FINAL BILL REPORT

SHB 1379

                                   C 59 L 89

BYHouse Committee on Capital Facilities & Financing (originally sponsored by Representatives H. Sommers, Sayan, Silver, Brekke, Fuhrman, Holland, May, Winsley, Betrozoff, Wolfe, Schoon, Miller, Horn, Phillips and Ballard; by request of Legislative Budget Committee)

Authorizing adjustment of bid prices.

House Committe on Capital Facilities & Financing

Senate Committee on Governmental Operations

SYNOPSIS AS ENACTED

BACKGROUND:

If the lowest bid received on a public works project is in excess of the funds available, the project must be redesigned and rebid.  This rebidding process can be a costly and time consuming process.

This problem was highlighted in a Legislative Budget Committee report which examined the design and construction management process.  One of the recommendations in the report called for a change in the public works law to allow the contracting authority to negotiate with the lowest responsive bidder if the low bid is 5 percent or less in excess of available funds.

SUMMARY:

If all bids for a building construction project exceed the funds available, the state is authorized to negotiate an adjustment to the bid.  The adjustment is allowed only with the low responsive bidder and only if the low responsive bid is no more than a predetermined amount above the available funds.  The negotiated adjustment with the low bidder may include changes in the bid requirements in order to bring the bid within the amount of funds available.

VOTES ON FINAL PASSAGE:

      House 97   0

      Senate    42     3

EFFECTIVE:July 23, 1989