Skip to Content
  • AB 144: Significant Changes to Public Works 
    Preferential Bidding Requirements 

    Under the existing law, a contract for public works is awarded to the contractor who submits the best bid. A contractor may then qualify for a 5 point preferential credit in bidding on a public work if a contractor submits proof to the Nevada Contractors’ Board has paid certain taxes to the State for the past 5 years. 

    Recently, on April 27, 2011, Governor Brian Sandoval signed into law Assembly Bill (AB) No. 144, which created significant changes in NRS Chapter 338 and NRS 408.3886 relating to preferential bidding on state and local public works projects. 

    New Requirements for Preferential Bidding: 

    AB 144 now requires that in order to receive the preferential 5 percent-bidder credit for public works, a contractor, an applicant, or a design-build team must submit, to the public body sponsoring or financing a public work, a signed affidavit attesting that it will meet the 5 new requirements for the duration of the project, namely:

    1) At least 50 percent of the workers on the public work have a Nevada driver’s license or identification card;

    2) All of the non-apportioned vehicles primarily used on the public work are registered in Nevada;

    3) At least 50 percent of the design professionals who work on the public work have a Nevada driver’s license or identification card;

    4) At least 25 percent of the suppliers of the materials used in the public work are located in Nevada; and

    5) Certain payroll records related to the public work are maintained and available within this State

    Penalties for Violation:

    Section 2 of the bill requires that any contract for public work awarded to a contractor, an applicant, or a design-build team who receives a preference in bidding, must incorporate the 5 requirements in the contract. The contract must also state that failure to comply with any of the above 5 requirements is a material breach entitling the public body to 10 percent of the cost of contract as liquidated damages. 

    Section 2 also requires that each contractor, applicant, or design-build team who receives a preference in bidding and a subcontractor to include a provision that apportions the liability for damages for material breach between the contractor and subcontractor in proportion to each party’s liability.

    Section 9 and 10 of the bill provide that a contractor who breaches any of the 5 requirements for a public work the cost of which exceeds $5,000,000.00 loses his or her certification for a preference in bidding for 5 years. 

    Section 3, 6-8, and 14 of the bill provide that a contractor who breaches any of the 5 requirements for a public work the cost of which exceeds $25,000,000.00, loses his or her ability to bid on any contracts for public works for 1 year. 

    Section 17 of the bill declares that any contracts for such a public work that fails to comply with AB 144 is void. 

    Finally, Section 5 of the bill revises the records that a contractor or subcontractor engaged in public work must keep relating to their workers. 

    AB 144 seeks to address the high unemployment rate in Nevada and to funnel Nevada public works to Nevada contractors. Whether AB 144 will accomplish its goals or ultimately hinder Nevada contractors by creating more bureaucratic hurdles, remains to be seen. AB144 is effective as of April 27, 2011. 

    By Becky A. Pintar, Esq. and Airene Haze, Esq. 
    Questions or Comments? Contact Us at: 
    Gibbs, Giden, Locher, Turner & Senet, LLP 
    7450 Arroyo Crossing Parkway, Suite 270 
    Las Vegas, NV 89113 
    E-mail: bpintar@gglts.com or ahaze@gglts.com or call (702) 836-9800 

    PRINT ARTICLE

    The content contained herein is published online by Gibbs Giden Locher Turner Senet & Wittbrodt LLP (“Gibbs Giden”) for informational purposes only, may not reflect the most current legal developments, verdicts or settlements, and does not constitute legal advice. Do not act on the information contained herein without seeking the advice of licensed counsel. For specific questions about any of the content discussed herein or any of the content posted to the Gibbs Giden website please contact the article attorney author or send an email to info@gibbsgiden.com. The transmission of information by email, over the Gibbs Giden website, or any transmission or exchange of information over the Internet, or by any of the included links is not intended to create and does not constitute an attorney-client relationship. For a complete description of the terms of use of this information and the Gibbs Giden website please see the Legal Notices section at /legal-disclaimer. This publication may not be reproduced or used in whole or in part without written consent of the firm. 
    Copyright 2015 Gibbs Giden Locher Turner Senet & Wittbrodt LLP ©