1. (1)(a) The department is not required to award a contract when the department engages in the design-bid-build, design-build, or PDB construction project contract solicitation process.

   1. (b) If the department awards a contract, the department shall execute the contract and issue a notice to proceed when the department is ready for the successful bidder or proposer to commence work.
2. (2) A successful bidder or proposer may not begin work before receiving the notice to proceed from the department.
3. (3) The department may cancel the award of any contract at any time before the execution of the contract by all parties without incurring any liability.

4. (4) For any contract awarded that includes a construction project, in whole or in part, the following provisions apply:

   1. (a) the successful bidder or proposer shall comply with the bond requirements described in Section 63G-6a-1103, unless the executive director, in accordance with Subsection 63G-6a-1103(3), waives the bond requirement or reduces the required bond amount upon determining that the waiver or reduction benefits the state;
   2. (b) the successful bidder or proposer shall provide both a performance bond and a payment bond, each in an amount equal to the full contract value, before execution of the contract, unless waived or reduced under Subsection (4)(a) or Rule R916-5;
   3. (c) the successful bidder or proposer shall submit required bonds on the forms provided by the department on the department's bid system and shall ensure that the bonds are executed by a surety company authorized to conduct business in the state;
   4. (d) the successful bidder or proposer may only use a surety company listed as an acceptable surety for federal bonds in the current United States Department of the Treasury Circular 570;

   5. (e) the successful bidder or proposer shall deliver the following within 15 business days after the department issues the notice of contract award:

      1. (i) a contract signed by an authorized representative of the successful bidder or proposer; and
      2. (ii) all required, fully executed bonds and insurance documentation, as specified by the department;
   6. (f) the department may cancel the contract award and may require the successful bidder or proposer to forfeit the bid security if the successful bidder or proposer fails to sign the contract or submit acceptable bonds and insurance documentation within the 15-business-day period;
   7. (g) the successful bidder or proposer may withdraw the bid or proposal without penalty if the department does not execute the contract within 30 calendar days after receiving the signed contract, bonds, and required documentation; and
   8. (h) a contract subject to this Subsection (4) is not effective or binding until the contract has been fully executed by all parties to the contract.

KEY: bids, advertising, contracts, bonding requirements

Date of Last Change: March 16, 2026

Notice of Continuation: March 21, 2026

Authorizing, and Implemented or Interpreted Law: 72-1-201; 72-6-107; 63G-6-505; 63G-6-207(3)