HB40 Alabama 2017 Session

Summary

Primary Sponsor

Jim HillRepresentative

Republican

Session

Regular Session 2017

Title

Public works projects, bidding preference for local contractors, authorized, Sec. 39-2-6 am'd.

Summary

HB40 would give counties and municipalities in Alabama a local bidding preference for public works, allowing a local contractor within the project county to win if their bid is within 5% of the lowest bid and they are responsible and responsive.

What This Bill Does

It amends Section 39-2-6 to let a county or municipality award a public works contract to a local bidder whose principal place of business is in the project’s county, provided the bidder is responsible and responsive and the bid is no more than 5% higher than the lowest bid. This local preference applies despite the general rule that contracts go to the lowest responsible and responsive bidder. The local-bid option is limited to local contractors, and the awarding authority must still rely on the definitions of responsibility and responsiveness when evaluating bids. The act becomes effective on the first day of the third month after its passage and governor approval.

Who It Affects

• Local contractors in the project’s county who bid on public works projects and are deemed responsible and responsive; they could win contracts if their bid is within 5% of the lowest bid.
• Counties, municipalities, and their instrumentalities that issue public works contracts; they gain the option to award to a local bidder within the 5% threshold instead of always selecting the absolute lowest bid.

Key Provisions

• Allows awarding a public works contract to a bidder whose principal place of business is within the county where the project is located, if the bidder is responsible and responsive and the bid is no more than five percent greater than the lowest responsible bid.
• The local preference applies notwithstanding the general requirement to award to the lowest bidder, effectively giving priority to local bidders within the 5% margin.
• The local bidder must still meet existing definitions of 'responsible' and 'responsive' as used in the bidding process.
• Effective date: the act becomes law on the first day of the third month following its passage and the governor's approval.

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

Subjects

Public Works