Is a Township required to receive sealed competitive bids before letting contracts on public works projects? > Fahey Schultz Burzych Rhodes
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Is a Township required to receive sealed competitive bids before letting contracts on public works projects?

June 2020

Is a Township required to receive sealed competitive bids before letting contracts on public works projects?

No. The Michigan Legislature had adopted state law requiring Townships to receive sealed competitive bids for contracts of $20,000 or more. Subsequently, the Legislature repealed the relevant law. With no statutory requirement to engage in a competitive bidding process, Townships are only subject to their own local ordinances or local policies that incorporate a competitive bidding policy and process. Even if a Township does not have a competitive bidding ordinance or policy, Townships should still be familiar with the requirements to have plans prepared by licensed professional engineers or architects, and the work supervised by the same, when the project cost $15,000 or more. Townships also must obtain a performance bond or a payment bond for completion of a public works project that exceeds $50,000.

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