HB187 Alabama 2016 Session

Summary

Primary Sponsor

Nathaniel LedbetterRepresentative

Republican

Session

Regular Session 2016

Title

Competitive bids, public works Transportation Department and other agencies, increase the bid guarantee if Dept. of Transportation is awarding authority, Secs. 23-1-2, 39-2-4 am'd.

Summary

HB187 would raise the maximum bid guarantee for Department of Transportation public works bids from $10,000 to $50,000 while keeping the 5% minimum intact.

What This Bill Does

If enacted, bidders on DOT public works projects would still need a bid guarantee (cashier's check or bid bond) equal to at least 5% of their bid, but the cap would be $50,000 instead of $10,000. This applies specifically when the DOT is the awarding authority; other awarding authorities would keep the current rules. The changes are made by amending Sections 23-1-2 and 39-2-4 of the Alabama Code.

Who It Affects

• Bidders on Department of Transportation public works projects: must provide a bid guarantee of at least 5% of the bid, up to a maximum of $50,000.
• Department of Transportation and other awarding authorities: DOT projects gain a higher guarantee cap; other authorities' limits stay as currently written.

Key Provisions

• Amends Section 23-1-2 to require a bid guaranty for DOT projects of at least 5% of the bid but not more than $50,000 (increases the prior cap of $10,000).
• Amends Section 39-2-4 to require a bid guaranty (cashier's check or bid bond) for DOT projects of at least 5% of the estimated cost or bid, not exceeding $50,000 (instead of $10,000).

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Competitive Bids