CHAPTER 320

EMPLOYERS AND EMPLOYEES RELATING TO SUBCONTRACTORS

AN ACT TO AMEND CHAPTER 90 OF THE REVISED CODE OF DELAWARE, 1935, ENTITLED "EMPLOYERS AND EMPLOYEES," RELATIVE TO THE NAMES AND ADDRESSES OF SUBCONTRACTORS, THEIR QUALIFICATIONS, SUBSTITUTION THEREOF, AND PENALTIES FOR FAILURE TO UTILIZE THE SAME.

Be it enacted by the Senate and House of Representatives of the State of Delaware in General Assembly met:

Section 1. That Chapter 90 of the Revised Code of Delaware, 1935, be and the same is hereby amended by striking out and repealing all of 3647. Sec. 57. thereof, and by substituting in lieu thereof a new Section, to be known and designated as 3647. Sec. 57., as follows:

3647. Sec. 57. CONTRACTS IN EXCESS OF FIVE THOUSAND DOLLARS; NAMES AND ADDRESSES OF SUBCONTRACTORS; QUALIFICATIONS; SUBSTITUTIONS THEREOF; PENALTIES FOR FAILURE TO UTILIZE THE SAME:--Any contract exceeding Five Thousand Dollars in amount for the construction, alteration or repair of any public building of the State of Delaware, or any political subdivision thereof, shall be awarded to those bidders only whose bids are accompanied by a statement containing the names and addresses of the subcontractors whose services such bidder intends to use in performing the work.

It shall be unlawful for any such bidder to list himself, itself or themselves, as the case may be, in any such accompanying statement as the subcontractor of any part of such public work unless such bidder, in addition to being licensed as general contractor of the State, shall also be recognized in the trade and licensed by the State as a subcontractor in and for any such part or parts of such public work so listed in such accompanying statement. Further, it shall be unlawful for the State, or any officer, agency, department or political subdivision thereof, to accept any bid or award any contract for any such public work unto any such bidder, as the general contractor, in the event any such bidder shall have listed himself, itself or themselves, as the case may be, as the subcontractor of any specialty work required to complete such public work, such as plumbing, electrical, wiring, heating, roofing, insulating, weather stripping, masonry, brick laying, plastering, or any other specialty work, unless it shall have been established to the satisfaction of the officer, agency, department or political subdivision of the State charged with the letting of such public work (a) that such bidder has customarily performed such specialty work by artisans regularly employed by such bidder in his, it's or their organization; (b) that such bidder is duly licensed by the State to engage therein; and (c) that such bidder is recognized in the trade as a bona fide subcontractor in such specialty work.

After the contract for any such public work has been let unto any such bidder, thereafter it shall be unlawful for said bidder to substitute another sub-contractor for any subcontractor whose name is set forth in said bidder's accompanying statement, aforesaid, without the written consent and permission so to do having theretofore been given by the officer, agency, department or political subdivision of the State under whose jurisdiction such public work is being performed. No such express consent and permission so to do shall be given unless it shall be established to the satisfaction of such officer, agency, department or political subdivision, as the case may be, in good faith, that the subcontractor in question whose name is listed in the bidder's accompanying statement has defaulted in their performance of the part or parts of the work covered by his, it's or their subcontract, or is no longer engaged in such business.

All such contracts shall contain a provision for withholding from, or requiring the payment by, the general contractor of such penalties as shall be provided for therein for the failure to utilize any or all subcontractors set forth in the bidder's accompanying statement, aforesaid, in the performance of the public work contemplated by such contract. Any sums so withheld from or paid by the contractor for any such failure or failures may be remitted or refunded, in whole or in part, by the officer, agency, department or political subdivision of the State, as the case may be, charged with the letting of such public work, but only in the event it is established to the satisfaction of such officer, agency, department or political subdivision, in good faith, that the subcontractor in question has defaulted or is no longer engaged in such business, as aforesaid.

Section 2. That all Acts or parts of Acts inconsistent with this Act be and the same are hereby repealed to the extent of any such inconsistency only.

Approved June 5, 1951.