HB510 Alabama 2017 Session

Summary

Primary Sponsor

Nathaniel LedbetterRepresentative

Republican

Session

Regular Session 2017

Title

Competitive bids on public improvement projects, bid guarantee, amount increased for Transportation Dept. only, technical correction to prior amendment by Act 2016-260, retroactive, Sec. 39-2-4 am'd.

Summary

HB510 fixes a technical error by restoring the previous bid guarantee limit for state agencies other than the DOT and applies the change retroactively to May 3, 2016.

What This Bill Does

It amends Section 39-2-4 to revert the bid guarantee limit for non-DOT state agencies to the prior level, while keeping DOT's cap at $50,000. It requires bidders to provide a bid guarantee (cashier's check or bid bond) of at least 5% of the estimated cost or bid, with the applicable cap for non-DOT agencies. The bill also corrects language from SB 175 to match its title and makes the correction retroactive to May 3, 2016.

Who It Affects

• State agencies other than the Department of Transportation, whose bid guarantee limit would be restored to the prior level, affecting how much bidders must provide.
• Bidders/contractors bidding on public improvement contracts with those state agencies, who must supply a bid guarantee meeting the 5% minimum and the applicable cap (retroactively effective).

Key Provisions

• Restores the prior bid guarantee limit for state agencies other than the Department of Transportation.
• DOT's bid guarantee cap remains at $50,000.
• Bid guarantees may be paid by cashier's check or bid bond and must be at least 5% of the awarding authority's estimated cost or the contractor's bid, subject to the cap.
• Provides retroactive effect to May 3, 2016 and clarifies language to align with SB 175's intent.

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

Subjects

Transportation Department