34-201

34-201. Notice of intention to receive bids and
enter contract; procedure; doing work without advertising for bids;
county compliance

(L09, Ch. 101, sec. 6. Eff. until 10/1/11)

A. Except as provided in subsections B through G and L of this section, every
agent, on acceptance and approval of the working drawings and specifications, shall
publish a notice to contractors of intention to receive bids and contract for the
proposed work. This notice shall be published by advertising in a newspaper of general
circulation in the county in which the agent is located for two consecutive publications
if it is a weekly newspaper or for two publications that are at least six but no more
than ten days apart if it is a daily newspaper. The notice shall state:

1. The nature of the work required, the type, purpose and location of the proposed
building and where the plans, specifications and full information as to the proposed work
may be obtained.

2. That contractors desiring to submit proposals may obtain copies of full or
partial sets of plans and specifications for estimate on request or by appointment. The
return of such plans and specifications shall be guaranteed by a deposit of a designated
amount which shall be refunded on return of the plans and specifications in good order.

3. That every proposal shall be accompanied by a certified check, cashier's check
or surety bond for ten per cent of the amount of the bid included in the proposal as a
guarantee that the contractor will enter into a contract to perform the proposal in
accordance with the plans and specifications. Notwithstanding any other statute, the
surety bond shall be executed solely by a surety company or companies holding a
certificate of authority to transact surety business in this state issued by the director
of the department of insurance pursuant to title 20, chapter 2, article 1. The surety
bond shall not be executed by an individual surety or sureties, even if the requirements
of section 7-101 are satisfied. The certified check, cashier's check or surety bond shall
be returned to the contractors whose proposals are not accepted, and to the successful
contractor on the execution of a satisfactory bond and contract as provided in this
article. The conditions and provisions of the surety bid bond regarding the surety's
obligations shall follow the following form:

Now, therefore, if the obligee accepts the proposal of the principal and the
principal enters into a contract with the obligee in accordance with the terms
of the proposal and gives the bonds and certificates of insurance as specified
in the standard specifications with good and sufficient surety for the
faithful performance of the contract and for the prompt payment of labor and
materials furnished in the prosecution of the contract, or in the event of the
failure of the principal to enter into the contract and give the bonds and
certificates of insurance, if the principal pays to the obligee the difference
not to exceed the penalty of the bond between the amount specified in the
proposal and such larger amount for which the obligee may in good faith
contract with another party to perform the work covered by the proposal then
this obligation is void. Otherwise it remains in full force and effect
provided, however, that this bond is executed pursuant to the provisions of
section 34-201, Arizona Revised Statutes, and all liabilities on this bond
shall be determined in accordance with the provisions of the section to the
extent as if it were copied at length herein.

4. That the right is reserved to reject any or all proposals or to withhold the
award for any reason the agent determines.

B. If the agent believes that any construction, building addition or alteration
contemplated at a public institution can be advantageously done by the inmates of the
public institution and regularly employed help, the agent may cause the work to be done
without advertising for bids.

C. Any building, structure, addition or alteration may be constructed either with
or without the use of the agent's regularly employed personnel without advertising for
bids, provided that the total cost of the work, excluding materials and equipment
previously acquired by bid, does not exceed:

1. In fiscal year 1994-1995, fourteen thousand dollars.

2. In fiscal year 1995-1996 and each fiscal year thereafter, the amount provided in
paragraph 1 of this subsection adjusted by the annual percentage change in the GDP price
deflator as defined in section 41-563.

D. Notwithstanding subsection C of this section, any street, road, bridge, water or
sewer work, other than a water or sewer treatment plant or building, may be constructed
either with or without the use of the agent's regularly employed personnel without
advertising for bids, provided that the total cost of the work does not exceed:

1. In fiscal year 1994-1995, one hundred fifty thousand dollars.

E. For the purposes of subsection D of this section, the total cost of water or
sewer work does not include services provided by volunteers or donations made for the
water or sewer project.

F. Notwithstanding this section, an agent may:

1. Construct, reconstruct, install or repair a natural gas or electric utility and
distribution system, owned or operated by such agent, with regularly employed personnel
of the agent without advertising for bids, unless otherwise prohibited by charter or
ordinance.

2. Construct recreational projects, including trails, playgrounds, ballparks and
other similar facilities and excluding buildings, structures, building additions and
alterations to buildings, structures and building additions, with volunteer workers or
workers provided by a nonprofit organization without advertising for bids for labor and
materials, provided that the total cost of the work does not exceed:

(a) In fiscal year 2001-2002, one hundred fifty thousand dollars.

(b) In fiscal year 2002-2003 and each fiscal year thereafter, the amount provided
in subdivision (a) adjusted by the annual percentage change in the GDP price deflator as
defined in section 41-563.

G. A contribution by an agent for the financing of public infrastructure made
pursuant to a development agreement is exempt from this section if such contribution for
any single development does not exceed:

1. In fiscal year 1994-1995, one hundred thousand dollars.

H. In addition to other state or local requirements relating to the publication of
bids, each agent shall provide at least one set of all plans and specifications to any
construction news reporting service that files an annual request with the agent. For the
purposes of this subsection, "construction news reporting service" means a service that
researches, gathers and disseminates news and reports either in print or electronically,
on at least a weekly basis for building projects, construction bids, the purchasing of
materials, supplies or services and other construction bidding or planned activity to the
allied construction industry. The allied construction industry includes both general and
specialty contractors, builders, material and service suppliers, architects and
engineers, owners, developers and government agencies.

I. Any construction by a county under this section shall comply with the uniform
accounting system prescribed for counties by the auditor general under section
41-1279.21. Any construction by a city or town under this section shall comply with
generally accepted accounting principles.

J. Any construction, building addition or alteration project that is financed by
monies of this state or its political subdivisions shall not use endangered wood species
unless an exemption is granted by the director of the department of administration. The
director shall only grant an exemption if the use of endangered wood species is deemed
necessary for historical restoration or to repair existing facilities and the use of any
substitute material is not practical. Any lease-purchase agreement entered into by this
state or its political subdivisions for construction shall specify that no endangered
wood species may be used in the construction unless an exemption is granted by the
director. For the purposes of this subsection, "endangered wood species" includes those
listed in appendix I of the convention on international trade in endangered species of
wild flora and fauna.

K. All bonds given by a contractor and surety pursuant to this article, regardless
of their actual form, will be deemed by law to be the form required and set forth in this
article and no other.

L. Any building, structure, addition or alteration may be constructed without
complying with this article if the construction, including construction of buildings or
structures on public or private property, is required as a condition of development of
private property and is authorized by section 9-463.01 or 11-806.01. For the purposes of
this subsection, building does not include police, fire, school, library or other public
buildings.

M. Notwithstanding section 34-221, any agent may enter into a guaranteed energy
cost savings contract with a qualified provider for the purchase of energy cost savings
measures without complying with this article and may procure a guaranteed energy cost
savings contract through the competitive sealed proposal process prescribed in title 41,
chapter 23 or any similar competitive proposal process adopted by the agent.