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Construction Bidding Procedures Act

Chapter 38, House File 2713 - Combines rules for county, city and rural water government under one law. 

Libraries planning new construction should review this new legislation.  There are several changes.

New definitions:  38.2

"Governmental entity"  In the bidding thresholds, libraries fit here

"Public improvement"

"Repair and maintenance work"

"Estimated total cost of project"

Tier 1 Competitive Bidding for projects over $100,000

  • New Steps in the Bidding Process   38.3 through 38.13
    • Content of bids has changed
    • Bid security did not change; no bid security, no acceptance of bid
    • Do not have to take lowest bid if bid not "responsive"
    • Timely Release of Retainage - no longer hold 5% for substantial completion

Tier 2 Competitive Quotation Procedure $40,000 to $100,000

  • 38.14 Semi-formal bidding; good faith effort to get at least two bids

Tier 3 Informal Procedure under $40,000 (for libraries)

Although there are no rules governing this, cities/counties should set up a fair, open, and equitable process.

The Workshop Materials below are excellent in explaining the details of the bill.  Appendix 1 of this material is Chapter 38 or you can follow the link HF2713 below to review the legislation history.

Related Sites
  • Workshop Materials Construction Bidding Procedures

    Handouts explaining the new construction bidding legislation. Workshop sponsored by American Council of Engineering Companies, Associated General Contractors, Iowa Chapter of the American Public Works Association, Iowa League of Cities, Iowa State Association of Counties, Master Builders of Iowa, and Mechanical Contractors Association of Iowa.

  • HF 2713 Construction Bidding Procedures Act

    Link to the actual legislation. In the House File (HF) search box, select 2713

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