RDCSB468 3276 5465
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DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Adley SB No. 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
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). RDCSB468 3276 5465
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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. The two apparent low bidders may submit such information
or documentation at any time prior to the expiration of the three day period. If the two
apparent low bidders do not submit the proper information or documentation as required by
the bidding documents within the three day period, such bidders shall be declared non-
responsive, and from that date, award may be made to the next lowest bidder, and afford that
bidder not less than three days to submit the required information or documentation, and the
process may continue until either a low bidder is determined or all bids are rejected.
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 requires 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
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 unit price bid 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 RDCSB468 3276 5465
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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. Either the public
entity or the design professional may choose the method and service of plan distribution.
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 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. RDCSB468 3276 5465
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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
available either by electronic posting or by announcing it aloud at bid opening. Provides that
any and all bidders' information shall be available upon request, either no sooner than 14
days following the bid opening or after the recommendation of award by the public entity
or the design professional, whichever occurs first, and the requester shall pay reasonable
reproduction costs. 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 Dept. of Natural Resources. RDCSB468 3276 5465
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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 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. RDCSB468 3276 5465
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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;
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. RDCSB468 3276 5465
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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
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 RDCSB468 3276 5465
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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 employees not
previously verified.
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 RDCSB468 3276 5465
Page 9 of 11
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
Dept. 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.
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. RDCSB468 3276 5465
Page 10 of 11
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
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".
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Transportation, Highways
and Public Works to the reengrossed bill.
1. Made technical changes.
2. Added that regarding bidding documents, the two apparent low bidders may
submit such information or documentation at any time prior to the expiration of
the three day period. If the two apparent low bidders do not submit the proper
information or documentation as required by the bidding documents within the
three day period, such bidders shall be declared non-responsive, and from that
date, award may be made to the next lowest bidder, and afford that bidder not
less than three days to submit the required information or documentation, and the
process may continue until either a low bidder is determined or all bids are
rejected.
3. Clarified that if the public works require unit price bids and there is a
discrepancy between the base bid total and the sum of the extended unit prices,
the unit price bid shall govern.
4. Added that either the public entity or the design professional may choose the
method and service of plan distribution. RDCSB468 3276 5465
Page 11 of 11
5. Added that any and all bidders' information shall be available upon request,
either no sooner than fourteen days following the bid opening or after the
recommendation of award by the public entity or the design professional, which
ever occurs first, and the requester shall pay reasonable reproduction costs.