§ 36-1-12-3 — Public work projects

(a) The board may purchase or lease materials
in the manner provided in IC 5-22 and perform any public work, by
means of its own workforce, without awarding a contract whenever the
cost of that public work project is estimated to be less than three
hundred seventy-five thousand dollars ($375,000), adjusted annually
by the percentage change in the Consumer Price Index for all Urban
Consumers as published by the United States Bureau of Labor
Statistics. The department of local government finance shall annually
publish the adjusted cost estimate threshold for the current year,
determined in the manner required by this subsection, on the
department's website. Before a board may perform any work under this
section by means of its own workforce, the political subdivision or
agency must have a group of employees on its staff who are capable of
performing the construction, maintenance, and repair applicable to that
work. For purposes of this subsection, the cost of a public work project
includes:
(1) the actual cost of materials, labor, equipment, and rental;
(2) a reasonable rate for use of trucks and heavy equipment
owned; and
(3) all other expenses incidental to the performance of the project.
(b) This subsection applies only to a municipality or a county. The
workforce of a municipality or county may perform a public work
described in subsection (a) only if:
(1) the workforce, through demonstrated skills, training, or
expertise, is capable of performing the public work; and
(2) for a public work project under subsection (a) whose cost is
estimated to be more than one hundred thousand dollars
($100,000), the board:
(A) publishes a notice under IC 5-3-1 that:
(i) describes the public work that the board intends to
perform with its own workforce; and
(ii) sets forth the projected cost of each component of the
public work as described in subsection (a); and
(B) determines at a public meeting that it is in the public
interest to perform the public work with the board's own
workforce.
A public work project performed by a board's own workforce must be
inspected and accepted as complete in the same manner as a public
work project performed under a contract awarded after receiving bids.
(c) When the project involves the rental of equipment with an
operator furnished by the owner, or the installation or application of
materials by the supplier of the materials, the project is considered to
be a public work project and subject to this chapter. However, an
annual contract may be awarded for equipment rental and materials to
be installed or applied during a calendar or fiscal year if the proposed
project or projects are described in the bid specifications.
(d) A board of aviation commissioners or an airport authority board
may purchase or lease materials in the manner provided in IC 5-22 and
perform any public work by means of its own workforce and owned or
leased equipment, in the construction, maintenance, and repair of any
airport roadway, runway, taxiway, or aircraft parking apron whenever
the cost of that public work project is estimated to be less than one
hundred fifty thousand dollars ($150,000).
(e) Municipal and county hospitals must comply with this chapter
for all contracts for public work that are financed in whole or in part
with cumulative building fund revenue, as provided in section 1(c) of
this chapter. However, if the cost of the public work is estimated to be
less than fifty thousand dollars ($50,000), as reflected in the board
minutes, the hospital board may have the public work done without
receiving bids, by purchasing the materials and performing the work by
means of its own workforce and owned or leased equipment.
(f) If a public works project involves a structure, an improvement,
or a facility under the control of a public highway department that is
under the political control of a unit (as defined in IC 36-1-2-23) and
involved in the construction, maintenance, or repair of a public
highway (as defined in IC 9-25-2-4), the department may not
artificially divide the project to bring any part of the project under this
section.
[Pre-Local Government Recodification Citations: 5-16-1
part; Part new.]
As added by Acts 1981, P.L.57, SEC.38. Amended by Acts
1981, P.L.56, SEC.3; P.L.329-1985, SEC.16; P.L.337-1987, SEC.2;
P.L.66-1987, SEC.29; P.L.12-1991, SEC.6; P.L.21-1995, SEC.146;
P.L.82-1995, SEC.14; P.L.49-1997, SEC.75; P.L.172-2011, SEC.138;
P.L.252-2015, SEC.42; P.L.213-2015, SEC.263; P.L.43-2019, SEC.1;
P.L.114-2022, SEC.28; P.L.86-2025, SEC.1.