Bill > HB1194

This bill amends Section 3102 of The Second Class Township Code, which governs how townships of the second class handle contract bidding and performance guarantees. Specifically, the bill modifies the requirements for successful bidders to provide performance security (such as a bond, irrevocable letter of credit, or other acceptable security) for public works contracts. The key changes include explicitly stating that the board of supervisors will determine the acceptable form of security and expanding the types of security that can be used. The security amount remains between 10% and 100% of the contract value, and the bidder must provide this security within 20 days of contract award. If the bidder fails to furnish the required security within this timeframe (unless the entire contract is fulfilled during that period), the contract becomes void. The bill aims to provide more flexibility to township supervisors in managing contract performance guarantees while maintaining protections for the municipality. The amendments will take effect 60 days after the bill's passage.

Government Affairs

https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=H&type=B&bn=1194