Current Status Introducing Body:
SenateBill Number: 884Ratification Number: 527Act Number: 442Primary Sponsor: McConnellType of Legislation: GBSubject: Construction procurement proceduresDate Bill Passed both Bodies: Jun 02, 1992Computer Document Number: BBM/9232.JMGovernor's Action: SDate of Governor's Action: Jul 01, 1992Introduced Date: Apr 16, 1991Date of Last Amendment: May 27, 1992Last History Body: ------Last History Date: Jul 01, 1992Last History Type: Act No. 442Scope of Legislation: StatewideAll Sponsors: McConnellType of Legislation: General Bill
Bill Body Date Action Description CMN ---- ------ ------------ ------------------------------ --- 884 ------ Jul 01, 1992 Act No. 442 884 ------ Jul 01, 1992 Signed by Governor 884 ------ Jun 04, 1992 Ratified R 527 884 Senate Jun 02, 1992 Concurred in House amendment, enrolled for ratification 884 House May 28, 1992 Read third time, returned to Senate with amendment 884 House May 27, 1992 Amended, read second time 884 House May 13, 1992 Committee Report: Favorable 25 with amendment 884 House Apr 28, 1992 Introduced, read first time, 25 referred to Committee 884 Senate Apr 23, 1992 Read third time, sent to House 884 Senate Apr 22, 1992 Amended, read second time 884 Senate Apr 15, 1992 Committee Report: Favorable 06 with amendment 884 Senate Apr 16, 1991 Introduced, read first time, 06 referred to CommitteeView additional legislative information at the LPITS web site.
(A442, R527, S884)
AN ACT TO AMEND SECTION 11-35-3020, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CONSTRUCTION PROCUREMENT PROCEDURES UNDER THE CONSOLIDATED PROCUREMENT CODE, SO AS TO DELETE PROVISIONS AND LANGUAGE AND TO ADD PROVISIONS EFFECTING CHANGES IN THE REQUIREMENTS FOR LISTING AND SUBSTITUTING SUBCONTRACTORS; AND TO AMEND SECTION 11-35-1520, RELATING TO THE CONSOLIDATED PROCUREMENT CODE AND COMPETITIVE SEALED BIDDING, SO AS TO PROVIDE FURTHER WITH RESPECT TO WHAT QUALIFIES A VENDOR AS A RESIDENT OF THIS STATE.
Be it enacted by the General Assembly of the State of South Carolina:
Requirements for listing, substituting subcontractors
SECTION 1. Section 11-35-3020(2)(b) of the 1976 Code is amended to read:
"(b) Bid Acceptance. In lieu of Section 11-35-1520(7), the following provision applies. Bids must be accepted unconditionally without alteration or correction, except as otherwise authorized in this code. The using agency's invitation for bids shall set forth all requirements of the bid, including, but not limited to:
(i) Any bidder in response to an invitation for bids shall set forth in his bid the name and location of the place of business of each subcontractor who will perform work or render service to the prime contractor to or about the construction, or who will specifically fabricate or install a portion of the work and whose contract will exceed two percent of the prime contractor's total base bid. If the prime contractor determines to use his own employees to perform any portion of the work for which he would otherwise be required to list a subcontractor and if the prime contractor is qualified to perform such work under the terms of the invitation for bids, the prime contractor shall indicate this in his bid and not subcontract any of that work except with the approval of the using agency for good cause shown.
(ii) Failure to list subcontractors in accordance with this section renders the prime contractor's bid unresponsive.
(iii) No prime contractor whose bid is accepted shall substitute any person as subcontractor in place of the subcontractor listed in the original bid, except for one or more of the following reasons:
(a) upon a showing satisfactory to the using agency by the contractor that a subcontractor who was listed is not financially responsible;
(b) upon a showing satisfactory to the using agency by the contractor that the scope of work bid by a listed subcontractor did not include a portion of the work required in the plans and specifications, and the exclusion is not clearly set forth in the listed subcontractor's original bid;
(c) upon a showing satisfactory to the using agency made by the contractor within four working days of the bid opening that the subcontractor was listed as a result of an inadvertent clerical error;
(d) upon a showing satisfactory to the using agency by the contractor that the listed subcontractor failed or refused to submit a performance and payment bond when requested by the prime contractor after the subcontractor had represented to the prime contractor that he could obtain a performance and payment bond;
(e) upon a showing satisfactory to the using agency by the contractor that the listed subcontractor is required to be licensed and does not have the license by the time it is required by law;
(f) when the listed subcontractor fails or refuses to perform his subcontract;
(g) when the work of the listed subcontractor is found by the using agency to be substantially unsatisfactory;
(h) upon mutual agreement of the contractor and subcontractor;
(i) with the consent of the using agency for good cause shown;
The request for substitution must be made to the using agency in writing. This written request does not give rise to any private right of action against the prime contractor in the absence of actual malice.
(iv) Where substitution is allowed, the prime contractor, before obtaining prices from any other subcontractor, must attempt in good faith to negotiate a subcontract with at least one subcontractor whose bid was received prior to the submission of the prime contractor's bid. Nothing in this section affects a contractor's ability to request withdrawal of a bid in accordance with the provisions of this code and the regulations promulgated under it.
(v) The using agency shall send all responsive bidders a copy of the bid tabulation within ten working days following the bid opening."
Qualifications as resident vendor
SECTION 2. Section 11-35-1520(9)(e) of the 1976 Code is amended to read:
"(e) Competitive procurements made by any governmental body must be made from a responsive and responsible vendor resident in South Carolina: (i) for procurements under two million, five hundred thousand dollars, if the bid does not exceed the lowest qualified bid from a nonresident vendor by more than two percent of the latter bid, and if the resident vendor has made written claim for the preference at the time the bid was submitted; (ii) for procurements in excess of two million, five hundred thousand dollars, if the bid does not exceed the lowest qualified bid from a nonresident vendor by more than one percent of the latter bid, and if the resident vendor has made written claim for the preference at the time the bid was submitted. A vendor is considered to be a resident of this State if the vendor is an individual, partnership, association, or corporation that is authorized to transact business within the State, maintains an office in the State, maintains a representative inventory of commodities on which the bid is submitted or is a manufacturer which is headquartered and has a ten million dollar payroll in South Carolina and the product is made or processed from raw materials into a finished end product by such manufacturer or an affiliate (as defined in Section 1563 of the Internal Revenue Code) of such manufacturer, and has paid all assessed taxes. Preferences under this subsection do not apply to either prime contractors or subcontractors as relates to the construction industry nor to a vendor of goods whether in quantity or not when the price of a single unit of the item involved is more than ten thousand dollars."
SECTION 3. This act takes effect upon approval by the Governor.
Approved the 1st day of July, 1992.