AB43 - Revises provisions relating to public works. (BDR 28-465)

- 83rd Session (2025) Assembly Bill No. 43–Committee on Government Affairs CHAPTER.......... AN ACT relating to public works; creating a program to gather data on the use of job order contracts for certain public works; authorizing certain public bodies to enter into job order contracts for minor construction performed on an existing public work; prescribing the procedure for awarding a job order contract; making certain documents and other information submitted by a person seeking a job order contract confidential until a contract is awarded; prescribing responsibilities of a contractor who enters into a job order contract; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law prescribes general procedures for awarding a contract for a public work. (Chapter 338 of NRS) Existing law also authorizes a local government to comply with alternative procedures for awarding a contract for a public work. (NRS 338.1373) Senate Bill No. 67 of the 2021 Legislative Session established a pilot program to gather data on the use of job order contracts for certain public works in Clark County, the City of Henderson, the City of Las Vegas, the City of North Las Vegas and the Clark County Water Reclamation District and authorized those public bodies, as part of the pilot program, to enter into job order contracts for the maintenance, repair, alteration, demolition, renovation, remediation or minor construction of a public work. (Chapter 523, Statutes of Nevada 2021, at page 3509) The pilot program expires on June 30, 2025. (Section 15 of chapter 523, Statutes of Nevada 2021, at page 3514) Sections 2-16 of this bill: (1) establish a similar, permanent program; (2) authorize certain public bodies to award job order contracts for certain public works; and (3) set forth various requirements and restrictions concerning the use of job order contracts by those public bodies. Section 2 provides that the provisions of sections 2-16 apply only to a public body that is: (1) a county whose population is 700,000 or more (currently only Clark County); (2) a city whose population is 150,000 or more located in such a county (currently the Cities of Henderson, Las Vegas and North Las Vegas); or (3) a general improvement district located in such a county which is granted certain powers relating to sanitary sewer systems. (NRS 318.140) Section 3 establishes a program to gather data on the use of job order contracts for certain public works and directs each public body to gather and report data on the use of job order contracts. Sections 5-8 define certain terms for the purposes of this bill. Section 9 authorizes a public body to award job order contracts for minor construction performed on an existing public work. Section 17 of this bill revises the list of procedures by which a local government may award a contract for a public work to include the use of job order contracts if the local government is a public body to which the provisions of sections 2-16 apply pursuant to section 2. Section 9 requires a job order contract to be for a fixed period and provide for indefinite types and quantities of work and delivery times. Section 9 provides that a job order contract: (1) must not be for work exclusive to one trade for which a license as a specialty contractor is required; and (2) must require a contractor to prepare and submit a proposal for each job order. Section 9 requires such a – 2 – - 83rd Session (2025) proposal to include the proposed price for the job order, each construction task required to perform the job order, the unit price for each such task and the adjustment factor applicable to the performance of the task. Section 9 also requires a public body, after holding a public hearing on the matter, to adopt a written policy for the assignment of job orders and limits the total dollar amount of job order contracts that may be awarded annually by each public body. Section 9.5 of this bill sets forth certain requirements for a job order contract with respect to workers who perform work under contract, including the requirement that at least 25 percent of such workers be enrolled in or graduates of an apprenticeship program. Section 14.5 authorizes a public body to waive that requirement under certain circumstances. Section 10 prescribes the qualifications a contractor who wishes to enter into a job order contract must meet. Section 11 requires a public body or its authorized representative to advertise requests for proposals or similar solicitation documents for job order contracts. Section 11 also prescribes: (1) the contents of such advertisements or similar solicitation documents; and (2) requirements for proposals. Sections 12 and 18 of this bill make any document or other information submitted to a public body in response to a request for proposals or similar solicitation document for a job order contract confidential and prohibit disclosure of any such document or information until notice of intent to award the contract is issued. Section 13 prescribes the method for selecting a contractor for a job order contract. Specifically, section 13 requires a public body or its authorized representative to appoint a panel to rank the proposals submitted in response to the request for proposals and award a job order contract to one or more applicants. Section 14 prescribes certain responsibilities of a contractor who enters into a job order contract relating to contracting for the services of a subcontractor, supplier or professional. Section 14 also prohibits a contractor who enters into a job order contract from performing more than 50 percent of the estimated cost of a work order himself or herself, or using his or her own employees. Section 9 requires a job order contract to provide for the use of job orders, which are defined in section 7 as an order issued for a definite scope of work to be performed for a fixed price pursuant to a job order contract. Section 15 requires a contractor to submit a list of each subcontractor whom the contractor intends to engage before a public body issues a job order. Section 16 requires a public body to submit a quarterly report that contains certain information relating to job order contracts to the governing body of the public body. Section 16 also requires a governing body to annually submit to the Director of the Legislative Counsel Bureau a written report including the information reported to the governing body during the immediately preceding calendar year. – 3 – - 83rd Session (2025) EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. Chapter 338 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 16, inclusive, of this act. Sec. 2. The provisions of sections 2 to 16, inclusive, of this act apply only to a public body that is: 1. A county whose population is 700,000 or more; 2. A city whose population is 150,000 or more located in a county whose population is 700,000 or more; or 3. A general improvement district established pursuant to chapter 318 of NRS in a county whose population is 700,000 or more which is granted the powers set forth in NRS 318.140. Sec. 3. 1. The Legislature hereby finds and declares that: (a) It is in the best interest of the State to ensure that contracting and bidding procedures for public works in this State are efficient and cost-effective. (b) The procedures for awarding a contract for a public work authorized by existing law may create barriers to the efficient and cost-effective awarding of contracts for minor construction performed on an existing public work. (c) Reducing any such barriers will benefit the public and promote the timely completion of certain public works projects that are critical for the health and safety of members of the public who use public buildings and facilities. (d) The voluminous and unpredictable amount of work for which certain public bodies in large counties in this State must award contracts presents unique challenges for these bodies. (e) The use of job order contracting eliminates certain administrative burdens associated with traditional procurement methods and enables such a public body to efficiently manage the numerous minor construction projects required for existing facilities. (f) The provisions of sections 2 to 16, inclusive, of this act are not intended to prohibit a public body from awarding a contract for a public work pursuant to any other procedure authorized pursuant to this chapter. 2. The Legislature therefore: – 4 – - 83rd Session (2025) (a) Establishes a program to gather data on the use of job order contracts for minor construction performed on an existing public work; and (b) Directs each public body in the program to gather and report data on the use of job order contracts in this State in the manner prescribed by section 16 of this act. Sec. 4. As used in sections 2 to 16, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 5 to 8, inclusive, of this act have the meanings ascribed to them in those sections. Sec. 5. “Adjustment factor” means the adjustment that is multiplied by a contractor against the unit price listed in the unit price catalog for the job order contract, which must reflect any overhead cost or profit to which a selected contractor is entitled. Sec. 6. “Construction task” means an item of work: 1. That is included in a job order; and 2. For which a unit price is set forth in a unit price catalog or priced using the formula or method prescribed by section 11 of this act. Sec. 7. “Job order” means an order issued by a public body for a definite scope of work to be performed for a fixed price pursuant to a job order contract. Sec. 8. “Job order contract” means a contract entered into pursuant to section 13 of this act. Sec. 9. 1. Except as otherwise provided in subsection 2, a public body may award a job order contract for minor construction performed on an existing public work. A job order contract must: (a) Be for a fixed period; (b) Provide for indefinite times of delivery and indefinite types of quantities of work; (c) Provide for the use of job orders; (d) Require a contractor to prepare and submit a proposal for each job order, which must include, without limitation, a proposed price for the job order, each construction task required to perform the job order, the unit price for each such task and the adjustment factor applicable to the performance of the task; and (e) Not be for work exclusive to one trade for which a license as a specialty contractor is required. 2. Except as otherwise provided in subsection 3, a public body may not award more than $25,000,000 annually in job order contracts. – 5 – - 83rd Session (2025) 3. If the total dollar amount of all job order contracts awarded by a public body in any 1 year is less than the maximum dollar amount of job order contracts allowed to be awarded for that year pursuant to subsection 2, the difference between those amounts may be added to the total dollar amount of job order contracts that a public body may award in the immediately following year. 4. A public body shall, after holding a public hearing on the matter, adopt a written policy for the assignment of job orders, which must include, without limitation, the procedure by which a job order will be issued. Sec. 9.5. 1. A job order contract must require: (a) The contractor and each subcontractor to pay all workers performing work under the contract, other than apprentices, not less than the prevailing wage required pursuant to NRS 338.020 to 338.090, inclusive. (b) All workers performing work under the contract, other than apprentices, to have: (1) At least 3 years of relevant work experience; or (2) Graduated from an apprentice program registered and approved by the State Apprenticeship Council pursuant to chapter 610 of NRS or approved by the United States Department of Labor. (c) Except as otherwise provided in section 14.5 of this act, at least 25 percent of the workers performing work under the contract to be apprentices or to have graduated from an apprenticeship program registered and approved by the State Apprenticeship Council pursuant to chapter 610 of NRS. 2. Except as otherwise provided in this subsection, a job order contract must establish mechanisms in addition to those provided in this chapter by which the public body will monitor and ensure compliance with the provisions of subsection 1, which may include, without limitation, requirements relating to the maintenance and submission of records to the public body that are in addition to those set forth in subsections 5 and 6 of NRS 338.070. The provisions of this subsection do not apply if the work performed under the job order contract is subject to a project labor agreement, which includes requirements that are substantially similar to those set forth in subsection 1 and which provides for the resolution of disputes concerning compliance with those requirements through binding arbitration. 3. As used in this section: – 6 – - 83rd Session (2025) (a) “Apprentice” means a person who is enrolled in an apprenticeship program that is registered and approved by the State Apprenticeship Council pursuant to chapter 610 of NRS. (b) “Project labor agreement” means a prehire collective bargaining agreement described in 29 U.S.C. § 158(f) that establishes the terms and conditions of employment for a specific project or projects of construction. Sec. 10. To qualify to enter into a job order contract with a public body, a contractor: 1. Must not have been found liable for breach of contract with respect to a previous project, other than a breach for legitimate cause, during the 5 years immediately preceding the date of the advertisement for proposals pursuant to section 11 of this act; 2. Must not have been disqualified from being awarded a contract pursuant to NRS 338.017, 338.13845, 338.13895, 338.1475 or 408.333; 3. Must be licensed as a contractor pursuant to chapter 624 of NRS; 4. Must demonstrate that he or she: (a) Has the financial ability to provide any necessary labor, materials and equipment; (b) Has the ability to obtain the necessary bonding; (c) Has access to a qualified workforce to perform the necessary work; (d) Is eligible to hire apprentices who [Text truncated for display. Full text available on LegiScan.]