(a) When an entity self-constructs, the entity shall ensure by written report to the Division of Public School Academic Facilities and Transportation compliance with all Arkansas laws, including but not limited to the following:

1. (1) Open market purchases may be made where the purchase price is less than the current amount set by the Commissioner of Elementary and Secondary Education establishing the maximum purchase amount for open-market purchases (Arkansas Code § 6-21-304);
2. (2) In each instance where the estimated purchase price shall equal or exceed the current amount set by the commissioner establishing the maximum purchase amount for open-market purchases, the commodity shall be procured by soliciting bids (Arkansas Code § 6-21-304);
3. (3) When all estimated construction costs do not exceed thirty-five thousand dollars ($35,000), the contract shall be solicited according to local school board policy (Arkansas Code § 22-9-203); and

4. (4)

   1. (A) When all estimated construction costs exceed thirty-five thousand dollars ($35,000), the entity shall publish public notice of intent to receive bids a minimum of one (1) time per week for two (2) consecutive weeks.
   2. (B) The bids may be opened one (1) week after the last date of publication (Arkansas Code § 22-9-203);

(b)

1. (1) When giving public notice of intent to receive bids for construction, an entity may include alternates in the bid specifications.

2. (2) If the entity includes alternates in the bid specifications:

   1. (A) The alternates must be deductive;
   2. (B) No more than three (3) alternates may be used; and
   3. (C) The alternates must be set forth and considered in numerical order (Arkansas Code § 22-9-203).

(c) When advertising for bids for construction, an entity may negotiate a final contract amount with the successful bidder if:

1. (1) The low bid is within twenty-five percent (25%) of the amount appropriated for the project; and
2. (2) All alternates have been exhausted (Arkansas Code § 22-9-203).

(d)

1. (1) An entity shall accept the lowest qualified bid from a firm resident in Arkansas.

2. (2) This bid shall be accepted only if:

   1. (A) The bid does not exceed the lowest qualified bid from a nonresident firm by more than five percent (5%); and
   2. (B) One (1) or more firms resident in Arkansas made written claim for a preference at the time bids were submitted (Arkansas Code § 19-11-259).

(f)

1. (1) The successful bidder on construction that exceeds twenty thousand dollars ($20,000) shall provide the owner a performance bond and payment equal to the contract amount.
2. (2) This bond must be filed with the clerk of the circuit court of the county where the work is being performed before authorization to proceed is granted (Arkansas Code §§18-44-503 and 18-44-507).

(g)

1. (1) Any subtrades contractor doing work in areas such as electrical, plumbing, HVAC, etc. must hold the required trades’ licenses from the State of Arkansas.
2. (2) This applies to entity personnel, as well as subtrades contractors employed by the entity.
3. (3) Any contractor who performs a job that exceeds fifty thousand dollars ($50,000) must also hold an Arkansas contractor’s license (Arkansas Code § 17-25-101(a)).