41-2580

41-2580. Requirements applicable to
construction services and professional services and to contracts
for construction services and professional services;
definition

A. The requirements prescribed in this section apply to each contract entered into
as the result of a procurement of construction services or professional services under
section 41-2535, 41-2536, 41-2537, 41-2578, 41-2579 or 41-2581 and to the professional
services and construction services included in each procurement under section 41-2535,
41-2536, 41-2537, 41-2578, 41-2579 or 41-2581.

B. If a procurement under section 41-2578 is for construction-manager-at-risk
construction services or design-build construction services to be contracted pursuant to
section 41-2578, subsection E or if a procurement under section 41-2535, 41-2536 or
41-2537 is for construction-manager-at-risk construction services or design-build
construction services, the purchasing agency shall enter into a written contract with the
contractor for preconstruction services under which the purchasing agency shall pay the
contractor a fee for preconstruction services in an amount agreed by the purchasing
agency and the contractor, and the purchasing agency shall not request or obtain a fixed
price or a guaranteed maximum price for the construction from the contractor or enter
into a construction contract with the contractor until after the purchasing agency has
entered into the written contract for preconstruction services and a preconstruction
services fee.

C. If a contract for construction services is entered into as the result of a
procurement under section 41-2535, 41-2536, 41-2537, 41-2578 or 41-2579, construction
shall not commence until the purchasing agency and contractor agree in writing on either
a fixed price that the purchasing agency will pay for the construction to be commenced or
a guaranteed maximum price for the construction to be commenced. The construction to be
commenced may be the entire project or may be one or more phased parts of the project.

D. A contract for professional services entered into as the result of a procurement
under section 41-2535, 41-2536, 41-2537, 41-2578, 41-2579 or 41-2581 shall have a term
not exceeding five years after the date of contract award by the purchasing agency of the
first contract under the procurement, except that the contract may continue in effect
after the five year term for professional services on projects on which the rendering of
professional services commences within the five year term.

E. Notwithstanding any other law:

1. The contractor for design-build or job-order-contracting construction services
is not required to be registered to perform design services pursuant to title 32, chapter
1 if the person or firm actually performing the design services on behalf of the
contractor is appropriately registered.

2. The contractor for construction-manager-at-risk, design-build or
job-order-contracting construction services shall be licensed to perform construction
pursuant to title 32, chapter 10.

F. For job-order-contracting construction services only:

1. The maximum dollar amount of an individual job order shall be one million
dollars or such higher or lower amount prescribed by the purchasing agency in an action
noticed pursuant to title 38, chapter 3, article 3.1 or a rule adopted by the purchasing
agency as the maximum amount of an individual job order. Requirements shall not be
artificially divided or fragmented in order to constitute a job order that satisfies this
requirement.

2. If the contractor subcontracts or intends to subcontract part or all of the work
under a job order and if the job-order-contracting construction services contract
includes descriptions of standard individual tasks, standard unit prices for standard
individual tasks and pricing of job orders based on the number of units of standard
individual tasks in the job order:

(a) The contractor has a duty to deliver promptly to each subcontractor invited to
bid a coefficient to the contractor to do all or part of the work under one or more job
orders:

(i) A copy of the descriptions of all standard individual tasks on which the
subcontractor is invited to bid.

(ii) A copy of the standard unit prices for the individual tasks on which the
subcontractor is invited to bid.

(b) If not previously delivered to the subcontractor, the contractor has a duty to
deliver promptly the following to each subcontractor invited to or that has agreed to do
any of the work included in any job order:

(i) A copy of the description of each standard individual task that is included in
the job order and that the subcontractor is invited to perform.

(ii) The number of units of each standard individual task that is included in the
job order and that the subcontractor is invited to perform.

(iii) The standard unit price for each standard individual task that is included in
the job order and that the subcontractor is invited to perform.

G. Notwithstanding any contrary provision of this section or this title, a
purchasing agency shall not:

1. Enter into a contract as contractor to provide construction-manager-at-risk
construction services, design-build construction services or job-order-contracting
construction services.

2. Contract with itself, with another purchasing agency, with this state or with
any other governmental unit of this state or the federal government for the purchasing
agency to provide construction-manager-at-risk construction services, design-build
construction services or job-order-contracting construction services.

H. The prohibitions prescribed in subsection G of this section do not prohibit a
purchasing agency from providing construction for itself as provided by law.

I. The purchasing agency shall include in each contract for construction services
the full street or physical address of each separate location at which the construction
will be performed and a requirement that the contractor and each subcontractor at any
level include in each of its subcontracts the same address information. The contractor
and each subcontractor at any level shall include in each subcontract the full street or
physical address of each separate location at which construction work will be performed.

J. The following provisions apply to all construction services procured under
section 41-2535, 41-2536, 41-2537, 41-2578 or 41-2579:

1. The contractor performing the construction services is permitted to self-perform
part of the construction work, if and to the extent agreed in writing by the purchasing
agency and the contractor. The purchasing agency may use methods other than competitive
bidding to assure itself that the price the purchasing agency pays to the contractor for
self-performed work is fair and reasonable. Permitted methods to evaluate fairness and
reasonableness of the price of self-performed work include evaluation of the contractor's
proposed scope of work and price for self-performed work by an estimator who is hired and
paid by the purchasing agency, who is independent of the contractor and who may be an
employee of the purchasing agency. Although the purchasing agency may elect to so
require, nothing in this title or any other law shall be construed or interpreted to
require the purchasing agency to require a contractor desiring to self-perform part of
the construction work to competitively bid that part of the construction work against
other contractors in a bid competition.

2. The following requirements apply to the construction work to be performed by
subcontractors and do not apply to construction work that the purchasing agency and the
contractor agree in writing will be self-performed by the contractor:

(a) The person or firm selected to perform the construction services shall select
subcontractors based on qualifications alone or on a combination of qualifications and
price and shall not select subcontractors based on price alone. A qualifications and
price selection may be a single-step selection based on a combination of qualifications
and price or a two-step selection. In a two-step selection, the first step shall be
based on qualifications alone and the second step may be based on a combination of
qualifications and price or on price alone.

(b) The purchasing agency shall include in each contract:

(i) If the purchasing agency included its subcontractor selection plan in the
request for qualifications, the purchasing agency's subcontractor selection plan and the
procedures to implement the purchasing agency's subcontractor selection plan proposed by
the selected person or firm in submitting its qualifications with those modifications to
the procedures as the purchasing agency and the selected person or firm agree.

(ii) If the purchasing agency did not include its subcontractor selection plan in
the request for qualifications, the subcontractor selection plan proposed by the selected
person or firm in submitting its qualifications with those modifications as the
purchasing agency and the selected person or firm agree.

(c) In making the selection of subcontractors, the person or firm selected to
perform the construction services shall use the subcontractor selection plan and any
procedures included in its contract.

K. For the purposes of this section, "professional services" includes architect
services, engineer services, landscape architect services, assayer services, geologist
services and land surveying services and any combination of those services.