Bill May Increase Bid Rejections - NUCA NJ Weighing In
NUCA NJ staff will be meeting with the prime sponsor of a Senate bill that could lead to unwarranted bid rejections. S2414, sponsored by Senator Troy Singleton ( D-7), provides that if a person makes the lowest bid for a contract with a public body for public work and that bid is ten percent or more lower than the next lowest bid for the contract, the person making the lowest bid shall provide proof to the satisfaction of the public body that the prevailing wage rates required by that act shall be paid. The bill requires the bid to be rejected if the bidder does not provide that proof. The bill further requires the Commissioner of Labor and Workforce Development, in consultation with the Division of Local Government Services, to adopt and promulgate rules and regulations concerning a prevailing wage certification to be included in certain contracts for public work.
While our Association strongly supports the payment of prevailing wage rates, concerns arise over the 10% bid difference threshold which is not uncommon and then how exactly a contractor can prove something that hasn't happened yet. NUCA NJ will continue to work with the sponsor to further clarify the intent of the bill and how it can be amended to ensure that prevailing wages are paid while also protecting low bidders from arbitrary and unwarranted rejections.