PROCUREMENT OF CONSTRUCTION CONTRACTS

Metropolitan Code of Nashville and Davidson County tit. 4, ch. 4.20

in effect

Metropolitan Code of Nashville and Davidson County § 4.20.010 Alternative methods of construction contracting management—Standards.

4.20.010 - Alternative methods of construction contracting management—Standards. The standards board shall promulgate regulations providing for as many alternative methods of construction management as it may determine to be feasible. These regulations shall: A. Set forth criteria to be used in determining which method of contracting management is to be used for a particular project; and B. Grant to the purchasing agent the discretion to select the appropriate method of construction contracting management for a particular project. (Ord. 92-210 § 1 (5-101), 1992)

Metropolitan Code of Nashville and Davidson County § 4.20.020 Bid security.

4.20.020 - Bid security. A. Requirement for Bid Security. Bid security shall be required for all competitive sealed bids for construction contracts when the price is estimated by the purchasing agent to exceed an amount established by the standards board. Bid security shall be a bond provided by a surety company authorized to do business in this state or the equivalent in cash or otherwise supplied in a form satisfactory to the purchasing agent in accordance with regulations of the standards board. Nothing herein prevents the requirement of such bonds on construction contracts under the amount set by the standards board when the circumstances warrant. B. Amount of Bid Security. Bid security shall be in an amount equal to at least ten percent of the amount of the bid. The standards board, by regulation, may establish additional appropriate levels of bid security. C. Rejection of Bids for Noncompliance with Bid Security Requirements. When the invitation to bid requires security, noncompliance requires that the bid be rejected unless, pursuant to standards board regulations, it is determined that the bid fails to comply in a nonsubstantial manner with the security requirements. D. Withdrawal of Bids. After the bids are opened, they shall be irrevocable for the period specified in the invitation for bids, except as provided in Section 4.12.030(F), Competitive sealed bidding, correction or withdrawal of bids, cancellation of awards. If a bidder is permitted to withdraw its bid before award, no action shall be had against the bidder or the bid security. (Ord. 92-210 § 1 (5-201), 1992)

Metropolitan Code of Nashville and Davidson County § 4.20.030 Contract performance and payment bonds.

4.20.030 - Contract performance and payment bonds. A. When Required—Amounts. When a construction contract is awarded in excess of one hundred thousand dollars, the following bonds or security shall be delivered to the metropolitan government and shall become binding on the parties upon the execution of the contract: 1. A performance bond satisfactory to the metropolitan government, executed by a surety company authorized to do business in this state or otherwise secured in a manner satisfactory to the metropolitan government, in an amount equal to one hundred percent of the price specified in the contract; and 2. A payment bond satisfactory to the metropolitan government, executed by a surety company authorized to do business in this state or otherwise secured in a manner satisfactory to the metropolitan government for the protection of all persons supplying labor and material to the contractor or its subcontractors for the performance of the work provided for in the contract. The bond shall be in an amount equal to one hundred percent of the price specified in the contract. B. Reduction of Bond Amounts. The standards board may promulgate regulations that authorize the purchasing agent to reduce the amount of performance and payment bonds to fifty percent of the contract price for each bond. C. Authority to Require Additional Bonds. Nothing in this section shall be construed to limit the authority of the metropolitan government to require a performance bond or other security in addition to those bonds or in circumstances other than specified in subsection A of this section. (Ord. BL2009-482 § 1, 2009; Ord. 92-210 § 1 (5-202), 1992)

Metropolitan Code of Nashville and Davidson County § 4.20.040 Bond forms and copies.

4.20.040 - Bond forms and copies. A. Bond Forms. The standards board shall promulgate by regulation the form of the bonds required by Sections 4.20.020 through 4.20.040. B. Certified Copies of Bonds. Any person may request and obtain from the metropolitan government a certified copy of a bond upon payment of the cost of reproduction of the bond and postage, if any. A certified copy of the bond shall be prima facie evidence of the contents, execution and delivery of the original. (Ord. 92-210 § 1 (5-303), 1992)

Metropolitan Code of Nashville and Davidson County § 4.20.050 Contract clauses and their administration.

4.20.050 - Contract clauses and their administration. A. Contract Clauses. The standards board shall promulgate regulations requiring the inclusion in metropolitan government construction contracts of clauses providing for adjustment in prices, time of performance or other contract provisions, as appropriate, and covering the following subjects: 1. The unilateral right of the metropolitan government to order in writing: a. Changes in the work within the scope of the contract, and b. Changes in the time of performance of the contract that do not alter the scope of the contract work; 2. Variations occurring between estimated quantities of work in a contract and actual quantities; 3. Suspension of work ordered by the metropolitan government; and 4. Site conditions differing from those indicated in the contract, or ordinarily encountered, except that differing site conditions clauses promulgated by the standards board need not be included in a contract: a. When the contract is negotiated, b. When the contractor provides the site or design, or c. When the parties have otherwise agreed with respect to the risk of differing site conditions. B. Price Adjustments. 1. Adjustment in price pursuant to clauses promulgated under subsection A of this section shall be computed in one or more of the following ways: a. By agreement on a fixed price adjustment before commencement of the pertinent performance or as soon thereafter as practicable, b. By unit price specified in the contract or subsequently agreed upon, c. By the costs attributable to the events or situations under such clauses with adjustment of profit or fee, all as specified in the contract or subsequently agreed upon, d. In such other manner as the contracting parties mutually agree, or e. In the absence of agreement by the parties, by a unilateral determination by the metropolitan government of the costs attributable to the events or situations under such clauses with adjustments of profits and fee, all as computed by the metropolitan government in accordance with applicable sections of the regulations of the standards board; 2. A contractor shall be required to submit cost or pricing data if any adjustment in contract price is subject to regulations promulgated pursuant to the provisions of Section 4.12.130 Cost of pricing data. C. Additional Contract Clauses. The standards board shall promulgate regulations requiring the inclusion in metropolitan government construction contracts of clauses providing for appropriate remedies and covering the following subjects: 1. Liquidated damages as appropriate; 2. Specified excuses for delay or nonperformance; 3. Termination of the contract for default; and 4. Termination of the contract in whole or in part for the convenience of the metropolitan government. D. Modification of Required Clauses. The purchasing agent may vary the clauses promulgated by the standards board under subsections A and C of this section for inclusion in any particular metropolitan government construction contract, provided that any variations are supported by a written determination that states the circumstances justifying such variation and provided that notice of any such material variation be stated in the invitation for bids or request for proposals. E. Artifacts Found During Excavations on Public Property. All contracts awarded pursuant to this chapter shall include a clause requiring any person finding a site and/or artifact while excavating on public property to take the necessary action to preserve the site and/or artifact and immediately notify the executive director of the metropolitan historical commission or his designee. For purposes of this subsection, the following terms shall have the meaning ascribed herein: "Artifacts" means all relics, specimens or objects of an historical, prehistorical, archaeological or anthropological nature which may be found above or below the surface of the earth, and which have scientific or historic value as objects of antiquity, as aboriginal relics, or as archaeological specimens. "Public property" means property that is owned or is under the control of the metropolitan government or any of its boards, commissions, or agencies. "Site" means any location of historic or prehistoric human activity such as, but not restricted to, mounds, forts, earthworks, burial grounds, structures, villages, mines, caves, shipwrecks, and all locations which are or may be sources of paleontological remains. (Ord. BL2011-834 § 2, 2011; Ord. 92-210 § 1 (5-401), 1992)

Metropolitan Code of Nashville and Davidson County § 4.20.055 Reserved.

Metropolitan Code of Nashville and Davidson County § 4.20.060 Fiscal responsibility.

4.20.060 - Fiscal responsibility. Every contract modification, change order, or contract price adjustment under a construction contract with the metropolitan government shall be subject to prior written certification by the director of finance that there is a sufficient unencumbered appropriation and allotment balance to cover said obligation. (Ord. 92-210 § 1 (5-402), 1992)

Metropolitan Code of Nashville and Davidson County § 4.20.065 Business tax license requirement.

4.20.065 - Business tax license requirement. Any person entering into any contractual agreement with the metropolitan government for any type of building or construction work wherein any funds of the metropolitan government are appropriated or expended for such building or construction work, other than those persons domiciled or located outside of Davidson County that are exempt from paying the minimum privilege tax pursuant to T.C.A. § 67-4-709(a)(4), shall obtain a business tax license from the Davidson County clerk as required by T.C.A. § 67-4-706 prior to commencing any work on the project. (Ord. BL2006-1207 § 1, 2006)

Metropolitan Code of Nashville and Davidson County § 4.20.070 Declaration of policy—Payment of prevailing wages required.

4.20.070 - Declaration of policy—Payment of prevailing wages required. It is declared to be the policy of the metropolitan government that not less than prevailing wage rates be paid workmen on all building and construction projects wherein any funds of the metropolitan government are expended for such purposes. (Ord. 92-210 § 1 (5-501), 1992)

Metropolitan Code of Nashville and Davidson County § 4.20.080 Minimum wages requirements—Basis.

4.20.080 - Minimum wages requirements—Basis. Any person entering into any contractual agreement with the metropolitan government for any type of building or construction work wherein any funds of the metropolitan government may be appropriated or expended for such building or construction work shall pay not less than the minimum wage rates for all types and occupations of such work as established under the "construction and extraction occupations" listed in the most recent Tennessee Occupational Wages Report published by the Tennessee Department of Labor and Workforce Development, Employment Security Division. (Ord. BL2014-991 § 1, 2015; Ord. 92-210 § 1 (5-502), 1992)

Metropolitan Code of Nashville and Davidson County § 4.20.090 Prevailing wages—Rate schedules to be specification for work—Posting.

4.20.090 - Prevailing wages—Rate schedules to be specification for work—Posting. A. The purchasing agent shall ensure that solicitations for construction of any public work or improvement shall reference the Tennessee Occupational Wage Report published by the Tennessee Department of Labor and Workforce Development, Employment Security Division. The state's website shall be identified in the solicitation and made a part of any contract for the construction of any public works project or improvement by reference. The contractor shall be responsible for compensating its employees and holding its subcontractors accountable for the same. The current Tennessee Occupational Wage Report listing those services performed shall be posted on the main employee bulletin board or other conspicuous place of each job site by the contractor. B. In addition to the posting of the schedule of wages, the name, mailing address and telephone number of the purchasing agent of metropolitan government shall be posted in the same manner with a statement that any person may report any violations of prevailing provisions to such office. Each employer that is subject to the provisions of this section shall provide to each employee, with the first payroll check, a written document which includes the contract number of the project, the job identification or classification of the employee and the prevailing wage rate for such job. Each employer shall maintain a written acknowledgment of the receipt by each employee of such document with its payroll records. (Ord. BL2014-991 § 2, 2015; Ord. 97-723 § 1, 1997; Ord. 92-210 § 1 (5-503), 1992)

Metropolitan Code of Nashville and Davidson County § 4.20.100 Payroll records—Contractor responsibility.

4.20.100 - Payroll records—Contractor responsibility. A. Any person who may enter into any contractual agreement with the metropolitan government or any agency thereof for any public works or improvements shall, upon request, furnish the purchasing agent or the agency under whose jurisdiction such work is to be performed certified copies of payroll records, including employees' names, employees' addresses, hours worked, and rates paid, but excluding social security numbers which shall be deleted or redacted, and shall maintain and preserve such payroll records for the previous three hundred sixty-five days on an ongoing basis. Such records shall be open for inspection by the agency under whose jurisdiction the contract is to be performed. Contractors having more than one hundred total employees shall supply the requested documents within five working days of receipt of the request, and Contractors having fewer than one hundred total employees shall supply such documents within thirty days of receipt of the request. The purchasing agent or his designee may periodically examine the records required to be kept under this section. B. The purchasing agent is authorized to enter into a contract or contracts with qualified, independent firms to perform the necessary review and investigation to determine compliance with the provisions of this chapter as requested by the purchasing agent. This subsection is in no way intended to subject the metropolitan government to any provision of the federal Davis-Bacon Act. C. Public access to inspect and request reproductions of certified payroll records shall conform to relevant provisions of the Tennessee Public Records Act, Tennessee Code Annotated §§ 10-7-502, 503, 504, and 505. All such records made available to the public shall exclude Social Security numbers. Further redaction of information shall be limited to those exemptions specifically enumerated in the Tennessee Open Records Act or otherwise exempted by applicable law. D. All public requests to inspect certified payrolls must be fulfilled by the purchasing agent, or by the agency under whose jurisdiction such records were obtained, in accordance with the established policies and procedures of the metropolitan government pertaining to the inspection and copying of public records under the Tennessee Public Records Act. (Amdt. 1 to Ord. BL2014-991 § 3, 2015; Ord. BL2014-991 § 3, 2015; Amdt. 1 to Ord. BL2012-282 § 1, 2012; Ord. BL2012-282 § 1, 2012; Ord. 97-723 §§ 2, 3, 1997; Ord. 92-210 § 1 (5-504), 1992)

Metropolitan Code of Nashville and Davidson County § 4.20.105 Utilization of apprentice, training, and certification programs—Employer information.

4.20.105 - Utilization of apprentice, training, and certification programs—Employer information. Any person who may enter into any contractual agreement with the metropolitan government or agency thereof for any public works or improvements shall furnish the purchasing agent or the agency under whose jurisdiction such work is to be performed with the following information: A. The extent of the employer's utilization of federally registered apprenticeship programs; B. The extent of the employer's utilization of MC3 and MCCR training curriculum; C. Number of OSHA 10-certified and OSHA 30-certified individuals on project; D. Number of OSHA 100-certified individuals on project; E. Percentage of employees on project covered by health benefits offered by the employer; and F. Percentage of employees on project covered by workers' compensation by employer. (Ord. BL2019-1731 § 3, 2019)

Metropolitan Code of Nashville and Davidson County § 4.20.110 Violation of Title 4 provisions—Penalty.

4.20.110 - Violation of Title 4 provisions—Penalty. Each day that each employee is not paid in accordance with the provisions of this chapter shall constitute a separate offense. Any contractor found to have violated any provision hereof shall be disqualified from contracting with the government for a period of six months and, upon a second conviction shall be disqualified for a period of one year, and a third conviction, for a period of three years. Furthermore, the particular agency of the metropolitan government which awarded the contract may advertise the work and relet the contract in the same manner as the original letting. (Ord. 95-1329 § 4, 1995; Ord. 92-210 § 1 (5-505), 1992)

Metropolitan Code of Nashville and Davidson County § 4.20.120 Effect of federal action on wage determinations.

4.20.120 - Effect of federal action on wage determinations. A. The prevailing wage determination decisions shall be the only matter decided by the United States Department of Labor effecting the prevailing wages established under this title for building and construction projects of the metropolitan government. No action by the President of the United States suspending application of the Davis-Bacon Act to projects of the United States Government shall be interpreted to suspend any of the operations of this title. B. The metropolitan government, having only adopted the prevailing wage determination, shall in no way be subject to any provision of the Davis-Bacon Act. (Ord. 92-210 § 1 (5-506), 1992)

Metropolitan Code of Nashville and Davidson County § 4.20.130 Contract and compliance board.

4.20.130 - Contract and compliance board. A. There is established a contract and compliance board (the "board") related to construction contracts where the metropolitan government is a party with the following powers and duties to: 1. Meet, evaluate, and monitor compliance with existing construction contracts related to construction activities on projects by the metropolitan government; 2. Review construction sites if such review is in connection with the evaluation of existing construction contracts; 3. Provide recommendations for the scope of safety plans for construction project procurement such as (a) types and size of projects, (b) whether safety plans should be required as part of the procurement process, and (c) other relevant issues related to safety plans. These suggestions should be submitted to the purchasing agent and the metropolitan council no later than July 1, 2025. This deadline may be extended by a resolution of the metropolitan council; 4. Provide recommendations related to contractor payment application requirements, including whether such requirements should be required in the metropolitan code of laws. These recommendations should be submitted to the purchasing agent and the metropolitan council no later than July 1, 2025. This deadline may be extended by a resolution of the metropolitan council; 5. Study best practices on public construction worksites and provide recommendations concerning improvements in worksite safety on Metropolitan Government construction worksites; and 6. Create subcommittees related the performance of these duties, including subcommittees comprised of representatives of relevant metropolitan departments. 7. Confer with metropolitan government construction safety specialists employed pursuant to this section in connection with any accident reported to such specialists and measures taken to prevent the occurrence of similar accidents. 8. Make recommendations to the Department of Finance for policies and practices regarding construction contracts; and 9. Accept and investigate complaints related to existing construction contracts wherein the metropolitan government is a party and related to the relevant construction sites. B. The mayor, in consultation with the board, shall appoint an executive director of the board. The chair of the board, at the direction of the board, may be present at interviews for the hiring of an executive director. C. The executive director may employ staff, including construction safety specialists, necessary to carry out the powers and duties of the board. All staff shall be subject to the civil service provisions of the metropolitan charter. The construction safety specialists shall be qualified by education, training, and experience in the field of construction worksite safety. Such construction safety specialists shall provide advice and assistance to all departments and agencies of the Metropolitan Government on recommended construction safety practices. The executive director, upon approval of the board, may hire consultants or experts in the construction industry to assist with the work of the board. D. The board shall consist of seven voting members and one non-voting member who each serve a term of two years. The membership shall be as follows: 1. Two members shall be appointed by the mayor and confirmed by the metropolitan council. At least one member appointed by the mayor shall have experience in the enforcement of occupational safety and health standards and construction labor and material payment protocols; 2. One member shall be a representative of labor appointed by the mayor and confirmed by the council; 3. One member shall be a contractor licensed by the State of Tennessee, in good standing, appointed by the mayor and confirmed by the council; 4. One member shall be the purchasing agent, or their designee; 5. Two members shall be elected by a majority vote of the whole membership of the metropolitan council; 6. One member shall be a council member who shall serve in a nonvoting capacity. This council member shall be elected by the metropolitan council. In no event shall the term of the council member extend beyond the council term in which they were elected. This member shall not count toward quorum for the board. E. To the extent a complaint submitted to the board is for an alleged violation of the terms of the contract, complaints shall be investigated by the board and its staff. Complaints for an alleged violation of federal or state law, including health and safety violations, shall be referred to the appropriate federal or state authority. F. The board shall submit to the metropolitan council annual reports compiling relevant anonymized accident and injury safety data from metropolitan government construction projects, utilizing data received by construction safety specialists. G. Nothing in this section shall be construed to conflict with the Metropolitan Charter or other provisions of the Metropolitan Code of Laws governing the authority of the purchasing agent. (Ord. BL2024-375 § 1, 2024)

Metropolitan Code of Nashville and Davidson County § 4.20.140 Reserved.

Source: Metropolitan Government of Nashville and Davidson County, Metropolitan Code and Charter (Municode Library, library.municode.com)URL: https://library.municode.com/tn/metro_government_of_nashville_and_davidson_county/codes/code_of_ordinances?nodeId=CD_TIT4PRCO_CH4.20PRCOCOFetched: 10/28/2026