H-4086.2 _______________________________________________
HOUSE BILL 2850
_______________________________________________
State of Washington 54th Legislature 1996 Regular Session
By Representatives Cairnes, Scott, Reams, D. Schmidt, Romero, Conway and Scheuerman
Read first time 01/23/96. Referred to Committee on Government Operations.
AN ACT Relating to competitive bidding on public contracts; amending RCW 39.30.060; adding a new section to chapter 39.30 RCW; and creating a new section.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. The legislature finds that the practices of bid shopping and bid peddling in connection with the construction, alteration, and repair of public improvements often result in poor quality of material and workmanship to the detriment of the public, deprive the public of full benefits of fair competition among prime contractors and subcontractors, and lead to insolvencies, loss of wages to employees, and other evils.
Sec. 2. RCW 39.30.060 and 1995 c 94 s 1 are each amended to read as follows:
(1)
Every invitation to bid on a contract that is expected to cost in excess of one
hundred thousand dollars for the construction, alteration, or repair of any
public building or public work of the state or a state agency or municipality
as defined under RCW 39.04.010, an institution of higher education as defined
under RCW 28B.10.016, or a school district shall require each bidder to submit
as part of the bid, or within one hour after the published bid submittal time,
the names of the subcontractors whose subcontract amount is more than ((ten))
five percent of the bid price with whom the bidder, if awarded the
contract, will subcontract for performance of the work designated on the list
to be submitted with the bid. Failure to name each such subcontractor((s))
whose subcontract amount is more than five percent of the bid price with
whom the bidder, if awarded the contract, will subcontract for performance of
the work designated on the list or the naming of two or more subcontractors for
the same work shall render the bidder's bid nonresponsive and, therefore,
void.
(2) A contractor whose bid is accepted shall not substitute any person for a subcontractor who is named as part of the bid or within one hour after the published bid submittal time unless the:
(a) Awarding authority objects to the subcontractor and requests in writing a change in the subcontractor; or
(b) Substitution is approved by the awarding authority; and any of the following apply:
(i) The subcontractor, after having a reasonable opportunity, fails or refuses to execute a written contract with the contractor which was offered to the subcontractor with the same terms that all other subcontractors on the project were offered;
(ii) The named subcontractor files for bankruptcy or becomes insolvent;
(iii) The named subcontractor fails or refuses to perform on the subcontract within a reasonable time;
(iv) The named subcontractor fails, refuses, or is unable to furnish a performance bond and payment bond where the named subcontractor agreed to furnish a performance and payment bond prior to naming by the bidding contractor pursuant to subsection (1) of this section;
(v) The prime contractor demonstrates to the awarding agency that the name of the subcontractor was listed as the result of an inadvertent clerical error;
(vi) The named subcontractor is not registered pursuant to chapter 18.27 RCW or licensed pursuant to chapter 19.28 RCW; or
(vii) The awarding agency determines that the work performed by the named subcontractor is substantially unsatisfactory and not in substantial accordance with the plans and specifications, or that the subcontractor is substantially delaying or disrupting the progress of the work.
NEW SECTION. Sec. 3. A new section is added to chapter 39.30 RCW to read as follows:
The legislature finds that the practices of bid shopping and bid peddling in connection with the construction, alteration, and repair of any public building or public work of the state or a state agency or municipality as defined under RCW 39.04.010, an institution of higher education as defined under RCW 28B.10.016, or a school district are matters vitally affecting the public interest for the purpose of applying the consumer protection act, chapter 19.86 RCW. Bid shopping and bid peddling are not reasonable in relation to the development and preservation of business. Substitution of subcontractors for reasons other than those under RCW 39.30.060 constitute an unfair or deceptive act or practice in trade or commerce for the purpose of applying the consumer protection act, chapter 19.86 RCW.
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