# Title 48 — Public Buildings

## Chapter 48-12 — Competition in Governmental Construction Contracts

### § 48-12-01. Definitions.

As used in this chapter:
1. "Facility" means a physical improvement to real property owned or leased, directly or
through a building authority, by a governmental unit, including a road, bridge, runway,
rails, or building or structure along with the building's or structure's grounds,
approaches, services, and appurtenances.
2. "Governmental unit" means the state or a political subdivision.
### § 48-12-02. Prohibited labor organization terms in construction contract clauses.

A governmental unit awarding a contract for the construction, repair, remodeling, or
demolition of a facility and any construction manager acting on that governmental unit's behalf
may not include any of the following in the bid specifications, project agreements, or other
controlling documents:
1. A term that requires or prohibits a bidder, an offeror, a contractor, or a subcontractor
from entering or adhering to agreements with one or more labor organizations relating
to the construction project or a related construction project; or
2. A term that otherwise discriminates against a bidder, an offeror, a contractor, or a
subcontractor for becoming, remaining, or refusing to become or remain a signatory to
or for adhering to or refusing to adhere to an agreement with one or more labor
organizations in regard to that project or a related construction project.
### § 48-12-03. Prohibited labor organization terms in a grant, tax abatement, and tax

credit.
1. A governmental unit may not award a grant, tax abatement, or tax credit that is
conditioned upon a requirement that the awardee include a term prohibited under
section 48-12-02 in a contract document for any construction, improvement,
maintenance, or renovation of real property or fixtures that are the subject of the grant,
tax abatement, or tax credit.
2. This chapter does not prohibit a governmental unit from awarding a contract, grant, tax
abatement, or tax credit to a private owner, bidder, contractor, or subcontractor that
enters, is a party to, or adheres to an agreement with a labor organization, if:
a. Being or becoming a party or adhering to an agreement with a labor organization
is not a condition for the award of the contract, grant, tax abatement, or tax credit;
and
b. The governmental unit does not discriminate against a private owner, bidder,
contractor, or subcontractor in the awarding of that contract, grant, tax abatement,
or tax credit based upon the status as being or becoming, or the willingness or
refusal to become, a party to an agreement with a labor organization.
3. This chapter does not prohibit a contractor or subcontractor from voluntarily entering or
complying with an agreement entered with one or more labor organizations in regard
to a contract with a governmental unit or a contract funded in whole or in part from a
grant, tax abatement, or tax credit from a governmental unit.
### § 48-12-04. Exemptions.

The head of a governmental unit may exempt a particular project, contract, subcontract,
grant, tax abatement, or tax credit from the requirements of any or all of the provisions in this
chapter if after public notice and hearing the governmental unit finds special circumstances
require an exemption to avert an imminent threat to public health or safety. A finding of special
circumstances under this section may not be based on the possibility or presence of a labor
dispute concerning:
1. The use of contractors or subcontractors that are nonsignatories to or otherwise do not
adhere to agreements with one or more labor organizations; or

2. Employees on the project who are not members of or affiliated with a labor
organization.
### § 48-12-05. Limitations.

This chapter may not be construed to:
1. Prohibit an employer or other party from entering an agreement or engaging in any
other activity protected by the National Labor Relations Act [29 U.S.C. 151 et seq.]; or
2. Interfere with labor relations of a party which are left unregulated under the National
Labor Relations Act [29 U.S.C. 151 et seq.].
