2.2-2275 - Competition in award of contracts; contractors to give surety; terms of contracts.
§ 2.2-2275. Competition in award of contracts; contractors to give surety;terms of contracts.
If any project or any portion thereof or any improvement thereof shall beconstructed, or furnished pursuant to a contract and the estimated costthereof exceeds $10,000, such contract with the Authority shall be awarded tothe lowest responsible bidder after advertisement for bids. The Authority maymake rules and regulations for the submission of bids and the construction,furnishing, or improvement of any project or portion thereof to be owned bythe Authority, the Commonwealth or any agency, institution, or departmentthereof. No contract shall be entered into by the Authority for construction,furnishing, or improvement of any project, or portion thereof, or for thepurchase of materials, unless the contractor gives an undertaking with asufficient surety approved by the Authority, and in an amount fixed by theAuthority in accordance with § 2.2-4337, for the faithful performance of thecontract. Such contract shall be accompanied by an additional bond for theprotection of those who furnish labor and material or rental equipment forsuch amount and subject to the same terms and conditions as established bythe Authority in accordance with § 2.2-4337. All construction contracts shallprovide, among other things, that the person or corporation entering intosuch contract with the Authority will pay for all materials furnished, rentalequipment used and services rendered for the performance of the contract, andthat any person or corporation furnishing such materials, rental equipment orrendering such services may maintain an action to recover for the sameagainst the obligor in the undertaking as though such person or corporationwas named therein, provided the action is brought within one year after thetime the cause of action accrued. The additional bond shall be conditionedupon the prompt payment of actual equipment rentals and shall not beconditioned upon or guarantee payment of equipment rentals, all or any partof which, directly or indirectly, apply on the purchase price of suchequipment under the terms of a bailment lease or conditional sales contractor by any other arrangement by which title to the equipment will betransferred to the contractor and the rentals form any part of theconsideration.
Subject to the foregoing, the Authority may, but without intending by thisprovision to limit any powers of the Authority, enter into and carry out suchcontracts, or establish or comply with such rules and regulations concerninglabor and materials to rental equipment and other related matters inconnection with any project, or portion thereof, as the Authority deemsdesirable.
(1981, c. 569, § 2.1-234.27; 1998, cc. 498, 504; 2001, c. 844.)