PA SB871

Amends The Second Class Township Code to expand acceptable forms of performance guarantees for successful bidders on township contracts beyond just bonds to include irrevocable letters of credit or other security with reasonable requirements acceptable to the board of supervisors

Performance guarantees must be between 10% and 100% of the contract amount, as determined by supervisors at the time of advertising for bids

Bidders must furnish the bond, letter of credit, or other security within 20 days after contract award, or the contract becomes void (unless delivery is made or the contract is fulfilled during that time)

Applies to contracts not already covered under the Public Works Contractors' Bond Law of 1967

Takes effect 60 days after enactment