Utah Administrative Code
The Utah Administrative Code is the body of all effective administrative rules as compiled and organized by the Division of Administrative Rules (see Subsection 63G-3-102(5); see also Sections 63G-3-701 and 702).
NOTE: For a list of rules that have been made effective since August 1, 2019, please see the codification segue page.
NOTE TO RULEFILING AGENCIES: Use the RTF version for submitting rule changes.
R916. Transportation, Operations, Construction.
Rule R916-1. Advertising and Awarding Construction Contracts.
As in effect on August 1, 2019
Table of Contents
- R916-1-1. Authority and Purpose.
- R916-1-2. Definitions.
- R916-1-3. Invitation for Bids.
- R916-1-4. Bidding Proposals, Plans and Specifications.
- R916-1-5. Bidding Requirements and Conditions.
- R916-1-6. Award of Contracts.
- R916-1-7. Execution of Contracts.
- Date of Enactment or Last Substantive Amendment
- Notice of Continuation
- Authorizing, Implemented, or Interpreted Law
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).
(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.
(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).
(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.
(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 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 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 contractors and suppliers listed on the planholders list will be faxed and e-mailed a copy of the addendum by the department.
(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.
(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.
(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 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 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.
bids, advertising, contracts, bonding requirements
October 11, 2011
July 28, 2016
72-1-201; 72-6-107; 63G-6-505; 63G-6-207(3)
For questions regarding the content or application of rules under Title R916, please contact the promulgating agency (Transportation, Operations, Construction). A list of agencies with links to their homepages is available at http://www.utah.gov/government/agencylist.html or from http://www.rules.utah.gov/contact/agencycontacts.htm.