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UNC <br />�Y SCHOOL OF GOVERNMENT <br />Basic Legal Requirements for Construction <br />Contracting with North Carolina Local Governments <br />Norma Houston <br />UNC School of Government' <br />Local governments in North Carolina are subject to specific legal requirements that govern <br />contracting for construction and repair projects. This outline summarizes basic procurement <br />requirements under North Carolina law, specific legal requirements for construction and repair <br />contracts, additional legal requirements for projects involving public buildings, and exceptions <br />to competitive procurement requirements specific to construction and repair projects. <br />I. Basic Public Procurement Requirements <br />Public entities, including local governments, must comply with all applicable competitive <br />bidding requirements to avoid the contract being rendered void and unenforceable. Local <br />governments may not assume responsibility for construction contacts or guarantee payments <br />for materials or labor unless all competitive bidding requirements are followed. [G.S. 143- <br />129(b)]2 <br />Basic Procurement Method Analysis: Contract Type +Cost = Procurement Method <br />To know which procurement method is required for a specific contract, first identify the type of <br />contract and that contract's estimated cost: <br />Type of Lest Pracu rement <br />\antact \ \ ethod <br />1. Type of Contract <br />a. Purchase—purchase of supplies, materials, apparatus, and equipment <br />b. Construction and repair <br />'This outline was originally prepared with the generous assistance of Eileen Youens, former Assistant <br />Professor of Public Law with the School of Government. htto://Youensconsulting.com/. <br />' Hawkins F. Town of Dallas, 229 N.C. 561, 50 S.E.2d 561(1948); Nello L. Teer Co. F. North Carolina State Hwy. <br />Comm'n, 265 N.C. 1,143 S.E.2d 247 (1965). <br />Attachment number 1 \n <br />F-9 Page 77 <br />