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Regular Session, 2014
SENATE BILL NO. 468
BY SENATOR ADLEY
PUBLIC WORKS. Provides relative to contracts for public works. (8/1/14)
AN ACT1
To amend and reenact R.S. 38:2211(A)(1), (2), (3), (4), (5), (6), (7), (8), and (9), 2212,2
2212.5, 2212.10(C)(1) and (G), 2215, 2225, and 2241.1, relative to contracts for3
public works; to provide for definitions; to provide for advertisement and letting of4
bids; to provide for prequalification of bidders; to provide for verification of5
employees involved in contracts for public works; to provide relative to the time6
period to hold bids and to commence work; to provide relative to preferences; to7
provide for acceptance of work; and to provide for related matters.8
Be it enacted by the Legislature of Louisiana:9
Section 1. R.S. 38:2211(A)(1), (2), (3), (4), (5), (6), (7), (8), and (9), 2212, 2212.5,10
2212.10(C)(1) and (G), 2215, 2225, and 2241.1 are hereby amended and reenacted to read11
as follows:12
§2211. Definitions13
A. As used in this Chapter unless the context clearly indicates otherwise, the14
following terms shall mean:15
(1) "Alternate" means an item on the bid form that may either increase16
or decrease the quantity of work or change the type of work within the scope of17 SB NO. 468
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the project, material, or equipment specified in the bidding documents, or both.1
(2) "Bidding documents" means the bid notice, plans and specifications,2
bidding bid form, bidding instructions, addenda, special provisions, and all other3
written instruments prepared by or on behalf of a public entity for use by prospective4
bidders on a public contract.5
(2) (3)(a) "Change order" means any contract modification that includes6
an alteration, deviation, addition, or omission as to a preexisting public work7
contract, which authorizes an adjustment in the contract price, contract time, or8
an addition, deletion, or revision of work.9
(3) (b) "Change order outside the scope of the contract" means a change order10
which alters the nature of the thing to be constructed or which is not an integral part11
of the project objective.12
(4) (c) "Change order within the scope of the contract" means a change order13
which does not alter the nature of the thing to be constructed and which is an integral14
part of the project objective.15
(5)(4) "Contractor" means any person or other legal entity who enters into a16
public contract.17
(6)(5)(a) "Emergency" means an unforeseen mischance bringing with it18
destruction or injury of life or property or the imminent threat of such destruction or19
injury or as the result of an order from any judicial body to take any immediate20
action which requires construction or repairs absent compliance with the formalities21
of this Part, where the mischance or court order will not admit of the delay incident22
to advertising as provided in this Part. In regard to a municipally owned public23
utility, an emergency shall be deemed to exist and the public entity may negotiate as24
provided by R.S. 38:2212(D) R.S. 38:2212(P) for the purchase of fuel for the25
generation of its electric power where the public entity has first advertised for bids26
as provided by this Part but has failed to receive more than one bid.27
(b) An "extreme public emergency" means a catastrophic event which causes28
the loss of ability to obtain a quorum of the members necessary to certify the29 SB NO. 468
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emergency prior to making the expenditure to acquire materials or supplies or to1
make repairs necessary for the protection of life, property, or continued function of2
the public entity.3
(7)(6) "Licensed design professional" means the architect, landscape4
architect, or engineer who shall have the primary responsibility for the total design5
services performed in connection with a public works project. Such professional6
shall be licensed as appropriate and shall be registered under the laws of the state of7
Louisiana.8
(8)(7)(a) "Louisiana resident contractor", for the purposes of this Section9
Part, includes any person, partnership, association, corporation, or other legal entity10
and is defined as one that either:11
(i) Is an individual who has been a resident of Louisiana for two years or12
more immediately prior to bidding on work,13
(ii) Is any partnership, association, corporation, or other legal entity whose14
majority interest is owned by and controlled by residents of Louisiana, or15
(iii) For two years prior to bidding has maintained a valid Louisiana16
contractor's license and has operated a permanent facility in the state of Louisiana17
and has not had a change in ownership or control throughout those two years.18
(b) For the purposes of Item (7)(a)(ii) of this Section, ownership percentages19
shall be determined on the basis of:20
(i) In the case of corporations, all common and preferred stock, whether21
voting or nonvoting, and all bonds, debentures, warrants, or other instruments22
convertible into common and/or preferred stock.23
(ii) In the case of partnerships, capital accounts together with any and all24
other capital advances, loans, bonds, debentures, whether or not convertible into25
capital accounts.26
(9)(8) "Negotiate" means the process of making purchases and entering into27
contracts without formal advertising and public bidding with the intention of28
obtaining the best price and terms possible under the circumstances.29 SB NO. 468
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(9) "Probable construction costs" means the estimate for the cost of the1
project as designed that is determined by the public entity or the designer.2
* * *3
§2212. Advertisement and letting to lowest responsible and responsive bidder;4
public work; electronic bidding; participation in mentor-protégé5
program; exemptions6
A.(1)(a) All public work exceeding the contract limit as defined in this7
Section, including labor and materials, to be done by a public entity shall be8
advertised and let by contract to the lowest responsible and responsive bidder who9
had bid according to the contract, plans, and specifications bidding documents as10
advertised, and no such public work shall be done except as provided in this Part.11
(2) The term "bidding documents" is defined in R.S. 38:2211(A).12
(b)(i) B.(1) The provisions and requirement of this Section, and those stated13
in the advertisement for bids, and those required on the bid form bidding documents14
shall not be waived by any entity.15
(ii)(aa)(2) The Any public entity advertising for public work shall use16
only the Louisiana Uniform Bid Form as promulgated in accordance with the17
Administrative Procedure Act by the division of administration, office of facility18
planning and control, shall develop and prescribe through the promulgation of rules19
and regulations in accordance with the Administrative Procedure Act the bid form20
necessary to obtain the information and to implement the sections of the bid form21
provided for in this Item to be utilized for the public bid of public works projects.22
The bid form developed bidding documents shall require only the following23
information necessary to determine the lowest bidder and the following sections and24
information and documentation to be submitted by a bidder at the time25
designated in the advertisement for bid opening: Bid Security or Bid Bond,26
Acknowledgment of Addenda, Base Bid, Alternates, Signature of Bidder, Name,27
Title, and Address of Bidder, Name of Firm or Joint Venture, Corporate Resolution28
or written evidence of the authority of the person signing the bid, and Louisiana29 SB NO. 468
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Contractors License Number, and on public works projects where unit prices are1
utilized, a section on the bid form where the unit price utilized in the bid shall be set2
forth including a description for each unit; however, unit prices shall not be3
utilized for the construction of building projects, unless the unit price is prices and4
their extensions are incorporated into the base bid or alternates.5
(3)(a) (bb) Other documentation and information required including but not6
limited to the low bidder's attestation pursuant to R.S. 38:2212.10 and 2227 shall be7
furnished by the low bidder within ten days after the bid opening The bidding8
documents shall not require any bidder, other than the apparent low bidder, to9
furnish any other information or documentation, including the Attestation10
Affidavit and the E-Verification Form, any sooner than ten days after the date11
bids are opened; however, the apparent low bidder may submit such12
information or documentation at any time prior to the expiration of the ten-day13
period. If the apparent low bidder does not submit the proper information or14
documentation as required by the bidding documents within the ten-day period,15
such bidder shall be declared non-responsive, and the public entity may award16
the bid to the next lowest bidder, and afford the next lowest bidder not less than17
ten days from the date the apparent low bidder is declared non-responsive, to18
submit the proper information and documentation as required by the bidding19
documents, and may continue such process until the public entity either20
determines the low bidder or rejects all bids. The ten-day period shall not be21
altered or waived by any public entity except the governing authority of any publicly22
owned commercial aviation airport, the Sewerage and Water Board of New Orleans,23
the Regional Transit Authority, and all agencies of the City of New Orleans,24
including but not limited to the Regional Transit Authority and the New Orleans25
Aviation Board, who shall require that the other documentation and information26
referred to in this Subitem Subparagraph be furnished by the two lowest bidders27
no later than three days after the bid opening.28
(cc) (b) Notwithstanding any other provision of law to the contrary the29 SB NO. 468
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provisions of this Paragraph, all bidders, bidding on public works for East Baton1
Rouge Parish, shall submit all bid forms required by statute or by the Louisiana2
Administrative Code to the governing authority of East Baton Rouge Parish prior to3
the opening of all bids relative to a contract for public works.4
(iii) The provisions of this Subparagraph shall not apply to bid forms of the5
Department of Transportation and Development pursuant to Title 48 of the Louisiana6
Revised Statutes of 1950.7
(4) Notwithstanding any other provision of law to the contrary and in8
addition to any other requirements provided by this Subsection, the9
Acknowledgment of Addenda to the bid form provided for in this Section for10
the public bid of public works conducted by the New Orleans Sewerage and11
Water Board shall also include attachment of the addenda if pricing12
information is contained therein and the addenda specifies attachment.13
(c)(i) (5) Evidence Written evidence of agency, corporate, or partnership the14
authority of the person signing the bid for public works shall be required for15
submission of a bid to the division of administration or the state of Louisiana16
submitted at the time of bidding. The authority of the signature of the person17
submitting the bid shall be deemed sufficient and acceptable if any of the following18
conditions are met:19
(aa) (a)The signature on the bid is that of any corporate officer listed on the20
most current annual report on file with the secretary of state, or the signature on the21
bid is that of any member of a partnership or partnership in commendam, limited22
liability company, limited liability partnership, or other legal entity listed in the23
most current partnership business records on file with the secretary of state.24
(bb) (b) The signature on the bid is that of an authorized representative of the25
corporation, partnership, or other legal entity and the bid is accompanied by a26
corporate resolution, certification as to the corporate principal, or other documents27
indicating authority which are acceptable to the public entity as documented by the28
legal entity certifying the authority of the person.29 SB NO. 468
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(cc) (c) The corporation, partnership, or other legal entity has filed in the1
appropriate records of the secretary of state of this state in which the public entity2
is located, an affidavit, resolution, or other acknowledged or authentic document3
indicating the names of all parties authorized to submit bids for public contracts.4
Such document on file with the secretary of state shall remain in effect and shall be5
binding upon the principal until specifically rescinded and canceled from the records6
of the office.7
(ii) (6)(a) Except as provided in Subparagraph (f) of this Paragraph, each8
Each bid shall be either hand delivered by the bidder or his agent in which instance9
the deliverer shall be handed a written receipt, or such bid shall be sent by registered10
or certified mail with a return receipt requested, or shall be submitted11
electronically as provided in Subsection E of this Section. However, the12
requirement that all bids be sent by registered or certified mail shall not apply to bids13
received by municipal and parochial governing authorities. No public entity shall14
accept or take any bids, including receiving any hand delivered bids, on days which15
are recognized as holidays by the United States Postal Service. The Department of16
Transportation and Development and facility planning and control section under the17
division of administration shall keep on file a list of all states which have passed a18
bid preference law.19
(b) Only for the purpose of interpretation of the base bid total, and20
alternate bids, when applicable, written words shall govern if a conflict exists21
between words and numerals.22
(c) If the public works require unit price bids and there is a discrepancy23
between the base bid total and the sum of the extended unit prices, the base bid24
total shall govern.25
(7) The provisions of this Subsection shall not apply to the Department26
of Transportation and Development.27
(d) C. The Except as provided in Paragraphs (1) and (2) of this28
Subsection, the term "contract limit" as used herein shall be equal to the sum of one29 SB NO. 468
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hundred fifty thousand dollars per project, including labor, materials, and equipment1
as per the rates in the latest edition of the Associated Equipment Dealers Rental Rate2
Book and administrative overhead not to exceed fifteen percent; however:, provided3
that beginning February 1, 2015, and annually on February first of each4
subsequent year, the office of facility planning and control within the division5
of administration shall adjust the "contract limit" by an amount not to exceed6
the annual percentage increase in the Consumer Price Index in the preceding7
year. The office of facility planning and control within the division of8
administration shall publish the new contract limit for public works contracts9
in the Louisiana Register in January of each year.10
(i) (1)When the Department of Public Safety and Corrections intends to use11
inmates as labor in connection with projects which occur on the grounds or to the12
buildings, structures, or facilities located on the grounds of prisons or correctional13
institutions, the term contract limit shall be fifty seventy-five thousand dollars per14
project, for the calendar year 1982 and for each succeeding calendar year, shall be15
increased by a factor equal to three percent per year for each of the next ten calendar16
years.17
(ii) Repealed by Acts 2011, 1
st
Ex. Sess., No. 5, §2, eff. June 12, 2011.18
(iii) Beginning September 1, 2005, when the Bossier Parish Police Jury19
intends to undertake a public works project with its own employees, the term20
"contract limit" shall be equal to the sum of one hundred thirty thousand dollars.21
Additionally, the police jury may adjust the contract limit provided for in this Item22
each year by an amount not to exceed the annual percentage increase in the23
Consumer Price Index in the preceding year. If the contract limit is increased, the24
Bossier Parish Police Jury shall publish the new contract limit for public works25
contracts in its official journal in February of each year.26
(iv) Repealed by Acts 2007, No. 336, §2, eff. July 31, 2008.27
(v)(aa) (2)(a) The annual limit by a public entity for any work to restore or28
rehabilitate a levee that is not maintained with federal funds, including mitigation on29 SB NO. 468
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public lands owned by the state or a political subdivision, shall not exceed the sum1
of one million dollars, including labor, materials, and equipment, which is not2
publicly bid, as per the rates in the latest edition of the Associated Equipment3
Distributors Rental Rate Book, and administrative overhead not to exceed fifteen4
percent; provided that the work is undertaken by the public entity with its own5
resources and employees, or with the resources and employees of another public6
entity through a cooperative endeavor or other agreement with such entity.7
(bb) (b) The provisions of this Item Paragraph shall remain effective until8
December 31, 2018.9
(e)(i) D. Each public entity advertising and letting for bid a public works10
contract under the provisions of this Section shall furnish all prime bidders who11
request bid bidding documents and who are properly licensed by the Louisiana State12
Licensing Board for Contractors with at least one set of complete bid bidding13
documents. The public entity may require a deposit on the bid bidding documents;14
however, the total cost of the deposit, including handling fees and other costs shall15
not exceed twice the actual cost of reproduction. Deposits on the first set of16
documents furnished bona fide prime bidders will shall be fully refunded, upon17
return of the documents no later than ten days after receipt of bids. On other sets of18
documents furnished to bidders, the deposit less actual cost of reproduction, will19
shall be refunded upon return of the documents no later than ten days after receipt20
of bids. Where the public entity, itself, prepares and distributes the contract bidding21
documents, the public entity may, in lieu of a deposit, charge a fee for the22
documents, which fee shall not exceed the actual cost of reproduction. Prime23
bidders shall obtain an original set of electronic or paper bidding documents24
either from the public entity or the design professional who prepared such25
documents. When the public entity utilizes an electronic bid submittal system,26
bidding documents shall be distributed in the manner chosen by the public27
entity. At its sole discretion, the public entity may authorize its design28
professional of record to choose an electronic bid submittal system. The public29 SB NO. 468
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entity or its design professional of record shall maintain a list of all prime1
bidders for the purpose of addenda distribution.2
(ii) Where the Sewerage and Water Board of New Orleans, itself, prepares3
and distributes electronic contract documents, the Sewerage and Water Board of4
New Orleans may, in lieu of a deposit, charge a fee for each paper document, which5
shall not exceed the actual cost of reproduction.6
(f)(i) E. (1) Contractors shall be provided the option to submit bids for public7
contracts through Public entities shall provide, as an additional bidding option,8
a uniform and secure electronic interactive system for the submittal of bids for9
public works requiring competitive bidding. Political subdivisions Any public10
entity providing such system shall follow the standards for the receipt of electronic11
bids adopted by the office of the governor, division of administration, and the office12
of information technology as provided for in LAC 4:XV.701 , and shall make the13
appropriate provisions necessary for the acceptance of electronic bids for all14
purchases requiring competitive bidding as required by this Section. Any special15
condition or requirement for the submission shall be specified in the advertisement16
for bids required by this Section.17
(ii) (2) Public entities that are currently without available high speed high-18
speed Internet access will shall be exempt from this requirement until such time that19
high speed high-speed Internet access becomes available.20
(iii) (3) Any parish with a police jury form of government and a population21
of less than twenty thousand shall be exempt from the provisions of this22
Subparagraph Subsection.23
(iv) (4) Any city or municipality with a population of less than ten thousand24
shall be exempt from the provisions of this Subparagraph Subsection.25
(v) (5) Any special service district created by a police jury form of26
government and other public entity which is unable to comply with R.S.27
38:2212(A)(1)(f)(i) the electronic bidding provisions of this Subsection without28
securing and expending additional funding shall be exempt from its requirements.29 SB NO. 468
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The special service district shall be exempted from any expenditures for high speed1
Internet access, software, personnel costs, training, or other office equipment directly2
relating to the receipt of bids via high speed Internet access.3
(vi) (6) Public entities shall have the option to require that all bids be4
submitted electronically for any competitive bid let out for public bid.5
(vii) (7) Public entities must shall include all bid bidding documents as6
defined in R.S. 38:2211(A)(1) 38:2211(A)(2), on the electronic website accepting7
the electronic bids.8
(g) Repealed by Acts 1999, No. 768, §2.9
(2) F. The bid specification may contemplate a fixed escalation or de-10
escalation in accordance with the United States Bureau of Labor Statistic's Consumer11
Price Index and/or Wholesale or the Producer Price Index. Bids based on12
specifications which are subject to a recognized escalation index shall be legal and13
valid for any item of a public work, at the discretion of the public entity.14
(3)(a) G. (1) The advertisement required by this Section for any contract for15
public works shall be published once a week for three different weeks in a newspaper16
in the locality, and the first advertisement shall appear at least twenty-five days17
before the opening of bids. In addition to the newspaper advertisement, a public18
entity may also publish an advertisement by electronic media available to the general19
public.20
(b) (2) The first publication of the advertisement shall not occur on a21
Saturday, Sunday, or legal holiday. Plans and specifications All bidding documents22
shall be available to bidders on the day of the first advertisement and shall be23
available until twenty-four hours before the bid opening date.24
(c)(i) If at the end of the contract document phase, it is determined that the25
designer's estimate is more than the funds budgeted by the public entity for the26
project, the project shall not be advertised for bid. The designer's estimate shall be27
read aloud upon opening bids.28
(ii) The bid form shall contain Bid Security or Bid Bond, Acknowledgment29 SB NO. 468
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of Addenda, Base Bid, Alternates, Signature of Bidder, Name, Title, and Address of1
Bidder, Name of Firm or Joint Venture Corporate Resolution, and Louisiana2
Contractors License Number, and on public works projects where unit prices are3
utilized, their inclusion in the bid form; however, unit prices shall not be utilized for4
the construction of building projects, unless the unit price is incorporated into the5
base bid. Other documentation required shall be furnished by the low bidder within6
ten days after the bid opening. The governing authority of any publicly owned7
commercial aviation airport, the Sewerage and Water Board of New Orleans, and all8
agencies of the City of New Orleans, including but not limited to the Regional9
Transit Authority and the New Orleans Aviation Board shall require that the other10
documentation referred to above shall be furnished by the two lowest bidders three11
days after the bid opening. The division of administration, office of facility planning12
and control, shall develop and prescribe the necessary bid form for public works13
projects for public bid purposes and implement the provisions of this Section of the14
bid form in accordance with the Administrative Procedure Act.15
(iii) The provisions of this Subparagraph shall not apply to bid forms of the16
Department of Transportation and Development pursuant to Title 48 of the Louisiana17
Revised Statutes of 1950.18
H. Every public entity intending to advertise a public work for bids shall19
obtain an estimate of the probable construction costs of such public work from20
the public entity or the project designer prior to advertising such public work21
for bids. No public entity shall advertise a public work for bids unless funds22
that meet or exceed the estimate of the probable construction costs have been23
budgeted by the public entity for the project. The estimate of probable24
construction costs for the project shall be made available at the time of bid25
opening, either by posting such estimate electronically or announcing aloud26
such estimate at the bid opening. All other bid information shall be available27
upon request seventy-two hours following the opening of bids by the public28
entity, and the requester shall pay reasonable reproduction costs. The29 SB NO. 468
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provisions of this Subsection shall not apply to the Department of1
Transportation and Development.2
(d)(i) I. When a design professional or public entity mandates attendance by3
prospective bidders at pre-bid conferences as a prerequisite to bid on a public4
works project, the date, place, and time of the pre-bid conference shall be stated in5
the first each advertisement notice.6
(ii) All prospective bidders in the orphan well plug and abandonment7
program within the Louisiana Department of Natural Resources shall be present at8
the beginning of the pre-bid conference and shall remain in attendance for the9
duration of the conference. Any prospective bidder who fails to attend the conference10
or remain for the duration shall be prohibited from submitting a bid for the project.11
(e) J. Any proposal Bidding documents shall include no more than three12
alternates. An alternate bid by any name is still an alternate. Alternates, if accepted,13
shall be accepted in the order in which they are listed on the bid form. Determination14
of the low bidder shall be on the basis of the sum of the base bid and any alternates15
accepted. However, the public entity shall reserve the right to accept alternates in any16
order which does not affect determination of the low bidder.17
(f) K. Use of allowances in proposals bidding documents shall be restricted18
to minor items and shall be limited to hardware, face brick, landscaping, electric19
light fixtures, miscellaneous steel, tile, wallpaper and other exterior finishes,20
fixtures and furnishings, and carpeting. Allowances may not be utilized by the21
design professional or public entity to control the selection of a subcontractor or22
supplier.23
(g)(i) L.(1) No construction manager or any other third-party consultant24
employed by a public entity may manage a construction project as a general25
contractor or act in the role of the general contractor to oversee, direct, or coordinate26
individual trade contractors on behalf of the public entity, or accept bids or itself bid27
on the public work or components of the public work with respect to which the28
manager or consultant is employed or contracted to manage or consult.29 SB NO. 468
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(ii) (2) The provisions of Item (i) Paragraph (1) of this Subparagraph1
Subsection shall not apply to the initial construction of a hospital, medical facility,2
or a combination of both, constructed by the Orleans Hospital Service District, but3
shall apply to the construction of any additions or modifications of a hospital,4
medical facility, or a combination of both, constructed by the Orleans Hospital5
Service District following the completion of the initial construction. The provisions6
of this Item Paragraph shall not relieve the Orleans Hospital Service District from7
complying with all other applicable provisions of this Title.8
(iii) All construction contracts on public works shall be opened in a public9
meeting. All subcontractors bidding on the project shall be invited to the meeting and10
the general contractor shall list in the bid documents who the subcontractors will be11
on the project.12
(4) M. (1) All public work contracts shall contain provisions authorizing the13
issuance of change orders within the scope of the contract.14
(5) (2) All change orders shall be in writing or in electronic format if the15
public entity has the capability to receive change orders electronically. All16
change orders shall be signed by the contractor and the public entity or its17
design representative.18
(3) The public entity shall pay the contractor for work performed by19
change order not later than sixty days after the date the public entity receives20
an approved application for payment for completion of the work performed in21
the change order.22
(6) (4) Any change order outside the scope of the contract in excess of the23
contract limit as defined herein shall be let out for public bid as provided by this Part.24
(7) (5) Any change order pertaining to public work, not required by this Part25
to be put let out for public bid, shall either be negotiated in the best interest of the26
public entity or let out for public bid as provided by this Part. Where the change27
order is negotiated, the public entity shall require that said such change order be28
fully documented and itemized as to costs, including material quantities, material29 SB NO. 468
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costs, taxes, insurance, employee benefits, other related costs, profit, and overhead.1
Where certain unit prices are contained in the initial contract, no deviations shall be2
allowed in computing negotiated change order costs.3
(8)(a) Notwithstanding any other law to the contrary and in addition to any4
other requirements provided for in this Subsection, the Acknowledgment of Addenda5
of the bid form provided for in R.S. 38:2212(A)(1)(b)(ii) for the public bid of public6
works projects conducted by the New Orleans Sewerage and Water Board shall also7
include attachment of the addenda if pricing information is contained therein and the8
addenda specifies attachment.9
(b) Notwithstanding any other law to the contrary and in addition to any other10
requirements provided for in this Subsection, the Acknowledgment of Addenda of11
the bid form for public works projects conducted by the New Orleans Sewerage and12
Water Board shall also include attachment of the addenda if pricing information is13
contained therein and the addenda specifies attachment.14
B. N. Those contracts let by any public entity for public works estimated to15
cost in excess of the contract limit shall be advertised and let by contract to the16
lowest responsible and responsive bidder. Public works which are estimated to cost17
less than the contract limit, may be undertaken by the public entity with its own18
employees.19
C. O. (1) Except as provided by Paragraph (2) of this Subsection, the public20
entity may, through the issuance of an addendum, extend the bid period for up to21
thirty days, without the requirement of readvertising as provided by Subsection A of22
this Section.23
(2)(a) If a public entity issues or causes to be issued on a public work24
exceeding the contract limit any addendum modifying plans and specifications the25
bidding documents within a period of seven days prior to the advertised time, or the26
time extended as provided for in this Section, for the opening of bids, excluding27
Saturdays, Sundays, and any other legal holidays, then the public entity shall28
transmit a copy of the addendum to all prime bidders who have requested bid29 SB NO. 468
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bidding documents pursuant to Subparagraph (A)(1)(e) Subsection D of this1
Section. This shall be completed within twenty-four hours of the issuance of the2
addendum and may be delivered by either facsimile transmission, e-mail, other3
electronic means, or by hand, or by overnight delivery using a nationally4
recognized carrier provided the prime bidder has supplied the facsimile5
transmission number or e-mail address to the public entity. In addition to the6
transmission required in this Paragraph, a copy of the addendum shall be sent by7
regular mail to all prime bidders who have requested bid documents pursuant to8
Subparagraph (A)(1)(e) of this Section. If the addendum cannot be transmitted by9
facsimile transmission, e-mail, or other electronic means, overnight delivery using10
a nationally recognized carrier, or otherwise effected by hand delivery, the public11
entity shall postpone the bid opening by at least seven days.12
(b) No public entity shall issue or cause to be issued any addenda modifying13
plans and specifications the bidding documents within a period of seventy-two14
hours prior to the advertised time for the opening of bids, excluding Saturdays,15
Sundays, and any other legal holidays; however, if the necessity arises to issue an16
addendum modifying plans and specifications the bidding documents within the17
seventy-two-hour period prior to the advertised time for the opening of bids, then the18
opening of bids shall be extended for at least seven but not more than twenty-one19
working days, without the requirement of readvertising as provided by Subsection20
A of this Section. The addendum shall state the revised time and date for the opening21
of bids.22
D. P. (1)(a) This Section shall not apply in cases of public emergency where23
such emergency has been certified to by the public entity and notice of such public24
emergency shall, within ten days thereof, be published in the official journal of the25
public entity proposing or declaring such public emergency.26
(b)(i) This Section shall not apply in the event that an extreme public27
emergency occurs.28
(ii) The president of the police jury, the president of the parish council, the29 SB NO. 468
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mayor of the municipality, or a person designated to act on behalf of the governing1
authority of any other political subdivision, shall declare that an extreme emergency2
exists and shall cause such declaration to be published in the official journal within3
ten days or as soon as practicable thereafter.4
(c) This Section shall not apply with respect to repairs administered by the5
office of facility planning and control for addressing damage caused by Hurricanes6
Katrina and Rita. However, the office of facility planning and control shall not be7
allowed to negotiate such projects, but shall be required to publicly advertise such8
projects in the official journal of the locality of the project and in the state's official9
journal. Public bids may be taken in a minimum of ten days after advertisement of10
such projects. However, if there are no bidders for such projects, the office of facility11
planning and control may enter into competitive bidding negotiations with no fewer12
than two contractors.13
(2) Limitations. (a) Every contract negotiated by a public entity under the14
authority of this Subsection shall be supported by a written determination and15
findings by the public entity justifying use of the authority.16
(b) When contract action under this authority is taken pursuant to telephone17
or other oral offers, a written confirmation of the accepted offer shall be obtained and18
made a part of the contract case file. In addition, whenever contract action is taken19
as authorized by this Subsection, a record shall be established by the public entity20
which shall contain, as a minimum, the following information with respect to each21
offer: a description of the work to be performed, the name and address of each22
offeror quoting, and the performance time and terms of each offer. If quotations23
lower than the accepted quotation are received, the reasons for their rejection shall24
be recorded and made a part of the contract case file. Such records shall be retained25
for a minimum of six years following the purchase or completion of the public work.26
(3) Notwithstanding any other law to the contrary, for the project to enclose27
approximately five hundred feet of Corporation Canal that runs adjacent to the28
University Laboratory School on the Baton Rouge campus, which has been funded29 SB NO. 468
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as an emergency through appropriation of funds by the Interim Emergency Board to1
Louisiana State University, East Baton Rouge Parish shall be authorized to assist in2
the project through use of its own employees to undertake such project.3
E. Q. (1) A publicly owned utility, as recognized by the Louisiana Public4
Service Commission, may undertake a public works project, other than construction5
of a building, for the contract limit or less by either of the following methods:6
(a) (1) Entry into contracts with or without public bid.7
(b) (2) Use of the employees of the public entity owning the utility.8
R.(2) Such public Public entities are herein prohibited from owning or9
operating manufacturing facilities or plants whereby such public entities that10
produce or manufacture construction materials. Any such facilities owned or11
operated prior to September 11, 1981, are excluded from these provisions.12
S. (3) The provisions of this Section shall not prevent public entities from13
using their regular maintenance employees for labor necessary in the maintenance,14
construction, or extension of publicly owned and operated electric public utilities.15
With respect to the construction or extension of all other public utilities, the16
provisions of this Section shall not prevent public entities from using their regular17
maintenance employees when the cost of the work per project does not exceed one18
hundred fifty thousand dollars, including labor and materials. All purchases of19
materials or supplies exceeding the sum contract limit provided for in Subsection20
A of this Section shall be let by public bid as provided in this Part.21
F. T. (1) Whenever a public entity desires to purchase technical equipment,22
apparatus, machinery, materials, or supplies of a certain type and such purchases are23
clearly in the public interest, the public entity may specify a particular brand, make,24
or manufacturer in the specifications bidding documents let out for public bid as25
provided by this Part. If a particular brand, make, or manufacturer is specified, the26
model or catalog number also shall be specified.27
(2) Wherever in specifications a public entity specifies the name of a certain28
brand, make, manufacturer, or uses a definite specification is utilized, the29 SB NO. 468
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specifications bidding documents shall state clearly that they are used only to1
denote the quality standard of product desired and that they do not restrict bidders2
to the specific brand, make, manufacturer, or specification named; that they are used3
only to set forth and convey to prospective bidders the general style, type, character,4
and quality of product desired; and that equivalent products will shall be acceptable.5
It shall be the responsibility of the professionally employed architect or engineer to6
determine what is considered an equivalent product on any and all projects in which7
he has been legally employed to perform his professional services.8
U. G. Notwithstanding the provisions of Subsection M of this Section relative9
to the financing of public works contracts by a contractor, public Public entities are10
hereby authorized to may enter into professional maintenance contracts for the repair11
and maintenance of water storage tanks public facilities owned, controlled, or12
operated by a public entity for a fixed annual fee. Such contracts shall extend for a13
duration of not less than two years. Any such contract entered into by a public entity14
shall include a nonappropriation clause and shall not be considered a debt of the15
public entity. Such a professional maintenance contract shall not be considered a16
public works contract.17
H. V. Under no circumstances shall there be a division or separation of any18
public work project into smaller projects which division or separation would have19
the effect of avoiding the requirement that public work be advertised and let by20
contract to the lowest responsible and responsive bidder as provided in this Section.21
I. W. (1) This Section shall not apply to labor necessary for the maintenance22
of public works built and completed.23
(2) Volunteer citizen labor used for the construction of a project which is24
funded by the Louisiana Community Development Block Grant Louisiana Small25
Town Environment Program shall not be subject to the requirements of this Section.26
However, the value of the donated volunteer service shall not be used as a27
component of any bid if the public work has to be bid or to determine which is the28
lowest responsible and responsive bid.29 SB NO. 468
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J. X.(1) If the public entity letting the contract proposes to disqualify any1
bidder, either as a potential bidder or as the low bidder, on grounds that such2
bidder is not a "responsible bidder" such public entity shall do all of the following:3
(1) (a) Give written notice of the proposed disqualification action to such4
bidder and include in the written notice all reasons for the proposed disqualification5
action; and .6
(2) (b) Give such bidder, the bidder who is proposed to be disqualified the7
opportunity to be heard at an informal hearing at which such bidder is afforded the8
opportunity to refute the reasons for the disqualification proposed action.9
(2) The informal hearing shall be conducted prior to award of the public10
work.11
(3) The informal hearing shall be a condition precedent to any action by12
the bidder adverse to the public entity, its representatives, employees, and13
designers.14
(4) The informal hearing shall be conducted by the public entity not later15
than five business days after the date of the notice of disqualification of such16
bidder. The public entity shall issue a ruling in writing and deliver it to the17
affected bidder not later than five business days after the date of the informal18
hearing.19
(5) No award of the contract for the public work shall be made by the20
public entity prior to the expiration of at least five working days following the21
date of issuance of the decision by the hearing official.22
(6) The provisions of this Subsection shall not apply to such actions of the23
Department of Transportation and Development.24
K. Repealed by Acts 1999, No. 768, §2.25
L. Repealed by Acts 1999, No. 768, §2.26
M Y. No public entity shall enter into a contract for the purpose of public27
works with a contractor who then finances the project. Under no circumstances shall28
the agreement of a contractor to finance a public works project be used in any way29 SB NO. 468
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to avoid the requirement that public work be advertised and let by contract to the1
lowest responsible and responsive bidder as provided in this Section.2
N. Repealed by Acts 1999, No. 768, §2.3
O. Whenever evidence of agency, corporate, or partnership authority is4
required for submission of a bid to a public entity, such fact shall be contained in the5
bid documents and such proof shall be provided in accordance with the provisions6
of this Section. The authority of the signature of the person submitting the bid shall7
be deemed sufficient and acceptable if any of the following conditions are met:8
(1) The signature on the bid is that of any corporate officer listed on the most9
current annual report on file with the secretary of state, or the signature on the bid10
is that of any member of a partnership or partnership in commendam listed in the11
most current partnership records on file with the secretary of state.12
(2) The signature on the bid is that of an authorized representative of the13
corporation, partnership, or other legal entity and the bid is accompanied by a14
corporate resolution, certification as to the corporate principal, or other documents15
indicating authority which are acceptable to the public entity.16
(3) The corporation, partnership, or other legal entity has filed in the17
appropriate records of the secretary of state or the clerk of court of the parish in18
which the public entity is located, an affidavit, resolution, or other acknowledged or19
authentic document indicating the names of all parties authorized to submit bids for20
public contracts. Such document on file with the secretary of state or the clerk of21
court shall remain in effect and shall be binding upon the principal until specifically22
rescinded and canceled from the records of the respective offices.23
P. Repealed by Acts 1999, No. 768, §2.24
Q. Repealed by Acts 1999, No. 768, §2.25
R.(1) In the bid selection process for any contract for a public work or for all26
purchases of materials and supplies exceeding the sum of fifteen thousand dollars to27
be paid out of public funds under the provisions of this Chapter, any public entity28
may include bid selection provisions in bid documents relative to participation in a29 SB NO. 468
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mentor-protégé program as provided by R.S. 51:1753.1.1
(2) In determination of compensation, the agency may provide for additional2
incentives for mentor-protégé participants for any contract which provides incentives3
for work performed or deliveries completed ahead of schedule. Incentives for4
mentor-protégé participants shall be not less than five percent greater than incentives5
awarded to persons who are not participants in the program.6
(3) Advertisements for bids must specify bid selection and incentive7
provisions for mentor-protégé participation.8
(4) Political subdivisions may participate in the mentor-protégé program as9
provided by R.S. 51:1753.1 or may adopt a program to provide for incentives in the10
bid selection process or incentives for participation.11
S. Z. The provisions of this Section shall not apply to purchases of materials12
and supplies by contractors awarded public works contracts by a public entity; or to13
subcontractors of said such contractors, who have been appointed or designated14
agents for the purchase of materials and supplies to be incorporated into a public15
work pursuant to a contract properly bid in accordance with this Chapter when acting16
pursuant to said appointment or designation.17
* * *18
§2212.5. Prequalified bidders19
Except for construction or repair of roads and bridges and those contractors20
providing materials and supplies for construction or repair of roads and bridges, the21
division of administration may prequalify bidders for historic restoration projects22
funded by the state. The division of administration shall promulgate rules and23
regulations setting forth procedures for such prequalification. Historic restoration24
projects as used herein means repairs, renovations, or reconstruction of state-owned25
structures which are listed on the National Register of Historic Places or state-owned26
structures which are eligible for inclusion on the National Register and shall also27
include the renovation of the Louisiana State University Student Union on the Baton28
Rouge campus, which has been acknowledged as a Nationally Recognized29 SB NO. 468
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Architectural Building that is recognized by the American Institute of Architects as1
having received an Honor Award from the Gulf States Region. After the division of2
administration has prequalified such bidders, only prequalified bidders may submit3
bids on those designed projects, and the contracts on those designated projects shall4
be awarded to the prequalified bidder submitting the lowest responsible and5
responsive bid, which bid for the renovation project of the Louisiana State6
University Student Union on the Baton Rouge campus only may be for overhead and7
profit or lump sum. Prior to the execution of the contract for the renovation project8
of the Louisiana State University Student Union on the Baton Rouge campus, it shall9
be submitted to the Joint Legislative Committee on the Budget for review and10
approval.11
* * *12
§2212.10. Verification of employees involved in contracts for public works13
* * *14
C. A private employer shall not bid on or otherwise contract with a public15
entity for the physical performance of services within the state of Louisiana unless16
the private employer verifies in a sworn affidavit attesting to both of the following:17
(1) The private employer is registered and participates in a status verification18
system to verify that all new employees in the state of Louisiana are legal citizens19
of the United States or are legal aliens.20
* * *21
G. In the event the status verification system expires and extensions are not22
approved by the federal government, the provisions of this Section shall no longer23
apply. The executive director of the Louisiana Workforce Commission shall24
provide written notification to the Louisiana State Law Institute if the status25
verification system expires and extensions are not approved by the federal26
government.27
* * *28
§2215. Time period for holding bids; issuance of work orders to commence work;29 SB NO. 468
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exceptions1
A. The state or any state agency upon receipt of bids for the undertaking of2
any public works contract A public entity shall act within thirty not later than3
forty-five calendar days of such receipt after the date of opening bids to award said4
such public works contract to the lowest responsible and responsive bidder or to5
reject all bids. A political subdivision upon receipt of bids for the undertaking of any6
public works contract shall act within forty-five calendar days of such receipt to7
award said contract to the lowest responsible bidder or reject all bids. However, the8
public entity and the lowest responsible and responsive bidder, by mutually written9
consent, may agree to extend the deadline for award by one or more extensions of10
thirty calendar days.11
B. If the lowest responsible and responsive bidder has timely provided12
all documents required by R.S. 38:2212, and no injunction or temporary13
restraining order is in effect, the lowest responsible and responsive bidder and14
the public entity shall execute the contract not later than sixty calendar days15
after the date of the public entity's award of the contract to the lowest16
responsible and responsive bidder.17
C. The public entity shall issue to the contractor a notice to proceed with18
the project or work order not later than thirty calendar days following the date19
of execution of the contract by both parties, whichever execution date is later.20
However, the public entity and the contractor, upon mutual written consent of21
both parties, may agree to extend the deadline to issue the notice to proceed.22
D. The provisions of this Section shall not be applicable when the contract23
is to be financed by bonds which are required to be sold after receipt opening of bids24
on the contract, or when the contract is to be financed in whole or in part by federal25
or other funds which will not be readily available at the time bids are received26
opened, or on contracts which require a poll of the legislature Legislature of27
Louisiana before funds are available to fund the contract. In the event the If any time28
limit stipulated herein in this Section is not applicable because of one of the29 SB NO. 468
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exceptions outlined above in this Subsection, this fact shall be mentioned in the1
specifications bidding documents for the project and in the official advertisement2
for bids required in accordance with R.S. 38:2212.3
C. If the contractor has provided all necessary documents to the public entity4
within ten days of the opening of bids and no bid challenge has been submitted to the5
public entity, the contractor and public entity shall execute the contract not later than6
forty-five days from the public entity's acceptance of the lowest responsible bid.7
D. Upon the execution of the contract, the public entity, within thirty days8
thereafter, shall issue to the contractor a notice to proceed with the project. However,9
upon mutual consent by both parties, the notice to proceed may be extended.10
E. These provisions shall not be subject to waiver.11
* * *12
§2225. Preference in letting contracts for public work13
A. Repealed by Acts 1984, No. 894, §3, eff. July 1, 1987.14
B. If a nonresident contractor bidding on public work in the state of Louisiana15
is domiciled in a state that provides a percentage preference in favor of contractors16
domiciled in that state over Louisiana resident contractors for the same type of work,17
then every Louisiana resident contractor shall be granted the same preference over18
contractors domiciled in the other state favoring contractors domiciled therein19
whenever the nonresident contractor bids on public work in Louisiana.20
C. B. Any local law, either by legislative act or otherwise, ordinance, or21
executive order enacted prior to the effective date of this Act, or enacted hereinafter22
in conflict with this Section, or granting any local contractor or subcontractor23
preference over other Louisiana resident contractors shall be contrary to the24
provision of this Section.25
C. The Department of Transportation and Development and the office26
of facility planning and control within the division of administration shall keep27
on file a list of all states with a bid preference.28
D. The provisions and requirements of this Section shall not be waived by29 SB NO. 468
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any public entity.1
* * *2
§2241.1. Acceptance of governing authority3
A. Whenever the When any public entity enters into a written contract for4
the construction, alteration, or repair of any public works, in accordance with the5
provisions of R.S. 38:2241, the official representative of the public entity shall have6
recorded in the office of the recorder of mortgages, in the parish where the work has7
been done, an acceptance of said such work or of any specified area thereof of such8
work, upon not later than thirty calendar days after the date of completion or9
substantial completion of the such work. Those public entities which do not file said10
recordation, shall require the contractor to have recorded in the office of the recorder11
of mortgages, in the parish where the work has been done, an acceptance of said12
work or of any specified area thereof upon substantial completion of the work. This13
acceptance shall not be executed except upon the recommendation of the architect14
or engineer of the public entity whose recommendation may be made upon15
completion or substantial completion of said public works within thirty days of16
completion of the project.17
B. "Substantial completion" is defined for the purpose of this Chapter, as the18
finishing of construction, in accordance with the contract documents as modified by19
any change orders agreed to by the parties, to the extent that the public entity can use20
or occupy the public works or use or occupy the specified area of the public works21
for the use for which it was intended. The recordation of an acceptance in accordance22
with the provisions of this Section upon substantial completion shall be effective as23
an acceptance for all purposes under this Chapter.24
C. Any public entity that does not file for recordation an acceptance of25
public work, shall require the contractor to have recorded in the office of the26
recorder of mortgages, in the parish where the work has been done, an27
acceptance of such work or of any specified area of such work, not later than28
forty-five calendar days after the date of completion or substantial completion29 SB NO. 468
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of the work. This acceptance shall not be executed except upon the1
recommendation of the designer of the public entity whose recommendation2
may be made not later than thirty calendar days after the date of completion or3
substantial completion of such public work.4
The original instrument was prepared by Sharon F. Lyles. The following
digest, which does not constitute a part of the legislative instrument, was
prepared by J. W. Wiley.
DIGEST
Adley (SB 468)
Present law (R.S. 38:2211) defines terms used in the public bid law.
Proposed law retains present law definition of the terms "bidding documents", "change order
outside the scope of the contract", "change order within the scope of the contract",
"contractor", "emergency", "licensed design professional", "Louisiana resident contractor",
and "negotiate"; adds definitions for the terms "alternate" and "probable construction costs";
amends the definition of "change order"; and renumbers Paragraphs (1) through (9) of
Subsection A.
Proposed law adds definition of "alternate" to mean an item on the bid form that may
increase or decrease either the quantity of work or change the type of work within the scope
of the project, materials, or equipment specified in the bidding documents, or both.
Proposed law amends definition of "change order" to mean any contract modification that
includes an alteration, deviation, addition, or omission as to a preexisting public work
contract, which authorizes an adjustment in the contract price, contract time, or an addition,
deletion, or revision of work.
Proposed law adds definition of "probable construction costs" to mean the estimate for the
cost of the project as designed that is determined by the public entity or the designer.
Present law (R.S. 38:2212) requires that public work, including labor and materials,
exceeding $150,000 undertaken by a public entity to be advertised and let by written contract
to the lowest responsible bidder who bids according to the contract, plans, and specifications.
Proposed law requires contract be let to the lowest responsible and responsive bidder.
Proposed law substitutes the term "bidding documents" for the phrase "contract, plans, and
specifications" wherever it occurs in present law.
Present law requires the office of facility planning and control to develop a bid form
necessary to obtain information and to implement use of such form to bid for public works
projects through promulgation of rules and regulations in accord with the APA. Requires
the bid form request only information necessary to determine the low bidder and certain
listed information: Bid Security or Bid Bond, Acknowledgment of Addenda, Base Bid,
Alternates, Signature of Bidder, Name, Title, and Address of Bidder, Name of Firm or Joint
Venture, Corporate Resolution, and Louisiana Contractors License Number, and on public
works projects that use unit prices, a section to set forth such prices, provided such unit
prices shall not be used to construct building projects, unless the unit is incorporated into the
base bid.
Proposed law retains present law but allows written evidence of authority for the person SB NO. 468
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signing the bid, requires a description of each unit on bid forms that use unit prices, and
prohibits use of unit prices on building projects unless the unit prices and their extensions
are incorporated into the base bid or alternates.
Proposed law requires all public entities to use the Louisiana Uniform Bid Form
promulgated by the office.
Present law requires the low bidder to furnish within 10 days of bid opening other
documentation and information required including but not limited to the low bidder's
attestations pursuant to R.S. 38:2212.10 (E-verify) and 2227 (certain criminal convictions).
Proposed law retains present law and authorizes the apparent low bidder to submit such
information and documentation any time prior to expiration of the 10-day period.
Proposed law requires a public entity to declare non-responsive an apparent low bidder who
fails to submit information required by bidding documents in 10 days; authorizes a public
entity to award the bid to the next lowest bidder and to afford such bidder 10 days to furnish
required information; and authorizes a public entity to continue such process until the public
entity either determines the low bidder or rejects all bids.
Proposed law retains present law that requires the public entity shall not waive or alter the
10-day period except for the governing authority of any publicly owned commercial aviation
airport, the Sewerage and Water Board of New Orleans, the Regional Transit Authority, and
all agencies of the city of New Orleans, including but not limited to the New Orleans
Aviation Board shall require information and documentation from the two lowest bidders
three days after bid opening.
Proposed law clarifies the exception in present law for EBR Parish public works projects that
requires all bidders on public works to submit all bid documents required by statute or by
the La. Administrative Code to the governing authority of EBR Parish prior to the opening
of all bids relative to a contract for public works.
Proposed law deletes present law that excepts DOTD from its requirements.
Proposed law reorganizes but retains present law that requires a bidder on a public works
project conducted by the New Orleans Sewerage and Water Board to include
Acknowledgment of Addenda to the bid form and to attach the addenda if pricing
information is contained therein and the addenda specifies its attachment.
Present law requires a bidder who submits a bid to the division of administration or the state
of Louisiana to submit evidence of authority of the person who signs the bid for public
works.
Proposed law expands present law to apply to any public entity. Adds that such evidence
shall be written.
Present law requires delivery of each bid by the bidder or his agent either by hand delivery,
electronic delivery, or registered or certified mail with return receipt requested, except that
registered or certified mail with return receipt requested delivery do not apply to municipal
and parochial governing authorities. Requires written receipt of hand delivered bids to the
deliverer. Prohibits a public entity from accepting a bid on days recognized as holidays by
the U.S. Postal Service.
Proposed law removes exception applicable to municipal and parochial governing authorities
in present law for delivery of bids by registered and certified mail.
Proposed law retains but moves present law [R.S. 38:2212(A)(1)(c)(ii)] to proposed law
[R.S. 38:2225(C)] that requires DOTD and the office of facility planning and control to keep SB NO. 468
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on file a list of all states with a bid preference.
Proposed law provides that for the purpose of interpretation of the base bid total and
alternates, when applicable, written words govern if a conflict exists between words and
numerals. Provides that if public works require unit prices and if a discrepancy exists
between the base bid total and the sum of the extended prices, the base bid total governs.
Present law defines the term "contract limit" as equal to the sum of $150,000, including
labor, materials, and equipment as per the rates in the latest edition of the Associated
Equipments Dealers Rate Book and administrative overhead not to exceed 15% except that
the contract limit is $50,0000 per project for the Department of Public Safety and
Corrections (DPSC) when it intends to use inmates as labor for projects on the grounds of
prisons and correctional institutions for the calendar year 1982, and provides that such
contract limit increases for each succeeding calendar year, increases such contract limit by
a factor equal to 3% per year for each of the next 10 calendar years (1983-1993).
Proposed law requires, beginning Feb. 1, 2015, and annually on Feb. 1 of each subsequent
year, the office of facility planning and control within the division of administration to adjust
the "contract limit" by an amount not to exceed the annual percentage increase in the
Consumer Price Index in the preceding year and to publish the new contract limit for public
works contracts in the Louisiana Register in January of each year.
Proposed law increases the contract limit for such DPSC projects to $75,000 and removes
provision for 3% per year increases.
Proposed law deletes present law that authorizes the Bossier Parish Police Jury to undertake
a public works project with its own employees; sets its contract limit at $130,000; authorizes
the police jury to adjust the contract limit annually by an amount not to exceed the annual
percentage increase in the Consumer Price Index in the preceding year; and requires the
police jury to publish the new contract limit for public works contracts in its official journal
in February of each year.
Proposed law retains present law that provides an annual limit of $1,000,000, including
labor, materials, and equipment, per the latest edition of the Associated Equipment
Distributors Rental Rate Book, and administrative overhead not to exceed 15%, for public
work, which is not publicly bid, to restore or rehabilitate a non-federally maintained levee,
including mitigation on public lands owned by the state or a political subdivision provided
such work is undertaken by the public entity with its own resources and employees, or the
resources and employees of another public entity through a cooperative endeavor or other
agreement. Provides that these provisions expire December 31, 2018.
Proposed law retain present law that requires public entities to furnish at least one complete
set of bid documents to prime bidders who request bid documents and who are properly
licensed by the Louisiana State Licensing Board for Contractors. Authorizes public entities
to require a deposit for bid documents but requires the total deposit, including handling fees
and other costs, not to exceed twice the actual cost of reproduction. Provides that a deposit
on the first set of documents is fully refundable upon return of the documents no later than
10 days after receipt of bids. Provides for refund of deposit less actual reproduction cost on
other sets of documents upon return no later than 10 days after receipt of bids. Authorizes
public entities that itself prepares and distributes contract documents to charge a fee not to
exceed its actual reproduction cost in lieu of a deposit.
Proposed law requires prime bidders to obtain an original set of bidding documents from the
public entity or the design professional who prepared such documents. Authorizes the public
entity to distribute bidding documents in the manner it chooses when the public entity
utilizes an electronic bid submittal system. Provides public entity has sole discretion to
authorize its design professional of record to choose an electronic bid submittal system.
Requires the public entity or its design professional to maintain a list of all prime bidders for SB NO. 468
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addenda distribution.
Proposed law deletes present law that authorized the Sewerage and Water Board of New
Orleans to charge a fee, in lieu of a deposit, for paper documents when it prepares and
distributes electronic contract documents itself.
Proposed law retains present law that requires public entities to provide contractors a
uniform and secure electronic interactive system for submittal of bids as an additional
bidding option. Requires public entities that provide such system to follow the standards for
receipt of electronic bids adopted by the office of the governor, division of administration,
and the office of information technology as provided in LAC 4:XV.701.
Proposed law allows a public entity at its sole discretion to authorize its design professional
of record to choose an electronic bid system.
Proposed law deletes provision in present law requiring acceptance of electronic bids for all
purchases requiring competitive bidding.
Proposed law retains present law that exempts public entities currently without available
high-speed Internet access from providing for electronic bidding until such time such access
becomes available.
Proposed law retains present law that exempts any parish with a police jury form of
government and a population less than 20,000 from electronic bidding.
Proposed law retains present law that exempts any other public entity from electronic
bidding without securing and expending additional funding.
Proposed law retains present law that gives public entities the option to require submittal of
electronic bids on any competitive bid let out for public bid.
Proposed law retains present law that requires public entities to include all bidding
documents on the electronic website accepting electronic bids.
Proposed law retains present law that authorizes a bid specification to contemplate a fixed
escalation or de-escalation according to the U.S. Bureau of Labor Statistic's Consumer Price
Index but substitutes the Producer Price Index for the Wholesale Price Index. Provides that
bids based on specifications that are subject to such an escalation index are legal and valid.
Proposed law adds that such an escalation index is valid for any item of a public work at the
public entity's discretion.
Proposed law retains present law that requires the advertisement for public work to be
published once a week for three different weeks in a newspaper in the locality, requires the
first advertisement to appear at least 25 days before opening of bids, and authorizes
advertisement by electronic media available to the general public in addition to such
newspaper advertisement.
Proposed law retains present law that prohibits the first publication of the advertisement on
a Saturday, Sunday, or legal holiday, and requires all bidding documents to be available on
the day of first advertisement and until 24 hours before the bid opening date.
Proposed law revises present law that prohibits advertisement of the project if the designer's
estimate is more than the funds budgeted by the public entity for the projects and requires
the designer's estimate to be read aloud upon opening bids. Proposed law requires the public
entity to provide or to obtain from the project designer an estimate of probable construction
costs prior to advertisement for bids. Prohibits advertisement of a public work unless funds
that meet or exceed the estimate of probable construction costs have been budgeted by the
public entity for the project. Requires the estimate of probable construction costs to be made SB NO. 468
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available either by electronic posting or by announcing it aloud at bid opening. Requires all
bid information to be available upon request 72 hours following opening of bids.
Proposed law retains present law that requires the date, place, and time of a required pre-bid
conference to be advertised in the advertisement notice. Proposed law requires pre-bid
conference information to be contained in all three advertisements for bid.
Proposed law requires all prospective bidders to be present at the beginning of the pre-bid
conference and to remain in attendance for the duration of the conference and prohibits any
prospective bidder who fails to attend the conference or remain for the duration from
submitting a bid for the project. Proposed law removes limited application to the orphan well
plug and abandonment program within the Louisiana Department of Natural Resources.
Proposed law retains present law that prohibits no more than three alternates in bidding
documents and requires acceptance of alternates in the order listed on the bid form. Requires
determination of the low bidder on the basis of the sum of the base bid and any alternates
accepted but gives the public entity the right to accept alternates in any order that does affect
determination of the low bidder.
Proposed law retains present law that restricts the use of allowances to minor items and
limits them to hardware, face brick, landscaping, electric light fixtures, and carpeting. Adds
miscellaneous steel, tile, wallpaper and other exterior finishes, fixtures and furnishings to
list of allowances. Prohibits use of allowances to control selection of a subcontractor or
supplier.
Proposed law retains present law that prohibits a construction manager or any other third-
party consultant employed by a public entity to manage a construction project as a general
contractor or to act in the role of the general contractor to oversee, direct, or coordinate
individual trade contractors on behalf of the public entity, or to accept bids or itself bid on
the public work or components of the public work with respect to which the manager or
consultant is employed or contracted to manage or consult. Proposed law retains exception
in present law for initial construction of a hospital, medical facility, or both, constructed by
the Orleans Hospital Service District.
Proposed law deletes present law that requires construction contracts to be opened in a
public meeting, that all subcontractors bidding the project be invited to the meeting, and that
the general contractor list subcontractors in the bid documents.
Proposed law retains present law that requires public works contracts to contain provisions
for change orders within the scope of the contract and for change order to be in writing.
Proposed law provides option for change orders in electronic format and requires execution
of the change order by the contractor and the public entity or its design representative.
Proposed law requires the public entity to pay the contractor for work performed by change
order not later than 60 days after the date the public entity receives an approved application
for payment for completion of the work performed in the change order.
Proposed law retains present law that requires any change order outside the scope of the
contract in excess of the contract limit to be let for public bid as provided by law.
Proposed law retains present law that authorizes a public entity to either negotiate or let for
public bid a change order less than the contract limit. Provides for negotiated change orders
to be fully documented and itemized as to costs. Prohibits deviation in unit prices contained
in an initial contract in a negotiated change order.
Proposed law retains present law that requires public works estimated to cost in excess of
$150,000 to be advertised and let by contract to the lowest responsible bidder. Proposed law SB NO. 468
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requires public works to be let to the lowest responsible and responsive bidder.
Proposed law retains present law that authorizes public works estimated to cost less than
$150,000 to be undertaken by the public entity with its own employees.
Proposed law retains present law that authorizes a public entity to issue a bid addendum and
to extend the bid period for up to 30 days without readvertising. Requires completion of
transmittal of a copy of any addendum issued within 24 hours of its issuance and delivery
by either facsimile transmission, email, other electronic means, or by hand provided the
prime bidder has supplied the facsimile transmission number or email address to the public
entity by the public entity to all prime bidders who have requested bidding documents.
Requires postponement of the bid opening by at least seven days if an addendum cannot be
transmitted by facsimile transmission, email, or other electronic means, or otherwise effected
by hand delivery.
Proposed law adds authority to issue addendum by overnight delivery using a nationally
recognized carrier.
Proposed law retains present law that prohibits issuance of any addenda modifying the
bidding document within 72 hours prior to the advertised time for the opening of bids,
excluding Saturdays, Sundays, and any other legal holidays, but authorizes issuance of an
addendum due to necessity with such period and requires extension of the time to open bids
for at least seven days but not more than 21 working days without the requirement to
readvertise. Requires the addendum to state the revised time and date to open bids.
Proposed law retains present law that provides competitive bidding requirements do not
apply in cases of public emergency where the public entity certifies such emergency and
publishes notice of such public emergency within 10 days in its official journal or in cases
of extreme public emergency. Requires the president of the police jury, the president of the
parish council, the mayor of the municipality, or a person to act on behalf of the governing
authority of any other political subdivision to declare the existence of an extreme public
emergency and to publish same in the official journal within 10 days or as soon as
practicable thereafter.
Proposed law retains present law that authorizes the office of facility planning and control
to address damage caused by hurricanes Katrina and Rita by public advertisement in the
official journal of the locality of the project and the state's official journal and to take public
bids in a minimum of 10 days after advertisement. Prohibits negotiation of such projects
except when no bids are received. Requires competitive bidding negotiations with no fewer
than two contractors. Requires written determination and findings to support decision for
every negotiated contract under present law. Requires the public entity to take telephone or
other oral offers, to obtain written confirmation of an accepted offer and to include such
confirmation in the contract case file. Requires the public entity to establish a record that
contains, as a minimum, the following information for each offer: a description of the work
to be performed, the name and address of each offeror quoting, and the performance time
and terms of each offer. Requires to record and include in the contract file the rejection of
any quotations that are lower than the accepted quotation. Requires retention of such records
for a minimum of six years after the purchase or completion of the public work.
Proposed law deletes present law that authorized EBR Parish to assist LSU through use of
the parish's own employees to undertake a project to enclose approximately 500 feet of
Corporation Canal that runs adjacent to the University Laboratory School on the Baton
Rouge campus, which project has been funded as an emergency through appropriation of
funds by the Interim Emergency Board to LSU.
Proposed law retains present law that authorizes a publicly owned utility to undertake a
public works project, other than construction of a building, for the contract limit ( $150,000)
or less by either of the following methods: entry into contracts with or without public bid; SB NO. 468
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use of the employees of the public entity owning the utility. Proposed law provides that such
publicly owned utility be recognized by the Louisiana Public Service Commission.
Proposed law retains present law that prohibits ownership or operation of a manufacturing
plant for construction materials by a public entity. Proposed law adds manufacturing
facilities and production of construction materials to such prohibition. Proposed law deletes
provisions that excluded any such facilities owned or operated prior to Sept. 11, 1981, from
such prohibition.
Proposed law retains present law that authorizes a public entity to use its regular
maintenance employees for labor necessary in the maintenance, construction, or extension
of publicly owned and operated electric public utilities. Authorizes public entities to use
their regular maintenance employees to construct or extend all other public utilities when the
cost of the work per project does not exceed $100,000, including labor and materials.
Proposed law increases the contract limit for such projects to $150,000.
Proposed law retains present law that requires all purchases of materials or supplies
exceeding the contract limit ($150,000) to be let by public bid as provided by law.
Proposed law retains present law that authorizes a public entity to specify a particular brand,
make, or manufacturer for a project let to public bid and requires specification to include the
model or catalog number.
Proposed law retains present law that requires bidding documents to state clearly that the
specification of the name of a certain brand, make, manufacturer, or definite specification
is used only to denote the quality standard of product desired, to convey to prospective
bidders the general style, type, character, and quality of product desired, does not restrict
bidders to the specific brand, make, manufacturer, or specification named, and that
equivalent products are acceptable. Requires a professionally employed architect or engineer
to determine what is considered an equivalent product on any and all projects in which he
has been legally employed to perform his professional services.
Proposed law retains present law that authorizes a public entity to enter into maintenance
contracts for the repair and maintenance of water storage tanks owned, controlled, or
operated by a public entity for a fixed annual fee provided such contracts extend for a
duration of not less than two years, include a nonappropriation clause, and are not considered
a debt of the public entity. Proposed law changes present law from water storage tanks to
public facilities. Proposed law retains present law that provides that such maintenance
contracts are not considered a public works contract.
Proposed law retains present law that prohibits division or separation of any public work
project into smaller projects to avoid the requirement that public work be advertised and let
by contract to the lowest responsible bidder. Proposed law changes phrase lowest
responsible bidder to lowest responsible and responsive bidder.
Proposed law retains present law that makes it inapplicable to labor necessary for the
maintenance of public works built and completed.
Proposed law retains present law that makes it inapplicable to volunteer citizen labor used
for the construction of a project funded by the Louisiana Community Development Block
Grant Louisiana Small Town Environment Program and provides that the value of donated
volunteer service shall not be used as a component of any bid if such public work is bid to
determine the lowest responsible bid. Proposed law changes phrase lowest responsible
bidder to lowest responsible and responsive bidder.
Proposed law retains present law that requires a public entity to give written notice that
includes all reasons and an opportunity for a hearing to any bidder who it proposes to
disqualify on the grounds that such bidder is not a responsible bidder prior to such SB NO. 468
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disqualification. Proposed law requires the informal hearing to be conducted prior to award
of the public work. Proposed law further requires the hearing to be conducted by the public
entity not later than five business days after the date of the notice of disqualification of such
bidder and requires the public entity to issue a ruling in writing and deliver same to the
affected bidder not later than five business days after the date of the informal hearing.
Proposed law prohibits award of the contract for the public work by the public entity prior
to the expiration of at least five working days after the date of issuance of the decision by
the hearing official and requires the hearing official to issue a ruling in writing and deliver
it to the affected bidder in the manner agreed upon by such official and the bidder.
Proposed law excepts DOTD from its provisions on disqualification of bidders.
Proposed law retains present law that prohibits a public entity from entering into a contract
for the purpose of public works with a contractor who then finances the project. Provides
that under no circumstances shall the agreement of a contractor to finance a public works
project be used in any way to avoid the requirement that public work be advertised and let
by contract to the lowest responsible bidder.
Proposed law deletes provisions of present law that authorized a public entity to include bid
selection provisions in bid documents relative to participation in a mentor-protégé program.
Proposed law retains present law that provides that it shall not apply to purchases of
materials and supplies by contractors awarded public works contracts by a public entity; or
to subcontractors of such contractors, who have been appointed or designated agents for the
purchase of materials and supplies to be incorporated into a public work pursuant to a
contract properly bid when acting pursuant to said appointment or designation. Proposed law
changes phrase lowest responsible bidder to lowest responsible and responsive bidder.
Present law (R.S. 38:2212.5) authorizes the division of administration to prequalifiy bidders
for historic restoration projects funded by the state except for construction or repair of roads
and bridges and contractors providing materials and supplies for such construction. Requires
the division to promulgate rules and regulations. Defines historic restoration projects to
mean repairs, renovations, or reconstruction of state-owned structures included or eligible
for inclusion on the National Register of Historic Places. Further provides for renovation
of the LSU Student Union on the Baton Rouge campus. Requires that only prequalified
bidders may submit bids on designated historic projects. Requires award of contracts for
historic projects to the prequalified bidder submitting the lowest responsible bid. Requires
contract for renovation of the LSU Student Union may be for overhead and profit or lump
sum. Requires submission of such contract to the Joint Legislative Committee on the Budget
for review and approval.
Proposed law requires award of a historic restoration project to the prequalified bidder who
submits the lowest responsible and responsive bid.
Proposed law removes provisions in present law applicable to the LSU Student Union.
Present law (R.S. 38:2212.10) provides, generally, that a private employer shall not bid on
or otherwise contract with a public entity for a contract for public work unless the private
employer verifies in a sworn affidavit attesting to both of the following:
(1)The private employer is registered and participates in a status verification system to
verify that all employees are legal citizens of the U.S. or are legal aliens.
(2)The private employer must continue, during the term of the contract, to utilize a
status verification system to verify the legal status of all new employees.
Proposed law changes present law to require that private employers verify new employees. SB NO. 468
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Present law provides that its provisions shall no longer apply if the status verification system
expires and extensions are no longer approved by the federal government.
Proposed law retains present law and requires the executive director of the LWC to provide
written notice to Louisiana State Law Institute if the status verification expires and is not
extended.
Present law (R.S. 38:2215) provides for the time period to hold bids and to issue a work
order to commence work on a public works project. Requires the state or any state agency
upon receipt of bids to award a public works contract to the lowest responsible bidder or to
reject all bids within 30 calendar days of receipt of bids. Requires a political subdivision to
award a contract within 45 calendar days of receipt of bids. Requires the contractor and the
public entity to execute the public works contract not later than 45 days from the public
entity's acceptance of the lowest responsible bid if the low bidder has timely provided all
necessary documents within 10 days of the opening of bids and no bid challenge has been
submitted to the public entity. Requires issuance of a notice to proceed within 30 days of
execution of the contract. Authorizes an extension of time to issue the notice to proceed upon
mutual consent of both parties. Provides that these provisions do not apply to contracts
financed by bonds that must be sold after opening of bids, to contracts financed in whole or
in part by federal or other funds not readily available at the time of bid opening, or to
contracts that require a poll of the legislature before funds are available. Requires such time
exceptions to be mentioned in the bidding documents and the advertisement for bids.
Proposed law changes present law to uniformly require any public entity, which includes the
state, a state agency, and a political subdivision, to execute a contract not later than 60 days
after the date of the public entity's award of a public works contract to the lowest responsible
and responsive bidder or to reject all bids, if the lowest responsible and responsive bidder
has timely provided all documents required by R.S. 38:2212, and no injunction or temporary
restraining order is in effect.
Proposed law requires the public entity to issue the contractor a notice to proceed with the
project or work order not later than 30 calendar days following the date of execution of the
contract by both parties, whichever is execution date is later, provided that the parties may
agree to extend the time to issue a notice to proceed upon mutual written consent of both
contractor and public entity.
Present law (R.S. 38:2225) requires granting the same percentage preference the state of
domicile of a nonresident contractor provides to a Louisiana resident contractor over such
nonresident contractor bidding on a Louisiana public work. Prohibits local preference laws.
Prohibits granting a preference to any local contractor or subcontractor over other Louisiana
resident contractors. Prohibits waiver of provisions by any public entity.
Proposed law retains but relocates present law [R.S. 38:2212(A)(1)(c)(ii)] that requires the
Department of Transportation and the office of facility planning and control to keep on file
a list of all states with a bid preference.
Present law (R.S. 38:2241.1) requires a public entity to record acceptance of a written
contract for public works in the office of the recorder of mortgages in the parish where the
work has been done upon substantial completion. Authorizes a public entity that does not
record such acceptance to require the contractor to record such acceptance upon written
recommendation of the public entity's architect or engineer. Authorizes the architect or
engineer to make such recommendation within 30 days of completion of the project. Defines
"substantial completion" to mean the finishing of construction, in accordance with the
contract documents as modified by any change orders agreed to by the parties, when the
public entity can use or occupy the public works or use or occupy the specified area of the
public works for the use for which it was intended. Provides that such recordation of
acceptance upon substantial completion shall be effective as an acceptance for all purposes
under law. SB NO. 468
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Proposed law requires the public entity to record project acceptance not later than 30 days
after completion or substantial completion of the project. Requires the contractor to file
acceptance within 45 calendar days after completion or substantial completion of the project
for those public entities that do not record an acceptance only upon written recommendation
of the architect or engineer of the public entity made not later than 30 calendar days after the
date of completion or substantial completion of the project.
Effective August 1, 2014.
(Amends R.S. 38:2211(A)(1), (2), (3), (4), (5), (6), (7), (8), and (9), 2212, 2212.5,
2212.10(C)(1) and (G), 2215, 2225, and 2241.1)
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Transportation,
Highways, and Public Works to the original bill
1. Revised definitions of "Alternate", "Change order", and "Probable
construction costs".
2. Requires, beginning Feb. 1, 2015, and annually on Feb. 1 of each subsequent
year, the office of facility planning and control within the division of
administration to adjust the "contract limit" by an amount not to exceed the
annual percentage increase in the Consumer Price Index in the preceding
year and to publish the new contract limit for public works contracts in the
Louisiana Register in January of each year.
3. Clarifies present law exception applicable to time for submission of bid
documents on public works projects let by East Baton Rouge Parish.
4. Removes present law exception applicable to time for submission of bid
documents on projects let by DOTD.
5. Changed time period bid information must be available after opening of bids
from 48 to 72 hours.
6. Changed time period that payment for change order work must be paid from
45 days after completion of work to 60 days after receipt of an approved
application for payment for completion of work performed in the change
order.
7. Requires the public entity to conduct an informal hearing not later than five
business days after the date of a notice proposing to disqualify a bidder and
to issue a ruling in writing and deliver same to the affected bidder not later
than five business days after the hearing date. Excepts DOTD from
provisions on disqualification of bidders.
8. Requires a public entity to execute a contract not later than 60 days after the
date of the public entity's award of a public works contract to the lowest
responsible and responsive bidder or to reject all bids, if the lowest
responsible and responsive bidder has timely provided all documents
required by R.S. 38:2212, and no injunction or temporary restraining order
is in effect.
9. Authorizes extension of time for issuance of a notice to proceed upon mutual
written consent of the contractor and public entity.
10.Generally, substitutes the term "designer" or "design professional" in place SB NO. 468
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of "architect or engineer".
Senate Floor Amendments to engrossed bill
1. Makes technical changes.
2. Changes "special delivery mail" to "overnight delivery using a nationally
recognized carrier".