26.8 - BID SECURITY.
26.8 BID SECURITY.
1. Each bidder shall accompany its bid with a bid security as
security that the successful bidder will enter into a contract for
the work bid upon and will furnish after the award of contract a
corporate surety bond, acceptable to the governmental entity, for the
faithful performance of the contract, in an amount equal to one
hundred percent of the amount of the contract. The bid security
shall be in an amount fixed by the governmental entity, and shall be
in the form of a cashier's check or certified check drawn on a
state-chartered or federally chartered bank, or a certified share
draft drawn on a state-chartered or federally chartered credit union,
or the governmental entity may provide for a bidder's bond with
corporate surety satisfactory to the governmental entity. The
bidder's bond shall contain no conditions except as provided in this
section.
2. The governmental entity shall fix the amount of bid security
prior to ordering publication of the notice to bidders and such
amount must equal at least five percent, but shall not exceed ten
percent, of either the estimated total contract cost of the public
improvement or the amount of each bid. Section History: Recent Form
2006 Acts, ch 1017, §8, 42, 43; 2007 Acts, ch 144, §5
Referred to in § 26.3, 26.7, 314.1