A contractor's net worth, as reflected on his financial statement, multiplied by 4 shall be the basis for ascertaining the bid classification which shall apply to each general engineering or general building contractor. Such contractor may contract within the maximum amount of his maximum bid classification. In other words, if a contractor's net worth is $12,000 and is multiplied by 4, giving a total of $48,000, he may contract within the $75,000 maximum bid classification.
The money amount for classes 2, 3 and 4 shall be the total of all goods and services supplied by contractor pursuant to contract with other persons. The money amounts for classes 2, 3, and 4 is the maximum amount for the respective contractors, and contractor shall add the amounts of all work currently engaged in to ascertain if he is still within the maximum amount allowed. For work in progress contractor shall add the balance remaining on such work with any new work when obtaining a total. In this context, the protection of the contractor's creditors is of utmost importance and the administrator may demand full and complete financial records of the relevant work then in progress and shall have full and complete discretion in setting the amount of the balance of work then in progress. The administrator's decision shall be final. In addition, the administrator may disapprove of any contract in excess of the net worth of the contractor multiplied by 4 if, in the opinion of the administrator, the contractor is not financially responsible for such additional amount. Since such a decision necessarily involves a value judgment based upon consideration of business acumen of the contractor, trustworthiness, monetary integrity , and the competence of contractor's employees, such decision by the administrator may be appealed only to the board, and the board's decision shall be final, and no appeal shall lie whatsoever beyond the board.History: Contractors Lic. Bd. Reg. 2.03, eff 12 Feb 73.