As a contractor, you’re likely familiar with the bidding process for government projects in the Tar Heel State, but are you familiar with the exceptions to these rules? In this article, a Raleigh construction attorney from Cotney Construction Law will outline five exceptions to North Carolina’s competitive bid procurement requirements.
1. Force Account Work
If the total cost of a project is calculated at less than $125,000 or the total cost of labor is less than $50,000, local governments may opt to utilize their own employees for construction and repair projects. Any force account work must be performed by employees who are both on the permanent payroll and authorized by the governing board. For projects with a cost in excess of $30,000, an owner-contractor affidavit must be submitted to the local building inspector. The purpose of this affidavit is to give the local government the power to take on the role of general contract rather than hire a licensed general contractor for project supervision.
2. Change Orders
Any and all changes in construction committed after the contract is awarded are not subject to the same competitive bidding requirements that dictate the original competitive bid. Currently, there is no restriction on the value of change order work. However, the use of change orders is closely monitored and should be assessed on a case-by-case basis.
When the demand for construction-related work rises in response to an emergency affecting public health or safety, contractors may procure government contracts without submitting a bid via North Carolina’s competitive bidding requirements. Unless the emergency poses an imminent or immediate threat to the public, this exception should not be utilized.
4. Guaranteed Energy Savings Contracts (GESC)
GESC can be used to upgrade or repair an existing structure to increase its energy savings and overall sustainability without submitting a bid via North Carolina’s competitive bidding requirements. These contracts are paid for using energy savings as a quantifiable metric for value.
5. Solid Waste Management and Sludge Management Facilities
There is also an exception for the design, operation, and construction of facilities built for solid waste and sludge management. Rather than submitting bids through North Carolina’s competitive bidding requirements, these contracts are awarded using the request for proposal (RFP) process.
The bidding process in North Carolina can be extremely confusing. Fortunately, whether you need help procuring a government contract, submitting a bid protest, or even handling a Raleigh construction bond, a Raleigh construction lawyer can assist you.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.