What are the legal requirements related to public contracts?

In South Carolina, local government must follow certain laws related to public contracts. A public contract is a written or oral agreement between a public entity and a private entity that establishes a business relationship. A public entity is a government agency, while a private entity is typically an individual or a business. Under the South Carolina Local Government Public Procurement Act, local governments must put out a request for proposal (RFP) to solicit bids from private entities for any public contracts. This RFP must include information on the scope of the project, the estimated cost, and any specific qualifications needed by the private entity performing the work. Once the RFP is submitted, the local government must follow established procedures for evaluating the bids. These evaluations must be based on objective criteria, such as the cost of the project and the qualifications of the bidder. After the evaluation is complete, the local government must award the contract to the lowest responsible bidder, meaning the lowest bidder that is capable of handling the project. The South Carolina Local Government Public Procurement Act also sets limits on the amount of money the local government can spend on public contracts. Depending on the project, this amount can range from $2,500 all the way up to $200,000. In addition, all contracts involving an expenditure of more than $15,000 must be approved by the local government’s governing body. To protect the public interest, all contracts must also include specific provisions for soliciting and evaluating competitive bids, and all contracts must be in writing. Lastly, local governments must follow certain ethical rules when awarding a contract. These rules include not giving preferential treatment to a bidder and not favoring one bidder over another on the basis of race, gender, or other factors.

What are the legal requirements related to public contracts?

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