S.D. Admin. R. 70:07:02:09

Current through Register Vol. 51, page 70, December 27, 2024

Section 70:07:02:09 - Assignment of work classification and maximum bidding capacity rating

The committee may assign a work classification and maximum bidding capacity rating based on the following factors:

(1) The prospective bidder's ability to finance the work as shown by the prospective bidder's audited financial statement, surety statement, surety bond, independent audit, or debt records and other financial documents;

(2) The ownership, sufficiency, condition, and availability of the prospective bidder's equipment;

(3) The work abilities and experience of the prospective bidder and its personnel; and

(4) The quality and timeliness of the prospective bidder's work on contracts with the department and other awarding authorities.

A maximum bidding capacity rating may not exceed ten times the amount of a prospective bidder's working capital. The committee may consider a bank line of credit to increase the prospective bidder's working capital. The prospective bidder shall describe the line of credit on a form furnished by the committee.

If a certification of surety is furnished in accordance with subdivision 70:07:02:04(1), then:

(1) the maximum bidding capacity rating may not exceed the maximum bonding coverage for all the prospective bidder's work; and

(2) the prospective bidder may not submit a bid for more than the maximum bonding coverage for a single contract.

If an audited financial statement is furnished, the prospective bidder may not bid more than 50 percent of the maximum bidding capacity on any single construction contract.

S.D. Admin. R. 70:07:02:09

SL 1975, ch 16; 47 SDR 038, effective 10/6/2020; 49 SDR 047, effective 11/21/2022

General Authority: SDCL 31-5-10.

Law Implemented: SDCL 31-5-10; 31-5-10.1, 31-5-10.2, 31-5-10.3.