67 Pa. Code § 449.9. Construction and maintenance contracts.

§ 449.9. Construction and maintenance contracts.

(a)  Cost comparison. Before deciding to pave a road or street by purchasing materials and renting equipment with operators, the municipality should compare the cost of having the job done by contract.
(b)  Advertisement. The advertisement for a construction or maintenance contract shall contain a reasonably complete description of the project, including the scope of the project and the type of work involved, as well as bond requirements as indicated in subsection (f).
(c)  Proposal. The proposal shall contain the approximate number of tons or square yards of materials, or the metric equivalents, required, as reasonably estimated by the municipality. The bidder shall insert:
   (1)  The unit price of each item.
   (2)  The total price for each item (quantity x unit price).
   (3)  The total price for any group of items, as to which the proposal requires a total or subtotal.
(d)  Lump sum bids. In special cases, the Director of the Bureau of Municipal Services of the Department may approve lump sum bids in lieu of the procedure in subsection (c).
(e)  Prevailing wage requirements. If the estimated cost of a construction contract, as defined in the memorandum of understanding between the Department, the Department of Labor and Industry and the former Department of Justice exceeds $25,000, the municipality shall:
   (1)  Determine the prevailing minimum wage rates from the Prevailing Minimum Wage Division of the Department of Labor and Industry.
   (2)  Indicate in the advertisement issued for the purpose of securing bids for the contract that prevailing wage rates shall be paid on the project.
   (3)  Specify the prevailing minimum wage rates in the bid proposals for the contract.
(f)  Bonds. Construction and maintenance contractors are required to provide bonds in accordance with the following chart:
BOND REQUIREMENTS FOR CONSTRUCTION AND MAINTENANCE

First, Second, & 2A-Class Cities Third Class Cities Boroughs First Class Townships Second Class Townships

Bid Bond * Requirement and reasonable amount discretionary with council. (53 P. S. §  36901(f)) Discretionary with council, in an amount determined by council. (53 P. S. §  46402(b)(1)) Not required Not required

Performance Bond over $10,000 * Bond or irrevocable letter of credit, in amount sufficient to council, furnished within 20 days, but not less than 10 days, of award as specified by council. (53 P. S. §  36901(g)) At council’s discretion. If required, not less than 10% or greater than 100%, furnished within 20 days, but not less than 10 days, of award as specified by Council. (53 P. S. §  46402(c)) Not less than 10% or greater than 100%, furnished within 20 days, but not less than 10 days, of award as specified by township commissioners. (53 P. S. §  46402(c)) Not less than 10% or greater than 100%, as specified by township supervisors, furnished within 20 days of award. (53 P. S. §  68102(g))

Payment Bond over $1,500 * 50% to 100% at discretion of city. (53 P. S. §  36907) 50% to 100% at discretion of the borough. (53 P. S. §  46406) 50% to 100% at discretion of the township. (53 P. S. §  56804) Not required unless covered under the Public Works Con- tractors’ Bond Law of 1967. (53 P. S. §  68105)

* See appropriate municipal code or charter.
NOTE: The Public Works Contractors’ Bond Law of 1967 may supersede requirements of municipal codes. Please consult the appropriate statutes or consult with the appropriate municipal solicitor, or both, regarding bonding requirements for a particular contract or project.

   (g) Payment of engineering fees. Reasonable engineering fees in connection with any contract made by a municipality under this chapter shall be payable out of the Liquid Fuels Tax fund of the municipality. Any fees in excess of 10% of the total contract price shall be documented and justified to the satisfaction of the Department.

Authority

   The provisions of this §  449.9 issued under The Administrative Code of 1929 (71 P. S. § §  511.3, 512 and 513); and act of June 1, 1956 (P. L. (1955) 1944, No. 655) (72 P. S. § §  2615.1—2615.10); amended under the Vehicle Code, 75 Pa.C.S. § §  6103 and 9511; and sections 1—10 of the act of June 1, 1956 (P. L. (1955) 1944, No. 655) (72 P. S. § §  2615.1—2615.10).

Source

   The provisions of this §  449.9 amended through November 19, 1982, effective November 20, 1982, 12 Pa.B. 3984; amended May 16, 2003, effective May 17, 2003, 33 Pa.B. 2378. Immediately preceding text appears at serial pages (240964) to (240965).

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	First, Second, & 2A-Class Cities	Third Class Cities	Boroughs	First Class Townships	Second Class Townships
Bid Bond	*	Requirement and reasonable amount discretionary with council. (53 P. S. § 36901(f))	Discretionary with council, in an amount determined by council. (53 P. S. § 46402(b)(1))	Not required	Not required
Performance Bond over $10,000	*	Bond or irrevocable letter of credit, in amount sufficient to council, furnished within 20 days, but not less than 10 days, of award as specified by council. (53 P. S. § 36901(g))	At council’s discretion. If required, not less than 10% or greater than 100%, furnished within 20 days, but not less than 10 days, of award as specified by Council. (53 P. S. § 46402(c))	Not less than 10% or greater than 100%, furnished within 20 days, but not less than 10 days, of award as specified by township commissioners. (53 P. S. § 46402(c))	Not less than 10% or greater than 100%, as specified by township supervisors, furnished within 20 days of award. (53 P. S. § 68102(g))
Payment Bond over $1,500	*	50% to 100% at discretion of city. (53 P. S. § 36907)	50% to 100% at discretion of the borough. (53 P. S. § 46406)	50% to 100% at discretion of the township. (53 P. S. § 56804)	Not required unless covered under the Public Works Con- tractors’ Bond Law of 1967. (53 P. S. § 68105)