§ 4.20.020. Bid security.

A.

Requirement for Bid Security. Bid security shall be required for all competitive sealed bids for construction contracts when the price is estimated by the purchasing agent to exceed an amount established by the standards board. Bid security shall be a bond provided by a surety company authorized to do business in this state or the equivalent in cash or otherwise supplied in a form satisfactory to the purchasing agent in accordance with regulations of the standards board. Nothing herein prevents the requirement of such bonds on construction contracts under the amount set by the standards board when the circumstances warrant.

B.

Amount of Bid Security. Bid security shall be in an amount equal to at least ten percent of the amount of the bid. The standards board, by regulation, may establish additional appropriate levels of bid security.

C.

Rejection of Bids for Noncompliance with Bid Security Requirements. When the invitation to bid requires security, noncompliance requires that the bid be rejected unless, pursuant to standards board regulations, it is determined that the bid fails to comply in a nonsubstantial manner with the security requirements.

D.

Withdrawal of Bids. After the bids are opened, they shall be irrevocable for the period specified in the invitation for bids, except as provided in Section 4.12.030(F), Competitive sealed bidding, correction or withdrawal of bids, cancellation of awards. If a bidder is permitted to withdraw its bid before award, no action shall be had against the bidder or the bid security.

(Ord. 92-210 § 1 (5-201), 1992)