Cost Thresholds For Public Project Bidding Requirements

The requirements of the "Construction Bidding for Public Projects Act" (CBPPA) generally apply to a public project if the cost of the project is reasonably expected to exceed $500,000 for any fiscal year; except that a public project supervised by the department of transportation (CDOT) is subject to the requirements of the CBPPA if the cost of the project is reasonably expected to exceed $150,000 for any fiscal year. The act:

• Increases the lower cost amount for CDOT projects to $250,000, which means that the requirements of the CBPPA, including the requirement that CDOT prepare a bid estimate when it proposes to undertake a project itself rather than awarding the project to a contractor through competitive bidding, will apply to a CDOT project only if the cost of the project is reasonably expected to exceed $250,000 for any fiscal year;
• Increases from $50,000 to $150,000 the maximum cost for a CDOT project that is exempt from transportation commission approval; and
• Requires CDOT to annually identify in a report to the transportation commission and the transportation legislation review committee of the general assembly all highway maintenance projects for the reporting year costing more than $150,000 but not more than $250,000 that:
• CDOT is completing using CDOT employees;
• CDOT awarded by invitation for bids or competitive sealed best value bidding; or
• For which CDOT solicited but did not receive bids.

The act also limits the existing requirement that CDOT pay all employees performing work on any public project local prevailing wages in accordance with specified federal acts to projects that cost more than $250,000 and requires all electrical work on a CDOT public project to be performed by licensed electricians or registered apprentices properly supervised by electricians.

(Note: This summary applies to this bill as enacted.)