2040-S - Contracts.
§ 2040-s. Contracts. All contracts or orders, for work, material or supplies performed or furnished in connection with construction, shall be awarded by the authority pursuant to resolution, except as hereinafter provided. Such contracts or orders, for work, materials or supplies needed for any particular purpose involving an expenditure of more than three thousand five hundred dollars shall be awarded only after invitation of sealed bids or proposals therefor; unless by resolution of the governing body, adopted by a vote of not less than four-fifths of all the members thereof, it is determined to be impracticable and not in the best interest of the authority to procure any such work, material or supplies on the basis of sealed bids or proposals, in which case said resolution shall designate an officer of the authority to negotiate the procurement of such work, material or supplies. Any notice inviting sealed bids shall be published at least once in a newspaper or trade paper selected by the authority for such purpose, such publication to be at least ten days before the date for the receipt of bids. If the authority shall not deem it for the interest of the authority to reject all bids, it shall award the contract to the lowest bidder, unless the authority shall determine that it is for the public interest that a bid other than the lowest bid should be accepted. If the bidder is qualified for this award on the basis of his licensor then he must provide evidence of the commitment of his licensor to participate in the project. In the construction contract, the authority is directed to provide a program for penalty payments for delays and incentive awards in order to encourage timely project completion. In any contract for work, material, or supplies, there shall be inserted, in the discretion of the authority, a provision that additional work may be done or material or supplies furnished, for the purpose of completing such contract, at an expense not exceeding fifteen percentum of the amount of such contract if such additional work, materials or supplies shall be ordered by the authority. The bidder whose bid is accepted shall give security for the faithful performance of the contract, and such other security as the authority may require, and may be required to maintain for such period as shall be stipulated any construction done under the contract, all in the manner prescribed and required by the authority; and the sufficiency of such security shall, in addition, to the justification and acknowledgement be approved by the authority. All bids, or proposals shall be publicly opened by the authority or its duly authorized agent. If the bidder whose bid has been accepted after advertising shall neglect or refuse to accept the contract within five days after written notice that the same has been awarded to him on his bid or proposal, or, if he accepts but does not execute the contract and give proper security the authority shall have the right to declare his deposit forfeited, and thereupon it shall be readvertised and rebid as above provided. In case any work, shall be abandoned by any contractor, the authority may, if the best interest of the authority be thereby served, adopt on behalf of the authority any or all subcontracts made by such contractor for such work and all such subcontractors shall be bound by such adoption if made; and the authority shall in the manner provided herein readvertise and relet the work specified in the original contract exclusive of so much thereof as shall be provided for in the subcontract or subcontract so adopted. No bid shall be accepted from or any contract awarded to, any person or corporation who is in arrears to the authority, or the towns upon any obligation of the authority, or of the towns. Every contract involving an expenditure of more than three thousand five hundred dollars when made and entered into as herein provided for shall be executed induplicate, one copy of which shall be held by the authority and one copy of which shall be delivered to the contractor.