262.34 - IMPROVEMENTS -- ADVERTISEMENT FOR BIDS -- DISCLOSURES -- PAYMENTS.
262.34 IMPROVEMENTS -- ADVERTISEMENT FOR BIDS --
DISCLOSURES -- PAYMENTS.
1. When the estimated cost of construction, repairs, or
improvement of buildings or grounds under charge of the state board
of regents exceeds one hundred thousand dollars, the board shall
advertise for bids for the contemplated improvement or construction
and shall let the work to the lowest responsible bidder. However, if
in the judgment of the board bids received are not acceptable, the
board may reject all bids and proceed with the construction, repair,
or improvement by a method as the board may determine. All plans and
specifications for repairs or construction, together with bids on the
plans or specifications, shall be filed by the board and be open for
public inspection. All bids submitted under this section shall be
accompanied by a deposit of money, a certified check, or a credit
union certified share draft in an amount as the board may prescribe.
2. Notwithstanding subsection 1, when a delay in undertaking a
repair, restoration, or reconstruction of a public improvement might
cause serious loss or injury at an institution under the control of
the state board of regents, the executive director of the board, or
the board, shall make a finding of the need to institute emergency
procedures under this subsection. The board by separate action shall
approve the emergency procedures to be employed.
3. A bidder awarded a contract shall disclose the names of all
subcontractors, who will work on the project being bid, within
forty-eight hours after the award of the contract. If a
subcontractor named by a bidder awarded a contract is replaced, or if
the cost of work to be done by a subcontractor is reduced, the bidder
shall disclose the name of the new subcontractor or the amount of the
reduced cost.
4. Payments made by the board for the construction of public
improvements shall be made in accordance with the provisions of
chapter 573 except that:
a. Payments may be made without retention until ninety-five
percent of the contract amount has been paid. The remaining five
percent of the contract amount shall be paid as provided in section
573.14, except that:
(1) At any time after all or any part of the work is
substantially completed in accordance with paragraph "c", the
contractor may request the release of all or part of the retainage
owed. Such request shall be accompanied by a waiver of claim rights
under the provisions of chapter 573 from any person, firm, or
corporation who has, under contract with the principal contractor or
with subcontractors, performed labor, or furnished materials,
service, or transportation in the construction of that portion of the
work for which release of the retainage is requested.
(2) Upon receipt of the request, the board shall release all or
part of the unpaid funds. Retainage that is approved as payable
shall be paid at the time of the next monthly payment or within
thirty days, whichever is sooner. If partial retainage is released
pursuant to a contractor's request, no retainage shall be
subsequently held based on that portion of the work. If within
thirty days of when payment becomes due the board does not release
the retainage due, interest shall accrue on the retainage amount due
as provided in section 573.14 until that amount is paid.
(3) If at the time of the request for the retainage there are
remaining or incomplete minor items, an amount equal to two hundred
percent of the value of each remaining or incomplete item, as
determined by the board's authorized contract representative, may be
withheld until such item or items are completed.
(4) An itemization of the remaining or incomplete items, or the
reason that the request for release of the retainage was denied,
shall be provided to the contractor in writing within thirty calendar
days of the receipt of the request for release of retainage.
b. For purposes of this section, "authorized contract
representative" means the architect or engineer who is in charge of
the project and chosen by the board to represent its interests, or if
there is no architect or engineer, then such other contract
representative or officer as designated in the contract documents as
the party representing the board's interest regarding administration
and oversight of the project.
c. For purposes of this section, "substantially
completed" means the first date on which any of the following
occurs:
(1) Completion of the project or when the work has been
substantially completed in general accordance with the terms and
provisions of the contract.
(2) The work or the portion designated is sufficiently complete
in accordance with the requirements of the contract so the board can
occupy or utilize the work for its intended purpose.
(3) The project is certified as having been substantially
completed by either of the following:
(a) The architect or engineer authorized to make such
certification.
(b) The contracting authority representing the board.
5. The contractor shall release retained funds to the
subcontractor or subcontractors in the same manner as retained funds
are released to the contractor by the board. Each subcontractor
shall pass through to each lower tier subcontractors all retained
fund payments from the contractor. Section History: Early Form
[C24, 27, 31, 35, 39, § 3945; C46, 50, 54, 58, 62, 66, 71, 73,
75, 77, 79, 81, § 262.34; 81 Acts, ch 28, § 6] Section History: Recent Form
84 Acts, ch 1055, § 5; 90 Acts, ch 1161, § 2; 2005 Acts, ch 179, §
153; 2006 Acts, ch 1017, §24, 42, 43; 2009 Acts, ch 100, §7, 21
Referred to in § 262.56, 262A.4, 263A.2, 314.1