2974-S AMH SCHD H5184

2974-S AMH SCHD H5184.5

SHB 2974 - H AMD 998

By Representative D. Schmidt

Strike everything after the enacting clause and insert the following:

"Sec. 1. 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~~)) one million dollars or more for the construction, alteration, or repair of any public building or public work of the state or a state agency, other than the department of transportation, or municipality as defined under RCW 39.04.010, or an institution of higher education as defined under RCW 28B.10.016((~~, or a school district~~)) shall require each prime contract bidder to submit as part of ((~~the~~)) its bid, ((~~or within one hour after the published bid submittal time, the names of the subcontractors whose subcontract amount is more than ten percent of the bid price with whom the bidder~~)) the names of each subcontractor who, if the prime contract bidder were awarded the contract, the prime contract bidder will subcontract with for performance of ((~~the work designated on the list to be submitted with the bid~~)): (a) Any work described in construction specification institute division fifteen or sixteen of the contract specifications constituting five percent or more of the prime contract bidder's base bid price; and (b) no more than one other specialty subcontractor if required by the public entity in its bid document for the project. For purposes of this section, "named subcontractor" means a subcontractor named by the prime contract bidder as part of its bid to the public entity. Failure to name each such subcontractor((s)), naming subcontractors who did not comply with the requirements of subsection (3) this section, or naming of two or more subcontractors for the same work shall render the prime contract bidder's bid nonresponsive and, therefore, void.

(2) The requirement of subsection (1) of this section to name subcontractors only applies to subcontractors who will have a direct contract with the prime contract bidder submitting a bid to the public entity.

(3) Each potential subcontractor submitting a bid to any prime contract bidder under subsection (1) of this section must submit its bid for its portion of the project and a clearly defined scope of work to the prime contract bidder at least two hours before the time specified for bids to be received from prime contract bidders. Each potential subcontractor submitting a bid to any prime contract bidder under subsection (1) of this section must also submit a sealed copy of its bid and scope of work submitted to each prime contract bidder to the public entity at least two hours before the time specified for bids to be received from prime contract bidders. A subcontract for a portion of this project may not be awarded to a potential subcontractor failing to comply with this section.

(4) Immediately after expiration of two hours before the time specified for bids to be received from prime contract bidders, the public entity shall post a list of the names of the subcontractors who timely submitted copies of their bids to the public entity in accordance with subsection (3) of this section. The list shall be posted at the place where bids from prime contract bidders will be opened. Immediately after the apparent low prime contract bidder is identified by the public entity, the public entity shall make available for public inspection and copying the subcontract bids of the subcontractors named by the apparent low prime contract bidder. In the event the apparent low or successful prime contract bidder attempts to substitute or substitutes another subcontractor for a named subcontractor, the public entity shall make available for public inspection and copying all subcontract bids for the affected work.

(5) A successful prime contract bidder shall not substitute another subcontractor for a named subcontractor unless:

(a) The public entity objects to the subcontractor and requests the substitution in writing. The public entity shall reimburse the prime contract bidder for any increases incurred as a result of this substitution; or

(b) Any of the following occurs:

(i) The named subcontractor fails or refuses to execute a written contract with the successful prime contract bidder within the time prescribed by the prime contract bidder, which shall not be less than one business day from the time the contract was offered, or if no time was prescribed, within a reasonable time, when the subcontract that was offered to the named subcontractor includes the same general terms and conditions offered or to be offered to other subcontractors for the same work;

(ii) The named subcontractor files for bankruptcy or becomes insolvent;

(iii) The named subcontractor fails, refuses, or is unable to furnish a performance bond and payment bond, where the public entity or prime contract bidder requires the bond as a condition of awarding the contract or subcontract;

(iv) If the named subcontractor is not registered under chapter 18.27 RCW or licensed under chapter 19.28 RCW;

(v) If the successful prime contract bidder demonstrates to the public entity that the name of the subcontractor or type of work identified in the prime contractor's bid was named as a result of a good faith, inadvertent clerical error;

(vi) If the successful prime contract bidder reasonably believes the named subcontractor is unable or unwilling to perform the subcontract and the public entity approves the substitution; or

(vii) If the alternate bid accepted by the public entity displaces the named subcontractor with another subcontractor who complied with subsection (3) of this section and whose combined base bid and accepted alternate bid is lower than the combined base bid and accepted alternate bid for the same work by the named subcontractor.

(6) Subcontracting with subcontractors who have not complied with subsection (3) of this section or substitution of a named subcontractor for reasons other than those under subsection (5) of this section is prohibited. Injunctive relief to enforce this section must be brought in the superior court of the county in which the work is to be performed within ten days after the named subcontractor knew or should have known of the substitution. RCW 7.40.080 and 7.40.085 apply to an action for injunctive relief brought under this section. The prevailing party in such an action is entitled to recover reasonable attorneys' fees, costs, and disbursements.

(7) Public entities subject to this section shall include the prime contractor and subcontractor bidding requirements in this section in any bid advertisement for the project and in the plans and specifications for the project and shall prepare prime contract bid documents for the naming of subcontractors.

NEW SECTION. Sec. 2. Section 1 of this act only applies to projects that are initially advertised for bids after September 1, 1998."

Correct the title.