AN ACT TO AMEND TITLE 29 OF THE DELAWARE CODE RELATING TO OPEN-END CONTRACTING FOR HIGHWAY CONSTRUCTION AND RECONSTRUCTION.

Budget

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Berry
Last action: 2026-06-25
Official status: Passed 6/25/26
Effective date: Not listed

Plain English Breakdown

The official text does not specify an effective date, so it is unknown when these rules begin to apply.

HB384: Changes Rules for Long-Term Road Construction Contracts

This law allows the Delaware Department of Transportation to sign road construction contracts that last up to five years instead of shorter periods.

What This Bill Does

Changes state code to allow open-end contracts for highway work lasting up to five years.
Limits these special contracts to no more than 25% of the total yearly budget for capital improvements.
Allows payments based on a set price per item or unit rather than one fixed total cost.
Sets rules allowing bid bonds equal to 10% and performance bonds equal to 100% of expected work value at any time.
Permits the Department of Transportation to award these contracts to more than one company.

Who It Names or Affects

The Delaware Department of Transportation
Private construction companies that build or rebuild highways in Delaware

Terms To Know

Open-end contract: A deal for work over a set time where the exact amount and location are decided later, paid by unit price.
Bid bond: Security money that guarantees a contractor will sign the job if they win the bid.
Performance bond: A guarantee that ensures the work gets finished as promised in the contract.

Limits and Unknowns

The law does not state when it officially takes effect.
It limits these contracts to only a quarter of the total budget for capital improvements each year.
The Department decides which specific locations and companies get selected under this process.

Bill History

2026-06-25 Delaware General Assembly
Passed By Senate. Votes: 21 YES
2026-06-18 Delaware General Assembly
Reported Out of Committee (Environment, Energy & Transportation) in Senate with 6 On Its Merits
2026-06-09 Delaware General Assembly
Passed By House. Votes: 35 YES 1 NO 5 ABSENT
2026-06-09 Delaware General Assembly
Assigned to Environment, Energy & Transportation Committee in Senate
2026-05-20 Delaware General Assembly
Reported Out of Committee (Transportation) in House with 9 On Its Merits
2026-04-30 Delaware General Assembly
Introduced and Assigned to Transportation Committee in House

Official Summary Text

AN ACT TO AMEND TITLE 29 OF THE DELAWARE CODE RELATING TO OPEN-END CONTRACTING FOR HIGHWAY CONSTRUCTION AND RECONSTRUCTION.
This Act amends the Delaware Code to allow open-end contracts for highway construction or reconstruction for up to five (5) years. This Act is intended to conform Delaware’s procurement statutes to the time limits permitted for contracts by the Federal Highway Administration (FHWA) and still ensure that adequate security is maintained to cover all bids and ongoing work.

Current Bill Text

Read the full stored bill text

Legislation Document

SPONSOR:

Rep. Berry & Sen. Walsh

Rep. Morrison

HOUSE OF REPRESENTATIVES

153rd GENERAL ASSEMBLY

HOUSE BILL NO. 384

AN ACT TO AMEND TITLE 29 OF THE DELAWARE CODE RELATING TO OPEN-END CONTRACTING FOR HIGHWAY CONSTRUCTION AND RECONSTRUCTION.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend § 6970, Title 29 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 6970. Open-end contract process for highway construction and reconstruction.

(a)

Legislative findings. —

The General Assembly finds that certain market conditions, including but not limited to a diminished number of available private contractors

and/or

and

limits on competitive pricing opportunities for basic materials, can impede the State’s ability to complete its highway construction and reconstruction projects on a timely and useful schedule.

Furthermore, the open-end contract process allows for faster implementation of certain projects.

Under these circumstances, the General Assembly finds that the limited use of an open-end contract process for such work may enable the Department of Transportation

(“Department”)

to meet its capital improvement schedules despite these impediments.

(b) Notwithstanding any portion of this chapter to the contrary, the Department

of Transportation

is hereby authorized to use an open-end contract process for highway construction and reconstruction projects, under the following terms and conditions:

(1) As used herein, “open-end contract”

(also known as “indefinite delivery” or “indefinite quantity” contracts)

means a contract for highway construction and reconstruction work to be performed for a defined period of time, not to exceed

3

5

years, in which the Department may designate 1 or more locations for highway construction and reconstruction projects to be completed during the contract period, and in which the payments for the work to be performed at such locations are calculated based on a unit price/item basis during the contract period.

(2) The Department shall limit the use of this contract process to no more than 25% of its total authorized capital improvement budget for the applicable fiscal year or years, in order to provide adequate alternative contracting opportunities for those seeking to work on other Departmental highway construction and reconstruction projects.

(3) The Department may award open-end contracts to more than 1 firm, for work anywhere within the State, as it deems necessary.

(4)

Bid bonds may be based on 10% of the expected maximum value of work to be in construction at any one time, as determined by the Department.

(5)

Performance bonds may be based on 100% of the expected maximum value of work to be in construction at any one time, as determined by the Department.

(4)

(6)

In all other respects, the award and execution of open-end contracts shall be deemed to have complied with the provisions of this subchapter.

SYNOPSIS

This Act amends the Delaware Code to allow open-end contracts for highway construction or reconstruction for up to five (5) years. This Act is intended to conform Delaware’s procurement statutes to the time limits permitted for contracts by the Federal Highway Administration (FHWA) and still ensure that adequate security is maintained to cover all bids and ongoing work.