This bill amends the Second Class Township Code, specifically Section 3102(g), which pertains to the letting of contracts by townships. The amendment introduces new provisions that allow 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 change aims to provide more flexibility in the types of financial guarantees that can be accepted for contract performance.

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 ensures that there are clear consequences for non-compliance while also allowing for alternative forms of security to be utilized in the contracting process. The act is set to take effect 60 days after its passage.