By Tim Baxter, Road Safety and Loss Prevention Specialist
Many counties begin preparing for the next construction seasons’ road and bridge projects in December and January. Knowing that, this topic was chosen for this month’s article to better assist our member counties with their project specifications, bids, quotes, contracts, etc.
State-wide Internal Road Department Assessments were conducted in all 82- NIRMA member county road departments during the years of 2017 and 2018. This was done to determine where further assistance might be needed to improve road department safety and reduce liability. One of the deficiencies found was the lack of good contracts for armor coat, crack seal, painted pavement marking, and other construction and maintenance projects. Many counties either had no contract with the contractor or had contracts that were missing important aspects such as liability insurance, traffic control, performance bonds, etc.
The internal assessments determined that 41 of the 82 NIRMA member counties, or 50%, had contracts that were lacking or no contracts whatsoever.
Simple, comprehensive armor coat, crack sealing, and painted pavement marking specifications and contracts have been developed for use by our member counties. They are in WORD format for easy alterations and adaptations to your county. Most larger projects in counties, such as asphalt resurfacing, bridges, concrete box culverts, etc. are hopefully designed by engineers who provide the proper contracts. These contracts should include liability insurance, contractor required construction signing, traffic control, plans, specifications, etc. The internal road department assessments showed that a large number of counties do not have contracts related to armor coat, crack sealing, and highway striping.
Dollar thresholds under The County Purchasing Act, most recently revised in 2018, are as follows:
- $50,000 or more (previously $20,000 or more) – Competitive sealed bidding process is required;
- (b) $10,000 or greater and less than $50,000 (previously $5,000 or greater and less than $20,000) – Securing and recording at least three informal bids, if practicable; or
- (c) Less than $10,000 (previously less than $5,000) – By purchasing in the open market if the estimated value of the purchase is less than $10,000, subject to section 23-3112. In any county having a population of less than 100,000 inhabitants and in which the county board has not appointed a purchasing agent pursuant to section 23-3105, all elected officials are hereby authorized to make purchases with an estimated value less than $10,000. Section 23-3108(1).
Even if the county does not let a project by sealed bid due to project estimate being $10,000 or greater and less than $50,000, whereas three informal written bids are required, or the county hires a contractor for a project less than $10,000, a contract still needs to be entered into between the county and contractor for specifications, liability insurance, performance bonds, traffic control, etc. and to hold the contractor to their quoted price and protect county liability.
Without a proper written agreement outlining the respective party’s duties and responsibilities, the county might be opening itself up to unnecessary liability that should properly be the responsibility of the contractor who is actually performing the work.
Counties should NEVER pay a contractor before the work is completed. Unfortunately, this has happened and then the county is out those funds and the project is not completed.
Please contact me should you have questions related to construction projects, contracts, liability insurance, etc. or any road department safety related issues at tim@nirma.info or 402-310-4417. Be Safe.
