§ 37-2-40 - Bid security.
SECTION 37-2-40
§ 37-2-40 Bid security. – (a) Bidder security shall be required for all competitive sealed bidding forconstruction contracts when the price is estimated by the state to exceed fiftythousand dollars ($50,000). Bidder's security shall be a bond provided by asurety company authorized to do business in this state, or the equivalent incash, in a form satisfactory to the state. Nothing herein prevents therequirement of bonds on construction contracts under fifty thousand dollars($50,000) when the circumstances warrant.
(b) Bidder's security shall be in an amount equal to at leastfive percent (5%) of the amount of the bid.
(c) When the invitation for bids requires that biddersecurity be provided, noncompliance requires that the bid be rejected;provided, however, that the chief purchasing officer may set forth byregulations exceptions to this requirement in the event of substantialcompliance.
(d) After the bids are opened, they shall be irrevocable forthe period specified in the invitation for bids; provided, that, if a bidder ispermitted to withdraw his or her bid before award because of a mistake in thebid as allowed by law or regulation, no action shall be had against the bidderor the bidder's surety.