GEORGIA STATUTES AND CODES
               		§ 32-2-61 - Limitations on power to contract
               		
               		
               	 	
               	 	               	 	
               	 	
               	 	
               	 		
O.C.G.A.    32-2-61   (2010)
   32-2-61.    Limitations on power to contract 
      (a)  The  department is expressly prohibited from making or contracting any debts  or entering into any contract for which it does not have sufficient  funds appropriated at the time of making said debt or entering into said  contract to enable it to meet such debt or such contract obligation.  However, such prohibition shall not apply to contracts entered into  pursuant to Article IX, Section III, Paragraph I and Article VII,  Section IV, Paragraph IV of the Constitution of Georgia; and the  department is expressly authorized to enter into such contracts and to  obligate the department in connection therewith. For the purpose of  paying obligations imposed by any such contract, such funds as may be  appropriated to the department for activities incident to providing and  maintaining an adequate system of public roads in the state and the cost  incident thereto may be pledged by the department.
      (b)(1)  The board shall not enter into any lease contract if:
            (A)  The  aggregates of all lease rentals from that and all other such lease  contracts including the contract or contracts proposed to be entered  into exceed $19,900,000.00 per annum or 15 percent of the funds  appropriated to the department in the fiscal year immediately preceding  entering into any such lease rental contract, whichever is greater; or
            (B)  Such lease contract constitutes security for bonds or other obligations issued by the lessor.
      (2)  The  execution of any lease contract is prohibited until the General  Assembly has specifically provided funds in an appropriations Act for  the payment of at least one year's rental under such contract.
(c)  Except  as authorized by Article 3 of Chapter 5 of Title 50, the department is  prohibited from entering into any contract for the purchase of supplies,  materials, equipment, or services, except those services ancillary to  the construction and maintenance of a public road.
(d)  (1)  The department is prohibited from negotiating any contract for the  construction or maintenance of a public road involving the expenditure  of $100,000.00 or more except any contract:
            (A)  With  counties, municipalities, and state agencies, provided that such  negotiated contract shall be made at the average bid price of the same  kind of work let to contract after advertisement during a period of 60  days prior to the making of the contract;
            (B)  With  a railroad company or utility concerning relocation of its tracks or  facilities where the same are not then located on a public road and such  relocation is necessary as an incident to the construction or  improvement of a public road. However, nothing contained in this  subsection shall be construed as requiring the department to furnish a  site or right of way for railroad or railway lines or tracks or utility  facilities required to be removed from a public road. Furthermore, this  subsection shall not prevent the department from assisting in the  removal and relocation of publicly owned utilities from locations on  public roads as provided in Code Section 32-6-170;
            (C)  For  emergency construction or maintenance involving the expenditure of  $100,000.00 or more when the public interest requires that the work be  done without the delay of advertising for public bids;
            (D)  For  the procurement of business, professional, or other services from any  person, firm, or corporation as an independent contractor;
            (E)  With the State Road and Tollway Authority; or
            (F)  Through the provisions of a design-build contract as provided for in Code Section 32-2-81.
      (2)  A  department contract negotiated and made with a political subdivision,  as authorized by subparagraph (A) of paragraph (1) of this subsection,  may be subcontracted to any person or political subdivision. It may be  performed with inmate labor, except in the case of a public work  constructed with federal aid, or the forces of such political  subdivision or those of a political subdivision to which such contract  has been subcontracted. However, the department shall have the authority  to furnish planning, contract plans, specifications, and engineering  supervision over a public road being constructed by a political  subdivision or by its subcontractor. Any subcontract made under  authority of this subsection shall not constitute the basis of any claim  against the department, nor shall such subcontract be considered an  assignment of the rights of the political division under its contract  with the department.
(e)  Except for public  roads within and leading to state parks, the department is prohibited  from maintaining any public road not on the state highway system. Any  department contract with a state agency or political subdivision for  construction of a public road not then, nor to become upon completion of  the contract, part of the state highway system or a road within or  leading to a state park shall not relieve the agency or the political  subdivision of the responsibility for maintaining such public road as  such duty is imposed by this Code section and by Code Sections 32-4-41  and 32-4-91.