41-2573. Bid security
A. As a guarantee that the contractor will enter into a contract, bid security is
required for all construction procured pursuant to section 41-2533 and all construction
services procured pursuant to section 41-2578, subsection F or section 41-2579,
subsection F if the purchasing agency estimates that the budget for construction,
excluding the cost of any finance services, maintenance services, operations services,
design services, preconstruction services or other related services included in the
contract, will be more than the amount established by section 41-2535, subsection D. Bid
security shall be a certified check, cashier's check or surety bond.
B. Bid security shall be submitted in the following amounts:
1. For design-bid-build construction services, ten per cent of the contractor's
bid.
2. For design-build construction services awarded by competitive sealed proposals
pursuant to section 41-2578, subsection F, ten per cent of the purchasing agency's
construction budget for the project as stated in the request for proposals, excluding
finance services, maintenance services, operations services, design services,
preconstruction services or any other related services included in the contract.
3. For job-order-contracting construction services awarded by competitive sealed
proposals pursuant to section 41-2578, subsection F or section 41-2579, subsection F, the
amount prescribed by the purchasing agency in the request for proposals, but not more
than ten per cent of the purchasing agency's reasonably estimated budget for construction
that the purchasing agency believes is likely to actually be done during the first year
under the contract, excluding any finance services, maintenance services, operations
services, design services, preconstruction services or other related services included in
the contract.
C. Nothing in this section prevents a state governmental unit from requiring such
bid security in relation to any construction contract. The surety bond shall be executed
and furnished as required by title 34, chapter 2 or chapter 6, as applicable, and the
conditions and provisions of the surety bond regarding the surety's obligations shall
follow the form required by section 34-201 or 34-608, as applicable.
D. If the invitation for bids or request for proposals requires security,
noncompliance requires that the bid be rejected unless, pursuant to rules, it is
determined that the bid fails to comply in a nonsubstantial manner with the security
requirements.
E. After the bids or proposals are opened, they are irrevocable for the period
specified in the invitation for bids or request for proposals, except as provided in
section 41-2533, subsection F, section 41-2578, subsection F and section 41-2579,
subsection F. If a bidder is permitted to withdraw its bid before award, no action may be
had against the bidder or the bid security.
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