and 555 of NRS, NRS 450.550 to 450.750,

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

prepares a budget separate from that of the parent political

subdivision. The term includes a person who has been designated

by a local government to serve as the authorized representative of

the local government in developing and awarding contracts for

public works projects on behalf of the local government.

8. “Offense” means failing to:

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

(b) Pay the contributions for unemployment compensation

required pursuant to chapter 612 of NRS;

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

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

9. “Prime contractor” means a person who:

(a) Contracts to construct an entire project;

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

construction, repair or reconstruction of the project; and

(d) Contracts for the services of any subcontractor or

independent contractor or is responsible for payment to any

contracted subcontractors or independent contractors.

The term includes, without limitation, a general contractor or a

specialty contractor who is authorized to bid on a project pursuant

to NRS 338.139 or 338.148.

10. “Public body” means the State, county, city, town, school

district or any public agency of this state or its political

subdivisions sponsoring or financing a public work.

11. “Public work” means any project for the new construction,

repair or reconstruction of:

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

for:

(1) Public buildings;

(2) Jails and prisons;

(3) Public roads;

(4) Public highways;

(5) Public streets and alleys;

(6) Public utilities which are financed in whole or in part by

public money;

(7) Publicly owned water mains and sewers;

(8) Public parks and playgrounds;

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

part with public [funds;] money; and

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

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

a project is included in the cost of the project to determine whether

a project meets that threshold.]

(b) A building for the University and Community College

System of Nevada of which 25 percent or more of the costs of the

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

or from federal money.

12. “Specialty contractor” means a person who is licensed to

conduct business as described in subsection 4 of NRS 624.215.

13. “Stand-alone underground utility project” means an

underground utility project that is not integrated into a larger

project, including, without limitation:

(a) An underground sewer line or an underground pipeline for

the conveyance of water, including facilities appurtenant thereto;

and

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

including facilities appurtenant thereto,

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

construction of which a public body is authorized to contract with a

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

14. “Wages” means:

(a) The basic hourly rate of pay; and

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

holiday pay, the cost of apprenticeship training or other similar

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

the workman.

15. “Workman” means a skilled mechanic, skilled workman,

semiskilled mechanic, semiskilled workman or unskilled workman.

The term does not include a design professional.

Sec. 9. NRS 338.1373 is hereby amended to read as follows:

338.1373 1. A local government shall award a contract for the

construction, alteration or repair of a public work pursuant to the

provisions of:

(a) NRS 338.1377 to 338.139, inclusive [;] , and sections 2, 3

and 4 of this act; or

(b) NRS 338.143 to 338.148, inclusive [.] , and sections 5, 6

and 7 of this act.

2. The provisions of NRS 338.1375 to 338.1383, inclusive, and

338.139 and sections 2 to 7, inclusive, of this act do not apply with

respect to contracts for the construction, reconstruction,

improvement and maintenance of highways that are awarded by the

Department of Transportation pursuant to NRS 408.313 to 408.433,

inclusive.

Sec. 10. NRS 338.1385 is hereby amended to read as follows:

338.1385 1. Except as otherwise provided in subsection [7] 6

and NRS 338.1906 and 338.1907, this state, or a local government

that awards a contract for the construction, alteration or repair of a

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

NRS 338.1373, or a public officer, public employee or other person

responsible for awarding a contract for the construction, alteration

or repair of a public work who represents the State or the local

government, shall not:

(a) Commence such a project for which the estimated cost

exceeds $100,000 unless it advertises in a newspaper of general

circulation in this state for bids for the project; [or]

(b) Commence such a project for which the estimated cost is

$100,000 or less unless it complies with the provisions of sections

2, 3 and 4 of this act; or

requirements of paragraph (a) [.

2. Except as otherwise provided in subsection 7, a public body

that maintains a list of properly licensed contractors who are

interested in receiving offers to bid on public works projects for

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

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

contractors on the list for a contract of that value for the

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

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

each contractor an equal opportunity to bid on a public works

project. A properly licensed contractor must submit a written

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

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

certified mail.

3.] or (b).

2. Each advertisement for bids must include a provision that

sets forth:

(a) The requirement that a contractor must be qualified pursuant

to NRS 338.1379 to bid on the contract or must be exempt from

meeting such qualifications pursuant to NRS 338.1383; and

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

on the contract must be submitted.

[4.] 3. Approved plans and specifications for the bids must be

on file at a place and time stated in the advertisement for the

inspection of all persons desiring to bid thereon and for other

interested persons. Contracts for the project must be awarded on the

basis of bids received.

[5.] 4. Any bids received in response to an advertisement for

bids may be rejected if the person responsible for awarding the

contract determines that:

(a) The bidder is not a qualified bidder pursuant to NRS

338.1379, unless the bidder is exempt from meeting such

qualifications pursuant to NRS 338.1383;

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

offered does not conform to the approved plan or specifications; or

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

[6.] 5. Before the State or a local government may commence a

project subject to the provisions of this section, based upon a

determination that the public interest would be served by rejecting

any bids received in response to an advertisement for bids, it shall

prepare and make available for public inspection a written

statement containing:

(a) A list of all persons, including supervisors, whom the State

or the local government intends to assign to the project, together

with their classifications and an estimate of the direct and indirect

costs of their labor;

(b) A list of all equipment that the State or the local government

intends to use on the project, together with an estimate of the

number of hours each item of equipment will be used and the

hourly cost to use each item of equipment;

persons assigned to the project;

(d) An estimate of the total cost of the project; and

(e) An estimate of the amount of money the State or the local

government expects to save by rejecting the bids and performing

the project itself.

[7.] 6. This section does not apply to:

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

NRS;

(b) Any work of construction, reconstruction, improvement and

maintenance of highways subject to NRS 408.323 or 408.327;

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

chapter 167, Statutes of Nevada 1947, the Moapa Valley Water

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

the Virgin Valley Water District created pursuant to chapter 100,

Statutes of Nevada 1993; or

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

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

338.1711 to 338.1727.

Sec. 11. NRS 338.1385 is hereby amended to read as follows:

338.1385 1. Except as otherwise provided in subsection [8,]

7, this state, or a local government that awards a contract for the

construction, alteration or repair of a public work in accordance

with paragraph (a) of subsection 1 of NRS 338.1373, or a public

officer, public employee or other person responsible for awarding a

contract for the construction, alteration or repair of a public work

who represents the State or the local government, shall not:

(a) Commence such a project for which the estimated cost

exceeds $100,000 unless it advertises in a newspaper of general

circulation in this state for bids for the project; [or]

(b) Commence such a project for which the estimated cost is

$100,000 or less unless it complies with the provisions of sections

2, 3 and 4 of this act; or

requirements of paragraph (a)[.

2. Except as otherwise provided in subsection 8, a public body

that maintains a list of properly licensed contractors who are

interested in receiving offers to bid on public works projects for

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

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

contractors on the list for a contract of that value for the

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

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

each contractor an equal opportunity to bid on a public works

project. A properly licensed contractor must submit a written

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

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

certified mail.

3.] or (b).

2. Each advertisement for bids must include a provision that

sets forth:

(a) The requirement that a contractor must be qualified pursuant

to NRS 338.1379 to bid on the contract or must be exempt from

meeting such qualifications pursuant to NRS 338.1383; and

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

on the contract must be submitted.

[4.] 3. Approved plans and specifications for the bids must be

on file at a place and time stated in the advertisement for the

inspection of all persons desiring to bid thereon and for other

interested persons. Contracts for the project must be awarded on the

basis of bids received.

[5.] 4. Any bids received in response to an advertisement for

bids may be rejected if the person responsible for awarding the

contract determines that:

(a) The bidder is not a qualified bidder pursuant to NRS

338.1379, unless the bidder is exempt from meeting such

qualifications pursuant to NRS 338.1383;

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

offered does not conform to the approved plan or specifications; or

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

[6.] 5. Before the State or a local government may commence a

project subject to the provisions of this section, based upon a

determination that the public interest would be served by rejecting

any bids received in response to an advertisement for bids, it shall

prepare and make available for public inspection a written

statement containing:

(a) A list of all persons, including supervisors, whom the State

or the local government intends to assign to the project, together

with their classifications and an estimate of the direct and indirect

costs of their labor;

(b) A list of all equipment that the State or the local government

intends to use on the project, together with an estimate of the

number of hours each item of equipment will be used and the

hourly cost to use each item of equipment;

persons assigned to the project;

(d) An estimate of the total cost of the project; and

(e) An estimate of the amount of money the State or the local

government expects to save by rejecting the bids and performing

the project itself.

[7.] 6. In preparing the estimated cost of a project pursuant to

subsection [6,] 5, the State or a local government must include the

fair market value of, or, if known, the actual cost of, all materials,

supplies, labor and equipment to be used for the project.

[8.] 7. This section does not apply to:

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

NRS;

(b) Any work of construction, reconstruction, improvement and

maintenance of highways subject to NRS 408.323 or 408.327;

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

chapter 167, Statutes of Nevada 1947, the Moapa Valley Water

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

the Virgin Valley Water District created pursuant to chapter 100,

Statutes of Nevada 1993; or

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

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

338.1711 to 338.1727, inclusive.

Sec. 12. NRS 338.1389 is hereby amended to read as follows:

338.1389 1. Except as otherwise provided in sections 2 and 4

of this act, NRS 338.1385 and 338.1711 to 338.1727, inclusive, a

public body shall award a contract for a public work to the

contractor who submits the best bid.

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

subsection 11, for the purposes of this section, a contractor who:

(a) Has been determined by the public body to be a qualified

bidder pursuant to NRS 338.1379 or is exempt from meeting such

requirements pursuant to NRS 338.1373 or 338.1383; and

(b) At the time he submits his bid, provides to the public body a

copy of a certificate of eligibility to receive a preference in bidding

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

pursuant to subsection 3 or 4,

shall be deemed to have submitted a better bid than a competing

contractor who has not provided a copy of such a valid certificate of

eligibility if the amount of his bid is not more than 5 percent higher

than the amount bid by the competing contractor.

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

eligibility to receive a preference in bidding on public works to a

general contractor who is licensed pursuant to the provisions of

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

certified public accountant setting forth that the general contractor

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

(a) Paid directly, on his own behalf:

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

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

state, including, without limitation, construction that is undertaken

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

managed by the Federal Government or is on an Indian reservation

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

12-month period for 60 months immediately preceding the

submission of the affidavit from the certified public accountant;

(2) The governmental services tax imposed pursuant to

chapter 371 of NRS on the vehicles used in the operation of his

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

12-month period for 60 months immediately preceding the

submission of the affidavit from the certified public accountant; or

(3) Any combination of such sales and use taxes and

governmental services tax; or

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

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

construction firm that possesses a:

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

of chapter 624 of NRS; and

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

on public works.

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

eligibility to receive a preference in bidding on public works to a

specialty contractor who is licensed pursuant to the provisions of

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

certified public accountant setting forth that the specialty contractor

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

(a) Paid directly, on his own behalf:

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

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

including, without limitation, construction that is undertaken or

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

managed by the Federal Government or is on an Indian reservation

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

12-month period for 60 months immediately preceding the

submission of the affidavit from the certified public accountant;

(2) The governmental services tax imposed pursuant to

chapter 371 of NRS on the vehicles used in the operation of his

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

12-month period for 60 months immediately preceding the

submission of the affidavit from the certified public accountant; or

(3) Any combination of such sales and use taxes and

governmental services tax; or

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

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

construction firm that possesses a:

(1) License as a specialty contractor pursuant to the

provisions of chapter 624 of NRS; and

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

on public works.

5. For the purposes of complying with the requirements set

forth in paragraph (a) of subsection 3 and paragraph (a) of

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

(a) Sales and use taxes and governmental services taxes that

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

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

contractor or specialty contractor, as applicable; and

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

venture in which the contractor is a participant, in proportion to the

amount of interest the contractor has in the joint venture.

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

receive a preference in bidding on public works from the State

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

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

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

accountant setting forth that the contractor has, during the

immediately preceding 12 months, paid the taxes required pursuant

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

applicable, to maintain his eligibility to hold such a certificate.

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

pursuant to subsection 6 ceases to be eligible to receive a

preference in bidding on public works unless he reapplies for and

receives a certificate of eligibility pursuant to subsection 3 or 4, as

applicable.

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

must submit a separate application for each license pursuant to

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

issuance, the certificate of eligibility to receive a preference in

bidding on public works becomes part of the contractor’s license

for which the contractor submitted the application.

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

for a certificate of eligibility to receive a preference in bidding on

public works submits false information to the Board regarding the

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

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

the date on which the Board becomes aware of the submission of

the false information.

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

federal assistance or reduces the amount of that assistance for a

particular public work because of the provisions of subsection 2,

those provisions do not apply insofar as their application would

preclude or reduce federal assistance for that work. The provisions

of subsection 2 do not apply to any contract for a public work

which is expected to cost less than $250,000.

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

venture or by one of them as a joint venturer, the provisions of

subsection 2 apply only if both or all of the joint venturers

separately meet the requirements of that subsection.

12. The State Contractors’ Board shall adopt regulations and

may assess reasonable fees relating to the certification of

contractors for a preference in bidding on public works.

13. A person or entity who believes that a contractor

wrongfully holds a certificate of eligibility to receive a preference

in bidding on public works may challenge the validity of the

certificate by filing a written objection with the public body to

which the contractor has submitted a bid or proposal on a contract

for the construction of a public work. A written objection

authorized pursuant to this subsection must:

(a) Set forth proof or substantiating evidence to support the

belief of the person or entity that the contractor wrongfully holds a

certificate of eligibility to receive a preference in bidding on public

works; and

(b) Be filed with the public body at or after the time at which the

contractor submitted the bid or proposal to the public body and

before the time at which the public body awards the contract for

which the bid or proposal was submitted.

14. If a public body receives a written objection pursuant to

subsection 13, the public body shall determine whether the

objection is accompanied by the proof or substantiating evidence

required pursuant to paragraph (a) of that subsection. If the public

body determines that the objection is not accompanied by the

required proof or substantiating evidence, the public body shall

dismiss the objection and may proceed immediately to award the

contract. If

the public body determines that the objection is accompanied by the

required proof or substantiating evidence, the public body shall

determine whether the contractor qualifies for the certificate

pursuant to the provisions of this section and may proceed to award

the contract accordingly.

Sec. 13. NRS 338.143 is hereby amended to read as follows:

338.143 1. Except as otherwise provided in subsection [6] 5

and NRS 338.1907, a local government that awards a contract for

the construction, alteration or repair of a public work in accordance

with paragraph (b) of subsection 1 of NRS 338.1373, or a public

officer, public employee or other person responsible for awarding a

contract for the construction, alteration or repair of a public work

who represents that local government, shall not:

(a) Commence such a project for which the estimated cost

exceeds $100,000 unless it advertises in a newspaper of general

circulation in this state for bids for the project; [or]

(b) Commence such a project for which the estimated cost is

$100,000 or less unless it complies with the provisions of sections

5, 6 and 7 of this act; or

requirements of paragraph (a)[.

2. Except as otherwise provided in subsection 6, a local

government that maintains a list of properly licensed contractors

who are interested in receiving offers to bid on public works

projects for which the estimated cost is more than $25,000 but less

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

contractors on the list for a contract of that value for the

construction, alteration or repair of a public work. The local

government shall select contractors from the list in such a manner

as to afford each contractor an equal opportunity to bid on a public

works project. A properly licensed contractor must submit a written

request annually to the local government to remain on the list.

Offers for bids which are made pursuant to this subsection must be

sent by certified mail.

3.] or (b).

2. Approved plans and specifications for the bids must be on

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

of all persons desiring to bid thereon and for other interested

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

bids received.

[4.] 3. Any bids received in response to an advertisement for

bids may be rejected if the person responsible for awarding the

contract determines that:

(a) The bidder is not responsive or responsible;

(b) The quality of the services, materials, equipment or labor

offered does not conform to the approved plan or specifications; or

[5.] 4. Before a local government may commence a project

subject to the provisions of this section, based upon a determination

that the public interest would be served by rejecting any bids

received in response to an advertisement for bids, it shall prepare

and make available for public inspection a written statement

containing:

(a) A list of all persons, including supervisors, whom the local

government intends to assign to the project, together with their

classifications and an estimate of the direct and indirect costs of

their labor;

(b) A list of all equipment that the local government intends to

use on the project, together with an estimate of the number of hours

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

item of equipment;

persons assigned to the project;

(d) An estimate of the total cost of the project; and

(e) An estimate of the amount of money the local government

expects to save by rejecting the bids and performing the project

itself.

[6.] 5. This section does not apply to:

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

NRS;

(b) Any work of construction, reconstruction, improvement and

maintenance of highways subject to NRS 408.323 or 408.327;

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

chapter 167, Statutes of Nevada 1947, the Moapa Valley Water

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

the Virgin Valley Water District created pursuant to chapter 100,

Statutes of Nevada 1993; or

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

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

338.1711 to 338.1727, inclusive.

Sec. 14. NRS 338.143 is hereby amended to read as follows:

338.143 1. Except as otherwise provided in subsection [7,] 6,

a local government that awards a contract for the construction,

alteration or repair of a public work in accordance with paragraph

(b) of subsection 1 of NRS 338.1373, or a public officer, public

employee or other person responsible for awarding a contract for

the construction, alteration or repair of a public work who

represents that local government, shall not:

(a) Commence such a project for which the estimated cost

exceeds $100,000 unless it advertises in a newspaper of general

circulation in this state for bids for the project; [or]

(b) Commence such a project for which the estimated cost is

$100,000 or less unless it complies with the provisions of sections

5, 6 and 7 of this act; or

requirements of paragraph (a)[.

2. Except as otherwise provided in subsection 7, a local