SENATE BILL No. 375
DIGEST OF INTRODUCED BILL
Citations Affected: IC 36-1-12-3.
Synopsis: Public works projects. Authorizes a political subdivision to
perform a public works project by means of its own workforce, without
awarding a contract, when the cost of the project is less than $500,000.
(The threshold under current law is $100,000.)
Effective: July 1, 2006.
January 11, 2006, read first time and referred to Committee on Governmental Affairs and
Second Regular Session 114th General Assembly (2006)
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SENATE BILL No. 375
A BILL FOR AN ACT to amend the Indiana Code concerning local
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 36-1-12-3; (06)IN0375.1.1. -->
SECTION 1. IC 36-1-12-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 3. (a) The board may
purchase or lease materials in the manner provided in IC 5-22 and
perform any public work, by means of its own workforce, without
awarding a contract whenever the cost of that public work project is
estimated to be less than
hundred thousand dollars
Before a board may perform any work under this section
by means of its own workforce, the political subdivision or agency
must have a group of employees on its staff who are capable of
performing the construction, maintenance, and repair applicable to that
work. For purposes of this subsection, the cost of a public work project
includes the actual cost of materials, labor, equipment, rental, a
reasonable rate for use of trucks and heavy equipment owned, and all
other expenses incidental to the performance of the project.
(b) When the project involves the rental of equipment with an
operator furnished by the owner, or the installation or application of
materials by the supplier of the materials, the project is considered to
be a public work project and subject to this chapter. However, an
annual contract may be awarded for equipment rental and materials to
be installed or applied during a calendar or fiscal year if the proposed
project or projects are described in the bid specifications.
(c) A board of aviation commissioners or an airport authority board
may purchase or lease materials in the manner provided in IC 5-22 and
perform any public work by means of its own workforce and owned or
leased equipment, in the construction, maintenance, and repair of any
airport roadway, runway, taxiway, or aircraft parking apron whenever
the cost of that public work project is estimated to be less than fifty
thousand dollars ($50,000).
(d) Municipal and county hospitals must comply with this chapter
for all contracts for public work that are financed in whole or in part
with cumulative building fund revenue, as provided in section 1(c) of
this chapter. However, if the cost of the public work is estimated to be
less than fifty thousand dollars ($50,000), as reflected in the board
minutes, the hospital board may have the public work done without
receiving bids, by purchasing the materials and performing the work by
means of its own workforce and owned or leased equipment.
(e) If a public works project involves a structure, an improvement,
or a facility under the control of a department (as defined in
IC 4-3-19-2(2)), the department may not artificially divide the project
to bring any part of the project under this section.