How to sell to Kentucky counties

Kentucky has 120 counties. Two sets of rules are in use: KRS Chapter 424 by default, and the local Model Procurement Code (KRS 45A.345 to 45A.460), which any county may adopt. Once a county adopts the Model Procurement Code, no other purchasing statutes apply to it (KRS 45A.343). Ask the county which it follows. Bid thresholds rose to $50,000 on July 15, 2026, and many guides still show the old $40,000 figure.

At a glance

Who buys

Each county is governed by a fiscal court, made up of the county judge/executive and magistrates or commissioners. The fiscal court approves contracts before they are signed. The county judge/executive or a designee runs bid openings and signs, and the county attorney reviews contracts (secondary: Kentucky Association of Counties). KRS 424.260 also covers county districts, boards and commissions, sheriffs and county clerks. The fiscal court sets bid rules for the sheriff and clerk below the statutory threshold (KRS 424.260).

Goods and services

Below the threshold, state law sets no number of quotes. Counties use informal quotes or direct purchase under local policy (secondary: Kentucky League of Cities).

Exceptions to KRS 424.260 include perishable food, auction purchases, used vehicles and equipment at no more than 75% of the manufacturer's suggested price, professional services, transfers between governments, certified emergencies, and law enforcement vehicles under KRS 82.084 (three quotes) (KRS 424.260).

Construction and public works

KRS 424.260 speaks to supplies, equipment and nonprofessional services. We did not confirm whether it, the Model Code or another statute sets the county construction threshold, or a separate road and bridge rule. Check the solicitation.

For counties under the Model Procurement Code (secondary: Justia copies of the statutes):

• Bid security of at least 5% is required on construction bids estimated over $100,000, by surety bond from a Kentucky-authorized surety or a cash equivalent. The county may require it on smaller jobs (KRS 45A.430). See bid bond.
• Performance and payment bonds of 100% each are required on construction contracts over $100,000 (KRS 45A.435).

Bid security and bond rules for Chapter 424 counties were not confirmed; check the solicitation.

Retainage. The owner may hold up to 10% of undisputed payments until the job is 50% complete. After that, total retainage may not exceed 5% of the contract. Retainage is released within 30 days of substantial completion, less 200% of the value of uncompleted work. Late retainage earns 12% a year (KRS 371.410, secondary: Justia copy). A 2024 amendment was reported for private projects; confirm the current text for public work.

Notice and award

• Advertise at least once. Under KRS Chapter 424, the ad runs 7 to 21 days before the bid opening.
• Under the Model Procurement Code, notice goes in a newspaper or online at least 7 days before the opening.
• Sealed bids are opened in public.
• Price-only bids go to the lowest responsible bidder. A "lowest and best" award may weigh non-price factors disclosed in the solicitation, with written justification.

Source: Kentucky Association of Counties (secondary). Model Code counties may also use competitive negotiation (RFPs); the details were not confirmed.

Prevailing wage

Kentucky repealed its state prevailing wage law in 2017 and barred local governments from requiring prevailing wage (2017 House Bill 3, Acts ch. 3). Projects with federal money may still carry Davis-Bacon wage rates.

Getting paid

Cities, counties and urban-counties must pay within 30 working days of receiving an invoice, unless the contract says otherwise. Approved amounts paid late carry a penalty of 1% per month (KRS 65.140). Retainage release follows KRS 371.410 above.

Cooperative purchasing and state contracts

Local public agencies may buy cooperatively; the lead agency's compliance covers the others. They may also buy from Commonwealth price agreements at or below the state price, now including discount, quote and formula pricing (KRS 45A.420, effective July 15, 2026). State price contract purchases are exempt from KRS 424.260 bidding (secondary: Kentucky League of Cities). Counties may also contract under the Interlocal Cooperation Act, KRS 65.210 to 65.300. See cooperative purchasing.

Preferences and required certifications

• Reciprocal preference. Counties must apply the resident bidder preference on all contracts (KRS 65.027). A Kentucky bidder gets the same preference the nonresident's home state gives its own bidders, and ties go to the resident. Solicitations must cite KRS 45A.490 to 45A.494 (KRS 45A.494).
• Boycott certification. Contractors with more than 5 employees certify they will not boycott a WTO member or free trade partner, which covers Israel, on contracts of $100,000 or more with a "governmental body" (KRS 45A.607). Whether that definition covers counties was not confirmed.
• Violation disclosure. Model Code contracts require disclosure of violations of state tax, wage, unemployment and workers' compensation laws in the prior 5 years, with possible 2-year debarment (KRS 45A.343).

E-Verify, Iran divestment and veteran preferences for counties were not confirmed; check the solicitation.

Architects and engineers

Professional services are exempt from KRS 424.260 bidding. A local public agency "may adopt" the qualifications-based selection procedures in KRS 45A.740 to 45A.750 and set its own dollar threshold (KRS 45A.735). It is optional, so ask the county how it selects.

Recent changes

• April 7, 2026: House Bill 392 signed (2026 Acts ch. 39). Introduced versions with a $60,000 threshold and "best value" award were dropped.
• July 15, 2026: County bid threshold rose from $40,000 to $50,000, and Model Code small purchases to $50,000, with $10,000 steps every five years from 2030 (KRS 424.260; 45A.385).
• July 15, 2026: Cooperative purchasing off Commonwealth price agreements expanded to discount, quote and formula pricing (KRS 45A.420).

Practical tips for Kentucky

• Ask which procurement rules the county follows (Chapter 424 or the Model Procurement Code); bonds and notice differ.
• Ignore $40,000 figures in older county or association guides; the threshold is $50,000 since July 15, 2026.
• Watch fiscal court agendas; contracts are approved there.
• Check the sheriff's and county clerk's offices separately; they buy for their own operations.
• Check Kentucky counties for each county's bid platform, contacts and agendas.