What is the competitive bidding threshold for public works in Pennsylvania?

Public work over $24,500 must be formally bid (the 2026 figure, adjusted annually for inflation under Act 90 of 2011). Contracts from $13,200 to $24,500 require three written or telephonic quotes.

What is the Separations Act?

A 1913 Pennsylvania law requiring separate prime contracts for general, plumbing, HVAC, and electrical work on public building projects — one of the oldest multiple-prime mandates in the country.

Does Pennsylvania require prevailing wages on public works?

Yes. Public work over $25,000 is subject to prevailing wage under the Pennsylvania Prevailing Wage Act (Act 442 of 1961).

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Pennsylvania

Pennsylvania public works bidding requirements

Jurisdiction: State of Pennsylvania

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Summary of record

Verified Jul 8, 2026

Competitive bidding threshold (public work): More than $24,500
Governing statute: Act 90 of 2011
Award standard: Lowest responsible bidder
Multiple-prime required?: Yes — Separations Act
Prevailing wage: Act 442 of 1961
Addenda distribution: To all bidders (ECMS)

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Competitive bidding threshold

Public work over $24,500 must be publicly advertised and competitively bid, under Act 90 of 2011.¹ Contracts from $13,200 to $24,500 need three written or telephonic quotes; below $13,200, no formal process applies.² The limits rise every January with the Consumer Price Index, capped at 3% a year — the 2026 figures took effect January 1.

The base amounts adjust annually. Confirm the current year's figures with the PA Department of Community & Economic Development before relying on them.

Award standard

Contracts go to the lowest responsible bidder.³

Multiple-prime contracts (Separations Act)

Pennsylvania's Separations Act of 1913 requires separate prime contracts for general construction, plumbing, HVAC, and electrical work on public building projects — one of the oldest and broadest multiple-prime mandates in the country.⁴ The statutory trigger is $4,000; the Department of General Services applies it to state construction at or above $25,000.

Bills to raise the Separations Act's $4,000 trigger have been introduced across sessions, but none has been enacted — there is no current-session reform confirmed.

Prevailing wage

Public work over $25,000 must pay prevailing wage under the Pennsylvania Prevailing Wage Act (Act 442 of 1961) — a threshold unchanged since 1963.⁵ Highway and bridge work carries a separate $100,000 threshold under Act 89 of 2013.

Document distribution & addenda

PennDOT publishes addenda in ECMS for all bidders, and an addendum within three calendar days of the letting delays the bid opening.⁶

An addendum issued within three calendar days of the letting delays the bid opening.

Record of change

On January 1, 2026, Pennsylvania's municipal formal-bid threshold rose to $24,500 — the annual CPI adjustment under Act 90 of 2011, at its 3% cap. Bills to raise the Separations Act's $4,000 multiple-prime trigger have been introduced across sessions but none has been enacted.

Verified
Jul 8, 2026

Added document-distribution source: Publication 51, Chapter I.15/I.16 (ECMS bidding and addenda).
Verified
Jul 7, 2026

Page created and verified against the 2026 threshold notice, the Separations Act, and the Prevailing Wage Act.
Threshold
Jan 1, 2026

Municipal formal-bid threshold set at $24,500 (+3% CPI, Act 90 of 2011).

Sources

1. PSATS — 2026 municipal bidding thresholds. psats.org
2. PA State Association of Boroughs — Bidding thresholds increase for 2026. boroughs.org
3. PA General Assembly — Title 62 — Commonwealth Procurement Code. legis.state.pa.us
4. PA Dept. of General Services — Separations Act; state construction contracting. dgs.pa.gov
5. PA Dept. of Labor & Industry — Pennsylvania Prevailing Wage Act. dli.pa.gov
6. Pennsylvania DOT (PennDOT) — Publication 51, Chapter I.15/I.16 (ECMS bidding and addenda). www.pa.gov

Frequently asked

What is the competitive bidding threshold for public works in Pennsylvania?: Public work over $24,500 must be formally bid (the 2026 figure, adjusted annually for inflation under Act 90 of 2011). Contracts from $13,200 to $24,500 require three written or telephonic quotes.
What is the Separations Act?: A 1913 Pennsylvania law requiring separate prime contracts for general, plumbing, HVAC, and electrical work on public building projects — one of the oldest multiple-prime mandates in the country.
Does Pennsylvania require prevailing wages on public works?: Yes. Public work over $25,000 is subject to prevailing wage under the Pennsylvania Prevailing Wage Act (Act 442 of 1961).

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Not legal advice. This page summarizes public law from primary sources for reference. Thresholds can change; always confirm the current requirement with the governing agency before relying on it for a specific procurement.