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General Assembly Raised Bill No. 481
February Session, 2020
LCO No. 2780
Referred to Committee on GOVERNMENT ADMINISTRATION
AND ELECTIONS
Introduced by:
(GAE)
AN ACT CONCERNING PR EQUALIFICATION AND
DISQUALIFICATION OF STATE CONTRACTORS AN D SUBSTANTIAL
SUBCONTRACTORS FOR S TATE CONTRACTS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Subsections (i) to (k), inclusive, of section 4a-100 of the 2020 1
supplement to the general statutes are repealed and the following is 2
substituted in lieu thereof (Effective October 1, 2020, and applicable to 3
certificates issued on or after said date): 4
(i) The commissioner may not issue or renew a prequalification 5
certificate to any contractor or substantial subcontractor (1) who is 6
disqualified pursuant to section 31-57c or 31-57d [,] or who has been 7
disqualified pursuant to said sections within the past three years, (2) 8
who has a principal or key personnel who, within the past five years, 9
has a conviction or has entered a plea of guilty or nolo contendere for or 10
has admitted to commission of an act or omission that reasonably could 11
have resulted in disqualification pursuant to any provision of 12
subdivisions (1) to (3), inclusive, of subsection (d) of section 31-57c or 13
subdivisions (1) to (3), inclusive, of subsection (d) of section 31-57d, as 14 Raised Bill No. 481
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determined by the commissioner, or (3) who has received an order 15
imposing a civil penalty under subsection (j) of section 4a-60g more than 16
once during the past three years. 17
(j) The commissioner may revoke a contractor's or substantial 18
subcontractor's prequalification or reduce the contractor's or substantial 19
subcontractor's prequalification classification or aggregate work 20
capacity ratings, after an opportunity for a hearing, if the commissioner 21
receives additional information that supports such revocation or 22
reduction. During the course of such hearing process, the commissioner 23
may suspend a contractor's or substantial subcontractor's 24
prequalification certificate if the commissioner determines that there is 25
probable cause to believe that such contractor or substantial 26
subcontractor engaged in conduct that significantly undermines the 27
skill, ability or integrity of such contractor or substantial subcontractor. 28
Any such suspension shall not exceed a period of three months and shall 29
be accompanied by a written decision of the commissioner that sets 30
forth the reasons for and duration of such suspension. The 31
commissioner shall send notification of any such suspension to such 32
contractor or substantial subcontractor by certified mail, return receipt 33
requested. Such contractor or substantial subcontractor may file a 34
response, in writing, not later than thirty days after receipt of such 35
notice. The commissioner shall review any such response submitted by 36
a contractor or substantial subcontractor within such thirty-day period. 37
(k) (1) Any substantial evidence of fraud in obtaining or maintaining 38
prequalification or any materially false statement in the application, 39
update statement or update bid statement may, in the discretion of the 40
awarding authority, result in termination of any contract awarded the 41
contractor by the awarding authority. The awarding authority shall 42
provide written notice to the commissioner of such false statement not 43
later than thirty days after discovering such false statement. The 44
commissioner shall provide written notice of such false statement to the 45
Commissioner of Consumer Protection and the president of The 46
University of Connecticut not later than thirty days after discovering 47
such false statement or receiving such notice. 48 Raised Bill No. 481
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(2) The commissioner shall deny or revoke the prequalification of any 49
contractor or substantial subcontractor if the commissioner finds that 50
the contractor or substantial subcontractor, or a principal or key 51
personnel of such contractor or substantial subcontractor, within the 52
past five years (A) has included any materially false statement in a 53
prequalification application, update statement or update bid statement, 54
(B) has been convicted of, entered a plea of guilty or nolo contendere for, 55
or admitted to, a crime related to the procurement or performance of 56
any public or private construction contract, or (C) has otherwise 57
engaged in fraud in obtaining or maintaining prequalification. Any 58
revocation made pursuant to this subsection shall be made only after an 59
opportunity for a hearing. Any contractor or substantial subcontractor 60
whose prequalification has been revoked pursuant to this subsection 61
shall be disqualified for a period of [two] three years after which the 62
contractor or substantial subcontractor may reapply for 63
prequalification, except that a contractor or substantial subcontractor 64
whose prequalification has been revoked on the basis of conviction of a 65
crime or engaging in fraud shall be disqualified for a period of five years 66
after which the contractor or substantial subcontractor may reapply for 67
prequalification. The commissioner shall not prequalify a contractor or 68
substantial subcontractor whose prequalification has been revoked 69
pursuant to this subdivision until the expiration of said [two-year] 70
three-year, five-year, or other applicable disqualification period and the 71
commissioner is satisfied that the matters that gave rise to the revocation 72
have been eliminated or remedied. 73
Sec. 2. Subsection (c) of section 4b-91 of the general statutes is 74
repealed and the following is substituted in lieu thereof (Effective October 75
1, 2020): 76
(c) No person may bid on a contract or perform work pursuant to a 77
contract that is subject to the provisions of subsection (a) of this section 78
unless the person is prequalified in accordance with section 4a-100, as 79
amended by this act, and if using substantial contractors to perform the 80
contract, certifies that such person will use substantial subcontractors 81
who are prequalified pursuant to section 4a-100, as amended by this act. 82 Raised Bill No. 481
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Sec. 3. Section 4b-92 of the general statutes is repealed and the 83
following is substituted in lieu thereof (Effective October 1, 2020): 84
As used in this chapter and except as otherwise provided, "lowest 85
responsible and qualified bidder" means the bidder (1) who is 86
prequalified pursuant to section 4a-100, [and] as amended by this act, 87
(2) whose bid is the lowest of those bidders possessing the skill, ability 88
and integrity necessary to faithful performance of the work based on 89
objective criteria considering past performance and information 90
contained in the update bid statement submitted pursuant to section 4b-91
91, and (3) if using substantial contractors to perform the contract, will 92
use substantial subcontractors who are prequalified pursuant to section 93
4a-100, as amended by this act. Essential information in regard to such 94
qualifications shall be submitted with the bid in such form as the 95
awarding authority may require by specification in the bid documents 96
and on the bid form. Every general bid shall be accompanied by a bid 97
bond or a certified check in an amount which shall be ten per cent of the 98
bid, provided no such bid bond or certified check shall be required in 99
relation to any general bid in which the total estimated cost of labor and 100
materials under the contract with respect to which such general bid is 101
submitted is less than fifty thousand dollars. Failure to execute a 102
contract awarded as specified and bid shall result in the forfeiture of 103
such bid bond or certified check. In considering past performance the 104
awarding authority shall evaluate the skill, ability and integrity of 105
bidders in terms of the bidders' fulfillment of contract obligations and 106
of the bidders' experience or lack of experience with projects of the 107
nature and scope of the project for which the bids are submitted. 108
Sec. 4. Subsection (b) of section 31-53 of the 2020 supplement to the 109
general statutes is repealed and the following is substituted in lieu 110
thereof (Effective October 1, 2020): 111
(b) Any contractor or subcontractor who knowingly or wilfully 112
employs any mechanic, laborer or worker in the construction, 113
remodeling, refinishing, refurbishing, rehabilitation, alteration or repair 114
of any public works project for or on behalf of the state or any of its 115 Raised Bill No. 481
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agents, or any political subdivision of the state or any of its agents, at a 116
rate of wage on an hourly basis that is less than the rate customary or 117
prevailing for the same work in the same trade or occupation in the town 118
in which such public works project is being constructed, remodeled, 119
refinished, refurbished, rehabilitated, altered or repaired, or who fails to 120
pay the amount of payment or contributions paid or payable on behalf 121
of each such person to any employee welfare fund, or in lieu thereof to 122
the person, as provided by subsection (a) of this section, shall be fined 123
not less than two thousand five hundred dollars but not more than five 124
thousand dollars for each offense and (1) for the first violation, shall be 125
disqualified from bidding on contracts with the state or any political 126
subdivision until the contractor or subcontractor has made full 127
restitution of the back wages owed to such persons and for an additional 128
six months thereafter, and (2) for subsequent violations, shall be 129
disqualified from bidding on contracts with the state or any political 130
subdivision until the contractor or subcontractor has made full 131
restitution of the back wages owed to such persons and for not less than 132
an additional [two] three years thereafter. In addition, if it is found by 133
the contracting officer representing the state or political subdivision of 134
the state that any mechanic, laborer or worker employed by the 135
contractor or any subcontractor directly on the site for the work covered 136
by the contract has been or is being paid a rate of wages less than the 137
rate of wages required by the contract to be paid as required by this 138
section, the state or contracting political subdivision of the state may (A) 139
by written or electronic notice to the contractor, terminate such 140
contractor's right to proceed with the work or such part of the work as 141
to which there has been a failure to pay said required wages and to 142
prosecute the work to completion by contract or otherwise, and the 143
contractor and the contractor's sureties shall be liable to the state or the 144
contracting political subdivision for any excess costs occasioned the 145
state or the contracting political subdivision thereby, or (B) withhold 146
payment of money to the contractor or subcontractor. The contracting 147
department of the state or the political subdivision of the state shall, not 148
later than two days after taking such action, notify the Labor 149
Commissioner, in writing or electronically, of the name of the contractor 150 Raised Bill No. 481
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or subcontractor, the project involved, the location of the work, the 151
violations involved, the date the contract was terminated, and steps 152
taken to collect the required wages. 153
Sec. 5. Subsection (c) of section 31-53c of the general statutes is 154
repealed and the following is substituted in lieu thereof (Effective October 155
1, 2020): 156
(c) Any contractor or subcontractor who knowingly or wilfully 157
employs any mechanic, laborer or worker in any project receiving 158
financial assistance from the Department of Economic and Community 159
Development for such project, at a rate of wage on an hourly basis that 160
is less than the rate customary or prevailing for the same work in the 161
same trade or occupation in the town in which such project is located, 162
or who fails to pay the amount of payment or contributions paid or 163
payable on behalf of each such person to any employee welfare fund, as 164
defined in subsection (i) of section 31-53, or in lieu thereof to the person, 165
as provided by subsection (b) of this section, shall be fined not less than 166
two thousand five hundred dollars but not more than five thousand 167
dollars for each offense and (1) for the first violation, shall be 168
disqualified from bidding on contracts for projects for which the 169
Department of Economic and Community Development provides 170
financial assistance until the contractor or subcontractor has made full 171
restitution of the back wages owed to such persons and for an additional 172
six months thereafter, and (2) for subsequent violations, shall be 173
disqualified from bidding on contracts for projects for which the 174
Department of Economic and Community Development provides 175
financial assistance until the contractor or subcontractor has made full 176
restitution of the back wages owed to such persons and for not less than 177
an additional [two] three years thereafter. In addition, if it is found by 178
the contracting officer representing the business organization that any 179
mechanic, laborer or worker employed by the contractor or any 180
subcontractor directly on the site for the work covered by the contract 181
has been or is being paid a rate of wages less than the rate of wages 182
required by the contract to be paid as required by this section, the 183
business organization may (A) by written or electronic notice to the 184 Raised Bill No. 481
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contractor, terminate such contractor's right to proceed with the work 185
or such part of the work as to which there has been a failure to pay said 186
required wages and to prosecute the work to completion by contract or 187
otherwise, and the contractor and the contractor's sureties shall be liable 188
to the business organization for any excess costs occasioned the business 189
organization thereby, or (B) withhold payment of money to the 190
contractor or subcontractor. The contracting business organization shall, 191
not later than two days after taking such action, notify the Labor 192
Commissioner, in writing or electronically, of the name of the contractor 193
or subcontractor, the project involved, the location of the work, the 194
violations involved, the date the contract was terminated and steps 195
taken to collect the required wages. 196
This act shall take effect as follows and shall amend the following
sections:
Section 1 October 1, 2020, and
applicable to certificates
issued on or after said date
4a-100(i) to (k)
Sec. 2 October 1, 2020 4b-91(c)
Sec. 3 October 1, 2020 4b-92
Sec. 4 October 1, 2020 31-53(b)
Sec. 5 October 1, 2020 31-53c(c)
Statement of Purpose:
To prohibit any contractor or subcontractor found to have violated
certain statutory provisions from receiving prequalification for a period
of three years, to disqualify certain contractors that have violated wage
provisions for three years and to require the use of prequalified
substantial subcontractors for certain contracts.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
underlined.]