Construction Contracting Basic Legal Requirements Updated September 2013
a. Separate- (or Multi-) Prime – The local government accepts bids separately and
awards to the lowest responsive, responsible bidder for each category of work
(“branches or subdivisions”; see Step 1, 2 above) for which separate specifications
are required: (i) HVAC and cold storage with a cooling load of 15 tons or more; (ii)
plumbing and gas fittings; (iii) electrical; and (iv) all other general work. Additional
categories of work also can be contracted separately. Each contractor is directly
responsible to the local government and to other contractors for full performance of
his or her contract. [G.S. 143-128(b)]
b. Single-Prime – The local government accepts bids from general contractors for the
entire project and awards to the lowest responsive, responsible bidder, and the
general contractor contracts with subcontractors for branches or divisions of work
on the project. The bidders must identify on their bids the subcontractors for HVAC,
electrical, plumbing, and general work. Once the contract is awarded, the general
contractor is directly responsible to the local government, and subcontractors are
directly responsible to the general contractor. The winning contractor cannot
substitute subcontractors unless (i) the contractor determines that a subcontractor’s
bid is nonresponsive or nonresponsible; (ii) a subcontractor refuses to enter into the
contract; or (iii) with approval by the local government if the contractor shows good
cause for the substitution. [G.S. 143-128(d)]
c. Dual bidding (both Separate- and Single-Prime)
– The local government may
choose to accept both separate-prime and single-prime bids for the same project,
and then award the contract to the lowest responsive, responsible bidder in either
category. In determining whether to award on a separate-prime or single-prime
basis, the local government may consider the costs of construction oversight, time
for completion, and other factors it deems appropriate. Separate-prime bids must
be received – but not opened – one hour before the deadline for single-prime bids.
A separate-prime bidder cannot underbid his bid to a single-prime contractor. For
projects in the formal bidding range ($500,000 or more), in counting bids to
determine if the 3-bid minimum requirement for opening has been met, each single-
prime bid counts as one bid, and each full set of separate prime bids in the 4
branches or divisions specification categories counts as one bid. If 3 single-prime
bids are received but a full set of separate-prime bids is not, no separate-prime bids
can be opened. [G.S. 143-128(d1), G.S. 143-132]
d. Construction Management at Risk (CM@R) – Under a construction management at
risk contract, the construction manager, who must be a licensed general contractor,
provides construction management services such as preparing and coordinating bid
packages and construction administration, and guarantees the cost of the project.
The construction manager at risk acts as the fiduciary of the local government in
Technically speaking, dual bidding is not a contracting method, but rather a bidding method.