S.B. 180

1

SCHOOL CONSTRUCTION CONTRACT
2 AMENDMENTS
3 2007 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Scott K. Jenkins
6 House Sponsor: ____________
7
8 LONG TITLE
9 General Description:
10 This bill reduces the amount of retention proceeds that a local school board may
11 withhold until a school construction project is completed.
12 Highlighted Provisions:
13 This bill:
14 . reduces the amount of retention proceeds that a local school board may withhold
15 until a school construction project is completed; and
16 . makes technical amendments.
17 Monies Appropriated in this Bill:
18 None
19 Other Special Clauses:
20 None
21 Utah Code Sections Affected:
22 AMENDS:
23 53A-20-101, as last amended by Chapter 25, Laws of Utah 2005
24
25 Be it enacted by the Legislature of the state of Utah:
26 Section 1. Section 53A-20-101 is amended to read:
27 53A-20-101. Construction and alteration of schools and plants -- Advertising for

28 bids -- Payment and performance bonds -- Contracts -- Bidding limitations on local
29 school boards -- Interest of local school board members.
30 (1) As used in this section, the word "sealed" does not preclude acceptance of
31 electronically sealed and submitted bids or proposals in addition to bids or proposals manually
32 sealed and submitted.
33 (2) (a) Prior to the construction of any school or the alteration of any existing school
34 plant, if the total estimated accumulative building project cost exceeds $80,000, a local school
35 board shall advertise for bids on the project at least ten days before the bid due date.
36 (b) The board shall have the advertisement published in a newspaper having general
37 circulation throughout the state and in appropriate construction trade publications that offer
38 free listings.
39 (c) A similar advertisement is required in a newspaper published or having general
40 circulation in any city or county that would be affected by the proposed project.
41 (d) The advertisement shall:
42 (i) require sealed proposals for the building project in accordance with plans and
43 specifications furnished by the local school board;
44 (ii) state where and when the proposals will be opened and shall reserve the right of the
45 board to reject any and all proposals; and
46 (iii) require a certified check or bid bond of not less than 5% of the bid to accompany
47 the bid.
48 (3) (a) The board shall meet at the time and place specified in the advertisement and
49 publicly open and read all received proposals.
50 (b) If satisfactory bids are received, the board shall award the contract to the lowest
51 responsible bidder.
52 (c) If none of the proposals are satisfactory, all shall be rejected.
53 (d) The board shall again advertise in the manner provided in this section.
54 (e) If, after advertising a second time no satisfactory bid is received, the board may
55 proceed under its own direction with the required project.
56 (4) (a) The check or bond required under Subsection (2)(d) shall be drawn in favor of
57 the local school board.
58 (b) If the successful bidder fails or refuses to enter into the contract and furnish the

59 additional bonds required under this section, then the bidder's check or bond is forfeited to the
60 district.
61 (5) A local school board shall require payment and performance bonds of the
62 successful bidder as required in Section 63-56-504 .
63 (6) (a) A local school board may require in the proposed contract that [at least 10%] a
64 portion of the contract price be withheld as retention proceeds until the project is completed
65 and accepted by the board.
66 (b) The total retention proceeds withheld may not exceed 5% of the total contract price.
67 [(b)] (c) If money is withheld as retention proceeds, the board shall place it in an
68 interest bearing account, and the interest accrues for the benefit of the contractor and
69 subcontractors.
70 [(c)] (d) [This money] The retention proceeds shall be paid upon completion of the
71 project and acceptance by the board.
72 (7) (a) A local school board may not bid on projects within the district if the total
73 accumulative estimated cost exceeds $80,000.
74 (b) The board may use its resources if no satisfactory bids are received under this
75 section.
76 (8) If the local school board determines in accordance with Section 63-56-501 to use a
77 construction manager/general contractor as its method of construction contracting management
78 on projects where the total estimated accumulative cost exceeds $80,000, it shall select the
79 construction manager/general contractor using one of the source selection methods provided
80 for in Sections 63-56-401 through 63-56-501 .
81 (9) A local school board member may not have a direct or indirect financial interest in
82 the construction project contract.




Legislative Review Note
as of 1-18-07 11:48 AM

Office of Legislative Research and General Counsel