Transportation, Operations, Construction

Rule R916-1

Advertising and Awarding Construction Contracts

Notice of Proposed Rule

(Amendment)

DAR File No.: 35130
Filed: 08/11/2011 11:48:07 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this amendment is to clarify advertisement for bids and the prequalification process and to make other stylistic changes.

Summary of the rule or change:

The amendment clarifies advertisement for bids and the prequalification process and makes other stylistic changes.

State statutory or constitutional authorization for this rule:

• Section 72-6-107
• Section 72-1-201
• Subsection 63G-6-207(3)
• Section 63G-6-505

Anticipated cost or savings to:

the state budget:

There are no anticipated cost or savings to the state budget because the amendment only clarifies the existing practice of the Department.

local governments:

There are no anticipated cost or savings to local government because the amendment only clarifies the existing practice of the Department.

small businesses:

There are no anticipated cost or savings to small businesses because the amendment only clarifies the existing practice of the Department.

persons other than small businesses, businesses, or local governmental entities:

There are no anticipated cost or savings to persons other than small businesses, businesses, or local government entities because the amendment only clarifies the existing practice of the Department.

Compliance costs for affected persons:

There are no anticipated compliance costs for affected persons because the change only clarifies the existing practice of the Department.

Comments by the department head on the fiscal impact the rule may have on businesses:

There are no anticipated fiscal impacts on businesses because the change only clarifies the existing practice of the Department.

John Njord, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Transportation
Operations, Construction
CALVIN L RAMPTON COMPLEX
4501 S 2700 W
SALT LAKE CITY, UT 84119-5998

Direct questions regarding this rule to:

• Linda Barrow at the above address, by phone at 801-965-4026, by FAX at 801-965-4338, or by Internet E-mail at lindabarrow@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

10/03/2011

This rule may become effective on:

10/10/2011

Authorized by:

John Njord, Executive Director

R916. Transportation, Operations, Construction.

R916-1. Advertising and Awarding Construction Contracts.

R916-1-1. Authority and Purpose.

This rule establishes the procedures for the advertising and awarding of Utah Department of Transportation construction contracts. This rule is authorized under Sections 72-1-201, 72-6-107, 63G-6-505, and Subsection 63G-6-207(3).

 

R916-1-2. Definitions.

(1) Terms used in this rule are defined in Section 72-1-102.

(2) In addition, "Notice to Contractors" means the advertisement or public announcement inviting bids for work to be performed or materials to be furnished.

 

R916-1-3. Invitation for Bids.

(1) The department shall prepare a notice to contractors inviting bid proposals on each project. The notice to contractors shall specify the type of construction, the location, the principal items of work, and the bid opening time and date.

(2) The advertisement for bids shall be published pursuant to the requirements of Section 72-6-107(2)(c)(i)[for a minimum period of two weeks in a newspaper of general circulation in the county in which the work is to be performed].

(3) Contractors and suppliers may receive notice to contractors by requesting their name be placed on a distribution list which is maintained by the department.

 

R916-1-4. Bidding Proposals, Plans and Specifications.

(1) Bidding proposals, plans and specifications shall be available for inspection at all Region offices, Cedar City, Price, Richfield and Salt Lake City headquarters. Plans are available for download at the department's website, www.udot.utah.gov.

(2) Prior to submitting a bid, the bidder must[shall] become prequalified at least 10 working days prior to bid opening date, under Rule R916-2 concerning prequalification of contractors. Prequalification of bidders is not required on projects estimated under $1,500,000.

(3) Prequalified contractors may obtain bidding proposals, plans and specifications and non-prequalified contractors may obtain non-bidding plans and specifications from the department's website, www.udot.utah.gov.

(a) Projects shall not be awarded when the sum of the amount of uncompleted work, both in and outside of the state of Utah, shown on the contractor's "Status of Work Under Contract" form and the bid amount submitted exceeds the amount for which the contractor is prequalified. This calculation[transaction] is performed at the close of bid opening for all apparent low bidders, on all projects with an advertised engineer's estimate over $1,500,000. This process does not apply to contractors who are prequalified as "unlimited."

(b) Two or more contractors who have prequalified separately and desire to enter a joint bid on a single project may do so upon submitting a letter of intent to the department prequalification secretary at least four working days prior to bid opening. The prequalification of each contractor can then be considered for consolidation to place a bid as prime.

(4) If it is necessary to issue an addendum to the plans and specifications during the advertising period, [the department shall fax a copy to the prime bidders, then mail a copy of the addendum by certified mail to each contractor holding bidding proposals]the contractors and suppliers listed on the planholders list will be faxed and e-mailed a copy of the addendum by the department.

 

R916-1-5. Bidding Requirements and Conditions.

(1) Each bidder shall submit their proposal upon the forms furnished by the department.

(2) Sealed proposals shall be submitted to the department prior to the time and at the place specified in the notice to contractors.

(3) Proposals shall be publicly opened and read at the time and place indicated in the notice to contractors.

(4) No proposal shall be considered unless accompanied by a guaranty in the form of certified check, cashier's check or guaranty bond for not less than five percent of the total amount of the bid.

(5) Each bidder must comply with the laws of Utah relative to the licensing of contractors. A contractor's license is required prior to the submission of a bid, except that a contractor may submit a bid on a Federal-aid highway project without having first obtained a license, provided the contractor, prior to undertaking any construction under that bid (at time of official award notification), shall be licensed in Utah.

(6) The department reserves the right to reject any or all bid proposals[is reserved by the department].

 

R916-1-6. Award of Contracts.

(1) The department shall award the contract to the lowest responsible and qualified bidder.

(2) When all bids received exceed the engineer's estimate by more than 10%, the department reserves the right to either accept the low bid or to reject all bids.

(3) The award, if made, shall be within 30 days after the opening of proposals. The department may, subject to approval of the successful bidder, withhold the award beyond the 30 day time frame. After 30 days, if no award has been made, the contractor may withdraw their proposal without liability.

(4) The successful bidder shall be notified, by mail using the address shown on their proposal, that they have been awarded the contract.

(5) The department reserves the right to cancel the award of any contract at any time before the execution of the contract by all parties with no liability against the department.

 

R916-1-7. Execution of Contracts.

(1) Unless the bonds are waived pursuant to Subparagraph (6), when the contract is executed, the successful bidder shall furnish a performance bond and a payment bond, each in a sum equal to the full amount of the contract. Each bond shall be on the form provided by the department and shall be executed by a surety company or companies licensed by the state of Utah. These companies must be listed on the current United States Department of the Treasury Circular 570 as acceptable sureties on Federal bonds. The [department shall make available to the public this Circular at the following locations: Construction Division, UDOT Library, and Internet]United States Department of the Treasury Circular 570 is available on the internet at www.fms.treas.gov/c570/c570.html.

(2) The contract shall be signed by the successful bidder and returned together with the fully executed contract bonds and appropriate insurance documents within 15 days after the contract has been awarded.

(3) Failure to execute a contract and file acceptable bonds and appropriate insurance documents within 15 days after the contract has been awarded shall be just cause for the cancellation of the award and the forfeiture of the proposal guaranty.

(4) If the contract is not executed by the Department within 30 days after receiving signed contracts, bonds, and insurance documentation, the bidder shall have the right to withdraw their bid without penalty.

(5) No contract shall be considered effective until it has been fully executed by all the parties thereto.

(6) In accordance with [Utah Code Ann.] Section 63G-6-505, the Executive Director or designee may reduce or waive the amount of the payment and performance bonds below the 100% normally required, if he or she determines that the circumstances are such that the normal bonding requirement is unnecessary to protect the State.

 

KEY: bids, advertising, contracts, bonding requirements

Date of Enactment or Last Substantive Amendment: [January 3, 2007]2011

Notice of Continuation: November 29, 2006

Authorizing, and Implemented or Interpreted Law: 72-1-201; 72-6-107; 63G-6-505; 63G-6-207(3)