AGO 2008 No. 5.

• Case Date: November 03, 2008
• Court: Indiana

Indiana Attorney General Opinions 2008. AGO 2008 No. 5. November 3, 2008OFFICIAL OPINION 2008-05Mr. Bruce A. Hartman, CPAState Examiner State Board of Accounts 302 W. Washington Street Room E418 Indianapolis, IN 46204-2765 Re: Public Work Projects by School CorporationsDear Mr. Hartman: You have requested our opinion regarding the extent to which the public work laws apply to certain expenditures by school corporations. Although you posed several questions related to this matter, we understand the basic question to be whether the public work statute applies to roof repair/replacement projects undertaken by school corporations and whether school corporations participating in educational service centers are excepted from the public work statute Brief Answer The public work statute at Indiana Code chapter 31-1-12 applies to roof repair/replacement projects undertaken by school corporations, including those schools participating in educational service centers Analysis There are various statutory provisions governing public work projects. See Ind. Code § 36-1-12-1 to -21. Indiana Code sections 36-1-12-4, -4.7 and -5 set forth certain procedures that must be followed in awarding public work contracts, such as the requirements for competitive bidding. "The purpose of competitive bidding statutes is to safeguard the public against fraud, favoritism, graft, extravagance, improvidence and corruption and to insure honest competition for the best work or supplies at the lowest reasonable cost." Town of New Ross v. Ferretti, 815 N.E.2d 162, 169 (Ind. Ct. App. 2004). "Statutes that provide for free and open bidding on public works projects are designed to protect the rights ofthe public by ensuring that the process be competitive." Brooks v. Gariup Const. Co., Inc., 722 N.E.2d 834,839 (Ind. Ct. App. 2000). Unless specifically excepted, the public work statute applies to all public work performed or contracted for by a political subdivision. Ind. Code 36-1-12-1(a). School corporations are political subdivisions for purposes ofthe public work statute. Ind. Code § 36-1-2-10, _13(fn1). "Public work" is defined as

The construction, reconstruction, alteration, or renovation ofa public building, airport facility, or other structure that is paid for out ofa public fund or out of a special assessment. The term includes the construction, alteration, or repair of a highway, street, alley, bridge, sewer, drain, or other improvement that is paid for out ofa public fund or out of a special assessment. The term also

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