SB175 Alabama 2016 Session

Summary

Primary Sponsor

Gerald H. AllenSenator

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

SB175 raises the maximum bid guarantee for Department of Transportation public works contracts from $10,000 to $50,000.

What This Bill Does

If the Department of Transportation awards the project, bidders must still provide a bid guarantee (cashier's check or bid bond) equal to at least 5% of the bid, but the cap on that guarantee rises from $10,000 to $50,000. The increase applies to DOT-funded contracts and related highway projects, including those involving county funding, and the guarantee is payable to the awarding authority. The change takes effect immediately after the governor signs the bill into law.

Who It Affects

• Contractors bidding on Department of Transportation public works projects (and related county-funded highway projects): must provide a bid guarantee up to a maximum of $50,000, instead of $10,000.
• The Department of Transportation and local counties that award these DOT-funded contracts: will implement and require the higher bid guarantee amount when awarding contracts.

Key Provisions

• Increase the bid guarantee cap for DOT-awarded contracts from $10,000 to $50,000.
• Bid guarantees must be a cashier's check or a bid bond payable to the awarding authority, for at least 5% of the bid.
• Scope includes contracts funded by DOT or counties for highways/roads/bridges as described in the statute.
• Effective immediately upon the governor's approval (enactment).

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