Transportation

Operations, Construction

Rule 1: Advertising and Awarding Construction Contracts

Effective Date: 03/16/2026

Admin. Code Reference: R916-1

Rule Type: Current Rule

R916. Transportation, Operations, Construction.

R916-1. Advertising and Awarding Construction Contracts.

R916-1-1. Purpose and Authority.

(1) This rule establishes procedures for advertising and awarding department construction contracts.

(2) This rule is authorized by Sections 63G-6a-602, 63G-6a-1302, 63G-6a-1402, 72-1-201, and 72-6-107.

R916-1-2. Definitions.

As used in this rule:

(1)(a) "Alternative delivery" means a project delivery method other than the traditional design-bid-build method.

(b) "Alternative delivery" includes design-build, CMGC, PDB, public-private partnership, or other alternative delivery methods allowed by state or federal law.

(2) "Bidder" means the same as that term is defined in Section 63G-6a-103.

(3) "CMGC" means construction manager/general contractor, which means the same as the term "construction manager/general contractor" is defined in Section 63G-6a-103.

(4) "Construction project" means the same as that term is defined in Section 63G-6a-103.

(5) "Contract" means the same as that term is defined in Section 63G-6a-103.

(6) "Contractor" means the same as that term is defined in Section 63G-6a-103.

(7) "Department" means the Utah Department of Transportation.

(8) "Deputy director" means one of the deputy directors described in Section 72-1-203.

(9) "Design-build" means the same as that term is defined in Section 63G-6a-103.

(10) "Executive director" means the executive director of the department or the executive director's designee.

(11)(a) "Invitation for bids" means the same as that term is defined in Section 63G-6a-103.

(b) "Invitation for bids" includes the notice to contractors for a traditional design-bid-build project.

(12) "Notice to contractors" means an advertisement or public announcement of an invitation for bids.

(13) "PDB" means "progressive design-build," which is a project delivery method where the department collaboratively develops the design and cost model in phases, culminating in a firm price and the project's completion.

(14) "Project" means a construction project.

(15) "Proposal" means a proposal or statement submitted in response to an RFP or RFQ.

(16) "Proposer" means an entity that submits a proposal or statement in response to a solicitation.

(17) "Public-private partnership" means the same as that term is defined in Section 63G-6a-103.

(18) "Responsible" means the same as that term is defined in Section 63G-6a-103.

(19) "Responsive" means the same as that term is defined in Section 63G-6a-103.

(20) "RFP" means "request for proposals," which means the same as the term "request for proposals" is defined in Section 63G-6a-103.

(21) "RFQ" means "request for qualifications," which means the same as the term "request for statement of qualifications" is defined in Section 63G-6a-103.

(22) "Solicitation" means an advertisement or public announcement of an RFP or RFQ as part of an alternative delivery project.

(23) "Specifications" means the same as that term is defined in Section 63G-6a-103.

R916-1-3. Policy.

(1) This rule applies to projects the department constructs using an invitation for bids or an alternative delivery method.

(2) The department shall establish a process for determining which project delivery method is used.

(3) A contractor that prepares specifications for a notice to contractors or solicitation for a construction project may not submit a bid or proposal on that project unless the executive director determines there is no conflict of interest.

(4) The department shall readvertise a project if the solicitation or notice to contractors fails to attract multiple bidders unless a deputy director or the deputy director's designee determines in writing that readvertisement of the project is not in the best interest of the state.

(5)(a) The department may establish a committee to evaluate bids or proposals.

(b) In establishing a committee described in Subsection (5)(a), the department:

(i) may appoint one committee member who is an employee of a consulting engineering entity, selected based on a recommendation from the American Council of Engineering Companies of Utah;

(ii) may appoint one committee member who is an employee of a licensed contractor, selected based on a recommendation from the Utah Chapter of the Association of General Contractors;

(iii) may not appoint a committee member who is an employee of an entity that participated in preparing one of the proposals or bids that the committee will evaluate in response to a solicitation or notice to contractors; and

(iv) shall ensure that each member of a committee discloses in writing to the department's director of project development any conflicts of interest pursuant to the requirements of state and federal ethics and procurement law and the department's standard specifications and policies.

R916-1-4. Prequalification.

A contractor shall prequalify before submitting a bid or proposal on a department construction project in accordance with Rule R916-2.

R916-1-5. Bid Security Requirements.

(1) Regardless of the delivery method, a bidder or proposer shall provide the department with bid security that meets the requirements of:

(a) Sections 63G-6a-1102 and 63G-6a-1103; and

(b) the solicitation or notice to contractors.

(2) The executive director may waive a bid security requirement as provided in Subsection 63G-6a-1103(3).

(3) A bidder or proposer shall provide the bid security in a form stated in the solicitation or notice to contractors.

R916-1-6. Required Contract Clauses.

(1) Regardless of delivery method, the department shall include in a construction contract a provision that:

(a) allows the department to terminate the contract at any time for cause or without cause;

(b) requires the contractor to satisfy the requirements of Title 63G, Chapter 2, Government Records Access Management Act, regarding records the department owns that are in the contractor's possession;

(c) authorizes the department to penalize a contractor for violating the requirements of Title 63G, Chapter 2, Government Records Access Management Act, or delaying the department's response to a government records request;

(d) requires a contractor to have insurance protecting the department from judgments up to the limits described in Rule R37-4; and

(e) defines the standard of care for a contractor to comply with applicable common, statutory, and municipal law.

R916-1-7. Communications with Bidders and Proposers.

(1) The department may hold pre-bid or pre-proposal meetings with all bidders or proposers in accordance with requirements outlined in the solicitation or notice to contractors.

(2)(a) The department may hold one-on-one meetings with bidders or proposers either before or after bids or proposals are received.

(b) If the department holds one-on-one meetings with one bidder or proposer, the department shall hold one-on-one meetings with all bidders or proposers.

(3) If provided in the solicitation or notice to contractors, the department may:

(a) hold confidential one-on-one meetings with bidders or proposers before the receipt of a bid or proposal to discuss the contents of the solicitation or notice to contractors, alternative technical concepts, or other proposed design or construction deviations;

(b) request and receive confidential alternative technical concepts from bidders or proposers; or

(4) Bidders or proposers may seek clarification from the department regarding the contents of a published solicitation or notice to contractors.

(5)(a) If a process is outlined in the solicitation or notice to contractors, the department may allow confidential questions to be submitted by bidders or proposers.

(b) The department shall ensure that any process for submitting confidential questions makes clear that the department may determine if a question will be made available to all bidders or proposers to ensure the integrity of the procurement.

R916-1-8. Contracts Awarded by Bid.

(1) This section applies only when the department uses an invitation for bids for a design-bid-build construction project.

(2) When procuring a construction project through an invitation for bids, the department shall prepare and publish a notice to contractors that:

(a) invites bids for the project;

(b) specifies details such as the type of construction, location of the project, principal items of work, and the bid opening date and time; and

(3) After preparing and publishing a notice to contractors as described in Subsection (2), upon request, the department shall make project plans and specifications available for in-person inspection.

(4) After preparing and publishing a notice to contractors as described in Subsection (2), the department shall make construction project plans and specifications available for download on the department's website.

(5)(a) The department may only accept or consider a bid from a bidder that has prequalified in accordance with Rule R916-2.

(b)(i) The department may not award a contract to a bidder for a construction project if the bidder's bid amount, added to the bidder's total uncompleted work, is more than the maximum total dollar value of contracts the bidder is allowed to undertake at any one time as determined by the department under Section R916-2-3.

(ii) The department will make this calculation for the apparent low bidder at the close of a bid opening.

(iii) The contractor's total uncompleted work includes all uncompleted work regardless of location or project owner.

(iv) To calculate the total uncompleted work amount, the department shall use the amount shown on the contractor's "Status of Work Under Contract" form found in the department's bid system.

(v) The process described in this Subsection (5) does not apply to contractors prequalified as "unlimited."

(c) If the department determines it is necessary to issue an addendum to the plans and specifications during the advertising period, the department shall post the addenda in the department's bid system.

(6)(a) Each bidder shall submit a sealed bid to the department within the department bid system before the time and at the place specified in the notice to contractors.

(b) The department shall open bids publicly at the time and place indicated in the notice to contractors.

(c) The department may only consider a bid if the bid is accompanied by a bid security in the form and amount stated in the notice to contractors.

(d)(i) Except as provided in Subsection (6)(d)(ii), a bidder must be licensed as required by Title 58, Occupations and Professions, to engage in the work described in the notice to contractors before submitting a bid.

(ii) A contractor may submit a bid on a Federal-aid highway project without having first obtained a license if the contractor obtains a valid Utah license before starting any work under the contract.

(e) The department may reject any or all bids.

(7)(a) If the department awards a contract to a bidder, the department shall award the contract:

(i) to the lowest responsive, responsible, and qualified bidder; and

(ii) within 30 calendar days after the opening of bids or within a timeframe agreed upon by the department and the successful bidder.

(b) When all bids received exceed the engineer's estimate by more than 10%, the department may accept a bid as described in Subsection (6)(a) or reject all bids.

R916-1-9. Design-Build Contracts.

(1) This section applies only when the department uses a solicitation for a design-build construction project.

(2) The department may;

(a) issue an RFQ soliciting qualification statements from potential proposers wishing to submit proposals for a design-build project;

(b) forgo issuing an RFQ and invite potential proposers that are prequalified in accordance with Rule R916-2 to submit proposals for a design-build project pursuant to an RFP.

(3) When the department issues an RFP for a design-build construction project, the department may:

(a) ask for initial proposals followed by clarifications, communications, or discussions, and may request best and final offers; or

(b) award the contract without clarifications, communications, discussions, or requesting best and final offers.

(4) When the department issues an RFP for a design-build construction project, the department may ask for proposals based on a predetermined sum.

(5)(a) The department may award a stipend to a proposer who submits a responsive proposal but who is not awarded a contract for the project.

(b) If the department elects to award a stipend as described in Subsection (5)(a), the department shall identify the amount of the stipend in the RFP.

(6)(a) The department shall include in the RFP separate technical and price proposals.

(b) The department shall treat technical solutions or design concepts contained in proposals as proprietary information unless the proposer receives a stipend as described in Subsection (5)(a) and as provided in the RFP.

(c) In accordance with Subsection 63G-2-305(6), the department may not disclose a proposal or other information submitted to the department in response to an RFP until after the contract is awarded and signed by all parties.

(7) When procuring a design-build project, the department may follow any of the criteria described in 23 CFR 636.

(8)(a) The department shall state the basis for an award in the solicitation.

(b) To meet the requirement of Section 63G-6a-1402 of only awarding a contract to the responsible proposer whose proposal is most advantageous to the department or the state, the department may only base an award of an RFP on the following approaches:

(i) Award to the responsible proposer offering the lowest-priced responsive proposal. If the solicitation includes a mandatory technical level, the department may not consider a proposal responsive unless it meets that mandatory level.

(ii) Award to the responsible proposer whose proposal is evaluated as providing the best value to the department.

(iii) If the solicitation provides for a specified sum, award to the responsible proposer whose proposal is evaluated as providing the best value to the department.

(c) If the department awards the contract, the department shall execute the contract and issue a notice to proceed when the department is ready for the contractor to proceed with the work.

R916-1-10. Construction Manager/General Contractor and PDB Contracts.

(1)(a) To procure a CMGC or PDB project, the department shall issue a solicitation with an accompanying RFP or RFQ.

(b) For the RFP or RFQ described in Subsection (1)(a), the department:

(i) shall require each proposer to submit a technical proposal as part of the proposer's submission;

(d) may require each proposer to include a price component as part of the proposer's submission; and

(e) shall describe the evaluation criteria and the basis the department will use to select a proposal.

(2)(a) The department may only consider the evaluation criteria and selection factors that are specified in the RFP or RFQ when selecting a proposal.

(b) The department may only select a proposal by using one of the following approaches:

(i) selecting the responsible proposer whose proposal is evaluated as providing the best value to the department;

(ii) selecting the responsible proposer whose proposal is evaluated as representing the most qualified proposer; or

(iii) selecting the responsible proposer based on an alternative approach that complies with the requirements of the Utah Procurement Code and is approved by the executive director.

(3) The CMGC and PDB delivery methods may consist of multiple contract phases, including any of the following:

(a) preconstruction or design services, which may include:

(i) value engineering;

(ii) cost estimating and conceptual estimating;

(iii) constructability reviews;

(iv) project scheduling; and

(v) maintenance of traffic plans;

(b) for CMGC projects only:

(i) the department may award construction services after the project plans have been sufficiently developed, and the construction price has been validated and accepted by the department;

(ii) if a price is not validated and accepted by the department, the department may not award the design-build phase of the contract; and

(iii) the department may award incremental construction contracts as individual components of the work are validated and accepted by the department; and

(i) the department may award design-build services after the price for such services has been successfully validated and accepted by the department;

(ii) if a price is not validated and accepted by the department, the department may not award the design-build phase of the contract;

(iii) the department may award incremental contracts as prices for individual components are validated and accepted by the department; and

(iv) the department reserves the right to retain any party to the agreement even if the design-build services phase is not awarded.

R916-1-11. Award of Contracts.

(1)(a) The department is not required to award a contract when the department engages in the design-bid-build, design-build, or PDB construction project contract solicitation process.

(b) If the department awards a contract, the department shall execute the contract and issue a notice to proceed when the department is ready for the successful bidder or proposer to commence work.

(2) A successful bidder or proposer may not begin work before receiving the notice to proceed from the department.

(3) The department may cancel the award of any contract at any time before the execution of the contract by all parties without incurring any liability.

(4) For any contract awarded that includes a construction project, in whole or in part, the following provisions apply:

(a) the successful bidder or proposer shall comply with the bond requirements described in Section 63G-6a-1103, unless the executive director, in accordance with Subsection 63G-6a-1103(3), waives the bond requirement or reduces the required bond amount upon determining that the waiver or reduction benefits the state;

(b) the successful bidder or proposer shall provide both a performance bond and a payment bond, each in an amount equal to the full contract value, before execution of the contract, unless waived or reduced under Subsection (4)(a) or Rule R916-5;

(c) the successful bidder or proposer shall submit required bonds on the forms provided by the department on the department's bid system and shall ensure that the bonds are executed by a surety company authorized to conduct business in the state;

(d) the successful bidder or proposer may only use a surety company listed as an acceptable surety for federal bonds in the current United States Department of the Treasury Circular 570;

(e) the successful bidder or proposer shall deliver the following within 15 business days after the department issues the notice of contract award:

(i) a contract signed by an authorized representative of the successful bidder or proposer; and

(ii) all required, fully executed bonds and insurance documentation, as specified by the department;

(f) the department may cancel the contract award and may require the successful bidder or proposer to forfeit the bid security if the successful bidder or proposer fails to sign the contract or submit acceptable bonds and insurance documentation within the 15-business-day period;

(g) the successful bidder or proposer may withdraw the bid or proposal without penalty if the department does not execute the contract within 30 calendar days after receiving the signed contract, bonds, and required documentation; and

(h) a contract subject to this Subsection (4) is not effective or binding until the contract has been fully executed by all parties to the contract.

KEY: bids, advertising, contracts, bonding requirements

Date of Last Change: March 16, 2026

Notice of Continuation: March 21, 2026

Authorizing, and Implemented or Interpreted Law: 72-1-201; 72-6-107; 63G-6-505; 63G-6-207(3)