Wisconsin Code § 16.855

Construction project contracts
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(1g) In this
section:
(ag) “Board of Regents” means the Board of Regents of the
University of Wisconsin System.
(ar) “Mechanical, electrical, or plumbing subcontractor” is a
contractor that performs mechanical, electrical, plumbing, or fire
protection work and enters into a contract with a general prime
contractor to perform their division of work.
(b) “Qualified bidder” means a person that the department
certifies under sub. (9m) (b) 1.

(c) “Qualified responsible bidder” means a person who is a
qualified bidder and who is a responsible bidder.
(d) “Responsible bidder” means a person that the department
certifies under sub. (9m) (b) 2.
(e) “Single prime contracting” means bidding and contracting
through a process in which only a general prime contractor has a
contractual relationship with the state and all mechanical, electrical, or plumbing subcontractors are identified by the department
or the Board of Regents and are subcontractors to the general
prime contractor.
(ec) “Single trade contractor” means a contractor whose primary business is the performance of a trade.
(em) “Trade” means mechanical, electrical, plumbing, or fire
protection work.
(f) “UW gifts and grants project” means a construction
project funded entirely with gifts and grants made to the University of Wisconsin System.
(1m) The department shall let by contract to the lowest qualified responsible bidder all construction work when the estimated
construction cost of the project exceeds $50,000, except for construction work authorized under s. 16.858 and except as provided
in sub. (1r) or (10m) or s. 13.48 (19). Beginning in fiscal year
2023-24, this amount is $100,000. If factors other than dollar
amounts are required to be evaluated for a project, the department
shall specify a formula that will convert the other factors into a
dollar value for comparison.
(1p) (a) In this subsection:
1. “Agreement with a labor organization” has the meaning
given in s. 16.75 (1p) (a) 1.
2. “Labor organization” has the meaning given in s. 5.02
(8m).
(b) The department may not do any of the following in a solicitation for bids under this section:
1. Require that a bidder enter into or adhere to an agreement
with a labor organization.
2. Consider as a factor in making an award under this section
whether any bidder has or has not entered into an agreement with
a labor organization.
3. Require that a bidder enter into, adhere to, or enforce any
agreement that requires, as a condition of employment, that the
bidder or bidder’s employees become or remain members of, or
be affiliated with, a labor organization or pay any dues, fees, assessments, or other charges or expenses of any kind or amount, or
provide anything of value, to a labor organization or a labor organization’s health, welfare, retirement, or other benefit plan or
program.
(c) Nothing in this subsection prohibits employers or employees from entering into agreements or engaging in any other activity protected by the National Labor Relations Act, 29 USC 151 to
169.
(1r) If a bidder is not a Wisconsin firm and the department
determines that the state, foreign nation or subdivision thereof in
which the bidder is domiciled grants a preference to bidders
domiciled in that state, nation or subdivision in making governmental purchases, the department shall give a preference over that
bidder to Wisconsin firms, if any, when awarding the contract, in
the absence of compelling reasons to the contrary. The department may enter into agreements with states, foreign nations and
subdivisions thereof for the purpose of implementing this
subsection.
(2) Except for projects authorized under s. 16.858, whenever
the estimated construction cost of a project exceeds $50,000 or,
beginning in fiscal year 2023-24, $100,000, or if less and in the
best interest of the state, the department shall:
(a) Advertise for proposals by publication of a class 1 notice,
under ch. 985, in the official state newspaper. Similar notices
may be placed in publications likely to inform potential bidders
of the project. The department may solicit bids from qualified
contractors to insure adequate competition. All advertisements
shall contain the following information:
1. Location of work and the name of the owner.
2. Scope of the work.
3. Amount of bid guarantee required.
4. Date, time and place of bid opening.
5. Date when and place where plans will be available.
6. That the department shall consider only bids from persons
who are responsible bidders and, unless sub. (9m) (ar) 2. applies,
qualified bidders.
(b) 1. Require that a guarantee of not less than 10 percent of
the amount of the bid shall be included with each bid submitted
guaranteeing the execution of the contract within 10 days of offering, if offered within 30 days after the date set for the opening
thereof. The parties may agree to extend the time for offering of
the contract beyond 30 days after the opening of bids.
2. If the federal government participates in a state project, the
bid guarantee required in this paragraph controls, unless the federal government makes a specific provision for a different bid
guarantee.
(c) Publicly open and read aloud, at the time and place specified in the notice, all bids. Within a reasonable time after opening, tabulations of all bids received shall be available for public
inspection.
(d) Not allow or make any correction or alteration of a bid, except as provided in sub. (6).
(3) At any time prior to the published time of opening, a bid
may be withdrawn on written request submitted to the department by the bidder or the bidder’s agent, without prejudice to the
right of the bidder to file a new bid.
(4) If a bid contains an error, omission or mistake, the bidder
may limit liability to the amount of the bidder’s bid guarantee by
giving written notice of intent not to execute the contract to the
department within 72 hours of the bid opening. The department
of administration, with the approval of the attorney general, may
settle and dispose of cases and issues arising under this subsection. However, if no such settlement is obtained, the bidder is not
entitled to recover the bid guarantee unless the bidder proves in
the circuit court for Dane County that in making the mistake, error or omission the bidder was free from negligence.
(5) Any or all bids may be rejected if, in the opinion of the department, it is in the best interest of the state. The reasons for rejection shall be given to the bidder or bidders in writing.
(6) Nothing contained in this section shall prevent the department from negotiating deductive changes in the lowest qualified
bid.
(7) The department may issue contract change orders, if they
are deemed to be in the best interests of the state.
(9m) (ag) In this subsection, “bidder” includes a potential
bidder.
(ar) 1. The department shall certify bidders as qualified bidders under par. (b) 1. and responsible bidders under par. (b) 2. and
shall administer a registration process for all bidders submitting
bids on any construction project under this section. The department shall issue, in a timely manner, a certification decision on a
complete application for certification. A certification under this
subdivision is valid for 2 years except the department may decertify a bidder if the department determines that the bidder no
longer meets the qualifications under par. (b) and if the depart-

ment follows a decertification process developed by rule that provides to the bidder notice, hearing, and a means to appeal.
2. Notwithstanding sub. (1m) or (14) (d) , the department
may waive the condition of certification as a qualified bidder if
the project is of such magnitude as to limit competition if the conditions under par. (b) 1. were required.
3. The department shall consider for certification under par.
(b) associations consisting of at least 2 contracting firms that are
organized for the purpose of entering into a construction contract
as a single entity if at least one of the contracting firms is qualified under par. (b) and if the assignment of, and provisions for the
continuity of, the various responsibilities within the association
are agreed upon before the contract is awarded.
(b) 1. To be certified as a qualified bidder, a bidder must meet
all of the following conditions:
a. The bidder has completed at least one project that involved
similar work to the work being bid and the project was at least 50
percent of the size or value of the division of the project being
bid. If the department determines that more experience is necessary for a particular project, the department may include additional requirements in the specifications and certify bidders
accordingly.
b. The bidder has access to all necessary equipment and the
organizational capacity and technical competence necessary to
perform the project work properly and expeditiously.
c. If the department so requires or the bidder will be considered unqualified, the bidder has submitted a sworn statement as
to financial ability, equipment, and experience in construction
and other information as may be necessary to determine the bidder’s competency.
2. To be certified as a responsible bidder, a bidder must meet
all of the following conditions:
a. The bidder maintains a permanent place of business.
b. The bidder submits a sworn statement, upon the department’s request, that indicates that the bidder has adequate financial resources to complete the work being bid, taking into account
any other work the bidder is currently under contract to complete.
c. The bidder is bondable for the term of the proposed contract and is able to obtain a 100 percent performance bond and a
separate 100 percent payment bond.
d. The bidder has a record of satisfactorily completing
projects. In determining this factor, the department shall consider
if the bidder has completed all contracts in accordance with drawings and specifications; diligently pursued execution of the work
and completed contracts according to the time schedule, taking
account of extensions granted; fulfilled guarantee requirements
of contracts; if the contract included an affirmative action program requirement, complied with the requirement; and, if the
contract included a safety program requirement, complied with
the requirement.
e. The bidder is not on an ineligible list that the department
maintains under s. 16.705 (9) or 16.765 (9) or on a list that another agency maintains for persons who violated construction-related statutes or administrative rules.
f. The bidder has been in business for at least 12 months.
g. The bidder is a legal entity and authorized to do business
in Wisconsin.
h. The bidder has performed at least one other public project
for a government entity.
i. The bidder can provide information, upon request, to the
department on the bidder’s ownership, management, and control.
j. In any jurisdiction, the bidder, in the previous 10 years, has
not been debarred from any government contracts and has not
been found to have committed tax avoidance or evasion.
k. In any jurisdiction, in the previous 10 years, the bidder has
not been disciplined under a professional license.
L. In any jurisdiction, none of the bidder’s employees and no
member of the bidder’s organization has been disciplined under a
professional license that is currently in use.
(10) When the department believes that it is in the best interests of the state to contract for certain articles or materials available from only one source, it may contract for said articles or materials without the usual statutory procedure, after a publication
of a class 1 notice, under ch. 985, in the official state newspaper.
(10m) (ac) In this subsection, “disabled veteran-owned business” means a business certified by the department of administration under s. 16.283 (3).
(am) 1. In awarding construction contracts the department
shall attempt to ensure that 5 percent of the total amount expended in each fiscal year is awarded to contractors and subcontractors which are minority businesses, as defined under s. 16.75
(3m) (a) 4.
2. In awarding construction contracts, the department shall
attempt to ensure that at least 1 percent of the total amount expended in each fiscal year is awarded to contractors and subcontractors that are disabled veteran-owned businesses.
3. The department may award any contract to a minority
business or disabled veteran-owned business, or a business that is
both a minority business and a disabled veteran-owned business,
if the business is a qualified responsible bidder and the business
submits a bid that is no more than 5 percent higher than the apparent low bid.
(b) Upon completion of any contract, the contractor shall report to the department any amount of the contract that was subcontracted to minority businesses or disabled veteran-owned
businesses.
(c) The department shall maintain and annually publish data
on contracts awarded to minority businesses and disabled veteran-owned businesses under this subsection and ss. 16.87 and
84.075.
(10n) (a) In this subsection, “minority group member” has
the meaning given in s. 16.287 (1) (f).
(b) The department shall enter into a memorandum of understanding with the state fair park board which shall specify procedures for construction work and professional services contracts to
be performed for the state fair park board under which any person
who is awarded such a contract shall agree, as a condition to receiving the contract, that his or her goal shall be to ensure that at
least 25 percent of the employees hired because of the contract
will be minority group members and at least 5 percent of the employees hired because of the contract will be women.
(10p) For each proposed construction project, the department shall ensure that the specifications require the use of recovered materials and recycled materials, as defined under s. 16.70
(11) and (12), to the extent that such use is technically and economically feasible.
(10s) (a) The department shall, by rule, prescribe and annually review and revise as necessary energy efficiency standards
for equipment that is installed as a component of a construction
project and that relates to heating, ventilation, air conditioning,
water heating or cooling, lighting, refrigeration, or any other function that consumes energy. The standards shall meet or exceed
current applicable guidelines of the federal environmental protection agency relating to energy efficiency of the functions specified in this paragraph, guidelines that apply to the federal energy
management program under 42 USC 8251 et seq., and standards
established by the American society of heating, refrigerating and
air-conditioning engineers.

(b) The department shall ensure that the specifications for any
equipment that is designed for heating, ventilation, air conditioning, water heating or cooling, lighting, refrigeration, or any other
function that consumes energy under any construction project
contract administered by the department meet applicable standards established under par. (a). If there is no standard under par.
(a) applicable to the type of equipment being purchased or if the
equipment meeting that standard is not reasonably available, the
department shall ensure that energy consumption within a building, structure, or facility and all equipment that is purchased under each contract administered by the department maximizes energy efficiency to the extent technically and economically feasible. The department shall not determine that equipment that
meets the applicable standard under par. (a) either is not reasonably available on the basis of cost alone or is not cost-effective
unless the difference in the cost of the purchase and installation
of the equipment that meets the standard and the equipment that
would otherwise be installed is greater than the difference in the
cost of operating the equipment that meets the standard and the
equipment that would otherwise be installed over the anticipated
life of the equipment.
(11) A contractor shall be liable for any damages to another
contractor working on the same project caused by reason of the
former’s default, act or nonperformance.
(12) Nothing contained in this section shall be construed so
as to make contracts let under this section subject to s. 66.0901.
(12m) The Board of Regents may let UW gifts and grants
projects through single prime contracting. If the Board of Regents lets a UW gifts and grants project through single prime contracting, this section does not apply to the project, except for subs.
(13), (14), and (14m).
(13) (a) 1. In any project under this section let under single
prime contracting, the department or the Board of Regents shall
identify, as provided under par. (b), the mechanical, electrical, or
plumbing subcontractors who have submitted the lowest bids and
who are qualified responsible bidders. A general prime contractor who is submitting a bid under sub. (14) shall include the subcontractors so identified.
2. In any project under this section that is let under s. 13.48
(19), the department shall identify, as provided under par. (b), the
mechanical, electrical, or plumbing subcontractors who have submitted the lowest bids and who are qualified responsible bidders.
The contractor awarded a contract under s. 13.48 (19) shall contract with the mechanical, electrical, or plumbing subcontractors
so identified.
(b) For purposes of identifying subcontractors under par. (a),
the department or the Board of Regents shall develop and administer an open and public bidding process. The department shall
follow the requirements and procedures under sub. (2). The
Board of Regents shall follow the requirements and procedures
specified for the department under sub. (2) and has the power
specified for the department under sub. (6). Within 48 hours of
the deadline for a mechanical, electrical, or plumbing contractor
to submit a bid, the department or board shall post on its Internet
site the names of the bidders and the amount of each bid. No
more than 5 days after the deadline, the department or board shall
post on its Internet site and provide public notice of the lowest
bidders who are qualified responsible bidders. The department
or board shall post on its Internet site the bids, including the bid
documents, identified under this paragraph as the lowest bids and
they shall be open to public inspection under s. 19.35 (1). No
other bids under this paragraph may be on the Internet site or
open to public inspection.
(14) (am) Except as provided in sub. (14s) and s. 13.48 (19),
the department shall let all construction projects that exceed
$300,000 through single prime contracting. Beginning in fiscal
year 2023-24, this amount is $600,000. The department may not
request or accept any alternate bids when letting a construction
project through single prime contracting.
(b) 1. The state is not liable to a contractor for damage from
delay caused by another contractor if the department or the Board
of Regents takes reasonable action to require the delaying contractor to comply with its contract. If the state is not liable under
this subdivision, the delayed contractor may bring an action for
damages against the delaying contractor.
2. Except as otherwise provided by law, the state is not liable
for any damages to a subcontractor identified under sub. (13) (a)
that enters into a contract with a general prime contractor under
par. (e).
(bm) If the bid is being let through single prime contracting,
bidders for the general prime contractor who are responsible
qualified bidders shall submit their bids to the department or the
Board of Regents no later than 5 days after the successful subcontractor bids become available to the public under sub. (13) (b).
Within 48 hours of the deadline for a general prime contractor to
submit a bid, the department or board shall post on its Internet
site the tabulations of all bids that identify the names of the general prime contractors that bid and the amount of each bid and
shall make the tabulations and amounts available at the department or board if they are unavailable on the Internet site.
(c) The department or the Board of Regents shall reject any
bid for the general prime contractor from a bidder who submits a
bid that includes contractors other than the ones identified under
sub. (13) (a). The award of a contract may not be finalized until
the department or board approves the required performance bond
and certificate of insurance.
(d) Except as provided in sub. (10m) (am), the department or
the Board of Regents shall award all single prime contracts to the
lowest bidder who is a qualified responsible bidder that results in
the lowest total construction cost for the project.
(e) Within 30 days after the deadline under par. (bm) for bidders for the general prime contractor to submit their bids, the department or the Board of Regents shall notify the general prime
contractor bidder that was awarded the contract under par. (d).
The contractor who is awarded the contract shall enter into contracts with the mechanical, electrical, or plumbing subcontractors
identified under sub. (13) (a), shall ensure that any contract meets
the requirements under sub. (14m) (a) and (b), and shall comply
with the requirements under sub. (14m) (c) and (d). The department or board shall make the final bid results available on its Internet site at the time it provides the written, official notice to the
successful general prime contractor bidder notifying the contractor that the contract is fully executed and that the contractor is authorized to begin work on the project.
(14m) (a) Any contract entered into between a general prime
contractor and a subcontractor under sub. (14) (e) must contain
all of the following clauses:
Prompt Payment. (General prime contractor) shall pay
(mechanical, electrical, or plumbing subcontractor) in accordance with section 16.855 (19) (b), Wisconsin stats., for work
that has been satisfactorily completed and properly invoiced by
(mechanical, electrical, or plumbing subcontractor). A payment
is timely if it is mailed, delivered, or transferred to (mechanical,
electrical, or plumbing subcontractor) by the deadline under section 16.855 (19) (b), Wisconsin stats.
If (mechanical, electrical, or plumbing subcontractor) is not
paid by the deadline in this contract, (general prime contractor)
shall pay interest on the balance due from the eighth day after the
(general prime contractor) receives payment from the (Department of Administration or Board of Regents) for the work for

which payment is due and owing to (mechanical, electrical, or
plumbing subcontractor), at the rate specified in section 71.82,
Wisconsin stats., compounded monthly.
A (mechanical, electrical, or plumbing subcontractor) that receives payment as provided under this contract and that subcontracts with another entity shall pay those subcontractors, and be
liable for interest on late payments to those subcontractors, in the
same manner as (general prime contractor) is required to pay
(mechanical, electrical, or plumbing subcontractor) under this
contract.
Insurance and Bonds. (Mechanical, electrical, or plumbing subcontractor) shall not commence work under this contract
until it has obtained all necessary insurance required of (mechanical, electrical, or plumbing subcontractor) in the contract between the (general prime contractor) and the (Department of Administration or Board of Regents).
(Mechanical, electrical, or plumbing subcontractor) shall provide a separate 100 percent performance bond and a separate 100
percent payment bond to the benefit of the (general prime contractor) as the sole named obligee. Original bonds shall be given
to the (general prime contractor) and a copy shall be given to the
(Department of Administration or Board of Regents) no later
than 10 days after execution of this contract.
Indemnification. To the fullest extent permitted by law,
(mechanical, electrical, or plumbing subcontractor) shall defend,
indemnify, and hold harmless (general prime contractor) and its
officers, directors, agents, and any others whom (general prime
contractor) is required to indemnify under its contract with the
(Department of Administration or Board of Regents), and the employees of any of them, from and against claims, damages, fines,
penalties, losses, and expenses, including but not limited to attorney fees, arising in any way out of or resulting from the performance of the work under this contract, but only to the extent such
claim, damage, fine, penalty, loss, or expense: (1) is attributable
to bodily injury, sickness, disease, or death, or to injury to or destruction of property, including but not limited to loss of use resulting therefrom and is caused by the negligence, or acts or
omissions, of (mechanical, electrical, or plumbing subcontractor), its subcontractors, any of their employees, and anyone directly or indirectly employed by them or anyone for whose acts
they may be liable, or (2) as related to such claims, damages,
fines, penalties, losses, and expense of or against (general prime
contractor), results from or arises out of the negligence of (general prime contractor) or other fault in providing general supervision or oversight of the work of (mechanical, electrical, or plumbing subcontractor) or (3) as related to claims, damages, fines,
penalties, losses, and expense against the (Department of Administration or Board of Regents), arises out of the (department’s or
board’s) status as owner of the project or project site.
In addition (mechanical, electrical, or plumbing subcontractor) shall defend, indemnify, and hold harmless (general prime
contractor) and its officers, directors, agents, and any others (general prime contractor) is required to indemnify under its contract
with the (Department of Administration or Board of Regents),
and the employees of any of them, from any liability, including liability resulting from a violation of any applicable safe place act,
that (general prime contractor) or the state incurs to any employee
of (mechanical, electrical, or plumbing subcontractor) or any
third party where the liability arises from a derivative claim from
said employee, when the liability arises out of the failure of the
(general prime contractor) or the state to properly supervise, inspect, or approve the work or work area of (mechanical, electrical, or plumbing subcontractor), but only to the extent that the liability arises out of the acts or omissions of (mechanical, electrical, or plumbing subcontractor), its employees, or anyone for
whom (mechanical, electrical, or plumbing subcontractor) may
be liable, or from (mechanical, electrical, or plumbing subcontractor’s) breach of its contractual responsibilities or arises out of
(general prime contractor’s) negligence or other fault in providing
general supervision or oversight of (mechanical, electrical, or
plumbing subcontractor’s) work or arises out of the (Department
of Administration’s or Board of Regents’) status as owner of the
project or project site. In claims against (general prime contractor) or the state by an employee of (mechanical, electrical, or
plumbing subcontractor) or its subcontractors or anyone for
whose acts (mechanical, electrical, or plumbing subcontractor)
may be liable, the indemnification obligation of this paragraph is
not limited by a limitation on amount or type of damage, compensation, or other benefits payable by or for the (mechanical,
electrical, or plumbing subcontractor) or its subcontractors under
workers’ compensation act.
Except as identified above, the obligations of (mechanical,
electrical, or plumbing subcontractor) under this indemnification
do not extend to the liability of (general prime contractor) and its
agents or employees arising out of (1) preparation or approval of
maps, drawings, opinions, reports, surveys, change orders, designs, or specifications; (2) the giving of or failure to give directions or instructions by the (general prime contractor) or the (Department of Administration or Board of Regents) or their agents
or employees provided the giving or failure to give is the cause of
the injury or damage; or (3) the acts or omissions of other
subcontractors.
Retainage. Retainage shall occur and be in amounts and on
a schedule equal to that in the contract between (general prime
contractor) and the (Department of Administration or Board of
Regents).
(b) A contract entered into under sub. (14) (e) between a general prime contractor and a mechanical, electrical, or plumbing
subcontractor must include a scope of work clause that is identical to the scope of work clause on which the mechanical, electrical, or plumbing subcontractor bid under sub. (13).
(c) 1. Except as provided in subd. 2., a general prime contractor and a mechanical, electrical, or plumbing subcontractor may
not enter any agreement other than the contract entered into under sub. (14) (e) if the agreement is in connection with bids submitted under sub. (13) or (14) that would alter or affect the scope
or price of the contract entered into under sub. (13) or (14) (e).
2. The prohibition under subd. 1. does not apply to change
orders by the department or the Board of Regents that result in
changes to the plans or specifications or to back charges allowed
by the contract under sub. (13).
(d) The general prime contractor shall base its project schedule on the schedule in the specifications or bid instructions under
sub. (2) (a) unless otherwise agreed to by the mechanical, electrical, or plumbing subcontractor.
(14s) (a) The department may let any construction project
that exceeds $300,000 to a single trade contractor for all work on
the project if at least 85 percent of the estimated construction cost
of the project is for work that involves the trade that is the primary
business of the single trade contractor. Beginning in fiscal year
2023-24, this amount is $600,000.
(b) The department and the Board of Regents shall each develop and implement an open and public bidding process for purposes of contracting with single trade contractors who have submitted the lowest bid on a project and who are qualified responsible bidders. For purposes of this paragraph, the department and
the board shall follow the requirements and procedures under
sub. (2).
(c) Within 48 hours after the deadline for a single trade contractor to submit a bid, the department or the Board of Regents
shall post on its Internet site the tabulations of all bids that iden-

tify the names of the single trade contractors that bid and the
amount of each bid and shall make the tabulations and amounts
available at the department or board if they are unavailable on the
Internet site.
(d) Except as provided in sub. (10m) (am), the department or
the Board of Regents shall award all contracts under this subsection to the lowest bidder who is a qualified responsible bidder
that results in the lowest total construction cost for the project.
(e) Within 30 days after the deadline for a single trade contractor to submit a bid, the department or the Board of Regents
shall notify the single trade contractor bidder that was awarded
the contract.
(f) A contract awarded under this subsection is not subject to
subs. (13) and (14m).
(15) The department shall promulgate rules to implement the
advertising and award of contracts.
(16) (a) This section does not apply to contracts between the
state and federal government or any agency thereof, or with any
political subdivision of the state. Subject to the approval of the
governor, the requirements of this section may be waived in emergency situations involving the public health, welfare or safety or
with respect to contracting with public utilities, but only when
any such waiver is deemed by the governor to be in the best interests of the state.
(b) 1. In this paragraph, “agency” has the meaning given in s.
16.70 (1e).
2. In emergency situations, the governor may approve repairs
and construction of a building, structure, or facility in lieu of
building commission approval under s. 13.48 (10), and for such
purposes, may authorize the expenditure of up to $500,000 from
the state building trust fund or from other available moneys appropriated to an agency derived from any revenue source. The
governor may delegate to the secretary the authority to grant approvals under this subdivision. The governor shall report any
such authorization to the building commission at its next regular
meeting following the authorization. In this subdivision, “emergency” means any natural or human-caused situation that results
in or may result in substantial injury or harm to the population or
substantial damage to or loss of property.
(17) This section does not apply to any project on which the
work is to be performed by inmates or patients in institutions under the jurisdiction of the department of corrections or the department of health services working under the supervision or
with the assistance of state employees.
(18) This section shall not apply to restoration or reconstruction of the state capitol building, historic structures at the old
world Wisconsin site and at Heritage Hill state park when the department determines that a waiver of this section would serve the
best interests of this state.
(19) (a) As the work progresses under any contract for construction of a project the department, from time to time, shall
grant to the contractor an estimate of the amount and proportionate value of the work properly completed, which shall entitle the
contractor to receive the amount, less the retainage, from the
proper fund. The retainage shall be an amount equal to not more
than 5 percent of the estimate until 50 percent of the work has
been completed. At 50 percent completion, no additional
amounts shall be retained, and partial payments shall be made in
full to the contractor unless the department certifies that the job
is not proceeding satisfactorily. At 50 percent completion or any
time thereafter when the progress of the work is not satisfactory,
additional amounts may be retained but in no event shall the total
retainage be more than 10 percent of the value of the work completed. Upon substantial completion of the work, any amount retained shall be paid to the contractor, less the value of any required corrective work or uncompleted work. For the purposes of
this section, estimates may include any fabricated or manufactured materials and components specified, previously paid for by
contractor and delivered to the work or properly stored and suitable for incorporation in the work embraced in the contract.
(b) As the work progresses under any subcontract under sub.
(14) (e) for construction of a project, the general prime contractor
shall, upon request of a subcontractor, pay to the subcontractor an
amount equal to the proportionate value of the subcontractor’s
work properly completed, less retainage. The retainage shall be
an amount equal to not more than 5 percent of the subcontractor’s
work completed until 50 percent of the subcontractor’s work has
been completed. At 50 percent completion, no additional
amounts may be retained, and partial payments shall be made in
full to the subcontractor unless the department or the Board of
Regents certifies that the subcontractor’s work is not proceeding
satisfactorily. At 50 percent completion or any time thereafter
when the progress of the subcontractor’s work is not satisfactory,
additional amounts may be retained but the total retainage may
not be more than 10 percent of the value of the work completed.
Upon substantial completion of the subcontractor’s work, any
amount retained shall be paid to the subcontractor, less the value
of any required corrective work or uncompleted work. All payments the general prime contractor makes under this paragraph
shall be within 7 calendar days after the date on which the general
prime contractor receives payment from the department or board.
(c) This subsection does not apply to contracts awarded under
s. 16.858.
(20) This section does not apply to construction work performed by University of Wisconsin System students when the
construction work performed is a part of a curriculum and where
the work is course-related for the student involved. Prior approval of the building commission must be obtained for all construction projects to be performed by University of Wisconsin
System students, except projects specified in s. 13.48 (10) (c).
(21) This section does not apply to contracts by the department of natural resources for construction work related to hazardous substance spill response under s. 292.11 or environmental
repair under s. 292.31.
(22) The provisions of this section, except sub. (10m), do not
apply to construction work for any project involving a cost of not
more than $300,000 if the project is constructed in accordance
with policies and procedures prescribed by the building commission under s. 13.48 (29). Beginning in fiscal year 2023-24, this
amount is $600,000. If the estimated construction cost of any
project, other than a project exempted under sub. (12m), is at least
$50,000, and the building commission elects to utilize the procedures prescribed under s. 13.48 (29) to construct the project, the
department shall provide adequate public notice of the project
and the procedures to be utilized to construct the project on a
publicly accessible computer site. Beginning in fiscal year 202324, this amount is $100,000.

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