SLS 20RS-338 ORIGINAL
2020 Regular Session
SENATE BILL NO. 118
BY SENATOR SMITH
PUBLIC CONTRACTS. Provides relative to the public works law. (1/1/20)
1 AN ACT
2 To amend and reenact R.S. 38:2212(C)(1), relative to public works projects; to increase the
3 "contract limit" for public works; to provide for a date for the annual adjustment of
4 the "contract limit" for public works; to provide for an effective date; and to provide
5 for related matters.
6 Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 38:2212(C)(1) is hereby amended and reenacted to read as follows:
8 §2212. Advertisement and letting to lowest responsible and responsive bidder;
9 public work; electronic bidding; participation in mentor-protégé
10 mentor-protégée program; exemptions
11 * * *
12 C.(1) Except as provided in Paragraphs (2), (3), and (4) of this Subsection,
13 the term "contract limit" as used in this Section shall be equal to the sum of one two
14 hundred fifty thousand dollars per project, including labor, materials, and equipment
15 as per the rates in the latest edition of the Associated Equipment Dealers Rental Rate
16 Book and administrative overhead not to exceed fifteen percent, provided that
17 beginning February 1, 2015 2025, and annually on February first of each subsequent
Page 1 of 2
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 118
SLS 20RS-338 ORIGINAL
1 year, the office of facility planning and control within the division of administration
2 shall adjust the "contract limit" by an amount not to exceed the annual percentage
3 increase in the Consumer Price Index in the preceding year. The office of facility
4 planning and control within the division of administration shall publish the new
5 contract limit for public works contracts in the Louisiana Register in January of each
6 year.
7 * * *
8 Section 2. This Act shall become effective on January 1, 2020.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Martha S. Hess.
DIGEST
SB 118 Original 2020 Regular Session Smith
Present law provides that all public work exceeding the contract limit, including labor and
materials, to be done by a public entity shall be advertised and let by contract to the lowest
responsible and responsive bidder who bid according to the bidding documents as
advertised, and that no such public work shall be done except as provided in present law.
Present law provides, with certain exceptions, that the term "contract limit" shall be equal
to the sum of $150,000 per project, including labor, materials, and equipment as per the rates
in the latest edition of the Associated Equipment Dealers Rental Rate Book and
administrative overhead not to exceed 15%. Provides that beginning February 1, 2015, and
annually on February first of each subsequent year, the office of facility planning and control
within the division of administration shall adjust the "contract limit" by an amount not to
exceed the annual percentage increase in the Consumer Price Index in the preceding year.
The contract limit published in the Louisiana Register in the January 2019 edition is
$157,700.
Proposed law increases the contract limit from $150,000 per project, adjusted annually
beginning February 1, 2015, to $250,000 per project, adjusted annually beginning
February 1, 2025.
Effective January 1, 2020.
(Amends R.S. 38:2212(C)(1))
Page 2 of 2
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.