- 5 -
B. Petitioner's Business Activity
From 1985 through the years at issue, petitioner's primary
business activity was sewer, water, and road construction
(highway and heavy construction). Because of the seasonal nature
of the construction work performed by the company, petitioner
also performed contract logging in the winter months. The
logging operation complimented petitioner's construction business
because petitioner could use its trucks and equipment during the
winter months. This seasonal operation kept many of petitioner's
construction employees working throughout the winter months.
Petitioner also owned and operated property for storage of logs
and construction materials and owned and operated sand and gravel
pits.
Petitioner was required to submit competitive bids for
highway and heavy construction contracts. Petitioner submitted
detailed information in the bids that included fixed costs for
materials and subcontractors in addition to petitioner's
projected costs for its labor, supplies, and bond costs. After
the bids were submitted, the requesting agency selected the
lowest bid and awarded the contract.
In order to submit a bid for construction projects,
petitioner was required by law to show that it had obtained the
required performance and payment bonds issued by an approved
bonding company. Performance and payment bonds protect the owner
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011