73A.18 - WHEN BIDS REQUIRED -- ADVERTISEMENT -- DEPOSIT.
73A.18 WHEN BIDS REQUIRED -- ADVERTISEMENT --
DEPOSIT.
When the estimated total cost of construction, erection,
demolition, alteration or repair of a public improvement exceeds the
competitive bid threshold in section 26.3, or as established in
section 314.1B, the municipality shall advertise for bids on the
proposed improvement by two publications in a newspaper published in
the county in which the work is to be done. The first advertisement
for bids shall be not less than fifteen days prior to the date set
for receiving bids. The municipality shall let the work to the
lowest responsible bidder submitting a sealed proposal. However, if
in the judgment of the municipality bids received are not acceptable,
all bids may be rejected and new bids requested. A bid shall be
accompanied, in a separate envelope, by a deposit of money or a
certified check or credit union certified share draft in an amount to
be named in the advertisement for bids as security that the bidder
will enter into a contract for the doing of the work. The
municipality shall fix the bid security in an amount equal to at
least five percent, but not more than ten percent of the estimated
total cost of the work. The checks, share drafts or deposits of
money of the unsuccessful bidders shall be returned as soon as the
successful bidder is determined, and the check, share draft or
deposit of money of the successful bidder shall be returned upon
execution of the contract documents. Section History: Early Form
[C62, 66, 71, 73, 75, 77, 79, 81, S81, § 23.18; 81 Acts, ch 28, §
2] Section History: Recent Form
84 Acts, ch 1055, § 3
C93, § 73A.18
2006 Acts, ch 1017, §21, 42, 43
Referred to in § 314.1, 314.1B, 346.27