Bill > SB871

This bill amends the Second Class Township Code to modify the requirements for contract performance bonds in township contracts. Specifically, the bill expands the options for contract security by allowing the board of supervisors to accept various forms of security beyond traditional bonds or irrevocable letters of credit. The bill maintains the existing requirement that the successful bidder must provide security guaranteeing contract performance within 20 days of contract award, with the security amount ranging between 10% and 100% of the contract value, as determined by the supervisors at the time of bidding. If the bidder fails to provide the required security within the 20-day window, and the contract is not delivered or fulfilled during that time, the contract becomes void. The legislation provides townships with more flexibility in determining acceptable forms of contract security while preserving the fundamental protections around contract performance. The bill will take effect 60 days after its enactment.

Budget and Finance, Government Affairs

https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=S&type=B&bn=871