1. (1) As used in this Section, "resident contractor" means a person, partnership, corporation, or other business entity that:

   1. (a) either has its principal place of business in Utah or that employs workers who are residents of this state when available; and
   2. (b) was transacting business on the date when bids for the public contract were first solicited.

2. (2)(a) When awarding contracts for construction, the board shall grant a resident contractor a reciprocal preference as against a nonresident contractor from any state that gives or requires a preference to contractors from that state.

   1. (b) The amount of the reciprocal preference shall be equal to the amount of the preference applied by the state of the nonresident contractor.

3. (3)(a) The bidder shall certify on the bid that the bidder qualifies as a resident contractor.

   1. (b) The reciprocal preference is waived if that certification does not appear on the bid or if the resident contractor is not qualified to perform the work as stipulated in the pre-proposal or pre-bid documents.

4. (4)(a) If the contractor submitting the lowest responsive and responsible bid is not a resident contractor and has its principal place of business in any state that gives or requires a preference to contractors from that state, and if a resident contractor has also submitted a responsive and responsible bid, and, with the benefit of the reciprocal preference, the resident contractor's bid is equal to or less than the original lowest bid, the executive director shall:

   1. (i) give notice to the resident contractor that the contractor qualifies as a preferred resident contractor; and

      1. (ii) issue the contract to the resident contractor if, within 72 hours after notification to the contractor that such contractor is a preferred resident contractor, the contractor agrees, in writing, to meet the low bid.
   2. (b) The executive director shall include the exact price submitted by the lowest bidder in the notice submitted to the preferred resident contractor.
   3. (c) The executive director may not enter into a contract with any other bidder for the construction until 72 hours have elapsed after notification to the preferred resident contractor.

5. (5)(a) If there is more than one preferred resident contractor, the executive director shall award the contract to the willing preferred resident contractor who was the lowest preferred resident contractor originally.

   1. (b) If there were two or more equally low preferred resident contractors, the executive director shall resolve the tie in accordance with Section 63G-6-426.
6. (6) The provisions of R131-4-405 do not apply if such application might jeopardize the receipt of federal funds.

KEY: contracts, public buildings, procurement

Date of Last Change: July 22, 2014

Notice of Continuation: December 26, 2025

Authorizing, and Implemented or Interpreted Law: 63C-9-301