State Survey of P3 Authorizing Statutes: Indiana

Ind. Code Ann. §§ 5‐23‐1‐1 ‐ 5‐23‐7‐2

Summary

The law authorizes governmental bodies to enter into P3 agreements with private entities for the acquisition, planning, design, development, reconstruction, repair, maintenance, or financing of public facilities.

The P3 agreement requires payment bonds at 100% of the project’s cost and performance bonds for 50% of the project’s cost.

Excerpt:

“IC 5‐16‐5‐2

Payment provisions in contracts; payment bonds; statements of amounts due; suits on bond; application of the statute to bonds and claims on state highway projects

Sec. 2. (a) A contract awarded for a public work must provide for the payment of subcontractors, labor, suppliers of materials, and those performing service in connection with the public work… The contractor shall execute a bond to the state, approved by the public body in an amount equal to the total contract price.”

Ind. Code Ann. §§ 8‐15.5‐1‐1 ‐ 8‐15.5‐13‐8

Summary

The law allows public‐private agreements to develop transportation facilities for toll road projects.

The law makes application of the state Little Miller Act discretionary.

Excerpt:

“IC 8‐15.5‐6‐2

Compliance with certain laws

Sec. 2(a) Unless otherwise provided by federal law or this section, the operator or any contractor or subcontractor of the operator engaged in the construction of a toll road project is not required to comply with IC‐4‐13.6 or IC 5‐16 concerning state public works, IC 5‐17 concerning purchases of materials and suppliers, or other statutes concerning procedures for procurement of public works or personal property as a condition of being awarded and performing work on the project.”

Ind. Code Ann. §§ 8‐15.7‐1‐1 ‐ 8‐15.7‐16‐8

Summary

The law authorizes toll road bonds and provides for certain powers and duties of private operators that have entered into a P3 for a toll road under Ind. Code Ann. art. 8‐15.5 or art. 8‐15.7.

The law requires a bond with good and sufficient surety from all contractors in an amount equal to at least 50% of the contract price, conditioned upon the faithful performance of the contract. The authority shall require a bid, performance, and payment bond from a contractor for a project if the estimated cost of the project is more than $200,000. The authority may require a bid, performance, or payment bond from a contractor for a project if the estimated cost of the project is not more than $200,000.

Excerpt:

“(b) The public‐private agreement may, as determined appropriate by the department for the particular qualifying project, provide for all or part of the following:

(1) Delivery of performance and payment bonds or other performance security determined suitable by the department, including letters of credit, United States bonds and notes, parent guarantees, and cash collateral, in connection with the development, financing, or operation of the qualifying project, in the forms and amounts set forth in the public‐private agreement, or otherwise determined as satisfactory by the department to protect the department and payment bond beneficiaries who have a direct contractual relationship with the operator or a subcontractor of the operator to supply labor or material. A payment or performance bond or alternative form of performance security required under a public‐private agreement shall not be required for the part of a public‐private agreement that includes only design, planning, or financing services, the performance or preliminary studies, or the acquisition of real property.”