Authorizes the Department of Transportation to enter into a progressive design-build contract for a certain project. (BDR S-626)

- 83rd Session (2025)
Senate Bill No. 315–Senator Daly

CHAPTER..........

AN ACT relating to transportation; authorizing the Department of
Transportation to enter into a progressive design -build
contract for a certain project; and providing other matters
properly relating thereto.
Legislative Counsel’s Digest:
Under existing law, the Department of Transportation is authorized to contract
with a design -build team with respect to a project for the design and construction,
reconstruction or improvement of highways in certain circumstances. (NRS
408.3875-408.3888) Section 8 of this bill authorizes the Department to enter into
one or more progressive design-build contracts for the preconstruction, final design
and construction of the project consisting of improvements to Interstate 80 East
between Vista B oulevard in Sparks, Nevada and USA Parkway (State Route 439)
in Storey County, Nevada. Section 9 of this bill requires the Department to
advertise a solicitation for the project on its Internet website. Section 10 of this bill
provides for the issuance of a request for proposals in a one -step procurement
process, and a request for qualifications in a two -step procurement process. Section
10 prescribes the procedure for the review of submissions and the selection of an
applicant. Section 10 authorizes the Department to negotiate to enter into a contract
for preconstruction services with a progressive design-build team.
If the Department enters into a progressive design -build contract with a
progressive design -build team pursuant to section 10, section 11 of this bill
authorizes the Department, after the progressive design -build team has progressed
in the design for project, or any portion thereof, in a sufficient manner to determine
the cost of the final design and construction of the project, to enter into negotiations
with the progressive design -build team for a contract or a contract amendment to
complete final design and construction of the project, or any portion thereof. If such
negotiations fail, section 11 requires the Department to terminate negotiations and
authorizes the Department to: (1) enter into a separate contract with a qualified
person who was a member of the progressive design -build team to complete the
design of the project, or portion thereof; or (2) undertake a new procurement under
a different procurement method. Section 12 of this bill prescribes the requirements
for a progressive design-build contract entered into pursuant to section 11. Section
12.5 of this bill prescribes the requirements for a contract with a design
professional for the provision of services for the project.
Section 13 of the bill provides for the confidentiality of certain information and
documents concerning the project. Section 14 of this bill authorizes the Department
to employ a registered architect or licensed professional engineer as a consultant to
assist the Department in overseeing the preconstruction and construction of the
project. Sections 2-7 of this bill define relevant terms for this bill.

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. As used in sections 1 to 14, inclusive, of this act,
unless the context otherwise requires, the words and terms defined
in sections 2 to 7, inclusive, of this act have the meanings ascribed
to them in those sections.
Sec. 2. “Department” means the Department of
Transportation.
Sec. 3. “Preconstruction services” means services performed
before and leading up to construction. The term includes, without
limitation:
1. A portion or all of the preliminary, advanced or final design;
2. Assisting the Department with:
(a) The environmental review process;
(b) The process for obtaining permits; and
(c) Determining whether any scheduling or constructability
problems exist that would delay or impact construction or increase
the price of the project, or portions of the project;
3. Estimating the cost of the project, or portions of the project,
including, without li mitation, labor, materials and equipment, and
determining whether the project, or portions of the project, can be
constructed within the budget of the Department;
4. Conducting due diligence and investigations of sites; and
5. Undertaking preliminary construction work approved by the
Department.
Sec. 4. “Prime contractor” means a person who:
1. Enters into one or more contracts to design and construct the
project, or a portion thereof;
2. Coordinates work performed on the project;
3. Uses its own workforce to perform all, or a portion, of the
design and construction of the project; and
4. Enters into one or more contracts for the services of a
subcontractor, supplier or independent contractor on the project or is
responsible for making payments to subcontractors, suppliers or
independent contractors on the project.
Sec. 5. “Progressive design -build” means a procurement
method in which the Department selects a progressive design -build
team, in one or more steps, to enter into a contract with the
Department to perform preconstruction services that may progress
to the completion of the final design and construction of the project,

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or a portion thereof, upon negotiation and approval by the
Department of a price and other terms and conditions.
Sec. 6. “Progressive design -build team” means a team that
consists of:
1. At least one person who is licensed as a general engineering
contractor or a general buil ding contractor pursuant to chapter 624
of NRS.
2. At least one person who holds a certificate of registration to
practice architecture pursuant to chapter 623 of NRS or is licensed
as a professional engineer pursuant to chapter 625 of NRS.
Sec. 7. “Project” means the project for which the Department
is authorized to enter into a contract with a progressive design -build
team pursuant to section 8 of this act.
Sec. 8. Notwithstanding any oth er provision of law, the
Department may enter into one or more contracts for carrying out
the project consisting of improvements to Interstate 80 East between
Vista Boulevard in Sparks, Nevada, and USA Parkway (State Route
439) in Storey County, Nevada, by:
1. Selecting a progressive design -build team pursuant to
section 10 of this act; and
2. Entering into a single contract or separate contracts with the
progressive design-build team:
(a) For preconstruction services.
(b) Except as otherwise provided in section 11 of this act, for the
final design and construction of the project.
Sec. 9. 1. The Department shall advertise a solicitation for a
progressive design-build team for the project on the Internet website
of the Department.
2. A solicitation advertised pursuant to subsection 1 must
include, without limitation:
(a) A description of the project;
(b) An estimate of the cost to construct the project;
(c) A description of the work that the Department expects the
progressive design-build team to perform;
(d) The estimated date of completion of the construction work
on the project;
(e) The date by which proposals in a one -step procurement
process, or a statement of qualifications in a two -step procurement
process, must be submitted to the Department;
(f) A statement setting forth the requirement that the prime
contractor be qualified to bid on a public work pursuant to
NRS 338.1379;

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(g) A statement setting forth the requirement that the members
of the progressiv e design -build team possess the licenses and
certificates necessary to carry out their respective functions in this
State;
(h) A list of the factors and relative weight assigned to each
factor that the Department will use to evaluate the progressive
design-build teams who submit their proposals or qualifications for
the project; and
(i) Notice that a progressive design -build team desiring to
submit its proposal in a one -step procurement process, or its
statement of qualifications in a two -step procurement process, for
the project must include with its submission the information used by
the Department to evaluate the submissions of the applicants
pursuant to section 10 of this act.
Sec. 10. 1. The Department shall prepare and issue:
(a) In a one -step procurement process, a request for proposals
containing the elements described in subsections 2, 3 and 4; or
(b) In a two -step procurement process, a request for
qualifications containing the elements described in subsections 2
and 3 followed by a request for proposals containing the elements
described in subsection 4.
2. The eligibility requirements that must be demonstrated by
applicants include, without limitation:
(a) Evidence of the ability of the applicant to obtain n ecessary
bonding for the work required by the Department to be performed;
(b) Evidence of the ability of the applicant to obtain such
insurance as may be required by law , including, without limitation,
evidence of the ability of any member of the progress ive design -
build team who is licensed as a professional engineer pursuant to
chapter 625 of NRS to obtain professional liability insurance in an
amount not to exceed $1,000,000 in the aggregate;
(c) Evidence that the prime contractor is qualified to bid o n a
public work pursuant to NRS 338.1379;
(d) Evidence that the members of the progressive design -build
team possess the licenses and certificates necessary to carry out their
functions in this State; and
(e) A statement of whether the applicant has been:
(1) Found liable for breach of contract with respect to a
previous project, other than a breach of contract for a legitimate
cause, during the 5 years immediately preceding the date on which
the solicitation was advertised pursuant to section 9 of this act; and
(2) Disqualified from being awarded a contract pursuant to
NRS 338.017, 338.13895, 338.1475 or 408.333.

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3. The qualification requirements must set forth:
(a) The factors that the Department will use to qualify a
progressive design -build team , including, without limitation, the
relative weight to be assigned to each factor. Such factors may
include, without limitation:
(1) The professional qualifications and experience of the
applicant; and
(2) The performance history of the members of the
progressive design -build team concerning other recent, similar
projects completed by those members, if any.
(b) The date by which statements of qualifications must be
submitted to the Department.
4. The request for proposals must set forth:
(a) The fa ctors that the Department will use to select a
progressive design -build team, including, without limitation, the
relative weight to be assigned to each factor. Such factors may
include, without limitation:
(1) The professional qualifications and experien ce of the
applicant;
(2) The performance history of the members of the
progressive design -build team concerning other recent, similar
projects completed by those members, if any;
(3) The proposed plan to manage and carry out the
preconstruction phase of the project;
(4) The proposed plan to manage and carry out the final
design and construction phase of the project;
(5) The proposed conceptual and technical approach to the
project;
(6) The proposed approach to pricing and estimating the cost
of the final design and construction of the project , which must
comply with NRS 625.530; and
(7) Cost information, which must be prepared in compliance
with NRS 625.530.
(b) The date by which the proposals must be submitted to the
Department.
(c) The requ irement that the proposal comply with the
provisions of NRS 338.141.
5. After the deadline for submission of a statement of
qualifications or proposals, the Department shall review the
submissions. The Department may evaluate submissions based
solely upo n the information provided in the statement of
qualifications or proposals of each applicant. After review of the
submissions, the Department may interview some or all of the

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applicants to further evaluate which applicant offers the best value
for the project.
6. For each request for qualifications or proposals, the
Department shall rank the applicants and generate a final list of
eligible applicants that participated in the request for qualifications
or proposals before entering into negotiations for one or more
contracts to which the request for qualifications or proposals
applies. The ranking of the statements of qualifications or proposals
must assign a relative weight of 5 percent to the possession by the
applicant of a certificate of eligibility to r eceive a preference in
bidding on public works if the applicant submits a signed affidavit
that the applicant meets the requirements of subsection 1 of NRS
338.0117. If any federal statute or regulation precludes the granting
of federal assistance or reduc es the amount of that assistance for a
particular public work because of the provisions of this subsection,
the provisions of this subsection do not apply insofar as their
application would preclude or reduce federal assistance.
7. If the Department issues a request for qualifications pursuant
to this section, the Department must select at least two but not more
than five applicants from the final list of eligible applicants who
submitted statements of qualifications and send the selected
applicants a req uest for proposals which includes the information
contained in subsection 4.
8. If applicants are required to submit cost information with
their proposals for the preconstruction phase of the project, the
evaluation must be on a pass or fail basis or bas ed on not more than
20 percent of the scoring, as the Department deems appropriate.
9. If the submissions in response to a request for proposals
provide sufficient information to determine which eligible applicant
has offered the best value to the public , the Department may enter
into negotiations with that applicant concerning contract terms and
award a contract for preconstruction services to that applicant. Such
a contract must provide for the subsequent negotiations of terms
governing the construction phase of the project. If the Department is
unable to negotiate a satisfactory contract with that applicant for
preconstruction services, the Department may undertake
negotiations with a separate eligible applicant that participated in the
request for proposals process.
10. Upon receipt of the final rankings of applicants, the
Department shall enter into negotiations with the highest ranked
applicant determined pursuant to the provisions of this section. If the
Department is unable to negotiate a contract with the highest ranked
applicant determined by the Department to be fair and reasonable,

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the Department may terminate or suspend negotiations with the
highest ranked applicant. The Department may undertake
negotiations with the next highest ranked applicant in sequence until
an agreement is reached or until a determination is made by the
Department to reject all applicants.
Sec. 11. 1. If the Department enters into a progressive
design-build contract with a progressive de sign-build team pursuant
to section 10 of this act, the Department may, after the progressive
design-build team has progressed in the design for project, or any
portion thereof, in a sufficient manner to determine the cost of the
final design and construct ion of the project, enter into negotiations
with the progressive design -build team for a contract or a contract
amendment to complete final design and construction of the project,
or any portion thereof.
2. The progressive design-build team shall develop its price, on
a basis determined by the Department and using fully transparent,
open-book pricing, to complete the design and construction of the
project, or portion thereof.
3. If the Department is unable to negotiate a satisfactory
contract or contrac t amendment with the progressive design -build
team to complete the final design and construction of the project, or
portion thereof, the Department shall terminate negotiations with
that progressive design-build team and:
(a) May enter into a separate con tract with a qualified person
who was a member of the progressive design -build team to
complete the design of the project, or portion thereof; or
(b) May undertake a new procurement and award the contract
for the project pursuant to the provisions of NRS 408.327 to
408.387, inclusive, or 408.3875 to 408.3888, inclusive. If a new
procurement is initiated, the Department may elect not to accept a
bid to construct the project from the progressive design -build team
with whom the Department entered into a progr essive design-build
contract for preconstruction services.
Sec. 12. 1. A progressive design -build contract or contract
amendment entered into by the Department with a progressive
design-build team pursuant to section 11 of this act must:
(a) Comply with the provisions of NRS 338.013 to 338.090,
inclusive; and
(b) Specify:
(1) An amount that is the maximum amount that the
Department will pay for the performance of all the work required by
the contract, excluding any amou nt related to costs that may be

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incurred as a result of unexpected conditions or occurrences or
change orders as authorized by the contract;
(2) An amount that is the maximum amount that the
Department will pay for the performance of the professional
services required by the contract; and
(3) A date or duration by which performance of the work
required by the contract must be completed.
2. The Department, the progressive design -build team, any
contractor who is awarded a contract or enters into an agr eement to
perform work on the project and any subcontractor who performs
work on the project shall comply with the provisions of
NRS 338.013 to 338.090, inclusive, in the same manner as if the
Department had undertaken the project or had awarded the contract.
3. A progressive design -build team to whom a progressive
design-build contract is awarded pursuant to section 11 of this act
shall:
(a) Assume overall responsibility for ensuring that the design
and construction of the project is completed in a sat isfactory
manner; and
(b) Use the workforce of the prime contractor on the progressive
design-build team to construct at least 30 percent of the project.
Sec. 12.5. 1. A contract entered into with a design
professional pursuant to section 10 or 11 of this act for the provision
of services for the project:
(a) Must set forth:
(1) The specific period within which the prime contractor
must pay the design professional.
(2) The specific period and manner in which the prime
contractor may dispute a payment or portion thereof that the design
professional alleges is due.
(3) The terms of any penalty that will be imposed upon the
prime contractor if the prime contractor fai ls to pay the design
professional within the specific period set forth in the contract
pursuant to subparagraph (1).
(4) That the prevailing party in an action to enforce the
contract is entitled to reasonable attorney’s fees and costs.
(b) May set fort h the terms of any discount that the prime
contractor will receive if the prime contractor pays the design
professional within the specific period set forth in the contract
pursuant to subparagraph (1) of paragraph (a).
(c) May set forth the terms by whic h the design professional
agrees to name the prime contractor, at the cost of the prime

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contractor, as an additional insured in an insurance policy held by
the design professional, if the policy allows such an addition.
(d) Must not require the design pro fessional to defend,
indemnify or hold harmless the prime contractor or the employees,
officers or agents of that prime contractor from any liability,
damage, loss, claim, action or proceeding caused by the negligence,
errors, omissions, recklessness or in tentional misconduct of the
employees, officers or agents of the prime contractor.
(e) May require the design professional to indemnify and hold
harmless the prime contractor, and the employees, officers and
agents of the prime contractor from any liabili ties, damages, losses,
claims, actions or proceedings, including, without limitation,
reasonable attorneys’ fees and costs, to the extent that such
liabilities, damages, losses, claims, actions or proceedings are
caused by the negligence, errors, omissions , recklessness or
intentional misconduct of the design professional or the employees
or agents of the design professional in the performance of the
contract.
(f) Must not require the design professional to defend the prime
contractor and the employees, of ficers and agents of the prime
contractor with respect to the liabilities, damages, losses, claims,
actions or proceedings caused by the negligence, errors, omissions,
recklessness or intentional misconduct of the design professional or
the employees or ag ents of the design professional which are based
upon or arising out of the professional services of the design
professional. If the design professional is adjudicated to be liable by
a trier of fact, the trier of fact shall award reasonable attorney’s fees
and costs to be paid to the prime contractor, as reimbursement for
the attorney’s fees and costs incurred by the prime contractor in
defending the action, by the design professional in an amount which
is proportionate to the liability of the design professional.
(g) May require the design professional to defend the prime
contractor and the employees, officers and agents of the prime
contractor with respect to the liabilities, damages, losses, claims,
actions or proceedings caused by the negligence, errors , omissions,
recklessness or intentional misconduct of the design professional or
the employees or agents of the design professional which are not
based upon or arising out of the professional services of the design
professional.
2. Any provision of a co ntract entered into by a prime
contractor and a design professional pursuant to this act that
conflicts with the provisions of paragraph (d), (e), (f) or (g) of
subsection 1 is void.

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3. As used in this section:
(a) “Agent” means a person who is directly involved in and
acting on behalf of the prime contractor or the design professional,
as applicable, in furtherance of the contract or the project.
(b) “Design professional” has the meaning ascribed to it in
NRS 338.010.
Sec. 13. 1. Any document or other information submitted to
the Department pursuant to section 10 of this act by a person who is
a member of a progressive design -build team is confidential and
may not be disclosed until notice of intent to award the progres sive
design-build contract is issued.
2. Any document or other information submitted to the
Department during the negotiations of the contract or contract
amendment for the final design and construction of the project
pursuant to section 11 of this act b y a person who is a member of a
progressive design -build team is confidential and may not be
disclosed until execution of the contract or contract amendment.
3. The Department shall not release to a third party, or
otherwise make public, financial or pro prietary information
submitted by a progressive design-build team.
4. The disclosure of any document or other information after
the time periods set forth in subsection 1 or 2, as applicable, are
subject to the protections regarding confidentiality set f orth in
chapter 239 of NRS.
5. As used in this section, “document or other information”:
(a) Means any submittal by a person who is a member of a
progressive design -build team to the Department in response to a
progressive design-build project initiated pursuant to section 10 of
this act.
(b) Includes, without limitation, any or all of the following:
(1) A proposal made pursuant to section 10 of this act.
(2) A statement that the applicant satisfies the requirements
of subsection 2 of section 10 of this act.
(3) Any information provided to the Department during
negotiation of a contract or contract amendment for the final design
and construction of the project pursuant to section 11 of this act.
Sec. 14. The Departm ent may employ a person who holds a
certificate of registration to practice architecture pursuant to chapter
623 of NRS or is licensed as a professional engineer pursuant to
chapter 625 of NRS as a consultant to assist the Department in
overseeing the prec onstruction and construction of the project. An
architect or engineer so employed shall not:

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1. Perform any of the construction, reconstruction or
improvement work on the project; or
2. Assume overall responsibility for ensuring that the
construction of the project is completed in a satisfactory manner.
Sec. 15. This act becomes effective on July 1, 2025.

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