Officer or Board of Education or its designee may require an acceptable bid security for construction projects of $50,000 or less. Bid security shall be a bond provided by a surety company authorized to do business in this state, the equivalent in cash, or any other form satisfactory to the District. When a bidder fails to comply with the requirement for bid security described in the invitation for bids, the bid shall be rejected as nonresponsive unless the District determines that the failure to comply with the security requirements is nonsubstantial. Failure to submit an acceptable bid security may be deemed nonsubstantial if: 1. the bid security is submitted on a form other than the required bid bond form and the bid security meets all other requirements including being issued by a surety meeting the applicable requirements and the contractor provides acceptable bid security by the close of business of the next succeeding business day after being notified of the defective bid security; or 2. only one bid is received, and there is not sufficient time to re-solicit; or 3. the amount of the bid security submitted, though less than the amount required by the invitation for bids, is equal to or greater than the difference in the price stated in the next higher acceptable bid; or 4. the bid security becomes inadequate as a result of the correction of a mistake in the bid or bid modification, if the bidder increases the amount of guarantee to required limits within 48 hours after the bid opening. After the bids are opened, they shall be irrevocable for the period specified in the invitation for bids, except as provided in Policy CBB. If a bidder is permitted to withdraw a bid before award, no action shall be taken against the bidder or the bid security. If the successful bidder fails or refuses to enter into the contract or furnish the additional bonds required, then the bidder’s bid security may be forfeited. When issuing an invitation for a bid, neither the Board of Education nor the Procurement Officer may require a person or entity who is bidding for a contract to obtain a bond from a specific insurance or surety company, producer, agent, or broker
Utah Code § 63G-6a-1102 (2013) Utah Code § 63G-6a-1103(3) (2014)
Utah Admin. Rules R33-11-201 (June 21, 2017) Utah Admin. Rules R33-11-202 (June 21, 2017)
1.1022.02 REQUIRED BONDS Issue Date: 5/8/14 Updated: 01/03/19 CCB
When a construction contract is awarded by the District in excess of $50,000, the contractor to whom the contract is awarded shall deliver the following bonds or security to the District, which shall become binding on the parties upon the execution of the contract: 1. a performance bond satisfactory to the District that is in an amount equal to 100% of the price specified in the contract and is executed by a surety company authorized to do business in this state or any other form satisfactory to the District; and 2. a payment bond satisfactory to the District that is in an amount equal to 100% of the price specified in the contract and is executed by a surety company authorized to do business in this
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