Bond proposed for contractor protesting bid process

Thursday, Aug. 5, 1999 | 10:09 a.m.

CARSON CITY -- In an effort to stop frivolous protests, the state Public Works Board is considering a policy to require posting of bonds by unsuccessful bidders who file complaints that delay the awarding of building contracts.

Eric Raecke, general manager of the board, said that on many projects the contractor who doesn't get the job files a protest contending there may be something wrong in the bidding process or in the award of the contract.

That takes up considerable staff time and delays the start of the project, he told the board on Wednesday.

"It may be the contractor didn't like the color of a guy's tie," Raecke quipped.

Raecke wants to go to the 2001 Legislature for a law to require a bond of 25 percent of the project cost to be posted when a protest is lodged. If the protest is found to be valid, the unsuccessful bidder gets the money back.

If the protest is denied, the agency deducts the cost of the delay from the bond and refunds the rest of the money to the losing builder.

Board members generally endorsed the proposal, but Sean Carnahan of Las Vegas objected, calling the bond a barrier to a contractor who wanted to protest irregularities in the bidding process. This interferes with due process, Carnahan said.

In some cases, Carnahan said, the unsuccessful contractor may find legitimate problems with the award of the bid, but the public agency may "sort out" the problem and go forward with the contract anyway. He opposed any bond requirement for filing a protest.

The board delayed action on the issue until it gets more information on how many protests are filed and how many are successful. It will consider the issue at its Sept. 16 meeting in Las Vegas.

Raecke, in briefing the board on the progress of construction projects, said there is a "very tight" schedule for completing the Lied Library at UNLV. He said plans call for the moving of books and equipment into the new library in December and opening in January.

"We have an aggressive schedule," he said.

He also said there can't be any delays in the $48 million construction of the second phase of the High Desert State Prison near Indian Springs. He said the Legislature was promised that prisoners could start being housed there in September 2000.

The first phase of the prison is already under construction. Raecke said a contract is close to being signed for the second phase. He said the penalties for any delays are now being examined.