SENATE BILL REPORT

SHB 1379

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

Senate Hearing Date(s):March 20, 1989

Majority Report:  Do pass.

      Signed by Senators McCaslin, Chairman; Thorsness, Vice Chairman; Conner, Sutherland.

Senate Staff:Desley Brooks (786-7443)

                  March 20, 1989

AS REPORTED BY COMMITTEE ON GOVERNMENTAL OPERATIONS, MARCH 20, 1989

BACKGROUND:

Under current state law, if the lowest bid received on a public works project is in excess of the funds available, the project must be redesigned and rebid.  It has been suggested that this can be a costly and time consuming process.

SUMMARY:

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

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Senate Committee - Testified: Bert Hoff, Legislative Budget Committee