(a) A contract entered into by a municipality for road construction within a road maintenance service area for which funds allocated to the municipality under AS 19.30.260 – 19.30.320 are used shall be awarded only on the basis of the lowest responsible bid by a bidder meeting established criteria of responsibility.
(b) Construction under AS 19.30.260 – 19.30.320 shall be administered by the municipality in which the road maintenance service area is located.