Supply chain issues continue to affect a range of industries, including construction, and it's taking a toll on public works projects. With a lack of materials, some suppliers are demanding down payments for essential components like steel and current law is presenting an unexpected roadblock. This session, I'm working on legislation to help.
Unfortunately, Indiana law restricts local governments from paying for building materials before they're delivered. This restriction can also make it more difficult to hire contractors who can't always absorb these costs and wait for payment until after a project is done. As a result, smaller contractors can be priced out of bidding for public works projects, and local governments could be forced to hire contractors with higher bids, potentially resulting in wasted tax dollars.
This session, I sponsored Senate Bill 317, which would enable municipalities to make advance payments to contractors so they can buy needed materials for public works projects.
Accelerate Indiana Municipalities, which represents municipal government in the state, testified in support of the bill because they've heard from many communities that have vendors requesting pre-payments and deposits for supplies and projects. During committee, the group shared that one town solicited three quotes for park supplies but had to award the contract to a more expensive bid because the cheaper option required a deposit. Changing this law would allow smaller, local contractors to bid on public works projects without forcing them to assume all the costs upfront.
Public works projects contribute to the vitality of our communities. Local governments should not be unnecessarily hindered when investing in this essential infrastructure. Nor should smaller contractors be outpriced in pursuing these projects.
To follow this and other legislation through the process, and watch session, visit iga.in.gov. Please reach out to my office with any questions or comments at 800-382-9841 or h65@iga.in.gov.
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State Rep. Chris May (R-Bedford) represents House District 65,
which includes all of Lawrence County, and portions of Jackson, Orange and Washington counties.
Click here to download a high-resolution photo.
