DAR File No. 29183

Transportation, Operations, Construction

R916-1

Advertising and Awarding Construction Contracts

NOTICE OF PROPOSED RULE

DAR File No.: 29183
Filed: 11/01/2006, 12:06
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

This amendment is recommended in order to eliminate the need for companies to prequalify if the project they want to work on is for less than $1,500,000.

Summary of the rule or change:

The rule amendment increases the prequalification limit to $1,500,000 from $500,000 and instructs members of the public to download plans from the web rather than get them in person at department headquarters.

State statutory or constitutional authorization for this rule:

Section 72-1-201

Anticipated cost or savings to:

the state budget:

This may save the department money because it eliminates the need for companies to prequalify on projects that are for less than $1,500,000. The directive to obtain plans on the web should save some employee time in fulfilling copying requests.

local governments:

This rule does not affect local governments, so they should no increase or decrease in costs. Local governments do not administer transportation contracts and they do not have to pay for them; therefore, there will be no costs or savings to them.

other persons:

This rule will benefit private companies and individuals because they will no longer have to prequalify for certain projects and will not have to pay copying costs for plans.

Compliance costs for affected persons:

There will be no costs for affected persons. It will only save money.

Comments by the department head on the fiscal impact the rule may have on businesses:

There will be no fiscal impact from this rule. John R. Njord, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Transportation
Operations, Construction
CALVIN L RAMPTON COMPLEX
4501 S 2700 W
SALT LAKE CITY UT 84119-5998

Direct questions regarding this rule to:

James Beadles at the above address, by phone at 801-965-4168, by FAX at 801-965-4796, or by Internet E-mail at jbeadles@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

12/15/2006

This rule may become effective on:

12/22/2006

Authorized by:

John R. Njord, Executive Director

R916. Transportation, Operations, Construction.

R916-1. Advertising and Awarding Construction Contracts.

R916-1-4. Bidding Proposals, Plans and Specifications.

(1) Bidding proposals, plans and specifications shall be available for inspection at all Region offices, Cedar City, Price, Richfield and Salt Lake City headquarters. Plans are available for download at the department's website, www.udot.utah.gov.[sale (non-refundable fee) only at the Salt Lake City headquarters, Construction Division office.]

(2) Prior to submitting a bid, the bidder shall become prequalified at least 10 working days prior to bid opening date, under Rule R916-2 concerning prequalification of contractors. Prequalification of bidders is not required on projects estimated under $1,500,000[500,000].

(3) Prequalified contractors may obtain bidding proposals, plans and specifications and non-prequalified contractors may obtain non-bidding plans and specifications from the department's website, www.udot.utah.gov[upon payment of a non-refundable fee as specified in the notice to contractors].

(a) Projects shall not be awarded when the sum of the amount of uncompleted work, both in and outside of the state of Utah, shown on the contractor's "Status of Work Under Contract" form and the bid amount submitted exceeds the amount for which the contractor is prequalified. This transaction is performed at the close of bid opening for all apparent low bidders, on all projects with an advertised engineer's estimate over $1,500,000[500,000].

(b) Two or more contractors who have prequalified separately and desire to enter a joint bid on a single project may do so upon submitting a letter of intent to the department prequalification secretary at least four working days prior to bid opening. The prequalification of each contractor can then be considered for consolidation to place a bid as prime.

(4) If it is necessary to issue an addendum to the plans and specifications during the advertising period, the department shall [call and ]fax a copy to the prime bidders, then mail a copy of the addendum by certified mail to each contractor holding bidding proposals.[ The department shall mail a copy of the addendum by first class mail to all other plan holders.]

 

R916-1-5. Bidding Requirements and Conditions.

(1) Each bidder shall submit their proposal upon the forms furnished by the department.

(2) Sealed proposals shall be submitted to the department prior to the time and at the place specified in the notice to contractors.

(3) Proposals shall be publicly opened and read [publicly ]at the time and place indicated in the notice to contractors.

(4) No proposal shall be considered unless accompanied by a guaranty in the form of certified check, cashier's check or guaranty bond for not less than five percent of the total amount of the bid.

(5) Each bidder must comply with the laws of Utah relative to the licensing of contractors. A contractor's license is required prior to the submission of a bid, except that a contractor may submit a bid on a Federal-aid highway project without having first obtained a license, provided the contractor, prior to undertaking any construction under that bid (at time of official award notification), shall be licensed in Utah.

(6) The right to reject any or all proposals is reserved by the department.

 

R916-1-7. Execution of Contracts.

(1) Unless the bonds are waived pursuant to Subparagraph (6), when the contract is executed, the successful bidder shall furnish a performance bond and a payment bond, each in a sum equal to the full amount of the contract. Each bond shall be on the form provided by the department and shall be executed by a surety company or companies licensed by the state of Utah. These companies must be listed on the current United States Department of the Treasury Circular 570 as acceptable sureties on Federal bonds. The department shall make available to the public this Circular at the following locations: Construction Division, UDOT Library, and Internet.

(2) The contract shall be signed by the successful bidder and returned together with the fully executed contract bonds and appropriate insurance documents within 15 days after the contract has been awarded.

(3) Failure to execute a contract and file acceptable bonds and appropriate insurance documents within 15 days after the contract has been awarded shall be just cause for the cancellation of the award and the forfeiture of the proposal guaranty.

(4) If the contract is not executed by the Department within 30 days after receiving signed contracts, [and ]bonds, and insurance documentation, the bidder shall have the right to withdraw their bid without penalty.

(5) No contract shall be considered effective until it has been fully executed by all the parties thereto.

(6) In accordance with Utah Code Ann. Section 63-56-504, the Executive Director or designee may reduce or waive the amount of the payment and performance bonds below the 100% normally required, if he or she determines that the circumstances are such that the normal bonding requirement is unnecessary to protect the State.

 

KEY: bids, advertising, contracts, bonding requirements

Date of Enactment or Last Substantive Amendment: [May 16, ]2006

Notice of Continuation: January 18, 2002

Authorizing, and Implemented or Interpreted Law: 27-12-7; 27-12-108; 63-49-4; 63-56-38; 63-56-13