Indiana has 92 counties. Counties buy supplies under the Public Purchasing Law (IC 5-22) and public works under IC 36-1-12. The State Board of Accounts (SBOA), the state agency that audits counties, publishes guidance on both, and paperwork matters in an audit. Note: the 2025 Indiana Code sets the public works bid threshold at $300,000, but some SBOA web pages still show $150,000. This guide uses the statute.
At a glance
| Topic | Rule | Source |
|---|---|---|
| Who buys | Board of commissioners acts as purchasing agent; council approves budgets | SBOA County Bulletin |
| Goods and services | Supplies: 3 quotes from $50,000; bids at $150,000 | IC 5-22-8; 5-22-7 |
| Construction | 3 quotes from $50,000; sealed bids at $300,000 | IC 36-1-12-4; 4.7 |
| Notice | Published under IC 5-3-1, generally twice a week apart | IC 5-3-1-2 |
| Award | Lowest responsible and responsive bidder, within 60 days | IC 36-1-12-4; 12-6 |
| Bid security | Required over $200,000; max 10% | IC 36-1-12-4.5 |
| Bonds | Performance and payment bonds on larger public works; percentage not confirmed | IC 36-1-12-13.1 |
| Prevailing wage | No state law since 2015; federal Davis-Bacon may apply | — |
| Retainage | Applies to public works over $100,000; percentage not confirmed | IC 36-1-12-14 |
| Prompt payment | Interest on late public payments exists; terms not confirmed | IC 5-17-5 |
| Cooperative purchasing | Buy from or under other Indiana governments' contracts | IC 36-1-7-12 |
| Preferences and certifications | Indiana business preferences; E-Verify; Iran; non-collusion | IC 5-22-15; 22-5-1.7-11.1 |
| Architects and engineers | Not bid; selected on statements of qualifications | IC 5-16-11.1 |
Who buys
- Board of commissioners (three members): the executive and the county's purchasing agent. It receives bids and awards contracts (SBOA County Bulletin, March 2026). See board of commissioners.
- County council: the fiscal body. It approves budgets and additional appropriations, an early sign of upcoming purchases.
- County highway department: roads and bridges, under the commissioners. Separate highway thresholds were not confirmed.
Goods and services
Supplies follow IC 5-22. As summarized by SBOA:
| Amount | Process |
|---|---|
| Under $50,000 | Small purchases under the county's own rules (IC 5-22-8-2) |
| $50,000 to under $150,000 | Invite quotes from at least three sellers (IC 5-22-8-3) |
| $150,000 or more | Competitive bidding (IC 5-22-7) |
Purchases may not be split to fall under a threshold (IC 5-22-8-1). Counties may also use requests for proposals (IC 5-22-9) and special methods without bids, such as single source, purchases from federal or state agency contracts, data processing and reverse auctions (IC 5-22-10 and 5-22-7.5). Whether services must be bid under IC 5-22 was not confirmed; check county policy.
Construction and public works
| Estimated cost | Process |
|---|---|
| Under $50,000 | Quotes from at least three contractors, mailed at least 7 days before the deadline; or the bid procedure (IC 36-1-12-5) |
| $50,000 to under $300,000 | Invite quotes from at least three contractors; quotes opened in public (IC 36-1-12-4.7) |
| $300,000 or more | Plans and specs on file, published notice, public sealed bid opening (IC 36-1-12-4) |
Sources: IC 36-1-12-4 (2025 code); SBOA 2025 seminar. If all quotes under $50,000 are rejected, the county may negotiate on the open market after stating its reasons in writing.
Public works bids are submitted on Form 96, the SBOA's Contractor Bid for Public Works, with a financial statement, experience, work plan and equipment list (IC 36-1-12-4, per SBOA).
Exceptions (per SBOA): routine operation, repair and maintenance below the threshold (IC 36-1-12-4.9), some work by the county's own workforce (IC 36-1-12-3) and emergencies (IC 36-1-12-9). Projects may not be split (IC 36-1-12-19), and contracts not let under IC 36-1-12 are void (IC 36-1-12-16). Change orders are capped at 20% (IC 36-1-12-18).
Bid security. On public works estimated over $200,000, every bid must include a bond or certified check. The amount is set in the notice and may not exceed 10% of the contract price. It is optional at $200,000 or less (IC 36-1-12-4.5). See bid security.
Bonds. SBOA guidance cites performance bonds on projects over $200,000 and payment bond rules in IC 36-1-12-13.1. Supply offerors may also have to post a performance bond (IC 5-22-16-5). Bond percentages were not confirmed; read the bid documents.
Notice and award
Notice for formal bids is published under IC 5-3-1, generally twice, at least a week apart, with the second at least 7 days before bids are due (IC 5-3-1-2).
Public works go to the lowest responsible and responsive bidder, or all bids are rejected (IC 36-1-12-4). The county must award within 60 days after the opening (IC 36-1-12-6). For supplies, SBOA describes award to the most responsible and responsive bidder.
Prevailing wage
Indiana repealed its common construction wage law in 2015, so no state prevailing wage applies to county projects. The SBOA's 2026 county bulletin index lists no wage rule. Federally funded projects can still require Davis-Bacon wages.
Getting paid
- Retainage: retainage rules apply to public works contracts over $100,000, including an escrow option (IC 36-1-12-14 and 36-1-12-1.2). The percentage and release timing were not confirmed.
- Interest: Indiana law provides interest on public contracts not paid on time (IC 5-17-5) and on late public works payments (IC 36-1-12), per SBOA. The payment days and rate were not confirmed; check the contract.
Cooperative purchasing and state contracts
Purchases between Indiana governmental entities need no published notice. A county may buy from another governmental entity, or under its contract, if the original purchase followed purchasing law. Joint purchasing is allowed, including with nonprofits (IC 36-1-7-12). Buying from a federal or state agency contract is a special purchasing method (IC 5-22-10-15). See cooperative purchasing.
Preferences and required certifications
- Preferences (IC 5-22-15, per SBOA): Indiana businesses, Indiana small businesses, Indiana farm products, U.S.-made supplies and steel, and an absolute preference for Indiana coal. Percentages were not confirmed. Small business set-asides are allowed (IC 5-22-14).
- E-Verify: public works contracts must require the contractor to use E-Verify and sign an affidavit (IC 22-5-1.7-11.1).
- Iran certification: bidders certify they are not engaged in investment activities in Iran (IC 5-22-16.5).
- Non-collusion: offerors must affirm they did not collude (IC 5-22-16-6).
Read every form in the bid package.
Architects and engineers
Engineering, architectural and accounting services are not bid as public works (IC 36-1-12-3.5). They are bought under IC 5-16-11.1. The county may publish notice, give other notice, both or none. Notices state the general selection criteria and the deadline for statements of qualifications (IC 5-16-11.1-4, per SBOA). Whether price may be considered at selection was not confirmed.
Recent changes
- 2025: IC 36-1-12-4 was last amended by P.L. 86-2025; the 2025 code sets formal public works bids at $300,000 or more (secondary: Justia copy of the statute).
Practical tips for Indiana
- Get on quote lists. Public works from $50,000 to $300,000 are quoted from contractors the county invites.
- Keep Form 96 information ready (financial statement, experience, equipment) for public works bids.
- Have E-Verify and Iran forms ready for every public works bid.
- Watch county council agendas for additional appropriations, and commissioners' agendas for bid openings.
- Check Indiana counties for each county's bid platform, contacts and agendas.
Questions
What is the public works bid threshold for Indiana counties?
$300,000. Public works of $300,000 or more need sealed bids with published notice (IC 36-1-12-4, 2025 code). From $50,000 to $300,000, counties invite quotes from at least three contractors (SBOA). Some SBOA pages still show the older $150,000 figure.
What is the bid threshold for supplies in Indiana counties?
$150,000 or more requires competitive bidding. From $50,000 to under $150,000, the county invites quotes from at least three sellers. Under $50,000, the county's small purchase rules apply (IC 5-22-7 and 5-22-8, per SBOA).
Do Indiana counties require bid security?
On public works estimated over $200,000, every bid must include a bond or certified check, set in the notice and capped at 10% of the contract price. It is optional at $200,000 or less (IC 36-1-12-4.5).
How fast must an Indiana county award a public works bid?
Within 60 days after bids are opened (IC 36-1-12-6, per SBOA).
Do Indiana counties require E-Verify?
Yes, for public works contracts. The contractor must enroll in E-Verify and sign an affidavit that it doesn't knowingly employ unauthorized aliens (IC 22-5-1.7-11.1).
Can Indiana counties buy from other governments' contracts?
Yes. A county may buy from another Indiana governmental entity or under its contract if the original purchase followed purchasing law, with no published notice needed (IC 36-1-7-12, per SBOA).
Sources
- Indiana State Board of Accounts (SBOA), Counties guidance (IC 5-22, IC 36-1-12, IC 36-1-7-12, IC 5-22-15)
- SBOA, purchasing thresholds seminar (April 10, 2025)
- SBOA County Bulletin, March 2026 (commissioners as purchasing agent; IC 5-16-11.1)
- SBOA County Bulletin Index, Oct. 2026 (bonds, interest on late payments)
- Indiana Code 36-1-12-4, 2025 code as amended by P.L. 86-2025 (secondary: Justia copy of the statute)
- Indiana Code 36-1-12-4.5, bid security (secondary: Justia copy of the statute)
- Indiana Code 5-3-1-2, published notice (secondary: Justia copy of the statute)
- Indiana Code 22-5-1.7-11.1, E-Verify (secondary: Justia copy of the statute)
- Indiana Code 5-22-16.5, Iran (secondary: Justia copy of the statute)