HB05270 - Prohibiting Bid Shopping

• Establishes definitions and regulations for public construction contracts to prevent "bid shopping," defined as using one subcontractor's bid to coerce lower bids from other subcontractors after the initial bid submission.

• Requires general contractors to list all subcontractors exceeding a threshold value (to be determined by the Department of Administrative Services) in their bids, with written sub-bids signed by each subcontractor, and prohibits substituting listed subcontractors except for specified reasons including refusal to execute a subcontract, good cause, or awarding authority approval.

• Imposes civil penalties allowing the state or municipalities to recover the price difference between higher and lower bids obtained through bid shopping, plus attorney fees; allows aggrieved subcontractors to sue for 10% of their submitted bid value plus attorney fees.

• Establishes criminal penalties through the Commissioner of Consumer Protection of $5,000 to $20,000 per violation and allows disqualification from state contracts for up to five years.

• Effective October 1, 2018; applies to all public building and public work construction projects by the state, municipalities, and political subdivisions.