This bill amends the Second Class Township Code, specifically Section 3102(g), which pertains to the letting of contracts by townships. The key change introduced by this bill is the addition of provisions allowing successful bidders to furnish not only a bond but also an irrevocable letter of credit or other security that meets reasonable requirements set by the board of supervisors. This flexibility aims to enhance the options available for securing contract performance guarantees.

Additionally, the bill stipulates that if a successful bidder fails to provide the required bond, letter of credit, or other security within twenty days of contract award, the contract will be considered void unless the contract is fulfilled during that period. This amendment is designed to ensure that townships have adequate performance guarantees while also accommodating different forms of security that may be more accessible to bidders. The act is set to take effect 60 days after its passage.