(Reprinted with amendments adopted on April 21, 2003)

 

Assembly Bill No. 393–Assemblyman Goldwater

 

March 17, 2003

____________

 

Referred to Committee on Commerce and Labor

 

SUMMARY—Revises provisions relating to public works projects. (BDR 28‑996)

 

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; prohibiting a public body from withholding payment from contractors in excess of retainage in certain circumstances; authorizing the State or a local government to reject a bid on the basis that the bid is unbalanced or on the basis that the contractor submitting the bid has unbalanced a bid or a schedule of values within the immediately preceding 3 years; revising the provisions prescribing the amount that may be withheld from the progress payments made to contractors on public works; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

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

1-2  thereto a new section to read as follows:

1-3  1. Except as otherwise provided in subsection 2 and NRS

1-4  338.515 and 338.525, a public body and its officers or agents

1-5  awarding a contract for a public work shall not withhold payment

1-6  from the contractor in excess of retainage.

1-7  2.  The prohibition set forth in subsection 1 does not apply

1-8  with respect to any and all liquidated damages that the contractor

1-9  has agreed to pay in the event that the contractor breaches the

1-10  contract.

 

2-1  Sec. 2.  NRS 338.010 is hereby amended to read as follows:

2-2  338.010  As used in this chapter:

2-3  1.  “Day labor” means all cases where public bodies, their

2-4  officers, agents or employees, hire, supervise and pay the wages

2-5  thereof directly to a workman or workmen employed by them on

2-6  public works by the day and not under a contract in writing.

2-7  2.  “Design-build contract” means a contract between a public

2-8  body and a design-build team in which the design-build team agrees

2-9  to design and construct a public work.

2-10      3.  “Design-build team” means an entity that consists of:

2-11      (a) At least one person who is licensed as a general engineering

2-12  contractor or a general building contractor pursuant to chapter 624

2-13  of NRS; and

2-14      (b) For a public work that consists of:

2-15          (1) A building and its site, at least one person who holds a

2-16  certificate of registration to practice architecture pursuant to chapter

2-17  623 of NRS.

2-18          (2) Anything other than a building and its site, at least one

2-19  person who holds a certificate of registration to practice architecture

2-20  pursuant to chapter 623 of NRS or is licensed as a professional

2-21  engineer pursuant to chapter 625 of NRS.

2-22      4.  “Design professional” means:

2-23      (a) A person who is licensed as a professional engineer pursuant

2-24  to chapter 625 of NRS;

2-25      (b) A person who is licensed as a professional land surveyor

2-26  pursuant to chapter 625 of NRS;

2-27      (c) A person who holds a certificate of registration to engage in

2-28  the practice of architecture pursuant to chapter 623 of NRS;

2-29      (d) A person who holds a certificate of registration to engage in

2-30  the practice of landscape architecture pursuant to chapter 623A of

2-31  NRS; or

2-32      (e) A business entity that engages in the practice of professional

2-33  engineering, land surveying, architecture or landscape architecture.

2-34      5.  “Eligible bidder” means a person who is:

2-35      (a) Found to be a responsible and responsive contractor by a

2-36  local government which requests bids for a public work in

2-37  accordance with paragraph (b) of subsection 1 of NRS 338.1373; or

2-38      (b) Determined by a public body which awarded a contract for a

2-39  public work pursuant to NRS 338.1375 to 338.139, inclusive, to be

2-40  qualified to bid on that contract pursuant to NRS 338.1379 or was

2-41  exempt from meeting such qualifications pursuant to

2-42  NRS 338.1383.

2-43      6.  “General contractor” means a person who is licensed to

2-44  conduct business in one, or both, of the following branches of the

2-45  contracting business:

3-1  (a) General engineering contracting, as described in subsection 2

3-2  of NRS 624.215.

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

3-4  NRS 624.215.

3-5  7.  “Local government” means every political subdivision or

3-6  other entity which has the right to levy or receive money from ad

3-7  valorem or other taxes or any mandatory assessments, and includes,

3-8  without limitation, counties, cities, towns, boards, school districts

3-9  and other districts organized pursuant to chapters 244A, 309, 318,

3-10  379, 474, 541, 543 and 555 of NRS, NRS 450.550 to 450.750,

3-11  inclusive, and any agency or department of a county or city which

3-12  prepares a budget separate from that of the parent political

3-13  subdivision.

3-14      8.  “Offense” means failing to:

3-15      (a) Pay the prevailing wage required pursuant to this chapter;

3-16      (b) Pay the contributions for unemployment compensation

3-17  required pursuant to chapter 612 of NRS;

3-18      (c) Provide and secure compensation for employees required

3-19  pursuant to chapters 616A to 617, inclusive, of NRS; or

3-20      (d) Comply with subsection 4 or 5 of NRS 338.070.

3-21      9.  “Prime contractor” means a person who:

3-22      (a) Contracts to construct an entire project;

3-23      (b) Coordinates all work performed on the entire project;

3-24      (c) Uses his own workforce to perform all or a part of the

3-25  construction, repair or reconstruction of the project; and

3-26      (d) Contracts for the services of any subcontractor or

3-27  independent contractor or is responsible for payment to any

3-28  contracted subcontractors or independent contractors.

3-29  The term includes, without limitation, a general contractor or a

3-30  specialty contractor who is authorized to bid on a project pursuant to

3-31  NRS 338.139 or 338.148.

3-32      10.  “Public body” means the State, county, city, town, school

3-33  district or any public agency of this state or its political subdivisions

3-34  sponsoring or financing a public work.

3-35      11.  “Public work” means any project for the new construction,

3-36  repair or reconstruction of:

3-37      (a) A project financed in whole or in part from public money

3-38  for:

3-39          (1) Public buildings;

3-40          (2) Jails and prisons;

3-41          (3) Public roads;

3-42          (4) Public highways;

3-43          (5) Public streets and alleys;

3-44          (6) Public utilities which are financed in whole or in part by

3-45  public money;

4-1       (7) Publicly owned water mains and sewers;

4-2       (8) Public parks and playgrounds;

4-3       (9) Public convention facilities which are financed at least in

4-4  part with public funds; and

4-5       (10) All other publicly owned works and property whose cost

4-6  as a whole exceeds $20,000.

4-7  Each separate unit that is a part of a project is included in the cost of

4-8  the project to determine whether a project meets that threshold.

4-9  (b) A building for the University and Community College

4-10  System of Nevada of which 25 percent or more of the costs of the

4-11  building as a whole are paid from money appropriated by this state

4-12  or from federal money.

4-13      12.  “Schedule of values” means a document detailing the cost

4-14  of materials and labor necessary to carry out a particular public

4-15  works contract.

4-16      13.  “Specialty contractor” means a person who is licensed to

4-17  conduct business as described in subsection 4 of NRS 624.215.

4-18      [13.]14.  “Stand-alone underground utility project” means an

4-19  underground utility project that is not integrated into a larger

4-20  project, including, without limitation:

4-21      (a) An underground sewer line or an underground pipeline for

4-22  the conveyance of water, including facilities appurtenant thereto;

4-23  and

4-24      (b) A project for the construction or installation of a storm drain,

4-25  including facilities appurtenant thereto,

4-26  that is not located at the site of a public work for the design and

4-27  construction of which a public body is authorized to contract with a

4-28  design-build team pursuant to subsection 2 of NRS 338.1711.

4-29      [14.]15.  “Unbalanced bid” means a bid that is based on

4-30  prices which are significantly less than cost for some bid items and

4-31  significantly more than cost for others.

4-32      16.  “Wages” means:

4-33      (a) The basic hourly rate of pay; and

4-34      (b) The amount of pension, health and welfare, vacation and

4-35  holiday pay, the cost of apprenticeship training or other similar

4-36  programs or other bona fide fringe benefits which are a benefit to

4-37  the workman.

4-38      [15.] 17.  “Workman” means a skilled mechanic, skilled

4-39  workman, semiskilled mechanic, semiskilled workman or unskilled

4-40  workman. The term does not include a design professional.

4-41      Sec. 3.  NRS 338.1385 is hereby amended to read as follows:

4-42      338.1385  1.  Except as otherwise provided in subsection 7

4-43  and NRS 338.1906 and 338.1907, this state, or a local government

4-44  that awards a contract for the construction, alteration or repair of a

4-45  public work in accordance with paragraph (a) of subsection 1 of

5-1  NRS 338.1373, or a public officer, public employee or other person

5-2  responsible for awarding a contract for the construction, alteration

5-3  or repair of a public work who represents the State or the local

5-4  government, shall not:

5-5  (a) Commence such a project for which the estimated cost

5-6  exceeds $100,000 unless it advertises in a newspaper of general

5-7  circulation in this state for bids for the project; or

5-8  (b) Divide such a project into separate portions to avoid the

5-9  requirements of paragraph (a).

5-10      2.  Except as otherwise provided in subsection 7, a public body

5-11  that maintains a list of properly licensed contractors who are

5-12  interested in receiving offers to bid on public works projects for

5-13  which the estimated cost is more than $25,000 but less than

5-14  $100,000 shall solicit bids from not more than three of the

5-15  contractors on the list for a contract of that value for the

5-16  construction, alteration or repair of a public work. The public body

5-17  shall select contractors from the list in such a manner as to afford

5-18  each contractor an equal opportunity to bid on a public works

5-19  project. A properly licensed contractor must submit a written

5-20  request annually to the public body to remain on the list. Offers for

5-21  bids which are made pursuant to this subsection must be sent by

5-22  certified mail.

5-23      3.  Each advertisement for bids must include a provision that

5-24  sets forth:

5-25      (a) The requirement that a contractor must be qualified pursuant

5-26  to NRS 338.1379 to bid on the contract or must be exempt from

5-27  meeting such qualifications pursuant to NRS 338.1383; and

5-28      (b) The period during which an application to qualify as a bidder

5-29  on the contract must be submitted.

5-30      4.  Approved plans and specifications for the bids must be on

5-31  file at a place and time stated in the advertisement for the inspection

5-32  of all persons desiring to bid thereon and for other interested

5-33  persons. Contracts for the project must be awarded on the basis of

5-34  bids received.

5-35      5.  Any bids received in response to an advertisement for bids

5-36  may be rejected if the person responsible for awarding the contract

5-37  determines that:

5-38      (a) The bidder is not a qualified bidder pursuant to NRS

5-39  338.1379, unless the bidder is exempt from meeting such

5-40  qualifications pursuant to NRS 338.1383;

5-41      (b) The bidder is not responsive;

5-42      (c) The quality of the services, materials, equipment or labor

5-43  offered does not conform to the approved plan or specifications; [or]

6-1  (d) The bid is unbalanced or, during the immediately

6-2  preceding 3 years, the bidder has unbalanced a bid or schedule of

6-3  values in connection with one or more public works contracts; or

6-4  (e) The public interest would be served by such a rejection.

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

6-6  project subject to the provisions of this section, based upon a

6-7  determination that the public interest would be served by rejecting

6-8  any bids received in response to an advertisement for bids, it shall

6-9  prepare and make available for public inspection a written statement

6-10  containing:

6-11      (a) A list of all persons, including supervisors, whom the State

6-12  or the local government intends to assign to the project, together

6-13  with their classifications and an estimate of the direct and indirect

6-14  costs of their labor;

6-15      (b) A list of all equipment that the State or the local government

6-16  intends to use on the project, together with an estimate of the

6-17  number of hours each item of equipment will be used and the hourly

6-18  cost to use each item of equipment;

6-19      (c) An estimate of the cost of administrative support for the

6-20  persons assigned to the project;

6-21      (d) An estimate of the total cost of the project; and

6-22      (e) An estimate of the amount of money the State or the local

6-23  government expects to save by rejecting the bids and performing the

6-24  project itself.

6-25      7.  This section does not apply to:

6-26      (a) Any utility subject to the provisions of chapter 318 or 710 of

6-27  NRS;

6-28      (b) Any work of construction, reconstruction, improvement and

6-29  maintenance of highways subject to NRS 408.323 or 408.327;

6-30      (c) Normal maintenance of the property of a school district;

6-31      (d) The Las Vegas Valley Water District created pursuant to

6-32  chapter 167, Statutes of Nevada 1947, the Moapa Valley Water

6-33  District created pursuant to chapter 477, Statutes of Nevada 1983 or

6-34  the Virgin Valley Water District created pursuant to chapter 100,

6-35  Statutes of Nevada 1993; or

6-36      (e) The design and construction of a public work for which a

6-37  public body contracts with a design-build team pursuant to NRS

6-38  338.1711 to 338.1727.

6-39      Sec. 4.  NRS 338.1385 is hereby amended to read as follows:

6-40      338.1385  1.  Except as otherwise provided in subsection 8,

6-41  this state, or a local government that awards a contract for the

6-42  construction, alteration or repair of a public work in accordance with

6-43  paragraph (a) of subsection 1 of NRS 338.1373, or a public officer,

6-44  public employee or other person responsible for awarding a contract

7-1  for the construction, alteration or repair of a public work who

7-2  represents the State or the local government, shall not:

7-3  (a) Commence such a project for which the estimated cost

7-4  exceeds $100,000 unless it advertises in a newspaper of general

7-5  circulation in this state for bids for the project; or

7-6  (b) Divide such a project into separate portions to avoid the

7-7  requirements of paragraph (a).

7-8  2.  Except as otherwise provided in subsection 8, a public body

7-9  that maintains a list of properly licensed contractors who are

7-10  interested in receiving offers to bid on public works projects for

7-11  which the estimated cost is more than $25,000 but less than

7-12  $100,000 shall solicit bids from not more than three of the

7-13  contractors on the list for a contract of that value for the

7-14  construction, alteration or repair of a public work. The public body

7-15  shall select contractors from the list in such a manner as to afford

7-16  each contractor an equal opportunity to bid on a public works

7-17  project. A properly licensed contractor must submit a written

7-18  request annually to the public body to remain on the list. Offers for

7-19  bids which are made pursuant to this subsection must be sent by

7-20  certified mail.

7-21      3.  Each advertisement for bids must include a provision that

7-22  sets forth:

7-23      (a) The requirement that a contractor must be qualified pursuant

7-24  to NRS 338.1379 to bid on the contract or must be exempt from

7-25  meeting such qualifications pursuant to NRS 338.1383; and

7-26      (b) The period during which an application to qualify as a bidder

7-27  on the contract must be submitted.

7-28      4.  Approved plans and specifications for the bids must be on

7-29  file at a place and time stated in the advertisement for the inspection

7-30  of all persons desiring to bid thereon and for other interested

7-31  persons. Contracts for the project must be awarded on the basis of

7-32  bids received.

7-33      5.  Any bids received in response to an advertisement for bids

7-34  may be rejected if the person responsible for awarding the contract

7-35  determines that:

7-36      (a) The bidder is not a qualified bidder pursuant to NRS

7-37  338.1379, unless the bidder is exempt from meeting such

7-38  qualifications pursuant to NRS 338.1383;

7-39      (b) The bidder is not responsive;

7-40      (c) The quality of the services, materials, equipment or labor

7-41  offered does not conform to the approved plan or specifications; [or]

7-42      (d) The bid is unbalanced or, during the immediately

7-43  preceding 3 years, the bidder has unbalanced a bid or schedule of

7-44  values in connection with one or more public works contracts; or

7-45      (e) The public interest would be served by such a rejection.

8-1  6.  Before the State or a local government may commence a

8-2  project subject to the provisions of this section, based upon a

8-3  determination that the public interest would be served by rejecting

8-4  any bids received in response to an advertisement for bids, it shall

8-5  prepare and make available for public inspection a written statement

8-6  containing:

8-7  (a) A list of all persons, including supervisors, whom the State

8-8  or the local government intends to assign to the project, together

8-9  with their classifications and an estimate of the direct and indirect

8-10  costs of their labor;

8-11      (b) A list of all equipment that the State or the local government

8-12  intends to use on the project, together with an estimate of the

8-13  number of hours each item of equipment will be used and the hourly

8-14  cost to use each item of equipment;

8-15      (c) An estimate of the cost of administrative support for the

8-16  persons assigned to the project;

8-17      (d) An estimate of the total cost of the project; and

8-18      (e) An estimate of the amount of money the State or the local

8-19  government expects to save by rejecting the bids and performing the

8-20  project itself.

8-21      7.  In preparing the estimated cost of a project pursuant to

8-22  subsection 6, the State or a local government must include the fair

8-23  market value of, or, if known, the actual cost of, all materials,

8-24  supplies, labor and equipment to be used for the project.

8-25      8.  This section does not apply to:

8-26      (a) Any utility subject to the provisions of chapter 318 or 710 of

8-27  NRS;

8-28      (b) Any work of construction, reconstruction, improvement and

8-29  maintenance of highways subject to NRS 408.323 or 408.327;

8-30      (c) Normal maintenance of the property of a school district; [or]

8-31      (d) The Las Vegas Valley Water District created pursuant to

8-32  chapter 167, Statutes of Nevada 1947, the Moapa Valley Water

8-33  District created pursuant to chapter 477, Statutes of Nevada 1983 or

8-34  the Virgin Valley Water District created pursuant to chapter 100,

8-35  Statutes of Nevada 1993; or

8-36      (e) The design and construction of a public work for which a

8-37  public body contracts with a design-build team pursuant to NRS

8-38  338.1711 to 338.1727, inclusive.

8-39      Sec. 5.  NRS 338.143 is hereby amended to read as follows:

8-40      338.143  1.  Except as otherwise provided in subsection 6 and

8-41  NRS 338.1907, a local government that awards a contract for the

8-42  construction, alteration or repair of a public work in accordance with

8-43  paragraph (b) of subsection 1 of NRS 338.1373, or a public officer,

8-44  public employee or other person responsible for awarding a contract

9-1  for the construction, alteration or repair of a public work who

9-2  represents that local government, shall not:

9-3  (a) Commence such a project for which the estimated cost

9-4  exceeds $100,000 unless it advertises in a newspaper of general

9-5  circulation in this state for bids for the project; or

9-6  (b) Divide such a project into separate portions to avoid the

9-7  requirements of paragraph (a).

9-8  2.  Except as otherwise provided in subsection 6, a local

9-9  government that maintains a list of properly licensed contractors

9-10  who are interested in receiving offers to bid on public works

9-11  projects for which the estimated cost is more than $25,000 but less

9-12  than $100,000 shall solicit bids from not more than three of the

9-13  contractors on the list for a contract of that value for the

9-14  construction, alteration or repair of a public work. The local

9-15  government shall select contractors from the list in such a manner as

9-16  to afford each contractor an equal opportunity to bid on a public

9-17  works project. A properly licensed contractor must submit a written

9-18  request annually to the local government to remain on the list.

9-19  Offers for bids which are made pursuant to this subsection must be

9-20  sent by certified mail.

9-21      3.  Approved plans and specifications for the bids must be on

9-22  file at a place and time stated in the advertisement for the inspection

9-23  of all persons desiring to bid thereon and for other interested

9-24  persons. Contracts for the project must be awarded on the basis of

9-25  bids received.

9-26      4.  Any bids received in response to an advertisement for bids

9-27  may be rejected if the person responsible for awarding the contract

9-28  determines that:

9-29      (a) The bidder is not responsive or responsible;

9-30      (b) The quality of the services, materials, equipment or labor

9-31  offered does not conform to the approved plan or specifications; [or]

9-32      (c) The bid is unbalanced or, during the immediately

9-33  preceding 3 years, the bidder has unbalanced a bid or schedule of

9-34  values in connection with one or more public works contracts; or

9-35      (d) The public interest would be served by such a rejection.

9-36      5.  Before a local government may commence a project subject

9-37  to the provisions of this section, based upon a determination that the

9-38  public interest would be served by rejecting any bids received in

9-39  response to an advertisement for bids, it shall prepare and make

9-40  available for public inspection a written statement containing:

9-41      (a) A list of all persons, including supervisors, whom the local

9-42  government intends to assign to the project, together with their

9-43  classifications and an estimate of the direct and indirect costs of

9-44  their labor;

10-1      (b) A list of all equipment that the local government intends to

10-2  use on the project, together with an estimate of the number of hours

10-3  each item of equipment will be used and the hourly cost to use each

10-4  item of equipment;

10-5      (c) An estimate of the cost of administrative support for the

10-6  persons assigned to the project;

10-7      (d) An estimate of the total cost of the project; and

10-8      (e) An estimate of the amount of money the local government

10-9  expects to save by rejecting the bids and performing the project

10-10  itself.

10-11     6.  This section does not apply to:

10-12     (a) Any utility subject to the provisions of chapter 318 or 710 of

10-13  NRS;

10-14     (b) Any work of construction, reconstruction, improvement and

10-15  maintenance of highways subject to NRS 408.323 or 408.327;

10-16     (c) Normal maintenance of the property of a school district;

10-17     (d) The Las Vegas Valley Water District created pursuant to

10-18  chapter 167, Statutes of Nevada 1947, the Moapa Valley Water

10-19  District created pursuant to chapter 477, Statutes of Nevada 1983 or

10-20  the Virgin Valley Water District created pursuant to chapter 100,

10-21  Statutes of Nevada 1993; or

10-22     (e) The design and construction of a public work for which a

10-23  public body contracts with a design-build team pursuant to NRS

10-24  338.1711 to 338.1727, inclusive.

10-25     Sec. 6.  NRS 338.143 is hereby amended to read as follows:

10-26     338.143  1.  Except as otherwise provided in subsection 7, a

10-27  local government that awards a contract for the construction,

10-28  alteration or repair of a public work in accordance with paragraph

10-29  (b) of subsection 1 of NRS 338.1373, or a public officer, public

10-30  employee or other person responsible for awarding a contract for the

10-31  construction, alteration or repair of a public work who represents

10-32  that local government, shall not:

10-33     (a) Commence such a project for which the estimated cost

10-34  exceeds $100,000 unless it advertises in a newspaper of general

10-35  circulation in this state for bids for the project; or

10-36     (b) Divide such a project into separate portions to avoid the

10-37  requirements of paragraph (a).

10-38     2.  Except as otherwise provided in subsection 7, a local

10-39  government that maintains a list of properly licensed contractors

10-40  who are interested in receiving offers to bid on public works

10-41  projects for which the estimated cost is more than $25,000 but less

10-42  than $100,000 shall solicit bids from not more than three of the

10-43  contractors on the list for a contract of that value for the

10-44  construction, alteration or repair of a public work. The local

10-45  government shall select contractors from the list in such a manner as

11-1  to afford each contractor an equal opportunity to bid on a public

11-2  works project. A properly licensed contractor must submit a written

11-3  request annually to the local government to remain on the list.

11-4  Offers for bids which are made pursuant to this subsection must be

11-5  sent by certified mail.

11-6      3.  Approved plans and specifications for the bids must be on

11-7  file at a place and time stated in the advertisement for the inspection

11-8  of all persons desiring to bid thereon and for other interested

11-9  persons. Contracts for the project must be awarded on the basis of

11-10  bids received.

11-11     4.  Any bids received in response to an advertisement for bids

11-12  may be rejected if the person responsible for awarding the contract

11-13  determines that:

11-14     (a) The bidder is not responsive or responsible;

11-15     (b) The quality of the services, materials, equipment or labor

11-16  offered does not conform to the approved plan or specifications; [or]

11-17     (c) The bid is unbalanced or, during the immediately

11-18  preceding 3 years, the bidder has unbalanced a bid or schedule of

11-19  values in connection with one or more public works contracts; or

11-20     (d) The public interest would be served by such a rejection.

11-21     5.  Before a local government may commence a project subject

11-22  to the provisions of this section, based upon a determination that the

11-23  public interest would be served by rejecting any bids received in

11-24  response to an advertisement for bids, it shall prepare and make

11-25  available for public inspection a written statement containing:

11-26     (a) A list of all persons, including supervisors, whom the local

11-27  government intends to assign to the project, together with their

11-28  classifications and an estimate of the direct and indirect costs of

11-29  their labor;

11-30     (b) A list of all equipment that the local government intends to

11-31  use on the project, together with an estimate of the number of hours

11-32  each item of equipment will be used and the hourly cost to use each

11-33  item of equipment;

11-34     (c) An estimate of the cost of administrative support for the

11-35  persons assigned to the project;

11-36     (d) An estimate of the total cost of the project; and

11-37     (e) An estimate of the amount of money the local government

11-38  expects to save by rejecting the bids and performing the project

11-39  itself.

11-40     6.  In preparing the estimated cost of a project pursuant to

11-41  subsection 5, a local government must include the fair market value

11-42  of, or, if known, the actual cost of, all materials, supplies, labor and

11-43  equipment to be used for the project.

11-44     7.  This section does not apply to:

12-1      (a) Any utility subject to the provisions of chapter 318 or 710 of

12-2  NRS;

12-3      (b) Any work of construction, reconstruction, improvement and

12-4  maintenance of highways subject to NRS 408.323 or 408.327;

12-5      (c) Normal maintenance of the property of a school district;

12-6      (d) The Las Vegas Valley Water District created pursuant to

12-7  chapter 167, Statutes of Nevada 1947, the Moapa Valley Water

12-8  District created pursuant to chapter 477, Statutes of Nevada 1983 or

12-9  the Virgin Valley Water District created pursuant to chapter 100,

12-10  Statutes of Nevada 1993; or

12-11     (e) The design and construction of a public work for which a

12-12  public body contracts with a design-build team pursuant to NRS

12-13  338.1711 to 338.1727, inclusive.

12-14     Sec. 7.  NRS 338.400 is hereby amended to read as follows:

12-15     338.400  As used in NRS 338.400 to 338.645, inclusive, and

12-16  section 1 of this act, unless the context otherwise requires, the

12-17  words and terms defined in NRS 338.405 to 338.450, inclusive,

12-18  have the meanings ascribed to them in those sections.

12-19     Sec. 8.  NRS 338.515 is hereby amended to read as follows:

12-20     338.515  1.  Except as otherwise provided in NRS 338.525, a

12-21  public body and its officers or agents awarding a contract for a

12-22  public work shall pay or cause to be paid to a contractor the progress

12-23  payments due under the contract within 30 days after the date the

12-24  public body receives the progress bill or within a shorter period if

12-25  the provisions of the contract so provide. [Not more than 90 percent

12-26  of the amount of any progress payment may be paid] Payments

12-27  must be based upon estimates of work completed under the terms

12-28  of the contract that are approved by the public body. The public

12-29  body shall withhold payment of 5 percent of the value of the work

12-30  completed until 50 percent of the work required by the contract has

12-31  been performed. Thereafter the public body may pay any of the

12-32  remaining progress payments without withholding additional

12-33  retainage if, in the opinion of the public body, satisfactory progress

12-34  is being made in the work. If, after 50 percent of the work required

12-35  by the contract has been performed and, in the opinion of the

12-36  public body, satisfactory progress is not being made in the work,

12-37  the public body may withhold additional retainage from any

12-38  progress payment in an amount sufficient to establish the

12-39  retainage at up to 10 percent of the value of the work completed

12-40  up to that time.

12-41     2.  Except as otherwise provided in NRS 338.525, a public

12-42  body shall identify in the contract and pay or cause to be paid to a

12-43  contractor the actual cost of the supplies, materials and equipment

12-44  that:

12-45     (a) Are identified in the contract;

13-1      (b) Have been delivered and stored at a location, and in the time

13-2  and manner, specified in a contract by the contractor or a

13-3  subcontractor or supplier for use in the construction, repair or

13-4  reconstruction of the public work; and

13-5      (c) Are in short supply or were specially made for the public

13-6  work,

13-7  within 30 days after the public body receives a progress bill from

13-8  the contractor for those supplies, materials or equipment.

13-9      3.  A public body shall pay or cause to be paid to the contractor

13-10  at the end of each quarter interest for the quarter on any amount

13-11  withheld by the public body pursuant to NRS 338.400 to 338.645,

13-12  inclusive, at a rate equal to the rate quoted by at least three financial

13-13  institutions as the highest rate paid on a certificate of deposit whose

13-14  duration is approximately 90 days on the first day of the quarter. If

13-15  the amount due to a contractor pursuant to this subsection for any

13-16  quarter is less than $500, the public body may hold the interest until:

13-17     (a) The end of a subsequent quarter after which the amount of

13-18  interest due is $500 or more;

13-19     (b) The end of the fourth consecutive quarter for which no

13-20  interest has been paid to the contractor; or

13-21     (c) The amount withheld under the contract is due pursuant to

13-22  NRS 338.520,

13-23  whichever occurs first.

13-24     4.  If the Labor Commissioner has reason to believe that an

13-25  employee has a valid and enforceable claim for wages against a

13-26  contractor, he may require the public body to withhold from any

13-27  payment due the contractor under this section and pay the Labor

13-28  Commissioner instead, an amount equal to the amount claimed by

13-29  the employee. This amount must be paid to the employee if the

13-30  claim is resolved in his favor, otherwise it must be returned to the

13-31  public body for payment to the contractor.

13-32     Sec. 9.  1.  This section and sections 1, 2, 3, 5, 7 and 8 of this

13-33  act become effective on October 1, 2003.

13-34     2.  Sections 3 and 5 of this act expire by limitation on April 30,

13-35  2013.

13-36     3.  Sections 4 and 6 of this act become effective at 12:01 a.m.

13-37  on May 1, 2013.

 

13-38  H