N.Y. Highway Law § 225 – Performance of work

1. All work on an approved project shall be under the immediate control and direct supervision of the town superintendent, subject to inspection by the commissioner and the county superintendent. Such work or any part thereof may be consummated (a) by the town by direct employment of labor, purchase of material and rental of machinery and equipment, (b) by contract with the county, or (c) by contract with an independent contractor.
2. In cases where work is to be done under contract with the county, the contract shall be entered into by the county superintendent on behalf of the county and by the town superintendent on behalf of the town and shall be subject to the approval of the board of supervisors and the town board. Any such contract may be entered into by direct negotiations and shall not be subject to the provisions of section one hundred three of the general municipal law. The county superintendent shall not enter into the performance of such contract until the full amount of the town's share of the cost of the project shall have been paid to the county treasurer.
3. In cases where work is to be done under contract other than by contract with the county, such contract shall be awarded by the town board subject to the approval of the county superintendent and the commissioner. All such contracts in excess of the amount specified for public work in subdivision one of section one hundred three of the general municipal law shall be awarded to the lowest responsible bidder after advertisement for bids in the manner provided by section one hundred three of the general municipal law. If separate contracts shall be awarded for portions of the work, other than to the county, they shall be awarded in the manner above provided.
4. Machinery and equipment required for work to be done under this article may be rented from other municipal corporations or from private persons, firms and corporations. The commissioner shall fix the hourly rental rates for such machinery and equipment. Such rates may include the services of skilled operators of such machinery or equipment. Rentals from private persons, firms and corporations shall be at rates not in excess of the rates fixed by the commissioner. Rentals from municipal corporations, notwithstanding the provisions of any other law, shall be at the rates fixed by the commissioner. The proceeds of such rentals received by municipal corporations, other than for the services of skilled operators, shall be credited as follows:
1. (a) In counties, to the road machinery fund;
2. (b) In cities and villages, to the general fund;
3. (c) In towns, to the highway machinery fund, to be applied for purposes for which amounts may be raised pursuant to subdivision three of section two hundred seventy-one of the highway law. The portion of any such rental charge which is in reimbursement for the services of a skilled operator shall be credited to the fund from which his compensation was paid. If a town shall use its own machinery and equipment in the performance of any work under this article, it shall charge therefor, as a project cost, the hourly rates fixed by the commissioner and the moneys received therefor shall be credited in the manner hereinabove provided.