SB175 Summary

• Increases the maximum bid guarantee amount from $10,000 to $50,000 for bidders on public works projects when the Department of Transportation is the awarding authority.

• Amends Sections 23-1-2 and 39-2-4 of the Alabama Code to establish the higher bid guarantee requirement specifically for state DOT projects and county highway, road, street, or bridge projects.

• Maintains the requirement that bid guarantees be submitted as either a certified check or bid bond payable to the awarding authority and be at least five percent of the contractor's bid amount.

• Applies the increased $50,000 cap only when the Department of Transportation is the awarding authority; other awarding authorities remain subject to the original $10,000 limit.

• Becomes effective immediately upon passage and approval by the Governor.