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SC N GOVERNMENT Steps 3-8. Receive, Open, and Evaluate Bids, Determine Successful Bidder, and Award and Execute the Contract For these steps in the construction contracting process, there are no special requirements for large building construction and repair projects beyond those required for all construction and repair projects (See Steps 3-8 in Section II). Step 9: Contract Management: Dispute Resolution 1. Dispute Resolution Procedures — Local governments are required to use the dispute resolution process adopted by the State Building Commission (see State Building Commission Dispute Resolution Rules), or else adopt another dispute resolution process that includes mediation. This requirement applies to all public building construction projects regardless of the cost of the project 20 The dispute resolution process must be made available to all parties involved in the construction project. The local government may set minimum thresholds forthe dollar amount of the dispute (the threshold cannot exceed $15,000), and may require that the parties participate in mediation prior to initiating litigation. [G.S. 143-128(f1),(g)] IV. Exceptions to Competitive Procurement Requirements Construction and repair projects costing $30,000 or more are exempt from competitive bidding requirements in certain circumstances. 1. Force Account Work — Local governments may use their own forces (employees) on construction and repair projects when the total cost of the project is less than $125,000 or the total cost of the labor is less than $50,000. The work must be performed by employees on the permanent payroll, and approved by the governing board. If the cost of the project is over $30,000, the local government must submit an owner -contractor affidavit to the local building inspector attesting to its eligibility to act as its own general contractor in lieu of hiring a licensed general contractor to supervise the project 21 [G.S. 143-135; G.S. 87-14] 2. Change Orders — Changes made to the project after award of the contract are not subject to competitive bidding requirements if the original contract was competitively Ze The statutes are internally inconsistent on whether a dispute resolution process is required for separate -prime contracts. G.S. 143-128(e) states that the public body "may" provide for a dispute resolution process for separate - prime contracts. However, G.S. 143-128(g) states that the dispute resolution process under subsection (fl) "shalr apply to "any erection, construction, alteration, or repair' of public buildings. Since the language in subsection (g) was enacted after the language in subsection (e), it is reasonable to assume that the General Assembly intended the dispute resolution process to apply to separate -prime contracts as well as all other public building construction projects. (See S.L. 2001-496). " More information about the owner -contractor affidavit requirements and a sample affidavit are available on the School of Government's Purchasing and Contracting website under "Legislative Updates." miter 1 \n 15 I Construction Contracting Basic Legal Requirements !updated September 2013 F-9 Page 91