- (a) Bidder security shall be required for all competitive sealed bidding for construction contracts when the price is estimated by the state to exceed fifty thousand dollars ($50,000). Bidder’s security shall be a bond provided by a surety company authorized to do business in this state, or the equivalent in cash, in a form satisfactory to the state. Nothing herein prevents the requirement of bonds on construction contracts under fifty thousand dollars ($50,000) when the circumstances warrant.
- (b) Bidder’s security shall be in an amount equal to at least five percent (5%) of the amount of the bid.
- (c) When the invitation for bids requires that bidder security be provided, noncompliance requires that the bid be rejected; provided, however, that the chief purchasing officer may set forth by regulations exceptions to this requirement in the event of substantial compliance.
- (d) After the bids are opened, they shall be irrevocable for the period specified in the invitation for bids; provided, that, if a bidder is permitted to withdraw his or her bid before award because of a mistake in the bid as allowed by law or regulation, no action shall be had against the bidder or the bidder’s surety.
History of Section.
P.L. 1989, ch. 526, § 2; P.L. 1999, ch. 367, § 1.