AG 2018 03 19 - Laserfiche WebLink

Home Browse Search

UNC �Y SCHOOL OF GOVERNMENT 2. Project in the informal bidding range — Governing board approval is not required (unless by local policy); the contract can be awarded by any official or employee authorized by the governing board to award contracts on behalf of the local government. 3. Projects in the formal biding range - Governing board approval is required and cannot be delegated to an individual officer or employee. [G.S.143-129(a)] Step 8: Execute the Contract 1. Who can execute — Contracts for projects in both the informal and formal bidding ranges (as well as contracts below the statutory competitive bidding threshold) can be executed by the governing board chair or any other official or employee authorized by board to execute contracts on behalf of the local government. The statutes do not impose a specific time frame within which the local government must execute the contract. However, for contracts in the formal bidding range, the contractor is required to execute the contract within 10 days of award or else forfeit his bid deposit/bond (see Step 4, 2b). [G.S. 143-129(b)] 2. Contracts must be in writing — For cities, all contracts must be in writing regardless of the cost of the contract, so all municipal contracts for construction and repair work must be in writing. [G.S. 160A-16] For other local governments, written contracts are statutorily required for construction and repair projects in the formal bidding range .7 [G.S. 143-129(c)] In light of the North Carolina Court of Appeals' recent interpretation of the preaudit requirement (see Kara Millonzi's bloe Post on these cases), local governments should no longer enter into any oral contracts, even if state statutes do not require the contract to be in writing. 3. Performance and Payment Bonds — For projects costing more than $300,000.8 performance and payments bonds must be received from each contractor with a contract costing over $50,000. Each bond must be for 100% of the contract amount and must be executed by a NC -licensed surety. Bonds are effective when the contract is awarded. If contractor does not provide performance and payment bonds, the contractor forfeits his bid bond/deposit. If a public official or employee who is responsible for obtaining performance and payment bonds does not do so, that official or employee is guilty of a Class 1 misdemeanor. [G.S. 44A-26; G.S. 44A-32; G.S. 143- 129(b), (c)] 7 When purchasing supplies, materials, apparatus, and equipment, the Uniform Commercial Code requires a written contract for the sale of goods costing $500 or more. This requirement does not apply to construction and repair contracts. e Note that the $300,000 amount is less than the $500,000 threshold for projects in the formal bidding range. mber 1 \n 7 1 Construction Contracting Basic Legal Requirements Updated September 2013 F-9 Page 83