HCS HB 450 -- CONSTRUCTION CONTRACTS (Green)

This substitute requires any public body accepting competitive
bids for a construction, repair or alteration project costing
more than $200,000 to determine the qualifications of any
contractor bidding on the project.  The qualifications include:
(1) the contractor's experience and performance with work of a
similar size, character, and complexity; (2) the contractor's
insurance coverage; and (3) the value and completion dates of
the contractor's current projects.  The public body must notify
rejected bidders and provide the reasons for the rejection.

The substitute also declares indemnity or "hold harmless"
clauses in construction contracts void as against public
policy.  A "hold harmless" clause is one where a party contracts
away its possible liabilities for future negligence.  Contracts
already in existence are exempt.  The substitute does not apply
to insurance contracts or contractual provisions requiring a
party to name another party as an insured.

FISCAL NOTE:  Cost to State Road Fund of Unknown in FY 1998, FY
1999, & FY 2000.

HCS HB 450 -- PUBLIC CONSTRUCTION CONTRACTS

CO-SPONSORS:  Hickey (Green)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Labor by
a vote of 15 to 9.

This substitute requires any public body accepting competitive
bids for a construction, repair, or alteration project costing
more than $200,000 to determine the qualifications of any
contractor bidding on the project.

The qualifications include:

(1) the contractor's experience in performing work of a similar
size, character and complexity;

(2) the contractor's insurance coverage;

(3) the value and completion dates of the contractor's current
projects; and

(4) the contractor's efforts to achieve racial diversity in its
contracting and hiring.

The public body must notify rejected bidders and provide the
reasons for the rejection.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that this legislation is the safest
way to ensure quality construction and to avoid cost over-runs
and injuries on the job site.  Simply accepting the "lowest best
bid" or "lowest responsible bid" can lead to a political
subdivision being forced to go with a contractor with little or
no experience who ends up not being able to do quality work or
do it on time.

Testifying for the bill were Representative Green; Associated
General Contractors of St. Louis; AFL-CIO; St. Louis Area
Contractors Assoc.; and Randall Allen, Director, Division of
Design and Construction.

OPPONENTS:  Those who oppose the bill say that the substitute
makes the awarding of bids too subjective, and the potential for
prejudice exists.

Testifying against the bill were Associated General Contractors
of Missouri.

Richard Smreker, Research Analyst

HB 450 -- State Building Contracts

Sponsor:  Green

This bill requires any public body accepting competitive bids
for a construction, repair, or alteration project costing more
than $200,000 to determine the qualifications of any bidder who
has not performed such work for the state for 5 years.  The
qualifications include: (1) the experience of the contractor's
personnel; (2) the contractor's ability to perform the job in a
timely manner; (3) the contractor's insurance coverage; (4) the
value and completion dates of the contractor's current projects;
(5) the contractor's equipment available for the job; (6) the
contractor having a registered agent in the state for service of
process; and (7) the availability of recent audits performed by
the contractor's bonding company.

The records required for such qualification determinations will
be closed records.