What are the legal requirements related to public contracts?
Public contracts are agreements between local governments and private citizens or businesses. In New York, they are governed by both state and local laws. All local governments must comply with state laws, which generally require that a contract is in writing, has a specific purpose, has an agreed-upon price, and is signed by both parties. Local governments must also comply with local laws that may impose additional requirements. For example, some localities require that all contracts be reviewed and approved by the local government’s attorney before they are entered into. In addition, some local governments require that public contracts have a performance bond or other security in place to protect the local government’s interests. Finally, local governments must make sure that all contracts adhere to local procurement laws, which regulate how the local government goes about soliciting bids for goods and services and how it awards contracts. These laws usually require that the process be open and transparent, with bids being awarded to the lowest responsible bidder who meets the required specifications.
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