27-1-520. Action against successful bidder -- failure to pay standard prevailing wages or unemployment insurance or to carry workers' compensation insurance. A person who loses a competitive bid on a construction contract may maintain an action for damages against a successful bidder if the successful bidder does not pay standard prevailing wages on a contract where payment of the standard prevailing wage rate is required by Title 18, chapter 2, part 4, does not contribute to the state unemployment insurance fund, as required by 39-51-1103, or does not pay workers' compensation premiums, as required by 39-71-401. If the bids are sealed or for any other reason kept confidential, the person who solicited the bids shall, on request by a bidder who indicates an intent to sue under this section, inform the bidder of the identity of the next lowest valid bidder after the successful bidder. Upon proof that payment by the successful bidder of standard prevailing wages, workers' compensation premiums, and contributions to the state unemployment insurance fund for the job would have increased the successful bidder's bid amount in excess of the plaintiff's bid, the plaintiff may recover damages. The measure of damages is the same as provided in 27-1-311, except that the total amount assessed against the successful bidder by all litigants may not exceed 10% of the successful bidder's bid.
History: En. Sec. 1, Ch. 478, L. 1991.
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