Indiana Court Rules in Favor of Competitive Bidding

In a decision issued June 9, 2009, Marshall Circuit Court Judge Palmer determined that Marshall County violated the Public Work Projects statute (IC 36-1-12) when it used County equipment and employees on repaving projects in excess of $100,000, instead of allowing private contractors to bid and contract for the work. The Court’s decision found in favor of the Plaintiffs Wayne Lamberson and IUOE Local 150, AFL-CIO, and against the Defendants Marshall County and Marshall County, Indiana Highway Department. The III FFC worked closely with the Plaintiffs and local counsel from the start of the case to its successful conclusion.

The Indiana Public Work Project statute permits political subdivisions to use their own workforce on public works projects when the cost of construction is estimated to be less than $100,000, but requires them to award a contract for the public work when the cost is estimated to exceed $100,000. “Public Work” includes construction, alteration or repair of a highway, street, alley, bridge, sewer, drain or other improvement that is paid for out of a public fund (IC 36-1-12-2).

Marshall County argued that the road resurfacing projects were “maintenance,” that the County had the workforce available to perform the job, and that it was therefore permitted to perform the work under the statute. Plaintiffs argued that this was “repair” work clearly covered under the Public Work Projects statute. The Court agreed with Plaintiffs and concluded that the statute covered resurfacing projects in excess of $100,000 and that the County violated the statute when it resurfaced roadway projects in excess of $100,000 without allowing outside contractors to bid for and perform the work.