53A-20-101 - Construction and alteration of schools and plants -- Advertising for bids -- Payment and performance bonds -- Contracts -- Bidding limitations on local school boards -- Interest of local

53A-20-101. Construction and alteration of schools and plants -- Advertising forbids -- Payment and performance bonds -- Contracts -- Bidding limitations on local schoolboards -- Interest of local school board members.
(1) As used in this section, the word "sealed" does not preclude acceptance ofelectronically sealed and submitted bids or proposals in addition to bids or proposals manuallysealed and submitted.
(2) (a) Prior to the construction of any school or the alteration of any existing schoolplant, if the total estimated accumulative building project cost exceeds $80,000, a local schoolboard shall advertise for bids on the project at least 10 days before the bid due date.
(b) The board shall have the advertisement published in a newspaper having generalcirculation throughout the state and in appropriate construction trade publications that offer freelistings.
(c) A similar advertisement is required in a newspaper published or having generalcirculation in any city or county that would be affected by the proposed project.
(d) The advertisement shall:
(i) require sealed proposals for the building project in accordance with plans andspecifications furnished by the local school board;
(ii) state where and when the proposals will be opened and shall reserve the right of theboard to reject any and all proposals; and
(iii) require a certified check or bid bond of not less than 5% of the bid to accompany thebid.
(3) (a) The board shall meet at the time and place specified in the advertisement andpublicly open and read all received proposals.
(b) If satisfactory bids are received, the board shall award the contract to the lowestresponsible bidder.
(c) If none of the proposals are satisfactory, all shall be rejected.
(d) The board shall again advertise in the manner provided in this section.
(e) If, after advertising a second time no satisfactory bid is received, the board mayproceed under its own direction with the required project.
(4) (a) The check or bond required under Subsection (2)(d) shall be drawn in favor of thelocal school board.
(b) If the successful bidder fails or refuses to enter into the contract and furnish theadditional bonds required under this section, then the bidder's check or bond is forfeited to thedistrict.
(5) A local school board shall require payment and performance bonds of the successfulbidder as required in Section 63G-6-505.
(6) (a) A local school board may require in the proposed contract that at least 10% of thecontract price be withheld until the project is completed and accepted by the board.
(b) If money is withheld, the board shall place it in an interest bearing account, and theinterest accrues for the benefit of the contractor and subcontractors.
(c) This money shall be paid upon completion of the project and acceptance by the board.
(7) (a) A local school board may not bid on projects within the district if the totalaccumulative estimated cost exceeds $80,000.
(b) The board may use its resources if no satisfactory bids are received under this section.
(8) If the local school board determines in accordance with Section 63G-6-501 to use a

construction manager/general contractor as its method of construction contracting managementon projects where the total estimated accumulative cost exceeds $80,000, it shall select theconstruction manager/general contractor using one of the source selection methods provided forin Sections 63G-6-401 through 63G-6-501.
(9) A local school board member may not have a direct or indirect financial interest inthe construction project contract.

Amended by Chapter 382, 2008 General Session