(A) A purchasing agent of the town may allow advance payment for the purchase of goods and services either directly or as part of a public works project consistent with, and to the fullest extent permitted by law, and as further limited by the purchasing agent for the purchase.
(B) The solicitation for a public works contract providing for advance payments for contractors to purchase materials for public works projects under I.C. 5-11-10-1.6 must include the following information:
(1) That the town will make advance payments to contractors to enable contractors to purchase materials;
(2) Any limitations on the amount of advance payments that will be made;
(3) Requirements for documentation relating to making advance payments to contractors for materials;
(4) Any other information about advance payment for materials the town considers useful to contractors that make offers.
(C) The town’s fiscal officer or the town fiscal officer’s designee must do all of the following when advance payments are made for goods or services prior to delivery of goods or completion of service:
(1) Track prepayments by defining the prepayment on a purchase order;
(2) Create a prepayment invoice that is associated with the purchase order; and
(3) Require insurance or a surety bond in the amount of the prepayment if the amount of the prepayment is more than $150,000.
(D) Advance payments made under divisions (A) and (B) may not exceed the lesser of the following:
(1) Fifty percent of the entire cost of the contract; or
(2) Two million dollars.
(Ord. 2023-11, passed 12-5-2023)