Public Works Projects Costing $50,000.00 or Less

Definition of Public Works: The construction, installation, repair, renovation, or maintenance of public buildings, structures, sewers, waterworks, roads, curbs, gutters, sidewalks, bridges, docks, underpasses, and viaducts as well as any other improvement to be constructed, installed, repaired, renovated, or maintained on public property and to be paid, in whole or in part, with public funds or with financing to be retired with public funds in the form of lease payments or otherwise. Code of Alabama, 1975, as amended, §39-2-1(6)

Projects under DCM’s Jurisdiction: Any construction regardless of funding source on: state-owned property, public and private kindergarten through twelfth grade (K-12) schools, public post-secondary schools (which includes higher education beyond 12th grade such as two-year, four-year and postgraduate institutions and universities), hotels/motels and movie theaters.

Step 1: Project Verification

Verify with DCM Technical Staff, beginning with a call or email to Kristie Hutto, 334-242-4819 or kristie.hutto@realproperty.alabama.gov, whether or not a project requires supervision and/or administration (including plan review, contract document and inspections approvals) by DCM.
  • If a project is verified by Technical Staff that it does not require supervision or administration by DCM, consult with the Alabama Department of Finance-Division of Purchasing or use other contracting means available to the owner.

Step 2: Procedure Requirements and Exceptions

If a project with a construction budget of $50,000.00 or less is verified by DCM Technical Staff as required to be supervised and/or administered by DCM, then all requirements of the DCM Manual of Procedures must be met, including but not limited to, front-end documents with plan review submittals, contract document submittals (except in the case of construction self-performance), inspections and fees, with the following exceptions:
  1. Advertisement for Bids and Sealed Bids: An Awarding Authority/Owner may let contracts for public works involving $50,000.00 or less with or without advertising, and with or without sealed bids. §39-2-2(b)(1). Although a formal bid process is not required by state law for public works projects costing $50,000.00 or less, the Alabama Division of Construction Management requires solicitation of at least three informal bids for such projects to assure that fair and reasonable prices are being paid. Documentation must show that a minimum of three proposals were sought even if a lesser number respond. Designers shall include the bid tab with the prepared construction contract documents.
  2. Bid Bonds: Bid Bonds are not required for contracts in amounts of less than $50,000.00. DCM Manual of Procedures - Chapter 6.D.2
  3. Performance & Payment Bonds: Performance & Payment Bonds are not required for contracts in amounts of less than $50,000.00. §39-1-1(e)
  4. General Contractor’s License: A General Contractor’s License is not required for contracts in amounts of less than $50,000.00. §34-8-1(a)
  5. Project Sign: A project sign is not required for contracts in amounts of less than $100,000.00, nor required for any locally-funded K-12 projects. DCM Form C-8, Article 51.
  6. Advertisement for Completion: For contracts of less than $50,000, the governing body of the contracting agency, to expedite final payment, shall cause notice of final completion of the contract to be published one time in a newspaper of general circulation, published in the county of the contracting agency and shall post notice of final completion on the agency’s bulletin board for one week, and shall require the contractor to certify under oath that all bills have been paid in full. Final settlement with the contractor may be made at any time after the notice has been posted for one entire week. §39-1-1(g)