S.B. 183 Enrolled

LOCAL GOVERNMENTS - AUTHORITY FOR
DESIGN-BUILD CONSTRUCTION
2004 GENERAL SESSION
STATE OF UTAH
Sponsor: Howard A. Stephenson

LONG TITLE
General Description:
This bill modifies provisions relating to local government building improvement and
public works projects.
Highlighted Provisions:
This bill:
. adds certain design-build projects as a type of building improvement or public works
project that is subject to certain requirements relating to plans and specifications,
cost estimates, and bid procedures; and
. allows a local government entity, with respect to certain design-build projects, to
award a bid to a responsible bidder that offers design-build services rather than to
the lowest responsive responsible bidder.
Monies Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
11-39-101, as enacted by Chapter 259, Laws of Utah 2003
11-39-103, as enacted by Chapter 259, Laws of Utah 2003
Uncodified Material Affected:
ENACTS UNCODIFIED MATERIAL

Be it enacted by the Legislature of the state of Utah:
Section 1. Section 11-39-101 is amended to read:
11-39-101. Definitions.
As used in this chapter:
(1) "Bid limit" means:
(a) for a building improvement:
(i) for the year 2003, $40,000; and
(ii) for each year after 2003, the amount of the bid limit for the previous year, plus an
amount calculated by multiplying the amount of the bid limit for the previous year by the lesser of
3% or the actual percent change in the Consumer Price Index during the previous calendar year;
and
(b) for a public works project:
(i) for the year 2003, $125,000; and
(ii) for each year after 2003, the amount of the bid limit for the previous year, plus an
amount calculated by multiplying the amount of the bid limit for the previous year by the lesser of
3% or the actual percent change in the Consumer Price Index during the previous calendar year.
(2) "Building improvement":
(a) means the construction or repair of a public building or structure; and
(b) does not include construction or repair at an international airport.
(3) "Consumer Price Index" means the Consumer Price Index for All Urban Consumers
as published by the Bureau of Labor Statistics of the United States Department of Labor.
(4) "Design-build project":
(a) means a building improvement or public works project costing over $250,000 with
respect to which both the design and construction are provided for in a single contract with a
contractor or combination of contractors capable of providing design-build services; and
(b) does not include a building improvement or public works project:
(i) that is undertaken by a local entity under contract with a construction manager that
guarantees the contract price and is at risk for any amount over the contract price; and

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(ii) each component of which is competitively bid.
(5) "Design-build services" means the engineering, architectural, and other services
necessary to formulate and implement a design-build project, including its actual construction.
[(4)] (6) "Emergency repairs" means a building improvement or public works project
undertaken on an expedited basis to:
(a) eliminate an imminent risk of damage to or loss of public or private property;
(b) remedy a condition that poses an immediate physical danger; or
(c) reduce a substantial, imminent risk of interruption of an essential public service.
[(5)] (7) "Independent special district" means an independent special district under Title
17A, Chapter 2, Independent Special Districts, excluding a special service district under Title
17A, Chapter 2, Part 13, Utah Special Service District Act.
[(6)] (8) "Local district" has the same meaning as defined in Section 17B-2-101 .
[(7)] (9) "Local entity" means a county, city, town, special district, or local district.
[(8)] (10) "Lowest responsive responsible bidder" means a prime contractor who:
(a) has submitted a bid in compliance with the invitation to bid and within the
requirements of the plans and specifications for the building improvement or public works project;
(b) is the lowest bidder that satisfies the local entity's criteria relating to financial strength,
past performance, integrity, reliability, and other factors that the local entity uses to assess the
ability of a bidder to perform fully and in good faith the contract requirements;
(c) has furnished a bid bond or equivalent in money as a condition to the award of a prime
contract; and
(d) furnishes a payment and performance bond as required by law.
[(9)] (11) "Procurement code" means the provisions of Title 63, Chapter 56, Utah
Procurement Code.
[(10)] (12) "Public works project":
(a) means the construction of:
(i) a park or recreational facility; or
(ii) a pipeline, culvert, dam, canal, or other system for water, sewage, storm water, or

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flood control; and
(b) does not include:
(i) the replacement or repair of existing infrastructure on private property;
(ii) construction commenced before June 1, 2003; and
(iii) construction or repair at an international airport.
[(11)] (13) "Special district" has the same meaning as defined in Section 17A-1-101 .
Section 2. Section 11-39-103 is amended to read:
11-39-103. Requirements for undertaking a building improvement or public works
project -- Request for bids -- Authority to reject bids.
(1) If the estimated cost of the building improvement or public works project exceeds the
bid limit, the local entity shall, if it determines to proceed with the building improvement or public
works project:
(a) request bids for completion of the building improvement or public works project by:
(i) publishing notice at least twice in a newspaper published or of general circulation in
the local entity at least five days before opening the bids; or
(ii) if there is no newspaper published or of general circulation in the local entity, posting
notice at least five days before opening the bids in at least five public places in the local entity and
leaving the notice posted for at least three days; and
(b) except as provided in Subsection (3), enter into a contract for the completion of the
building improvement or public works project with:
(i) the lowest responsive responsible bidder[.]; or
(ii) for a design-build project that the local entity began formulating before March 1, 2004
and with respect to which a contract is entered into before September 1, 2004, a responsible
bidder that:
(A) offers design-build services; and
(B) satisfies the local entity's criteria relating to financial strength, past performance,
integrity, reliability, and other factors that the local entity uses to assess the ability of a bidder to
perform fully and in good faith the contract requirements for a design-build project.

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(2) (a) Each notice under Subsection (1)(a) shall indicate that the local entity may reject
any or all bids submitted.
(b) (i) The cost of a building improvement or public works project may not be divided to
avoid:
(A) exceeding the bid limit; and
(B) subjecting the local entity to the requirements of this section.
(ii) Notwithstanding Subsection (2)(b)(i), a local entity may divide the cost of a building
improvement or public works project that would, without dividing, exceed the bid limit if the local
entity complies with the requirements of this section with respect to each part of the building
improvement or public works project that results from dividing the cost.
(3) (a) The local entity may reject any or all bids submitted.
(b) If the local entity rejects all bids submitted but still intends to undertake the building
improvement or public works project, the local entity shall again request bids by following the
procedure provided in Subsection (1)(a).
(c) If, after twice requesting bids by following the procedure provided in Subsection
(1)(a), the local entity determines that no satisfactory bid has been submitted, the legislative body
may undertake the building improvement or public works project as it considers appropriate.
Section 3. Interim study.
It is the intent of the Legislature that during the 2004 interim the Political Subdivisions
Interim Committee study the issue of design-build projects by local government and whether the
provisions of this bill relating to design-build projects should be extended to future projects,
modified, or eliminated.

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