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.