1. (1) Security Amount. If the department requires bid security, it shall be not more than 10% or less than 5% of the offeror's bid, consisting of the base bid together with all additive alternates. The department shall not use bid security to discourage competition. The department shall clearly state any bid security requirements in its solicitation document. The offeror shall forfeit bid security after award if the offeror fails to execute the contract and promptly return it with any required performance bond, payment bond and any required proof of insurance.
2. (2) Requirement for Bid Security. The department shall require bid security for all solicitations of bids for public improvements with an estimated contract value of more than $500,000. The department may require bid security on any solicitation at its discretion. When required, it will be included in the solicitation document.

3. (3) Form of Bid Security. A department may accept only the following forms of bid security:

   1. (a) A surety bond from a surety company authorized to do business in the state of Oregon;
   2. (b) An irrevocable letter of credit issued by an insured institution as defined in ORS 706.008; or
   3. (c) A cashier's check or offeror's certified check.
4. (4) Return of Security. A department shall return or release the bid security of all unsuccessful offerors after a contract has been fully executed and all required bonds and insurance have been provided, or after all offers have been rejected. The department may return the bid or proposal security of unsuccessful offerors prior to award if the return does not prejudice contract award and the security of at least the bidders with the three lowest bids, is retained pending execution of a contract.

Statutory/Other Authority

ORS 279.025(3)(k)

Statutes/Other Implemented

ORS 279.025(3)(k)

History

PRD 2-2026, temporary adopt filed 04/23/2026, effective 04/24/2026 through 10/19/2026