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 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, Alabama Community College System (ACCS) projects with Notices-To-Proceed issued prior to August 1, 2021, 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
, 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 $50,000.00 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
), inspections and fees
, with the
- 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 an advertisement for bid 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 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.
- 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
- Performance & Payment Bonds: Performance & Payment Bonds are not required for contracts in amounts of less than $50,000.00. §39-1-1(e)
- 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)
- 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.
- 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)