No. 35132 (Amendment): Rule R916-2. Prequalification of Contractors

(Amendment)

DAR File No.: 35132
Filed: 08/11/2011 11:54:35 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of the amendment is to require reviewed financial statements for prequalification and to make other minor clarifications and stylistic changes.

Summary of the rule or change:

The amendment clarifies that for prequalification, contractors must submit unaudited, but reviewed financial statements, and to make other minor clarifications and stylistic changes.

State statutory or constitutional authorization for this rule:

• Subsection 63G-6-207(3)
• Section 72-1-102
• Section 72-1-201

Anticipated cost or savings to:

the state budget:

There is no anticipated cost or savings to the state budget because the amendment only clarifies the prequalification process and makes minor stylistic changes.

local governments:

There is no anticipated cost or savings to local government because the amendment only clarifies the prequalification process and makes minor stylistic changes.

small businesses:

There is no anticipated cost or savings to small businesses because the amendment only clarifies the prequalification process and makes minor stylistic changes.

persons other than small businesses, businesses, or local governmental entities:

There is no anticipated cost or savings to persons other than small businesses, businesses, or local government entities because the amendment only clarifies the prequalification process and makes minor stylistic changes.

Compliance costs for affected persons:

There is no anticipated cost for affected persons because the amendment only clarifies the prequalification process and makes minor stylistic changes.

Comments by the department head on the fiscal impact the rule may have on businesses:

There is no anticipated fiscal impacts on businesses because the amendment only clarifies the prequalification process and makes minor stylistic changes.

John Njord, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Transportation
Operations, Construction
CALVIN L RAMPTON COMPLEX
4501 S 2700 W
SALT LAKE CITY, UT 84119-5998

Direct questions regarding this rule to:

• Linda Barrow at the above address, by phone at 801-965-4026, by FAX at 801-965-4338, or by Internet E-mail at [e-mail]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

10/03/2011

This rule may become effective on:

10/10/2011

Authorized by:

John Njord, Executive Director

RULE TEXT

R916. Transportation, Operations, Construction.

R916-2. Prequalification of Contractors.

R916-2-1. Authority and Purpose.

This rule establishes procedure for prequalification of contractors desiring to submit bid proposals on Utah Department of Transportation construction projects. This rule is authorized under Section 72-1-201, and Subsection 63G-6-207(3).

 

R916-2-2. Definitions.

(1) Terms used in this rule are defined in Section 72-1-102 and Subsection 63G-6-207(3).

(2) In addition, "board" means the prequalification board, consisting of 4 positions: Department of Transportation comptroller, project development engineer, engineer for construction, and the construction administrative secretary.

 

R916-2-3. Prequalification[ Policy].

(1) Contractors desiring to submit bid proposals for construction contracts shall be prequalified by the department to ensure they have the resources and capability to successfully complete awarded contracts. Prequalification of contractors is not required for contracts that have an advertised estimate under $1,500,000.

(2) Qualification ratings establish the type of construction work contractors may be permitted to perform and the maximum dollar value of contracts they are allowed to undertake at any one time.

(3) Contractors who attain a total prequalification of $50,000,000 shall be classified as unlimited. Each contractor's prequalification shall be reviewed at least annually; more often if circumstances so warrant.

(4) Qualification ratings shall be based on evaluation of the contractor's:

(a) experience;

(b) past performance; and

(c) analysis of certified audited financial statements, including balance sheet, income statements, and changes in financial condition.

(i) [Unaudited]Reviewed financial statements accompanied by the company federal income tax return for the same time period may be accepted in lieu of the required certified audited financial statements, however, this shall result in a lower prequalification rating.

(5) Each bid proposal submitted shall include a complete "Status of Work Under Contract" form. The form shall include all work presently the responsibility of said contractor, both in and out of the state of Utah.

(a) Contractors with a prequalification amount classified as unlimited are exempt from this requirement.

(6) This [policy]rule shall be administered to ensure adequate financial resources and competition in bidding for construction contracts.

 

R916-2-4. Prequalification Board.

(1) The Prequalification board is established to:

(a) direct the prequalification of contractors;

(b) review and analyze prequalification applications; and

(c) establish the amount and type of prequalification to be granted to contractors.

 

R916-2-5. Disqualification.

(1) If the board determines a contractor is not performing in a satisfactory manner on projects, the board may disqualify the contractor from bidding on future projects for a period of time as the board may determine.

(2) [Each contractor desiring to bid on a project shall be required to complete a "Status of Work Under Contract" form. The form shall include all work, both in and out of the state of Utah, presently the responsibility of that contractor. ]If it is determined any contractor knowingly or negligently falsifies their "Status of Work Under Contract," they may be disqualified from bidding on projects for a period of time as the board may determine.

(3) Bonding companies that do not satisfactorily perform on contract bonds, as determined by the board, or are not listed in the Department of the Treasury Circular 570, may be suspended from supplying bonds for projects for a period of time as the board may determine. The [department shall make Circular 570 available to the public at the following locations: Construction Division, UDOT Library, and Internet]Department of the Treasury Circular 570 is available on the internet at www.fms.treas.gov/c570/c570.html.

(4) Any contractor or bonding company so suspended may appeal any decision of the board to the transportation commission.

 

KEY: bids, contracts, prequalification

Date of Enactment or Last Substantive Amendment: [January 3, 2007]2011

Notice of Continuation: November 29, 2006

Authorizing, and Implemented or Interpreted Law: 72-1-102; 72-1-201; 63G-6-207(3)

 

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