34-241. Eligibility of contractors on public
works; preferred contractors; eligibility of subcontractor;
definitions
A. In awarding the contract for work to be paid for from public funds, bids of
contractors, who are licensed under title 32, chapter 1 or chapter 10, who have
satisfactorily performed prior public contracts, and who have paid real or personal
property taxes assessed under title 42 for at least two consecutive years in an amount of
at least two hundred dollars per year immediately prior to submitting a bid on a plant
and equipment such as may be used in the performance of the contract for which the bid is
submitted, or on other real or personal property in the state equivalent in value to such
plant or equipment, shall be deemed a better bid than the bid of a competing contractor
who has not paid such taxes, whenever the bid of the competing contractor is less than
five per cent lower, and the contractor making a bid, as provided by this section, which
is deemed the better bid, shall be awarded the contract. The location of the home office
of the contractor is not a factor in a determination of preference pursuant to this
section.
B. No contract awarded for public work shall be sublet to a subcontractor who has
not paid taxes as required by this section.
C. For purposes of this section:
1. "Satisfactorily performed prior public contracts" means that the contractor has
completed a public works contract with any agent or with the United States or any of its
instrumentalities.
2. "Two consecutive years immediately prior to submitting a bid" means the two tax
years immediately preceding submitting the bid. One of the years may be the year in
which the bid is submitted. If the second year is the year in which the bid is
submitted, the tax payments must be for a complete tax year. Prorated tax payments do
not qualify as payment for a complete tax year. Installment tax payments do not qualify
as payment for a complete tax year until all installments are paid.
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