Nevada Code § 338.1389

Contract for public work for which estimated cost exceeds $250,000 must be awarded to contractor who submits best bid; certain bids deemed best bid; eligibility to receive preference in bidding; issuance of certificate of eligibility by State Contractors Board; regulations; fees; sanctions; objections
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1. Except as otherwise provided in
subsection 10 and NRS 338.1385 , 338.1386 and 338.13864 , a public body or its
authorized representative shall award a contract for a public work for which
the estimated cost exceeds $250,000 to the contractor who submits the best bid.
2. Except as otherwise provided in subsection
10 or limited by subsection 11, the lowest bid that is:
(a) Submitted by a responsive and responsible
contractor who:
(1) Has been determined by the public body
to be a qualified bidder pursuant to NRS
338.1379 or 338.1382 ;
(2) At the time the contractor submits his
or her bid, provides a valid certificate of eligibility to receive a preference
in bidding on public works issued to the contractor by the State Contractors
Board pursuant to subsection 3 or 4; and
(3) Within 2 hours after the completion of
the opening of the bids by the public body or its authorized representative,
submits a signed affidavit that meets the requirements of subsection 1 of NRS 338.0117 ; and
(b) Not more than 5 percent higher than the bid
submitted by the lowest responsive and responsible bidder who:
(1) Does not provide, at the time he or
she submits the bid, a valid certificate of eligibility to receive a preference
in bidding on public works issued to him or her by the State Contractors Board
pursuant to subsection 3 or 4; or
(2) Does not submit, within 2 hours after
the completion of the opening of the bids by the public body or its authorized
representative, a signed affidavit certifying that he or she will comply with
the requirements of paragraphs (a) to (d), inclusive, of subsection 1 of NRS 338.0117 for the duration of the
contract,
shall be
deemed to be the best bid for the purposes of this section.
3. The State Contractors Board shall
issue a certificate of eligibility to receive a preference in bidding on public
works to a general contractor who is licensed pursuant to the provisions of chapter 624 of NRS and submits to the Board an
affidavit from a certified public accountant setting forth that the general
contractor has, while licensed as a general contractor in this State:
(a) Paid directly, on his or her own behalf:
(1) The sales and use taxes imposed
pursuant to chapters 372 , 374 and 377 of
NRS on materials used for construction in this State, including, without
limitation, construction that is undertaken or carried out on land within the
boundaries of this State that is managed by the Federal Government or is on an
Indian reservation or Indian colony, of not less than $5,000 for each
consecutive 12-month period for 60 months immediately preceding the submission
of the affidavit from the certified public accountant;
(2) The governmental services tax imposed
pursuant to chapter 371 of NRS on the vehicles
used in the operation of his or her business in this State of not less than
$5,000 for each consecutive 12-month period for 60 months immediately preceding
the submission of the affidavit from the certified public accountant; or
(3) Any combination of such sales and use
taxes and governmental services tax; or
(b) Acquired, by purchase, inheritance, gift or
transfer through a stock option plan, all the assets and liabilities of a
viable, operating construction firm that possesses a:
(1) License as a general contractor
pursuant to the provisions of chapter 624 of
NRS; and
(2) Certificate of eligibility to receive
a preference in bidding on public works.
4. The State Contractors Board shall
issue a certificate of eligibility to receive a preference in bidding on public
works to a specialty contractor who is licensed pursuant to the provisions of chapter 624 of NRS and submits to the Board an
affidavit from a certified public accountant setting forth that the specialty
contractor has, while licensed as a specialty contractor in this State:
(a) Paid directly, on his or her own behalf:
(1) The sales and use taxes pursuant to chapters 372 , 374 and 377 of NRS on materials used for
construction in this State, including, without limitation, construction that is
undertaken or carried out on land within the boundaries of this State that is
managed by the Federal Government or is on an Indian reservation or Indian
colony, of not less than $5,000 for each consecutive 12-month period for 60
months immediately preceding the submission of the affidavit from the certified
public accountant;
(2) The governmental services tax imposed
pursuant to chapter 371 of NRS on the vehicles
used in the operation of his or her business in this State of not less than
$5,000 for each consecutive 12-month period for 60 months immediately preceding
the submission of the affidavit from the certified public accountant; or
(3) Any combination of such sales and use
taxes and governmental services tax; or
(b) Acquired, by purchase, inheritance, gift or
transfer through a stock option plan, all the assets and liabilities of a
viable, operating construction firm that possesses a:
(1) License as a specialty contractor
pursuant to the provisions of chapter 624 of
NRS; and
(2) Certificate of eligibility to receive
a preference in bidding on public works.
5. For the purposes of complying with the
requirements set forth in paragraph (a) of subsection 3 and paragraph (a) of
subsection 4, a contractor shall be deemed to have paid:
(a) Sales and use taxes and governmental services
taxes that were paid in this State by an affiliate or parent company of the
contractor, if the affiliate or parent company is also a general contractor or
specialty contractor, as applicable; and
(b) Sales and use taxes that were paid in this
State by a joint venture in which the contractor is a participant, in
proportion to the amount of interest the contractor has in the joint venture.
6. A contractor who has received a certificate
of eligibility to receive a preference in bidding on public works from the
State Contractors Board pursuant to subsection 3 or 4 shall, at the time for
the renewal of his or her contractors license pursuant to NRS 624.283 , submit to the Board an
affidavit from a certified public accountant setting forth that the contractor
has, during the immediately preceding 12 months, paid the taxes required
pursuant to paragraph (a) of subsection 3 or paragraph (a) of subsection 4, as
applicable, to maintain eligibility to hold such a certificate.
7. A contractor who fails to submit an
affidavit to the Board pursuant to subsection 6 ceases to be eligible to
receive a preference in bidding on public works unless the contractor reapplies
for and receives a certificate of eligibility pursuant to subsection 3 or 4, as
applicable.
8. If a contractor holds more than one
contractors license, the contractor must submit a separate application for each
license pursuant to which the contractor wishes to qualify for a preference in
bidding. Upon issuance, the certificate of eligibility to receive a preference
in bidding on public works becomes part of the contractors license for which
the contractor submitted the application.
9. If a contractor who applies to the
State Contractors Board for a certificate of eligibility to receive a
preference in bidding on public works:
(a) Submits false information to the Board
regarding the required payment of taxes, the contractor is not eligible to
receive a preference in bidding on public works for a period of 5 years after
the date on which the Board becomes aware of the submission of the false
information; or
(b) Is found by the Board to have, within the
preceding 5 years, materially breached a contract for a public work for which
the cost exceeds $5,000,000, the contractor is not eligible to receive a
preference in bidding on public works.
10. If any federal statute or regulation
precludes the granting of federal assistance or reduces the amount of that
assistance for a particular public work because of the provisions of subsection
2, those provisions do not apply insofar as their application would preclude or
reduce federal assistance for that work.
11. If a bid is submitted by two or more
contractors as a joint venture or by one of them as a joint venturer, the bid
may receive a preference in bidding only if both or all of the joint venturers
separately meet the requirements of subsection 2.
12. The State Contractors Board shall adopt
regulations and may assess reasonable fees relating to the certification of
contractors for a preference in bidding on public works.
13. A person who submitted a bid on the
public work or an entity who believes that the contractor who was awarded the
contract for the public work wrongfully holds a certificate of eligibility to
receive a preference in bidding on public works may challenge the validity of
the certificate by filing a written objection with the public body to which the
contractor has submitted a bid on a contract for the construction of a public
work. A written objection authorized pursuant to this subsection must:
(a) Set forth proof or substantiating evidence to
support the belief of the person or entity that the contractor wrongfully holds
a certificate of eligibility to receive a preference in bidding on public
works; and
(b) Be filed with the public body not later than
3 business days after the opening of the bids by the public body or its
authorized representative.
14. If a public body receives a written
objection pursuant to subsection 13, the public body shall determine whether
the objection is accompanied by the proof or substantiating evidence required
pursuant to paragraph (a) of that subsection. If the public body determines
that the objection is not accompanied by the required proof or substantiating
evidence, the public body shall dismiss the objection and the public body or
its authorized representative may proceed immediately to award the contract. If
the public body determines that the objection is accompanied by the required
proof or substantiating evidence, the public body shall determine whether the contractor
qualifies for the certificate pursuant to the provisions of this section and
the public body or its authorized representative may proceed to award the
contract accordingly.

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