Tuesday, April 08, 2008

PUBLIC CONSTRUCTION LAW

Whenever the cost of a public work project will be:

(1) At least $75,000 in:
a. A consolidated city or second class city; or

(2) At least $50,000 in any other city or town:

The board shall prepare general plans and specifications describing the kind of public work required, but shall avoid specifications which might unduly limit competition. IC 36-1-12-4 (b) and (1).

The board shall file the plans and specifications in a place reasonably accessible to the public, which shall be specified in the notice required IC 36-1-12-4 (b)-(2) All plans and specifications for public buildings must be approved by the State Department of Health, the
Division of Fire and Building Safety, and other state agencies designated by statute. IC 36-1-12-10

Upon filing of the plans and specifications, the board shall publish a notice two times, at least one week apart, with the second publication made at least seven days before the date the bids will be received, calling for sealed proposals for public work. IC 36-1-12-4 (b)-(3).

The period of time between the date of the first publication and the date of receiving bids may not be more than six weeks IC 36-1-12-4 (b)-(5).

A bond or certified check shall be filed with each bid by a bidder in amount specified by the board. The amount may not be more than 10% of the contract price. The bond or certified check shall be made payable to the political subdivision. All checks of unsuccessful bidders shall be returned to them by the board upon selection of successful bidders. Checks of successful bidders shall be held until delivery of a performance bond. IC 36-1-12-4.5

There are additional requirements for projects over one hundred thousand dollars ($100,000), such as the procurement of a payment bond and retainage. In all projects which are under the bid thresholds mentioned in the first paragraph, the board could solicit bids for such projects.

If a board does not solicit bids, then the board shall invite quotes by mail from at least three (3) persons known to deal in the class of work proposed to be done.