AN
ACT Relating to bidding requirements; amending RCW 36.32.250, 36.77.040,
39.04.220, 39.10.060, 47.28.100, 47.60.778, 53.08.130, 54.04.080, 56.08.070,
57.08.050, 70.44.140, and 91.08.530; reenacting and amending RCW 35.23.352;
adding a new section to chapter 35.22 RCW; adding a new section to chapter
43.19 RCW; adding a new section to chapter 52.14 RCW; and providing an
expiration date.
BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF WASHINGTON:
NEW
SECTION. Sec. 1. A
new section is added to chapter 35.22 RCW to read as follows:
A
low bidder who claims error and fails to enter into a contract with a city for
a public works project is prohibited from bidding on the same project if a
second or subsequent call for bids is made for the project.
Sec.
2. RCW
35.23.352 and 1994 c 273 s 9 and 1994 c 81 s 18 are each reenacted and amended
to read as follows:
(1)
Any second class city or any town may construct any public works, as defined in
RCW 39.04.010, by contract or day labor without calling for bids therefor
whenever the estimated cost of the work or improvement, including cost of
materials, supplies and equipment will not exceed the sum of thirty thousand
dollars if more than one craft or trade is involved with the public works, or
twenty thousand dollars if a single craft or trade is involved with the public
works or the public works project is street signalization or street lighting.
A public works project means a complete project. The restrictions in this
subsection do not permit the division of the project into units of work or
classes of work to avoid the restriction on work that may be performed by day
labor on a single project.
Whenever
the cost of the public work or improvement, including materials, supplies and
equipment, will exceed these figures, the same shall be done by contract. All
such contracts shall be let at public bidding upon publication of notice
calling for sealed bids upon the work. The notice shall be published in the
official newspaper, or a newspaper of general circulation most likely to bring
responsive bids, at least thirteen days prior to the last date upon which bids
will be received. The notice shall generally state the nature of the work to
be done that plans and specifications therefor shall then be on file in the
city or town hall for public inspections, and require that bids be sealed and
filed with the council or commission within the time specified therein. Each
bid shall be accompanied by a bid proposal deposit in the form of a cashier's
check, postal money order, or surety bond to the council or commission for a
sum of not less than five percent of the amount of the bid, and no bid shall be
considered unless accompanied by such bid proposal deposit. The council or
commission of the city or town shall let the contract to the lowest responsible
bidder or shall have power by resolution to reject any or all bids and to make
further calls for bids in the same manner as the original call.
When
the contract is let then all bid proposal deposits shall be returned to the
bidders except that of the successful bidder which shall be retained until a
contract is entered into and a bond to perform the work furnished, with surety
satisfactory to the council or commission, in accordance with RCW 39.08.030.
If the bidder fails to enter into the contract in accordance with his or her
bid and furnish a bond within ten days from the date at which he or she is
notified that he or she is the successful bidder, the check or postal money
order and the amount thereof shall be forfeited to the council or commission or
the council or commission shall recover the amount of the surety bond. A
low bidder who claims error and fails to enter into a contract is prohibited
from bidding on the same project if a second or subsequent call for bids is
made for the project.
If
no bid is received on the first call the council or commission may readvertise
and make a second call, or may enter into a contract without any further call
or may purchase the supplies, material or equipment and perform the work or
improvement by day labor.
(2)
The allocation of public works projects to be performed by city or town
employees shall not be subject to a collective bargaining agreement.
(3)
In lieu of the procedures of subsection (1) of this section, a second class
city or a town may use the small works roster process provided in RCW 39.04.155
to award public works contracts with an estimated value of one hundred thousand
dollars or less.
Whenever
possible, the city or town shall invite at least one proposal from a minority
or woman contractor who shall otherwise qualify under this section.
(4)
The form required by RCW 43.09.205 shall be to account and record costs of
public works in excess of five thousand dollars that are not let by contract.
(5)
The cost of a separate public works project shall be the costs of the
materials, equipment, supplies, and labor on that construction project.
(6)
Any purchase of supplies, material, or equipment, except for public work or
improvement, where the cost thereof exceeds seven thousand five hundred dollars
shall be made upon call for bids.
(7)
Bids shall be called annually and at a time and in the manner prescribed by
ordinance for the publication in a newspaper of general circulation in the city
or town of all notices or newspaper publications required by law. The contract
shall be awarded to the lowest responsible bidder.
(8)
For advertisement and formal sealed bidding to be dispensed with as to
purchases between seven thousand five hundred and fifteen thousand dollars, the
council or commission must authorize by resolution, use of the uniform
procedure provided in RCW 39.04.190.
(9)
These requirements for purchasing may be waived by resolution of the city or
town council or commission which declared that the purchase is clearly and
legitimately limited to a single source or supply within the near vicinity, or
the materials, supplies, equipment, or services are subject to special market
conditions, and recites why this situation exists. Such actions are subject to
RCW 39.30.020.
(10)
This section does not apply to performance-based contracts, as defined in RCW
39.35A.020(3), that are negotiated under chapter 39.35A RCW.
(11)
Nothing in this section shall prohibit any second class city or any town from
allowing for preferential purchase of products made from recycled materials or
products that may be recycled or reused.
Sec.
3. RCW
36.32.250 and 1993 c 198 s 8 are each amended to read as follows:
No
contract for public works may be entered into by the county legislative
authority or by any elected or appointed officer of the county until after bids
have been submitted to the county upon specifications therefor. Such
specifications shall be in writing and shall be filed with the clerk of the
county legislative authority for public inspection. An advertisement shall be
published in the county official newspaper stating the time and place where
bids will be opened, the time after which bids will not be received, the
character of the work to be done, the materials and equipment to be furnished,
and that specifications therefor may be seen at the office of the clerk of the
county legislative authority. An advertisement shall also be published in a
legal newspaper of general circulation in or as near as possible to that part
of the county in which such work is to be done. If the county official
newspaper is a newspaper of general circulation covering at least forty percent
of the residences in that part of the county in which such public works are to
be done, then the publication of an advertisement of the applicable
specifications in the county official newspaper shall be sufficient. Such
advertisements shall be published at least once at least thirteen days prior to
the last date upon which bids will be received. The bids shall be in writing,
shall be filed with the clerk, shall be opened and read in public at the time
and place named therefor in the advertisements, and after being opened, shall
be filed for public inspection. No bid may be considered for public work
unless it is accompanied by a bid deposit in the form of a surety bond, postal
money order, cash, cashier's check, or certified check in an amount equal to
five percent of the amount of the bid proposed. The contract for the public
work shall be awarded to the lowest responsible bidder. Any or all bids may be
rejected for good cause. The county legislative authority shall require from
the successful bidder for such public work a contractor's bond in the amount
and with the conditions imposed by law. If the bidder to whom the contract is
awarded fails to enter into the contract and furnish the contractor's bond as
required within ten days after notice of the award, exclusive of the day of
notice, the amount of the bid deposit shall be forfeited to the county and the
contract awarded to the next lowest and best bidder. A low bidder who
claims error and fails to enter into a contract is prohibited from bidding on
the same project if a second or subsequent call for bids is made for the
project. The bid deposit of all unsuccessful bidders shall be returned
after the contract is awarded and the required contractor's bond given by the
successful bidder is accepted by the county legislative authority. In the
letting of any contract for public works involving less than ten thousand
dollars, advertisement and competitive bidding may be dispensed with on order
of the county legislative authority. Immediately after the award is made, the
bid quotations obtained shall be recorded and open to public inspection and
shall be available by telephone inquiry.
For
advertisement and competitive bidding to be dispensed with as to public works
projects with an estimated value of ten thousand dollars up to one hundred
thousand dollars, a county must use a small works roster process as provided in
RCW 39.04.155.
This
section does not apply to performance‑based contracts, as defined in RCW
39.35A.020(3), that are negotiated under chapter 39.35A RCW.
Sec.
4. RCW
36.77.040 and 1963 c 4 s 36.77.040 are each amended to read as follows:
The
board shall proceed to award the contract to the lowest and best bidder but may
reject any or all bids if in its opinion good cause exists therefor. The board
shall require from the successful bidder a contractor's bond in the amount and
with the conditions imposed by law. Should the bidder to whom the contract is
awarded fail to enter into the contract and furnish the contractor's bond as
required within ten days after notice of the award, exclusive of the day of
notice, the amount of the bid deposit shall be forfeited to the county and
placed in the county road fund and the contract awarded to the next lowest and
best bidder. A low bidder who claims error and fails to enter into a
contract is prohibited from bidding on the same project if a second or
subsequent call for bids is made for the project. The bid deposit of all
unsuccessful bidders shall be returned after the contract is awarded and the
required contractor's bond given by the successful bidder is accepted by the
board.
Sec.
5. RCW
39.04.220 and 1994 c 80 s 2 are each amended to read as follows:
(1)
In addition to currently authorized methods of public works contracting, and in
lieu of the requirements of RCW 39.04.010 and 39.04.020 through 39.04.060,
capital projects funded for over ten million dollars authorized by the
legislature for the department of corrections to construct or repair facilities
may be accomplished under contract using the general contractor/construction
manager method described in this section. In addition, the general
contractor/construction manager method may be used for up to two demonstration
projects under ten million dollars for the department of corrections. Each
demonstration project shall aggregate capital projects authorized by the
legislature at a single site to total no less than three million dollars with
the approval of the office of financial management. The department of general
administration shall present its plan for the aggregation of projects under
each demonstration project to the oversight advisory committee established
under subsection (2) of this section prior to soliciting proposals for general
contractor/construction manager services for the demonstration project.
(2)
For the purposes of this section, "general contractor/construction
manager" means a firm with which the department of general administration
has selected and negotiated a maximum allowable construction cost to be
guaranteed by the firm, after competitive selection through a formal
advertisement, and competitive bids to provide services during the design phase
that may include life-cycle cost design considerations, value engineering,
scheduling, cost estimating, constructability, alternative construction options
for cost savings, and sequencing of work, and to act as the construction
manager and general contractor during the construction phase. The department
of general administration shall establish an independent oversight advisory
committee with representatives of interest groups with an interest in this
subject area, the department of corrections, and the private sector, to review
selection and contracting procedures and contracting documents. The oversight
advisory committee shall discuss and review the progress of the demonstration
projects. The general contractor/construction manager method is limited to
projects authorized on or before July 1, 1997.
(3)
Contracts for the services of a general contractor/construction manager awarded
under the authority of this section shall be awarded through a competitive
process requiring the public solicitation of proposals for general
contractor/construction manager services. Minority and women enterprise total
project goals shall be specified in the bid instructions to the general
contractor/construction manager finalists. The director of general
administration is authorized to include an incentive clause in any contract
awarded under this section for savings of either time or cost or both from that
originally negotiated. No incentives granted shall exceed five percent of the
maximum allowable construction cost. The director of general administration or
his or her designee shall establish a committee to evaluate the proposals
considering such factors as: Ability of professional personnel; past
performance in negotiated and complex projects; ability to meet time and budget
requirements; location; recent, current, and projected work loads of the firm;
and the concept of their proposal. After the committee has selected the most
qualified finalists, these finalists shall submit sealed bids for the percent
fee, which is the percentage amount to be earned by the general
contractor/construction manager as overhead and profit, on the estimated
maximum allowable construction cost and the fixed amount for the detailed
specified general conditions work. The maximum allowable construction cost may
be negotiated between the department of general administration and the selected
firm after the scope of the project is adequately determined to establish a
guaranteed contract cost for which the general contractor/construction manager
will provide a performance and payment bond. The guaranteed contract cost
includes the fixed amount for the detailed specified general conditions work,
the negotiated maximum allowable construction cost, the percent fee on the
negotiated maximum allowable construction cost, and sales tax. If the
department of general administration is unable to negotiate a satisfactory
maximum allowable construction cost with the firm selected that the department
of general administration determines to be fair, reasonable, and within the
available funds, negotiations with that firm shall be formally terminated and
the department of general administration shall negotiate with the next low
bidder and continue until an agreement is reached or the process is
terminated. If the maximum allowable construction cost varies more than
fifteen percent from the bid estimated maximum allowable construction cost due
to requested and approved changes in the scope by the state, the percent fee
shall be renegotiated. All subcontract work shall be competitively bid with
public bid openings. Specific contract requirements for women and minority
enterprise participation shall be specified in each subcontract bid package
that exceeds ten percent of the department's estimated project cost. All
subcontractors who bid work over two hundred thousand dollars shall post a bid
bond and the awarded subcontractor shall provide a performance and payment bond
for their contract amount if required by the general contractor/construction
manager. A low bidder who claims error and fails to enter into a contract
is prohibited from bidding on the same project if a second or subsequent call
for bids is made for the project. Bidding on subcontract work by the
general contractor/construction manager or its subsidiaries is prohibited. The
general contractor/construction manager may negotiate with the low-responsive
bidder only in accordance with RCW 39.04.015 or, if unsuccessful in such
negotiations, rebid.
(4)
If the project is completed for less than the agreed upon maximum allowable
construction cost, any savings not otherwise negotiated as part of an incentive
clause shall accrue to the state. If the project is completed for more than
the agreed upon maximum allowable construction cost, excepting increases due to
any contract change orders approved by the state, the additional cost shall be
the responsibility of the general contractor/construction manager.
(5)
The powers and authority conferred by this section shall be construed as in
addition and supplemental to powers or authority conferred by any other law,
and nothing contained ((herein shall)) in this section may be
construed as limiting any other powers or authority of the department of
general administration. However, all actions taken pursuant to the powers and
authority granted to the director or the department of general administration
under this section may only be taken with the concurrence of the department of
corrections.
Sec.
6. RCW
39.10.060 and 1994 c 132 s 6 are each amended to read as follows:
(1)
Notwithstanding any other provision of law, and after complying with RCW
39.10.030, the following public bodies may utilize the general
contractor/construction manager procedure of public works contracting for
public works projects authorized under subsection (2) of this section: The
state department of general administration; the University of Washington;
Washington State University; every city with a population greater than one
hundred fifty thousand; every county with a population greater than four
hundred fifty thousand; and every port district with a population greater than
five hundred thousand. For the purposes of this section, "general
contractor/construction manager" means a firm with which a public body has
selected and negotiated a maximum allowable construction cost to be guaranteed
by the firm, after competitive selection through formal advertisement and
competitive bids, to provide services during the design phase that may include
life-cycle cost design considerations, value engineering, scheduling, cost
estimating, constructability, alternative construction options for cost
savings, and sequencing of work, and to act as the construction manager and
general contractor during the construction phase.
(2)
Public bodies authorized under this section may utilize the general
contractor/construction manager procedure for public works projects valued over
ten million dollars where:
(a)
Implementation of the project involves complex scheduling requirements;
(b)
The project involves construction at an existing facility which must continue
to operate during construction; or
(c)
The involvement of the general contractor/construction manager during the
design stage is critical to the success of the project.
(3)
Contracts for the services of a general contractor/construction manager under
this section shall be awarded through a competitive process requiring the
public solicitation of proposals for general contractor/construction manager
services. Minority and women business enterprise total project goals shall be
specified in the public solicitation of proposals and the bid instructions to
the general contractor/construction manager finalists. A public body is
authorized to include an incentive clause in any contract awarded under this
section for savings of either time or cost or both from that originally
negotiated. No incentives granted shall exceed five percent of the maximum
allowable construction cost. A public body shall establish a committee to
evaluate the proposals considering such factors as: Ability of professional
personnel; past performance in negotiated and complex projects; ability to meet
time and budget requirements; location; recent, current, and projected work
loads of the firm; and the concept of their proposal. After the committee has
selected the most qualified finalists, these finalists shall submit sealed bids
for the percent fee, which is the percentage amount to be earned by the general
contractor/construction manager as overhead and profit, on the estimated
maximum allowable construction cost and the fixed amount for the detailed
specified general conditions work. The maximum allowable construction cost may
be negotiated between the public body and the selected firm after the scope of
the project is adequately determined to establish a guaranteed contract cost
for which the general contractor/construction manager will provide a
performance and payment bond. The guaranteed contract cost includes the fixed
amount for the detailed specified general conditions work, the negotiated
maximum allowable construction cost, the percent fee on the negotiated maximum
allowable construction cost, and sales tax. If the public body is unable to
negotiate a satisfactory maximum allowable construction cost with the firm
selected that the public body determines to be fair, reasonable, and within the
available funds, negotiations with that firm shall be formally terminated and
the public body shall negotiate with the next low bidder and continue until an
agreement is reached or the process is terminated. If the maximum allowable
construction cost varies more than fifteen percent from the bid estimated
maximum allowable construction cost due to requested and approved changes in
the scope by the public body, the percent fee shall be renegotiated. All
subcontract work shall be competitively bid with public bid openings. Specific
contract requirements for women and minority enterprise participation shall be
specified in each subcontract bid package that exceeds ten percent of the
public body's estimated project cost. All subcontractors who bid work over two
hundred thousand dollars shall post a bid bond and all subcontractors who are
awarded a contract over two hundred thousand dollars shall provide a
performance and payment bond for their contract amount. A low bidder who
claims error and fails to enter into a contract is prohibited from bidding on the
same project if a second or subsequent call for bids is made for the project.
All other subcontractors shall provide a performance and payment bond if
required by the general contractor/construction manager. Bidding on
subcontract work by the general contractor/construction manager or its
subsidiaries is prohibited. The general contractor/construction manager may
negotiate with the low-responsive bidder in accordance with RCW 39.10.080 or,
if unsuccessful in such negotiations, rebid.
(4)
If the project is completed for less than the agreed upon maximum allowable
construction cost, any savings not otherwise negotiated as part of an incentive
clause shall accrue to the public body. If the project is completed for more
than the agreed upon maximum allowable construction cost, excepting increases
due to any contract change orders approved by the public body, the additional
cost shall be the responsibility of the general contractor/construction
manager.
NEW
SECTION. Sec. 7. A
new section is added to chapter 43.19 RCW to read as follows:
A
low bidder who claims error and fails to enter into a contract is prohibited
from bidding on the same purchase or project if a second or subsequent call for
bids is made for the project.
Sec.
8. RCW
47.28.100 and 1984 c 7 s 171 are each amended to read as follows:
If
the successful bidder fails to enter into the contract and furnish satisfactory
bond as provided by law within twenty days from the award, exclusive of the day
of the award, his or her deposit shall be forfeited to the state and
deposited by the state treasurer to the credit of the motor vehicle fund, and
the department may award the contract to the second lowest responsible bidder.
If the second lowest responsible bidder fails to enter into the contract and
furnish bond within twenty days after award to him or her, forfeiture of
his or her deposit shall also be made, and the contract may be awarded
to the third lowest responsible bidder, and in like manner until the contract
and bond are executed by a responsible bidder to whom award is made, or further
bid proposals are rejected, or the number of bid proposals are exhausted. If
the contract is not executed or no contractor's bond provided within the time
required, and there appear circumstances that are deemed to warrant an
extension of time, the department may extend the time for execution of the
contract or furnishing bond for not to exceed twenty additional days. After awarding
the contract the deposits of unsuccessful bidders shall be returned, but the
department may retain the deposit of the next lowest responsible bidder or
bidders as it desires until such time as the contract is entered into and
satisfactory bond is provided by the bidder to whom the award is ultimately
made. A low bidder who claims error and fails to enter into a contract is
prohibited from bidding on the same project if a second or subsequent call for
bids is made for the project.
If
in the opinion of the department the acceptance of the bid of the lowest
responsible bidder or bidders, or on prior failure of the lowest responsible
bidder or bidders the acceptance of the bid of the remaining lowest responsible
bidder or bidders, will not be for the best interest of the state, it may
reject all bids or all remaining bids and republish a call for bids in the same
manner as for an original publication thereof.
Sec.
9. RCW
47.60.778 and 1993 c 493 s 6 are each amended to read as follows:
Bids
submitted by firms under this section constitute an offer and shall remain open
for ninety days. When submitted, each bid shall be accompanied by a deposit in
cash, certified check, cashier's check, or surety bond in an amount equal to five
percent of the bid amount, and no bid may be considered unless the deposit is
enclosed. If the department awards a contract to a firm and the firm fails to
enter into a contract or fails to furnish a satisfactory contract security as
required by RCW 39.08.100, its deposit shall be forfeited to the state and be
deposited by the state treasurer to the credit of the Puget Sound capital
construction account. A low bidder who claims error and fails to enter into
a contract is prohibited from bidding on the same project if a second or
subsequent call for bids is made for the project. Upon the execution of a
ferry construction contract for the construction of new jumbo ferries, all bid
deposits shall be returned.
NEW
SECTION. Sec. 10. A
new section is added to chapter 52.14 RCW to read as follows:
A
low bidder who claims error and fails to enter into a contract with a fire
protection district for a public works project is prohibited from bidding on
the same project if a second or subsequent call for bids is made for the
project.
Sec.
11. RCW
53.08.130 and 1971 ex.s. c 258 s 2 are each amended to read as follows:
The
notice shall state generally the nature of the work to be done and require that
bids be sealed and filed with the commission at a time specified therein. Each
bid shall be accompanied by a bid proposal deposit in the form of a cashier's
check, money order, or surety bid bond to the commission for a sum not less
than five percent of the amount of the bid, and no bid shall be considered
unless accompanied by such bid proposal deposit. At the time and place named
the bids shall be publicly opened and read and the commission shall proceed to
canvass the bids and, except as otherwise in this section provided, shall let
the contract to the lowest responsible bidder upon plans and specifications on
file, or to the best bidder submitting his or her own plans and
specifications. If, in the opinion of the commission, all bids are
unsatisfactory, they may reject all of them and readvertise, and in such case
all such bid proposal deposits shall be returned to the bidders; but if the
contract is let, then all bid proposal deposits shall be returned to the
bidders, except that of the successful bidder which shall be retained until a
contract is entered into for the purchase of such materials or doing such work,
and a bond given to the port district for the performance of the contract and
otherwise conditioned as required by law, with sureties satisfactory to the
commission, in an amount to be fixed by the commission, but not in any event
less than twenty-five percent of the contract price. If ((said)) the
bidder fails to enter into the contract in accordance with his or her
bid and furnish such bond within ten days from the date at which he or she
is notified that he or she is the successful bidder, the check or money
order and the amount thereof shall be forfeited to the port district or the
port district shall recover the amount of the surety bid bond. A low bidder
who claims error and fails to enter into a contract is prohibited from bidding
on the same project if a second or subsequent call for bids is made for the
project.
Sec.
12. RCW
54.04.080 and 1972 ex.s. c 41 s 1 are each amended to read as follows:
Any
notice inviting sealed bids shall state generally the work to be done, or the
material to be purchased and shall call for proposals for furnishing it, to be
sealed and filed with the commission on or before the time named therein. Each
bid shall be accompanied by a certified or cashier's check, payable to the
order of the commission, for a sum not less than five percent of the amount of
the bid, or accompanied by a bid bond in an amount not less than five percent
of the bid with a corporate surety licensed to do business in the state,
conditioned that the bidder will pay the district as liquidated damages the
amount specified in the bond unless he or she enters into a contract in
accordance with his or her bid and furnishes the performance bond ((herein
mentioned)) within ten days from the date on which he or she is
notified that he or she is the successful bidder. A low bidder who
claims error and fails to enter into a contract is prohibited from bidding on
the same project if a second or subsequent call for bids is made for the
project.
At
the time and place named, the bids shall be publicly opened and read, and the
commission shall canvass the bids, and may let the contract to the lowest
responsible bidder upon the plans and specifications on file, or to the best
bidder submitting his or her own plans or specifications; or if the
contract to be let is to construct or improve electrical facilities, the
contract may be let to the lowest bidder prequalified according to the
provisions of RCW 54.04.085 upon the plans and specifications on file, or to
the best bidder submitting his or her own plans and specifications:
PROVIDED, That no contract shall be let for more than fifteen percent in excess
of the estimated cost of the materials or work. The commission may reject all
bids and readvertise, and in such case all checks shall be returned to the
bidders. The commission may procure materials in the open market, have its own
personnel perform the work or negotiate a contract for such work to be
performed by others, in lieu of readvertising, if it receives no bid. If the
contract is let, all checks shall be returned to the bidders, except that of
the successful bidder, which shall be retained until a contract is entered into
and a bond to perform the work furnished, with sureties satisfactory to the
commission, in an amount to be fixed by the commission, not less than
twenty-five percent of the contract price, in accordance with the bid. If the
bidder fails to enter into the contract and furnish the bond within ten days
from the date at which he or she is notified that he or her is
the successful bidder, his or her check and the amount thereof shall be
forfeited to the district.
The
commission shall, by resolution, define the term "same kind of materials,
equipment, and supplies" with respect to purchase of items under the
provisions of RCW 54.04.070.
The
term "construction or improvement of any electrical facility" as used
in this section and in RCW 54.04.085, shall mean the construction, the moving,
maintenance, modification, or enlargement of facilities primarily used or to be
used for the transmission or distribution of electricity at voltages above
seven hundred fifty volts, including structures directly supporting
transmission or distribution conductors but not including site preparation,
housing, or protective fencing associated with but not included in a contract
for such construction, moving, modification, maintenance, or enlargement of
such facilities.
The
commission shall be the final authority with regard to whether a bid is
responsive to the call for bids and as to whether a bidder is a responsible
bidder under the conditions of his or her bid. No award of contract
shall be invalidated solely because of the failure of any prospective bidder to
receive an invitation to bid.
Sec.
13. RCW
56.08.070 and 1994 c 31 s 1 are each amended to read as follows:
(1)
All materials purchased and work ordered, the estimated cost of which is in
excess of five thousand dollars shall be let by contract. All contract
projects, the estimated cost of which is less than fifty thousand dollars, may
be awarded to a contractor using the small works roster process provided in RCW
39.04.155 or the process provided in RCW 39.04.190 for purchases. The board of
sewer commissioners may set up uniform procedures to prequalify contractors for
inclusion on the small works roster. All contract projects equal to or in
excess of fifty thousand dollars shall be let by competitive bidding. Before
awarding any competitive contract the board of sewer commissioners shall
publish a notice in a newspaper of general circulation where the district is
located at least once, thirteen days before the last date upon which bids will
be received, inviting sealed proposals for such work, plans and specifications
which must at the time of publication of such notice be on file in the office
of the board of sewer commissioners subject to public inspection. Such notice
shall state generally the work to be done and shall call for proposals for
doing the same to be sealed and filed with the board of sewer commissioners on
or before the day and hour named therein.
(2)
Each bid shall be accompanied by a bid proposal deposit in the form of a
certified check, cashier's check, postal money order, or surety bond payable to
the order of the county treasurer for a sum not less than five percent of the
amount of the bid and no bid shall be considered unless accompanied by such bid
proposal deposit. At the time and place named such bids shall be publicly
opened and read and the board of sewer commissioners shall proceed to canvass
the bids and may let such contract to the lowest responsible bidder upon plans
and specifications: PROVIDED, That no contract shall be let in excess of the
cost of the materials or work. The board of sewer commissioners may reject all
bids for good cause and readvertise and in such case all checks, cash or bid
bonds shall be returned to the bidders. If such contract be let, then all
checks, cash or bid bonds shall be returned to the bidders, except that of the
successful bidder, which shall be retained until a contract shall be entered
into for the purchase of such materials or doing such work, and a bond to
perform such work furnished with sureties satisfactory to the board of sewer
commissioners in the full amount of the contract price between the bidder and
the commission in accordance with bid. If the bidder fails to enter into the
contract in accordance with the bid and furnish such bond within ten days from
the date at which the bidder is notified that he or she is the successful
bidder, the check, cash, or bid bonds and the amount thereof shall be forfeited
to the sewer district. A low bidder who claims error and fails to enter
into a contract is prohibited from bidding on the same project if a second or
subsequent call for bids is made for the project.
(3)
In the event of an emergency when the public interest or property of the sewer
district would suffer material injury or damage by delay, upon resolution of
the board of sewer commissioners, or proclamation of an official designated by
the board to act for the board during such emergencies, declaring the existence
of such emergency and reciting the facts constituting the same, the board, or
the official acting for the board, may waive the requirements of this chapter
with reference to any purchase or contract. In addition, these requirements
may be waived for purchases which are clearly and legitimately limited to a
single source of supply and purchases involving special facilities, services,
or market conditions, in which instances the purchase price may be best
established by direct negotiation.
Sec.
14. RCW
57.08.050 and 1994 c 31 s 2 are each amended to read as follows:
(1)
The board of water commissioners shall have authority to create and fill such
positions and fix salaries and bonds thereof as it may by resolution provide.
(2)
All materials purchased and work ordered, the estimated cost of which is in
excess of five thousand dollars shall be let by contract. All contract
projects, the estimated cost of which is less than fifty thousand dollars, may
be awarded to a contractor using a small works roster process provided in RCW
39.04.155 or the process provided in RCW 39.04.190 for purchases. The board of
water commissioners may set up uniform procedures to prequalify contractors for
inclusion on the small works roster. All contract projects equal to or in
excess of fifty thousand dollars shall be let by competitive bidding. Before
awarding any such contract the board of water commissioners shall publish a
notice in a newspaper of general circulation where the district is located at
least once thirteen days before the last date upon which bids will be received,
inviting sealed proposals for such work, plans and specifications which must at
the time of publication of such notice be on file in the office of the board of
water commissioners subject to public inspection. Such notice shall state
generally the work to be done and shall call for proposals for doing the same
to be sealed and filed with the board of water commissioners on or before the
day and hour named therein.
(3)
Each bid shall be accompanied by a certified or cashier's check or postal money
order payable to the order of the county treasurer for a sum not less than five
percent of the amount of the bid, or accompanied by a bid bond in an amount not
less than five percent of the bid with a corporate surety licensed to do
business in the state, conditioned that the bidder will pay the district as
liquidated damages the amount specified in the bond, unless the bidder enters
into a contract in accordance with his or her bid, and no bid shall be
considered unless accompanied by such check, cash or bid bond. At the time and
place named such bids shall be publicly opened and read and the board of water
commissioners shall proceed to canvass the bids and may let such contract to
the lowest responsible bidder upon plans and specifications on file or to the
best bidder submitting his or her own plans and specifications: PROVIDED, That
no contract shall be let in excess of the cost of the materials or work. The
board of water commissioners may reject all bids for good cause and readvertise
and in such case all checks, cash or bid bonds shall be returned to the
bidders. If such contract be let, then all checks, cash or bid bonds shall be
returned to the bidders, except that of the successful bidder, which shall be
retained until a contract shall be entered into for the purchase of such
materials or doing such work, and a bond to perform such work furnished with
sureties satisfactory to the board of water commissioners in the full amount of
the contract price between the bidder and the commission in accordance with the
bid. If the bidder fails to enter into the contract in accordance with the bid
and furnish such bond within ten days from the date at which the bidder is
notified that he or she is the successful bidder, the check, cash or bid bonds
and the amount thereof shall be forfeited to the water district: PROVIDED,
That if the bidder fails to enter into a contract in accordance with his or her
bid, and the board of water commissioners deems it necessary to take legal
action to collect on any bid bond required ((herein)) in this section,
then the water district shall be entitled to collect from the bidder any legal
expenses, including reasonable attorneys' fees occasioned thereby. A low
bidder who claims error and fails to enter into a contract is prohibited from
bidding on the same project if a second or subsequent call for bids is made for
the project.
(4)
In the event of an emergency when the public interest or property of the water
district would suffer material injury or damage by delay, upon resolution of
the board of water commissioners, or proclamation of an official designated by
the board to act for the board during such emergencies, declaring the existence
of such emergency and reciting the facts constituting the same, the board, or
official acting for the board, may waive the requirements of this chapter with
reference to any purchase or contract. In addition, these requirements may be
waived for purchases which are clearly and legitimately limited to a single
source of supply and purchases involving special facilities, services, or
market conditions, in which instances the purchase price may be best
established by direct negotiation.
Sec.
15. RCW
70.44.140 and 1993 c 198 s 22 are each amended to read as follows:
(1)
All materials purchased and work ordered, the estimated cost of which is in
excess of five thousand dollars, shall be by contract. Before awarding any
such contract, the commission shall publish a notice at least thirteen days
before the last date upon which bids will be received, inviting sealed
proposals for such work. The plans and specifications must at the time of the
publication of such notice be on file at the office of the public hospital
district, subject to public inspection: PROVIDED, HOWEVER, That the commission
may at the same time, and as part of the same notice, invite tenders for the
work or materials upon plans and specifications to be submitted by bidders.
The notice shall state generally the work to be done, and shall call for
proposals for doing the same, to be sealed and filed with the commission on or
before the day and hour named therein. Each bid shall be accompanied by bid
proposal security in the form of a certified check, cashier's check, postal
money order, or surety bond made payable to the order of the commission, for a
sum not less than five percent of the amount of the bid, and no bid shall be
considered unless accompanied by such bid proposal security. At the time and
place named, such bids shall be publicly opened and read, and the commission
shall proceed to canvass the bids, and may let such contract to the lowest
responsible bidder upon plans and specifications on file, or to the best bidder
submitting his or her own plans and specifications: PROVIDED, HOWEVER, That no
contract shall be let in excess of the estimated cost of the materials or work,
or if, in the opinion of the commission, all bids are unsatisfactory, they may
reject all of them and readvertise, and in such case all bid proposal security
shall be returned to the bidders; but if such contract be let, then and in such
case all bid proposal security shall be returned to the bidders, except that of
the successful bidder, which shall be retained until a contract shall be
entered into for the purchase of such materials for doing such work, and a bond
to perform such work furnished, with sureties satisfactory to the commission,
in an amount to be fixed by the commission, not less than twenty-five percent
of contract price in any case, between the bidder and commission, in accordance
with the bid. If such bidder fails to enter into the contract in accordance
with the bid and furnish such bond within ten days from the date at which the
bidder is notified that he or she is the successful bidder, the bid proposal
security and the amount thereof shall be forfeited to the public hospital
district. A low bidder who claims error and fails to enter into a contract
is prohibited from bidding on the same project if a second or subsequent call
for bids is made for the project.
(2)
In lieu of the procedures of subsection (1) of this section, a public hospital
district may use a small works roster process and award public works contracts
for projects in excess of five thousand dollars up to fifty thousand dollars as
provided in RCW 39.04.155.
(3)
For advertisement and formal sealed bidding to be dispensed with as to
purchases between five thousand and fifteen thousand dollars, the commission
must authorize by resolution a procedure as provided in RCW 39.04.190.
Sec.
16. RCW
91.08.530 and 1911 c 23 s 52 are each amended to read as follows:
After
the confirmation of the assessment roll of any improvement district provided
for herein, the board shall proceed at once with the construction of the
improvement, and in carrying on ((said)) the construction it
shall have full charge and management thereof and the power to employ such
assistants as it may deem necessary, and purchase all material required in such
construction; and it shall have power to let the whole or any part of the work
of ((said)) the improvement to the lowest and best bidder
therefor, after public advertisement and call for bids; and in case of such
letting of a contract it shall have the power also to enter into all necessary
agreements with the contractor in the premises: PROVIDED, That in the case of
the letting of a contract the board shall require the contractor to give a bond
in the amount of the contract price, with sureties to be approved by the board
and running to the board as obligee therein, conditioned for the faithful and
accurate performance of his or her contract by ((said)) the
contractor, and that he or she will pay, or cause to be paid, all just
claims of all persons performing labor upon or rendering services in doing ((said))
the work, or furnishing materials, merchandise or provisions used by ((said))
the contractor in the construction of ((said)) the
improvement. ((Said)) The bond shall be filed and recorded in
the office of the auditor of the county and every subcontractor on any such
work shall file and record a like bond in the full amount of his or her
subcontract. Unless otherwise paid their claims for labor or services,
materials, merchandise or provisions, the claimants may have recourse by suit
upon such bond in their own names: PROVIDED, That no such claim or suit shall
be maintained unless the persons making ((said)) the claim shall
within thirty days after the completion of ((said)) the
improvement, file their claims, duly verified, to the effect that the amounts
thereof are just and due and are unpaid, with the clerk of the board. Each
bidder for a contract to be let under this section shall deliver with his or
her bid a check for five percent of the amount of the bid, drawn upon a
bank in this state and certified by the bank, as surety to the board that the
bidder will enter into the contract with the board. The checks of unsuccessful
bidders will be returned to them when an award of the contract has been made by
the board. A low bidder who claims error and fails to enter into a contract
is prohibited from bidding on the same project if a second or subsequent call
for bids is made for the project.
NEW SECTION. Sec. 17.
Section 6 of this act shall expire July 1, 1997.
