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Section 5: Purchase of Services

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Definition of Service

Service is a business function supplemental to an operation that provides repairs, maintenance or other useful labor but does not produce a complete project. For work on the highway right of way, the sum of the service purchase order should not exceed 49 percent of the total cost of the operation. Generally, incidental materials included in a service should not exceed 20 percent of the total cost of the service.

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For More Information

Refer to the Purchasing Manual for more information concerning the purchase of services.

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Typical Example

The following is a typical example of purchase of services:

A district needs a laydown machine with operators. State forces will perform all of the other tasks associated with the project, including traffic control, providing and hauling material, tack coat and rolling. The service purchased merely supplements state forces to complete the project and is only a small portion of the work.

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