What are the options for alternative payment protections on state construction contracts under $150,000?

State and local agencies typically require alternative payment protections similar to those allowed by the federal government for contracts above the federal alternative payment protection threshold but below the Miller Act bond threshold. While federal contracts greater than $35,000 but not greater than $150,000 allow for two or more alternative payment protections, state and local contracts follow their own state procurement codes and local policies. These policies often mirror federal options like an irrevocable letter of credit or a tripartite escrow agreement.

Since the project is for a school district, check the specific school district's procurement manual or vendor guide, as well as the relevant state procurement portal. These resources will outline the acceptable forms of security and the required procedures for submitting them. The contracting officer should also be able to provide guidance on the specific options available for this project. State and local requirements can vary significantly from federal rules, so always refer to the local jurisdiction's regulations.