Prequalification Reminder

Source: INDOT LPA Newsletter – November 2016

State Law Effective 1/1/2017

DIGEST OF SB 375 (Updated March 4, 2016) Prequalification for public works projects. Delays from June 30, 2016, to December 31, 2016, the date after which public works projects that are awarded must comply with the requirement that a contractor be qualified under IC 4-13.6-4 or IC 8-23-10 before doing any work on the project. Requires that a contractor working on a project that is a public work be qualified by the Indiana department of administration’s certification board (board). Requires that a contractor working on a project that is the construction, improvement, alteration, repair, or maintenance of a road, highway, street, or alley be qualified by the Indiana department of transportation. Exempts from the qualification requirement: (1) a materials supplier; and (2) a contractor doing any work on a public works project awarded by a local unit whenever: (A) the total amount of the contract awarded to the contractor for work on the public works project is less than $300,000; and (B) the public agency complies with IC 36-1-12 in awarding the contract for the project. Requires that a list of contractors holding a valid certificate of qualification under IC 4-13.6-4 or IC 8-23-10 be available for public inspection during regular office hours and on the Internet. Excludes from the authority of the a county, city, town, or township (unit) to establish wage rates in a contract to which the unit is a party a public works contract awarded by the unit unless federal or state law requires a wage scale or wage schedule.

LPA’s should consult their local counsel for interpretation of this new law.

State Agencies Clarify Local Road & Bridge Matching Grant Fund

A recent joint memorandum is intended to address three issues regarding the local match required for a grant from the Local Road and Bridge Matching Grant Fund, established by HEA 1001-2016.

  • Use of existing Road Funds for Matching Grants
  • Use of Increased Wheel and Surtax Revenues for Matching Grants
  • County Wheel and Surtax Ordinances Adopted Before July 1, 2016

BIC Matters – Report Shows Estimated Distribution to Local Units

BIC has received additional information on one of the components that we reported on at the end of the 2016 legislation session. As described in BIC Matters on March 10, the legislature passed Senate Bill 67 which releases back to local units already-collected local option taxes that have been held in reserve by the state. The new law requires that of the amounts released to counties, cities and towns, 75% must be used for road, bridge or airport improvements or deposited into the rainy day fund. If the unit deposits the funds into the rainy day fund, then it must abide by the restricted uses when it takes the funds out of the rainy day fund. We have received a report showing preliminary estimated total allocations to each local unit (click here for report). The state is required to make the distributions to local units by May 1, 2016.

If you have any questions, please call the BIC office at (317) 634-4774.