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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


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