Public Works Projects Costing $100,000.00 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 within DCM’s Jurisdiction: Any construction regardless of funding source on: state-owned property, public and private kindergarten through twelfth grade (K-12) schools, public universities, hotels/motels, and movie theaters.

Step 1: Project Verification

Verify with DCM Technical Staff, beginning with a call or email to Bob ÓReilly, Architect, 334-242-4803 or bob.o'reilly@rpm.alabama.gov, whether or not a project requires review 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 review 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 $100,000.00 or less is verified by DCM Technical Staff as required to be reviewed 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 $100,000.00 or less with or without advertising, and with or without sealed bids. §39-2-2(b)(1). Although an advertisement for bid is not required by state law for public works projects costing $100,000.00 or less, the Alabama Division of Construction Management requires solicitation of at least three 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 $100,000.00. 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 $100,000.00. §39-1-1(e)
4. General Contractor’s License: A General Contractor’s License is not required for contracts in amounts of less than $100,000.00. Act 2024-277
5. Project Sign: A project sign is not required to be erected on fully locally-funded State Agency projects for contracts in amounts of less than $100,000.00, nor on fully locally-funded Public Higher Education projects for contracts in amounts of less than $100,000.00. Regardless of cost, a project sign is not required on fully locally-funded K-12 school projects unless requested by the Owner. A project sign is required on all PSCA-funded projects regardless of cost. DCM Form C-8, Article 51.