INTERSTATE 80 PROGRESSIVE DESIGN-BUILD PROJECT ACT

[Rev. 4/15/2026 5:01:37 PM--2025]

Chapter 86, Statutes of Nevada 2025

AN ACT relating to transportation; authorizing the Department of Transportation to enter into a progressive design-build contract for a certain project; and providing other matters properly relating thereto.

[Approved: May 28, 2025]

(Leadlines for sections have been supplied by the Legislative Counsel of the State of Nevada)

The People of the State of Nevada, represented in Senate and Assembly, do enact as follows:

Section 1. Definitions. As used in sections 1 to 14, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 2 to 7, inclusive, of this act have the meanings ascribed to them in those sections.

(Ch. 86, Stats. 2025 p. 449)

Sec. 2. “Department” defined. “Department” means the Department of Transportation.

(Ch. 86, Stats. 2025 p. 450)

Sec. 3. “Preconstruction services” defined. “Preconstruction services” means services performed before and leading up to construction. The term includes, without limitation:

1. A portion or all of the preliminary, advanced or final design;

2. Assisting the Department with:

(a) The environmental review process;

(b) The process for obtaining permits; and

(c) Determining whether any scheduling or constructability problems exist that would delay or impact construction or increase the price of the project, or portions of the project;

3. Estimating the cost of the project, or portions of the project, including, without limitation, labor, materials and equipment, and determining whether the project, or portions of the project, can be constructed within the budget of the Department;

4. Conducting due diligence and investigations of sites; and

5. Undertaking preliminary construction work approved by the Department.

(Ch. 86, Stats. 2025 p. 450)

Sec. 4. “Prime contractor” defined. “Prime contractor” means a person who:

1. Enters into one or more contracts to design and construct the project, or a portion thereof;

2. Coordinates work performed on the project;

3. Uses its own workforce to perform all, or a portion, of the design and construction of the project; and

4. Enters into one or more contracts for the services of a subcontractor, supplier or independent contractor on the project or is responsible for making payments to subcontractors, suppliers or independent contractors on the project.

(Ch. 86, Stats. 2025 p. 450)

Sec. 5. “Progressive design-build” defined. “Progressive design-build” means a procurement method in which the Department selects a progressive design-build team, in one or more steps, to enter into a contract with the Department to perform preconstruction services that may progress to the completion of the final design and construction of the project, or a portion thereof, upon negotiation and approval by the Department of a price and other terms and conditions.

(Ch. 86, Stats. 2025 p. 450)

Sec. 6. “Progressive design-build team” defined. “Progressive design-build team” means a team that consists of:

1. At least one person who is licensed as a general engineering contractor or a general building contractor pursuant to chapter 624 of NRS.

2. At least one person who holds a certificate of registration to practice architecture pursuant to chapter 623 of NRS or is licensed as a professional engineer pursuant to chapter 625 of NRS.

(Ch. 86, Stats. 2025 p. 450)

Sec. 7. “Project” defined. “Project” means the project for which the Department is authorized to enter into a contract with a progressive design-build team pursuant to section 8 of this act.

(Ch. 86, Stats. 2025 p. 450)

Sec. 8. Authority to enter contracts for carrying out project. Notwithstanding any other provision of law, the Department may enter into one or more contracts for carrying out the project consisting of improvements to Interstate 80 East between Vista Boulevard in Sparks, Nevada, and USA Parkway (State Route 439) in Storey County, Nevada, by:

1. Selecting a progressive design-build team pursuant to section 10 of this act; and

2. Entering into a single contract or separate contracts with the progressive design-build team:

(a) For preconstruction services.

(b) Except as otherwise provided in section 11 of this act, for the final design and construction of the project.

(Ch. 86, Stats. 2025 p. 450)

Sec. 9. Advertisement of solicitation for progressive design-build team.

1. The Department shall advertise a solicitation for a progressive design-build team for the project on the Internet website of the Department.

2. A solicitation advertised pursuant to subsection 1 must include, without limitation:

(a) A description of the project;

(b) An estimate of the cost to construct the project;

(d) The estimated date of completion of the construction work on the project;

(e) The date by which proposals in a one-step procurement process, or a statement of qualifications in a two-step procurement process, must be submitted to the Department;

(f) A statement setting forth the requirement that the prime contractor be qualified to bid on a public work pursuant to NRS 338.1379;

(g) A statement setting forth the requirement that the members of the progressive design-build team possess the licenses and certificates necessary to carry out their respective functions in this State;

(h) A list of the factors and relative weight assigned to each factor that the Department will use to evaluate the progressive design-build teams who submit their proposals or qualifications for the project; and

(i) Notice that a progressive design-build team desiring to submit its proposal in a one-step procurement process, or its statement of qualifications in a two-step procurement process, for the project must include with its submission the information used by the Department to evaluate the submissions of the applicants pursuant to section 10 of this act.

(Ch. 86, Stats. 2025 p. 451)

Sec. 10. Preparation and issuance of request for proposals and, if applicable, request for qualifications; review and evaluation of submissions; procedure for negotiation and award of contract for preconstruction services.

1. The Department shall prepare and issue:

(a) In a one-step procurement process, a request for proposals containing the elements described in subsections 2, 3 and 4; or

(b) In a two-step procurement process, a request for qualifications containing the elements described in subsections 2 and 3 followed by a request for proposals containing the elements described in subsection 4.

2. The eligibility requirements that must be demonstrated by applicants include, without limitation:

(a) Evidence of the ability of the applicant to obtain necessary bonding for the work required by the Department to be performed;

(b) Evidence of the ability of the applicant to obtain such insurance as may be required by law, including, without limitation, evidence of the ability of any member of the progressive design-build team who is licensed as a professional engineer pursuant to chapter 625 of NRS to obtain professional liability insurance in an amount not to exceed $1,000,000 in the aggregate;

(d) Evidence that the members of the progressive design-build team possess the licenses and certificates necessary to carry out their functions in this State; and

(e) A statement of whether the applicant has been:

(1) Found liable for breach of contract with respect to a previous project, other than a breach of contract for a legitimate cause, during the 5 years immediately preceding the date on which the solicitation was advertised pursuant to section 9 of this act; and

(2) Disqualified from being awarded a contract pursuant to NRS 338.017, 338.13895, 338.1475 or 408.333.

3. The qualification requirements must set forth:

(a) The factors that the Department will use to qualify a progressive design-build team, including, without limitation, the relative weight to be assigned to each factor. Such factors may include, without limitation:

(1) The professional qualifications and experience of the applicant; and

(2) The performance history of the members of the progressive design-build team concerning other recent, similar projects completed by those members, if any.

(b) The date by which statements of qualifications must be submitted to the Department.

4. The request for proposals must set forth:

(a) The factors that the Department will use to select a progressive design-build team, including, without limitation, the relative weight to be assigned to each factor. Such factors may include, without limitation:

(1) The professional qualifications and experience of the applicant;

(2) The performance history of the members of the progressive design-build team concerning other recent, similar projects completed by those members, if any;

(3) The proposed plan to manage and carry out the preconstruction phase of the project;

(4) The proposed plan to manage and carry out the final design and construction phase of the project;

(5) The proposed conceptual and technical approach to the project;

(6) The proposed approach to pricing and estimating the cost of the final design and construction of the project, which must comply with NRS 625.530; and

(7) Cost information, which must be prepared in compliance with NRS 625.530.

(b) The date by which the proposals must be submitted to the Department.

5. After the deadline for submission of a statement of qualifications or proposals, the Department shall review the submissions. The Department may evaluate submissions based solely upon the information provided in the statement of qualifications or proposals of each applicant. After review of the submissions, the Department may interview some or all of the applicants to further evaluate which applicant offers the best value for the project.

6. For each request for qualifications or proposals, the Department shall rank the applicants and generate a final list of eligible applicants that participated in the request for qualifications or proposals before entering into negotiations for one or more contracts to which the request for qualifications or proposals applies. The ranking of the statements of qualifications or proposals must assign a relative weight of 5 percent to the possession by the applicant of a certificate of eligibility to receive a preference in bidding on public works if the applicant submits a signed affidavit that the applicant meets the requirements of subsection 1 of NRS 338.0117. If any federal statute or regulation precludes the granting of federal assistance or reduces the amount of that assistance for a particular public work because of the provisions of this subsection, the provisions of this subsection do not apply insofar as their application would preclude or reduce federal assistance.

7. If the Department issues a request for qualifications pursuant to this section, the Department must select at least two but not more than five applicants from the final list of eligible applicants who submitted statements of qualifications and send the selected applicants a request for proposals which includes the information contained in subsection 4.

8. If applicants are required to submit cost information with their proposals for the preconstruction phase of the project, the evaluation must be on a pass or fail basis or based on not more than 20 percent of the scoring, as the Department deems appropriate.

9. If the submissions in response to a request for proposals provide sufficient information to determine which eligible applicant has offered the best value to the public, the Department may enter into negotiations with that applicant concerning contract terms and award a contract for preconstruction services to that applicant. Such a contract must provide for the subsequent negotiations of terms governing the construction phase of the project. If the Department is unable to negotiate a satisfactory contract with that applicant for preconstruction services, the Department may undertake negotiations with a separate eligible applicant that participated in the request for proposals process.

10. Upon receipt of the final rankings of applicants, the Department shall enter into negotiations with the highest ranked applicant determined pursuant to the provisions of this section. If the Department is unable to negotiate a contract with the highest ranked applicant determined by the Department to be fair and reasonable, the Department may terminate or suspend negotiations with the highest ranked applicant. The Department may undertake negotiations with the next highest ranked applicant in sequence until an agreement is reached or until a determination is made by the Department to reject all applicants.

(Ch. 86, Stats. 2025 p. 451)

Sec. 11. Award of contract or amendment for final design and construction of project.

1. If the Department enters into a progressive design-build contract with a progressive design-build team pursuant to section 10 of this act, the Department may, after the progressive design-build team has progressed in the design for project, or any portion thereof, in a sufficient manner to determine the cost of the final design and construction of the project, enter into negotiations with the progressive design-build team for a contract or a contract amendment to complete final design and construction of the project, or any portion thereof.

2. The progressive design-build team shall develop its price, on a basis determined by the Department and using fully transparent, open-book pricing, to complete the design and construction of the project, or portion thereof.

3. If the Department is unable to negotiate a satisfactory contract or contract amendment with the progressive design-build team to complete the final design and construction of the project, or portion thereof, the Department shall terminate negotiations with that progressive design-build team and:

(a) May enter into a separate contract with a qualified person who was a member of the progressive design-build team to complete the design of the project, or portion thereof; or

(b) May undertake a new procurement and award the contract for the project pursuant to the provisions of NRS 408.327 to 408.387, inclusive, or 408.3875 to 408.3888, inclusive. If a new procurement is initiated, the Department may elect not to accept a bid to construct the project from the progressive design-build team with whom the Department entered into a progressive design-build contract for preconstruction services.

(Ch. 86, Stats. 2025 p. 453)

Sec. 12. Requirements for contract or amendment for final design and construction; duties.

1. A progressive design-build contract or contract amendment entered into by the Department with a progressive design-build team pursuant to section 11 of this act must:

(a) Comply with the provisions of NRS 338.013 to 338.090, inclusive; and

(b) Specify:

(1) An amount that is the maximum amount that the Department will pay for the performance of all the work required by the contract, excluding any amount related to costs that may be incurred as a result of unexpected conditions or occurrences or change orders as authorized by the contract;

(2) An amount that is the maximum amount that the Department will pay for the performance of the professional services required by the contract; and

(3) A date or duration by which performance of the work required by the contract must be completed.

2. The Department, the progressive design-build team, any contractor who is awarded a contract or enters into an agreement to perform work on the project and any subcontractor who performs work on the project shall comply with the provisions of NRS 338.013 to 338.090, inclusive, in the same manner as if the Department had undertaken the project or had awarded the contract.

3. A progressive design-build team to whom a progressive design-build contract is awarded pursuant to section 11 of this act shall:

(a) Assume overall responsibility for ensuring that the design and construction of the project is completed in a satisfactory manner; and

(b) Use the workforce of the prime contractor on the progressive design-build team to construct at least 30 percent of the project.

(Ch. 86, Stats. 2025 p. 454)

Sec. 12.5. Requirements for contract with design professional.

1. A contract entered into with a design professional pursuant to section 10 or 11 of this act for the provision of services for the project:

(a) Must set forth:

(1) The specific period within which the prime contractor must pay the design professional.

(2) The specific period and manner in which the prime contractor may dispute a payment or portion thereof that the design professional alleges is due.

(3) The terms of any penalty that will be imposed upon the prime contractor if the prime contractor fails to pay the design professional within the specific period set forth in the contract pursuant to subparagraph (1).

(4) That the prevailing party in an action to enforce the contract is entitled to reasonable attorney’s fees and costs.

(b) May set forth the terms of any discount that the prime contractor will receive if the prime contractor pays the design professional within the specific period set forth in the contract pursuant to subparagraph (1) of paragraph (a).

(c) May set forth the terms by which the design professional agrees to name the prime contractor, at the cost of the prime contractor, as an additional insured in an insurance policy held by the design professional, if the policy allows such an addition.

(d) Must not require the design professional to defend, indemnify or hold harmless the prime contractor or the employees, officers or agents of that prime contractor from any liability, damage, loss, claim, action or proceeding caused by the negligence, errors, omissions, recklessness or intentional misconduct of the employees, officers or agents of the prime contractor.

(e) May require the design professional to indemnify and hold harmless the prime contractor, and the employees, officers and agents of the prime contractor from any liabilities, damages, losses, claims, actions or proceedings, including, without limitation, reasonable attorneys’ fees and costs, to the extent that such liabilities, damages, losses, claims, actions or proceedings are caused by the negligence, errors, omissions, recklessness or intentional misconduct of the design professional or the employees or agents of the design professional in the performance of the contract.

(f) Must not require the design professional to defend the prime contractor and the employees, officers and agents of the prime contractor with respect to the liabilities, damages, losses, claims, actions or proceedings caused by the negligence, errors, omissions, recklessness or intentional misconduct of the design professional or the employees or agents of the design professional which are based upon or arising out of the professional services of the design professional. If the design professional is adjudicated to be liable by a trier of fact, the trier of fact shall award reasonable attorney’s fees and costs to be paid to the prime contractor, as reimbursement for the attorney’s fees and costs incurred by the prime contractor in defending the action, by the design professional in an amount which is proportionate to the liability of the design professional.

(g) May require the design professional to defend the prime contractor and the employees, officers and agents of the prime contractor with respect to the liabilities, damages, losses, claims, actions or proceedings caused by the negligence, errors, omissions, recklessness or intentional misconduct of the design professional or the employees or agents of the design professional which are not based upon or arising out of the professional services of the design professional.

2. Any provision of a contract entered into by a prime contractor and a design professional pursuant to this act that conflicts with the provisions of paragraph (d), (e), (f) or (g) of subsection 1 is void.

3. As used in this section:

(a) “Agent” means a person who is directly involved in and acting on behalf of the prime contractor or the design professional, as applicable, in furtherance of the contract or the project.

(b) “Design professional” has the meaning ascribed to it in NRS 338.010.

(Ch. 86, Stats. 2025 p. 454)

Sec. 13. Confidentiality and disclosure of documents submitted to Department.

1. Any document or other information submitted to the Department pursuant to section 10 of this act by a person who is a member of a progressive design-build team is confidential and may not be disclosed until notice of intent to award the progressive design-build contract is issued.

2. Any document or other information submitted to the Department during the negotiations of the contract or contract amendment for the final design and construction of the project pursuant to section 11 of this act by a person who is a member of a progressive design-build team is confidential and may not be disclosed until execution of the contract or contract amendment.

3. The Department shall not release to a third party, or otherwise make public, financial or proprietary information submitted by a progressive design-build team.

4. The disclosure of any document or other information after the time periods set forth in subsection 1 or 2, as applicable, are subject to the protections regarding confidentiality set forth in chapter 239 of NRS.

5. As used in this section, “document or other information”:

(a) Means any submittal by a person who is a member of a progressive design-build team to the Department in response to a progressive design-build project initiated pursuant to section 10 of this act.

(b) Includes, without limitation, any or all of the following:

(1) A proposal made pursuant to section 10 of this act.

(2) A statement that the applicant satisfies the requirements of subsection 2 of section 10 of this act.

(3) Any information provided to the Department during negotiation of a contract or contract amendment for the final design and construction of the project pursuant to section 11 of this act.

(Ch. 86, Stats. 2025 p. 456)

Sec. 14. Employment of architect or engineer as consultant. The Department may employ a person who holds a certificate of registration to practice architecture pursuant to chapter 623 of NRS or is licensed as a professional engineer pursuant to chapter 625 of NRS as a consultant to assist the Department in overseeing the preconstruction and construction of the project. An architect or engineer so employed shall not:

1. Perform any of the construction, reconstruction or improvement work on the project; or

2. Assume overall responsibility for ensuring that the construction of the project is completed in a satisfactory manner.

(Ch. 86, Stats. 2025 p. 456)