HB168 Alabama 2023 Session

Summary

Primary Sponsor

Kerry UnderwoodRepresentative

Republican

Session

Regular Session 2023

Title

Relating to public works contracts; to amend Sections 39-1-1, 39-2-1, 39-2-2, and 39-2-6, Code of Alabama 1975, to increase the threshold dollar amount for which competitive bidding is generally required; to further provide for certain notice procedures; to authorize the publication of notice by electronic means; to authorize the use of electronic sealed bids; and in connection therewith would have as its purpose or effect the requirement of a new or increased expenditure of local funds within the meaning of Section 111.05 of the Constitution of Alabama of 2022.

Summary

HB168 raises bidding thresholds for public works, adds electronic bidding and notice options, strengthens bonding, and introduces life-cycle cost analysis into bid decisions, with certain local-funds considerations.

What This Bill Does

It increases the general bidding threshold for public works from $50,000 to $100,000 (with CPI-based increases). It allows notices and sealed bids to be published or submitted electronically. It requires a performance bond equal to 100% of the contract price and a payment bond of at least 50% before starting the work, and it outlines bond-related remedies for labor or material suppliers. It also adds life-cycle cost evaluation as a factor in selecting bids and sets rules for emergencies, sole-source procurement, final settlements, and bid integrity.

Who It Affects

• Awarding authorities (state, counties, municipalities, school boards, and higher education institutions) that contract for public works will face higher bidding thresholds, new electronic notice/bid options, and added reporting requirements.
• Contractors, subcontractors, and suppliers bidding on public works projects will be subject to stronger bond requirements, potential life-cycle cost evaluation, and new rules to prevent bid rigging and ensure bid integrity.

Key Provisions

• Raise and CPI-adjust according thresholds for when competitive bidding is generally required for public works (from $50,000 to $100,000; CPI-based increases).
• Authorize publication of notices and submission of sealed bids by electronic means; require secure electronic bid handling.
• Require performance bonds equal to 100% of contract price and payment bonds of at least 50% of contract price; provide remedies and notice procedures for unpaid claims.
• Adopt new notice and final settlement procedures, including 30-day waiting period after completion notice and publication/posting of completion notices.
• For large public works ($500,000+) require advertisements in three newspapers; outline broader advertising and plan/specs disclosure requirements; allow state-wide publication where applicable.
• Introduce life-cycle cost analysis as a bidding criterion, allowing use of materials or methods that reduce long-term costs if justified.
• Include emergency contracting provisions that allow non-public-advertisement awards with public justification and disclosure of reasons.
• Provide sole-source procurement rules with specific conditions and documentation to justify eliminating competition.
• Promote bid integrity and penalties for collusion, including felony penalties for bid-rigging and related offenses.
• Establish effective date as the first day of the third month after passage; state that the bill is constitutionally exempt from Section 111.05 due to specified exceptions.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.