Act 188 of 1954 (“Act 188”) is a statute that many townships use to finance many improvements using special assessments ranging from lak...Read More
We are involved in our communities, our profession, and our clients' associations and activities.
Is a Township required to receive sealed competitive bids before letting contracts on public works projects?
No. The Michigan Legislature had adopted state law requiring Townships to receive sealed competitive bids for contracts of $20,000 or more. Subsequently, the Legislature repealed the relevant law. With no statutory requirement to engage in a competitive bidding process, Townships are only subject to their own local ordinances or local policies that incorporate a competitive bidding policy and process. Even if a Township does not have a competitive bidding ordinance or policy, Townships should still be familiar with the requirements to have plans prepared by licensed professional engineers or architects, and the work supervised by the same, when the project cost $15,000 or more. Townships also must obtain a performance bond or a payment bond for completion of a public works project that exceeds $50,000.
Talk to an AttorneyRequest a Consultation
At Fahey Schultz Burzych Rhodes PLC, we’ve been helping municipalities, franchised businesses, employers, and more with their legal needs since 2008. We’d love to learn how we can help you, too.