Download Zipped Introduced WP 9 SB0102S1.ZIP 11,523 Bytes
[Status][Bill Documents][Fiscal Note][Bills Directory]
First Substitute S.B. 102
Senator Howard A. Stephenson proposes the following substitute bill:
1
BID REQUIREMENTS ON COUNTY OR
2
MUNICIPAL CONSTRUCTION PROJECTS
3
2002 GENERAL SESSION
4
STATE OF UTAH
5
Sponsor: Howard A. Stephenson
6
This act modifies the Utah Municipal Code, the County Code, the State System of Public
7
Education Code, and the Special Districts Code to require that political subdivisions bid out
8
certain construction projects. The act defines which types of improvements and construction
9
projects must be bid and provides for attorney's fees in a civil suit for violation of the
10
bidding requirements.
11
This act affects sections of Utah Code Annotated 1953 as follows:
12
AMENDS:
13
10-7-20, as last amended by Chapter 365, Laws of Utah 1999
14
53A-20-101, as last amended by Chapters 86 and 123, Laws of Utah 2000
15
ENACTS:
16
17-50-321, Utah Code Annotated 1953
17
17A-2-104, Utah Code Annotated 1953
18
REPEALS:
19
17A-2-531, as last amended by Chapters 86 and 254, Laws of Utah 2000
20
17A-2-723, as last amended by Chapters 86 and 254, Laws of Utah 2000
21
Be it enacted by the Legislature of the state of Utah:
22
Section 1.
Section
10-7-20
is amended to read:
23
10-7-20. Definition -- Necessity for contract -- Call for bids -- Acceptance or rejection
24
-- Retainage -- Attorney's fees.
25
(1) As used in this section[, the term]:
26
(a) "building improvement" means constructing or repairing any building or structure;
27
(b) "emergency repairs" means any work which must be undertaken on an expedited basis
28
in order to prevent further damage to or loss of public or private property or to remedy a condition
29
that poses an immediate physical danger;
30
(c) "public works improvement" means constructing any park or recreation facility,
31
pipeline, culvert, dam, canal, or other system for water, sewer, storm water, or flood control,
32
except for the replacement or repair of existing infrastructure on private property; and
33
(d) "lowest responsible bidder" means any prime contractor who:
34
[(a)] (i) has bid in compliance with the invitation to bid and within the requirements of the
35
plans and specifications for a construction project;
36
[(b)] (ii) is the low bidder;
37
[(c)] (iii) has furnished a bid bond or equivalent in money as a condition to the award of
38
a prime contract; and
39
[(d)] (iv) furnishes a payment and performance bond as required by law.
40
(2) (a) Whenever the board of commissioners or city council of any city or the board of
41
trustees of any town contemplates making any new building improvement or public works
42
improvement [to be] paid for [out of the general funds of] by the city or town, the governing body
43
shall cause plans and specifications for, and an estimate of the cost of, the improvement to be
44
made.
45
(b) If the estimated cost of the building improvement is less than [$25,000,] $40,000, or
46
the estimated cost of the public works improvement is less than $125,000, the city or town may
47
make the improvement without calling for bids for making the same.
48
(c) (i) If the estimated cost of the proposed building improvement exceeds [$25,000,]
49
$40,000, or the estimated cost of the public works improvement exceeds $125,000, the city or
50
town shall, if it determines to make the improvement, do so by contract let to the lowest
51
responsible bidder after publication of notice at least twice in a newspaper published or of general
52
circulation in that city or town at least five days prior to the opening of bids.
53
(ii) If there is no newspaper published or of general circulation in the city or town, the
54
notice shall be posted at least five days prior to the opening of bids in at least five public places
55
in the city or town. The notice shall remain posted for at least three days.
56
(d) If the cost of a contemplated building improvement exceeds the sum of [$25,000,]
57
$40,000, or the estimated cost of the public works improvement exceeds $125,000, the same shall
58
not be so divided as to permit the making of such improvement in several parts, except by contract.
59
(e) (i) The governing body has the right to reject any or all bids presented, and all notices
60
calling for bids shall so state.
61
(ii) If all bids are rejected and the governing body decides to make the improvement, it
62
shall advertise anew in the same manner as before.
63
(iii) If after twice advertising as provided in this section, no bid is received that is
64
satisfactory, the governing body may proceed under its own direction to make the improvement.
65
(f) Emergency repairs are not subject to the requirements of this Subsection (2).
66
(3) If any payment on a contract with a private person, firm, or corporation is retained or
67
withheld, it shall be retained or withheld and released as provided in Section
13-8-5
.
68
(4) (a) Cities and towns are not required to call for bids or let contracts for the conduct or
69
management of any of the departments, business, or property of the city or town[,].
70
(b) Cities and towns are not required to call for bids or let contracts for lowering or
71
repairing water mains or sewers, making connections with water mains or sewers, or for grading,
72
repairing, or maintaining streets, sidewalks, bridges, culverts, or conduits in any city or town if the
73
estimated cost of the work is less than $125,000.
74
[(b)] (c) Work excluded under this Subsection (4) shall comply with Section
72-6-108
as
75
applicable.
76
(5) In a civil action to enforce the provisions of this section against a municipality, the
77
court shall award attorney's fees and costs to the prevailing party.
78
Section 2.
Section
17-50-321
is enacted to read:
79
17-50-321. Definition -- Necessity for contract -- Call for bids -- Acceptance or
80
rejection -- Retainage -- Attorney's fees.
81
(1) As used in this section:
82
(a) "building improvement" means constructing or repairing any building or structure;
83
(b) "emergency repairs" means any work which must be undertaken on an expedited basis
84
in order to prevent further damage to or loss of public or private property or to remedy a condition
85
that poses an immediate physical danger;
86
(c) "public works improvement" means constructing any park or recreational facility,
87
pipeline, culvert, dam, canal, or other system for water, sewer, storm water, or flood control,
88
except for the replacement or repair of existing infrastructure on private property; and
89
(d) "lowest responsible bidder" means any prime contractor who:
90
(i) has bid in compliance with the invitation to bid and within the requirements of the plans
91
and specifications for a construction project;
92
(ii) is the low bidder;
93
(iii) has furnished a bid bond or equivalent in money as a condition to the award of a prime
94
contract; and
95
(iv) furnishes a payment and performance bond as required by law.
96
(2) (a) Whenever the governing body of any county contemplates making any new building
97
improvement or public works improvement paid for by the county, the governing body shall cause
98
plans and specifications for, and an estimate of the cost of, the improvement to be made.
99
(b) If the estimated cost of the building improvement is less than $40,000, or the estimated
100
cost of the public works improvement is less than $125,000, the county may make the
101
improvement without calling for bids for making the same.
102
(c) (i) If the estimated cost of the proposed building improvement exceeds $40,000, or the
103
estimated cost of the public works improvement exceeds $125,000, the county shall, if it
104
determines to make the improvement, do so by contract let to the lowest responsible bidder after
105
publication of notice at least twice in a newspaper published or of general circulation in that county
106
at least five days prior to the opening of bids.
107
(ii) If there is no newspaper published or of general circulation in the county, the notice
108
shall be posted at least five days prior to the opening of bids in at least five public places in the
109
county. The notice shall remain posted for at least three days.
110
(d) If the cost of a contemplated building improvement exceeds the sum of $40,000, or the
111
estimated cost of the public works improvement exceeds $125,000, the same shall not be so
112
divided as to permit the making of such improvement in several parts, except by contract.
113
(e) (i) The governing body has the right to reject any or all bids presented, and all notices
114
calling for bids shall so state.
115
(ii) If all bids are rejected and the governing body decides to make the improvement, it
116
shall advertise anew in the same manner as before.
117
(iii) If after twice advertising as provided in this section, no bid is received that is
118
satisfactory, the governing body may proceed under its own direction to make the improvement.
119
(f) Emergency repairs are not subject to the requirements of this Subsection (2).
120
(3) If any payment on a contract with a private person, firm, or corporation is retained or
121
withheld, it shall be retained or withheld and released as provided in Section
13-8-5
.
122
(4) (a) Counties are not required to call for bids or let contracts for the conduct or
123
management of any of the departments, business, or property of the county.
124
(b) Counties are not required to call for bids or let contracts for lowering or repairing water
125
mains or sewers, making connections with water mains or sewers, or for grading, repairing, or
126
maintaining streets, sidewalks, bridges, culverts, or conduits in any county if the estimated cost of
127
the work is less than $125,000.
128
(c) Work excluded under this Subsection (4) shall comply with Section
72-6-108
as
129
applicable.
130
(5) In a civil action to enforce the provisions of this section against a county, the court
131
shall award attorney's fees and costs to the prevailing party.
132
Section 3.
Section
17A-2-104
is enacted to read:
133
17A-2-104. Necessity for contract -- Call for bids -- Acceptance or rejection --
134
Retainage -- Attorney's fees.
135
(1) As used in this section:
136
(a) "building improvement" means constructing or repairing any building or structure;
137
(b) "emergency repairs" means any work which must be undertaken on an expedited basis
138
in order to prevent further damage to or loss of public or private property or to remedy a condition
139
that poses an immediate physical danger;
140
(c) "public works improvement" means constructing any park or recreational facility,
141
pipeline, culvert, dam, canal, or other system for water, sewer, storm water, or flood control,
142
except for the replacement or repair of existing infrastructure on private property; and
143
(d) "lowest responsible bidder" means any prime contractor who:
144
(i) has bid in compliance with the invitation to bid and within the requirements of the plans
145
and specifications for a construction project;
146
(ii) is the low bidder;
147
(iii) has furnished a bid bond or equivalent in money as a condition to the award of a prime
148
contract; and
149
(iv) furnishes a payment and performance bond as required by law.
150
(2) (a) Whenever the governing body of any independent special district governed by this
151
chapter contemplates making any new building improvement or public works improvement paid
152
for by the independent special district, the governing body shall cause plans and specifications for,
153
and an estimate of the cost of, the improvement to be made.
154
(b) If the estimated cost of the building improvement is less than $40,000, or the estimated
155
cost of the public works improvement is less than $125,000, the independent special district may
156
make the improvement without calling for bids for making the same.
157
(c) (i) If the estimated cost of the proposed building improvement exceeds $40,000, or the
158
estimated cost of the public works improvement exceeds $125,000, the independent special district
159
shall, if it determines to make the improvement, do so by contract let to the lowest responsible
160
bidder after publication of notice at least twice in a newspaper published or of general circulation
161
in the boundaries of that independent special district at least five days prior to the opening of bids.
162
(ii) If there is no newspaper published of general circulation in the independent special
163
district, the notice shall be posted at least five days prior to the opening of bids in at least five
164
public places in the independent special district. The notice shall remain posted for at least three
165
days.
166
(d) If the cost of a contemplated building improvement exceeds the sum of $40,000, or the
167
estimated cost of the public works improvement exceeds $125,000, the same shall not be so
168
divided as to permit the making of such improvement in several parts, except by contract.
169
(e) (i) The governing body has the right to reject any or all bids presented, and all notices
170
calling for bids shall so state.
171
(ii) If all bids are rejected and the governing body decides to make the improvement, it
172
shall advertise anew in the same manner as before.
173
(iii) If after twice advertising as provided in this section, no bid is received that is
174
satisfactory, the governing body may proceed under its own direction to make the improvement.
175
(3) If any payment on a contract with a private person, firm, or corporation is retained or
176
withheld, it shall be retained or withheld and released as provided in Section
13-8-5
.
177
(4) (a) Independent special districts are not required to call for bids or let contracts for the
178
conduct or management of any of the departments, business, or property of the county.
179
(b) Independent special districts are not required to call for bids or let contracts for
180
lowering or repairing water mains or sewers, making connections with water mains or sewers, or
181
for grading, repairing, or maintaining streets, sidewalks, bridges, culverts, or conduits in any
182
independent special district if the estimated cost of the work is less than $125,000.
183
(5) In a civil action to enforce the provisions of this section against an independent special
184
district, the court shall award attorney's fees and costs to the prevailing party.
185
Section 4.
Section
53A-20-101
is amended to read:
186
53A-20-101. Construction and alteration of schools and plants -- Advertising for bids
187
-- Payment and performance bonds -- Contracts -- Bidding limitations on local school boards
188
-- Interest of local school board members.
189
(1) As used in this section, the word "sealed" does not preclude acceptance of
190
electronically sealed and submitted bids or proposals in addition to bids or proposals manually
191
sealed and submitted.
192
(2) (a) Prior to the construction of any school or the alteration of any existing school plant,
193
if the total estimated accumulative building project cost exceeds $80,000, a local school board
194
shall advertise for bids on the project at least ten days before the bid due date.
195
(b) The board shall have the advertisement published in a newspaper having general
196
circulation throughout the state and in appropriate construction trade publications that offer free
197
listings.
198
(c) A similar advertisement is required in a newspaper published or having general
199
circulation in any city or county that would be affected by the proposed project.
200
(d) The advertisement shall:
201
(i) require sealed proposals for the building project in accordance with plans and
202
specifications furnished by the local school board;
203
(ii) state where and when the proposals will be opened and shall reserve the right of the
204
board to reject any and all proposals; and
205
(iii) require a certified check or bid bond of not less than 5% of the bid to accompany the
206
bid.
207
(3) (a) The board shall meet at the time and place specified in the advertisement and
208
publicly open and read all received proposals.
209
(b) If satisfactory bids are received, the board shall award the contract to the lowest
210
responsible bidder.
211
(c) If none of the proposals are satisfactory, all shall be rejected.
212
(d) The board shall again advertise in the manner provided in this section.
213
(e) If, after advertising a second time no satisfactory bid is received, the board may proceed
214
under its own direction with the required project.
215
(4) (a) The check or bond required under Subsection (2)(d) shall be drawn in favor of the
216
local school board.
217
(b) If the successful bidder fails or refuses to enter into the contract and furnish the
218
additional bonds required under this section, then the bidder's check or bond is forfeited to the
219
district.
220
(5) A local school board shall require payment and performance bonds of the successful
221
bidder as required in Section
63-56-38
.
222
(6) (a) A local school board may require in the proposed contract that at least 10% of the
223
contract price be withheld until the project is completed and accepted by the board.
224
(b) If money is withheld, the board shall place it in an interest bearing account, and the
225
interest accrues for the benefit of the contractor and subcontractors.
226
(c) This money shall be paid upon completion of the project and acceptance by the board.
227
(7) (a) A local school board may not bid on projects within the district if the total
228
accumulative estimated cost exceeds $80,000.
229
(b) The board may use its resources if no satisfactory bids are received under this section.
230
(8) If the local school board determines in accordance with Section
63-56-36
to use a
231
construction manager/general contractor as its method of construction contracting management on
232
projects where the total estimated accumulative cost exceeds $80,000, it shall select the
233
construction manager/general contractor using one of the source selection methods provided for
234
in Sections
63-56-20
through
63-56-36
.
235
(9) A local school board member may not have a direct or indirect financial interest in the
236
construction project contract.
237
(10) In a civil action to enforce the provisions of this section against a school board, the
238
court shall award attorney's fees and costs to the prevailing party.
239
Section 5. Repealer.
240
This act repeals:
241
Section 17A-2-531, Bids for construction -- Contracts -- Payment and performance
242
bonds -- Retainage.
243
Section 17A-2-723, Construction -- Notice -- Awarding contracts -- Contractor's
244
bonds.
[Bill Documents][Bills Directory]