Bill > S1558

This bill aims to reform public construction by clarifying the definition of a "lowest responsible and eligible bidder" and introducing a new process for verifying bids that are significantly lower than others or the estimated cost. Specifically, it mandates that bidders must certify their ability to provide harmonious labor, have employees complete a minimum 10-hour OSHA-approved construction safety course, and secure required bonds from qualified surety companies. The bill introduces a new section, 39N ½, which requires awarding authorities to verify bids that are 10% or more lower than the next lowest bid and the authority's own estimate, ensuring the bid is not unreasonably low and adequately covers costs and profit. This verification process involves requesting bid work papers and subcontractor quotes, which are kept confidential, and the bidder must provide supporting evidence within two business days. If a bidder has undergone this verification process multiple times within a year, their surety company must also conduct a similar verification and provide an advisory opinion. The bill also outlines consequences for disqualified bids, including forfeiture of bid deposits for repeat offenders, and states that awarding authorities' decisions on bid verification are generally final, with limited appeal options. Finally, awarding authorities must annually submit bid verification data to the Division of Insurance, which will review it for patterns of underbidding or fraud, and may investigate contractors and their surety companies if a contractor has had multiple bids verified within a year.