Section 102 of the General Municipal Law sets forth terms and conditions for plan deposits and return of deposits on public work. Simply stated, the public owner may not levy greater than a $100 deposit upon the plans and specifications. Additional charges to the depositor such as "handling charges" or "postage" are, we feel, extra-legal. The costs associated with production, postage and handling of the plans and specifications are best borne by the owner. Those who submit prime bids are entitled to a 100% refund of that deposit upon the return of the plans and specifications within 30 days of award or rejection of bids. For those who do not submit a prime bid, the deposit is refundable less the actual cost of reproduction of the documents.

Unfortunately, few advertisements for bids currently reflect the terms and conditions set forth in statute. While not seemingly a major item, it leaves a sour taste in the mouth of potential bidders. Violations in this regard have generated more than a few GBC "complaint-based" spec reviews.

The successful marketing of a project is dependent, to a large degree, on the availability of plans and specifications. Sufficient quantities should be produced to accommodate those seeking to submit a bid.

It is in the client’s interest to bear the cost of plans and specifications. Although non-refundable charges for contract documents may seem minor given the potential total cost of a project, contractors in a position to make a choice may opt to make proposals for, or bid on, projects providing for return of plan deposits. Thus, if a client is to maximize competition, one marketing tool is refundable plan deposits.

Sets of documents for use by subbidders, material suppliers and vendors should be provided to plan rooms established in the geographical areas of the proposed project. Another means for maximizing competition!