Purchasing and Bidding: Public Works Contracts
Contents
Public Works Contracts
If the cost of a public works project exceeds applicable bid limits, (see the Purchasing and Bidding Chart for Local Agencies in Washington State (
34Kb) a local government must use a competitive bid process, small works roster process or limited public works process for public works projects. RCW 39.04.010 defines the term "public work" as follows:
The term public work shall include all work, construction, alteration, repair or improvement other than ordinary maintenance, executed at the cost of the state or of any municipality, or which is by law a lien or charge on any property therein. (Emphasis added.)
Note that this definition of public work includes construction and repair but excludes ordinary maintenance. But what is "ordinary maintenance"? The statutes provide no definition. However, WAC 296-127-010(7)(b)(iii), which defines "ordinary maintenance" in the context of prevailing wages, can be used to craft a definition that distinguishes ordinary maintenance from a public work for bidding purposes: [Ordinary maintenance is] defined as work not performed by contract and that is performed on a regularly scheduled basis (e.g., daily, weekly, monthly, seasonally, semiannually, but not less frequently than once per year), to service, check, or replace items that are not broken; or work not performed by contract that is not regularly scheduled but is required to maintain the asset so that repair does not become necessary. (Emphasis supplied.) For example, replacing a deteriorating bridge or roof would amount to a repair, or perhaps new construction, but not maintenance. Such a project would be considered to be a public work. On the other hand, using existing city employees to rod or clean a sewer or clean a roof would involve maintenance and, therefore, would not be a public work. Consequently, this expenditure would not be subject to the public works bid statutes. However, if instead of using city employees to perform the work, the city contracts out for the repair, the repair work is likely deemed a public work, both for bidding and for prevailing wage purposes. Other examples:
- Although often part of an agency's ongoing maintenance program, sidewalk replacement is not ordinary maintenance because it is not done annually. The asset is being replaced, rather than "maintained."
- Replacement of carpeting is not ordinary maintenance. Because carpeting is neither replaced annually nor used to maintain the asset, in this case the subflooring, it does not fall into the ordinary maintenance category.
- Although tree trimming may not take place annually it is considered ordinary maintenance because it is necessary to prevent branches from interfering with wires and to prevent damage during windstorms.
To correctly apply bid limit dollar amounts in the Purchasing and Bidding Chart for Local Agencies in Washington State (
34 Kb) to determine if a public works project must be competitively bid, the total cost of each project or purchase must be estimated. The total construction cost - estimated as if the project were to be bid -is used to make that determination. To be included are materials, supplies, equipment, and labor on the construction of that project AND applicable sales and use taxes. However, the value of volunteer labor, material, or equipment need not be included in the cost estimate for a public works project, as these are not a cost to the agency.
Competitively Bid Public Work Contracts
- Pre-Bidding Preparation - See An Ounce of Prevention Kills Two Birds with One Stone in the Washington State Model Design and Construction Management Manual.
- Bidding and Award - See pages 33-47 of The Bidding Book for Washington Cities and Towns. (
889 Kb)
- Contract Administration - See Care and Feeding of Your Construction Contract in the Washington State Model Design and Construction Management Manual.
- Contract Closeout - See No Job is Done Until the Paper Sticks to Your Shoe in the Washington State Model Design and Construction Management Manual.
Construction Contract Management
- Pre-Bidding Preparation - See An Ounce of Prevention Kills Two Birds with One Stone in the Washington State Model Design and Construction Management Manual.
- Bidding and Award - See pages 30-45 of The Bidding Book for Washington Cities and Towns. (
1261 Kb)
- Contract Administration - See Care and Feeding of Your Construction Contract in the Washington State Model Design and Construction Management Manual.
- Contract Closeout - See No Job is Done Until the Paper Sticks to Your Shoe in the Washington State Model Design and Construction Management Manual.
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