COVID-19 creates more competitive bidding for city construction projects (SD)

Posted by National Alliance for Fair Contracting on

Posted: May 11, 2020

SIOUX FALLS, S.D. (KELO) – It’s not business as usual for public construction projects but it isn’t poor business.
While the coronavirus pandemic is causing likely declines in local sales tax revenue, it’s also caused some lowering of prices for city street projects.

“The majority of our (bids) have come in at the estimates or below since COVID-19,” Mark Cotter, director of public works in Sioux Falls, said.

“With the bids coming in the last month, we’ve had more bidders and very competitive prices,” Cotter said. “It’s a great time for cities, states and counties for bidding on projects if they’ve got the resources (for projects).”

Increased competitive bidding has resulted in at least $1.6 million when approved bids are compared to original estimates in three major projects, which illustrates the benefits of more bidders.

Cotter said the construction project on 57th Street between Minnesota and Western was estimated to cost $2.07 million but the approved low bid was $1.7 million.

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Governor Newsom Signs Executive Order Regarding Workers’ Compensation Presumption For Certain COVID-19 Related Claims (CA)

Posted by National Alliance for Fair Contracting on

May 15, 2020

Under the California Workers’ Compensation Act (“the Act”), employers must carry workers’ compensation insurance for employee injuries or illnesses which “arise out of and in the course of” employment. The Act, first passed in 1911 and amended over the years by the Legislature, provides a comprehensive system for administering claims, including the provision of disability benefits and the payment for associated medical expenses for work-related injuries.

Now comes the COVID-19 pandemic and a panoply of emergency orders by governors across the country. On May 6, 2020, Governor Newsom signed Executive Order #N-62-20 which creates a presumption that any COVID-19-related illness of an employee shall be presumed to arise out of and in the course of the employment for purposes of awarding workers’ compensation benefits if certain conditions are met.
Those conditions include the following:

  1. The employee tested positive for or was diagnosed with COVID19 within 14 days after a day that the employee performed labor or services at the employee’s place of employment at the employer’s direction;
  2. The day referenced in subparagraph (a) on which the employee performed labor or services at the employee’s place of employment at the employer’s direction was on or after March 19, 2020;
  3. The employee’s place of employment referenced in subparagraphs (a) and (b) was not the employee’s home or residence; and
  4. Where subparagraph (a) is satisfied through a diagnosis of COVID-19, the diagnosis was done by a physician who holds a physician and surgeon license issued by the California Medical Board, and that diagnosis is confirmed by further testing within 30 days of the date of the diagnosis.

Thus, the Governor has taken the extraordinary step of presuming a workplace injury without specific evidence of job-causation. While the scope and legality of the new Executive Order may be subject to challenge, it is incumbent upon the California employer to review and enforce workplace safety, in all areas, and to specifically protect against the risk of employee exposure to a communicable disease, thereby avoiding added liability and costs associated with job illness or injury claims.

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