Utah Admin. Rules R33-11-201 (June 21, 2017) Utah Admin. Rules R33-11-302 (January 22, 2022)
Performance bonds for construction contracts A performance bond is required for all construction contracts in excess of $50,000, in the amount of 100% of the contract price. The performance bond shall be delivered by the contractor to the District within fourteen days of the contractor receiving notice of the award of the construction contract. If a contractor fails to deliver the required performance bond, the contractor's bid/offer shall be rejected, its bid security may be enforced, and award of the contract may be made to the next lowest responsive and responsible bidder or highest ranked offeror. Utah Admin. Rules R33-11-301 (June 21, 2017) Performance bonds for other contracts When the Procurement Official or Board of Education or its designee determines that a surety or performance bond is necessary to guarantee the satisfactory completion of a contract, such bond may be required if 1. The solicitation contains a statement that a surety or performance bond is required in an amount: a. equal to the amount of the bid or offer; b. equal to the projected budget or estimated project cost (if published in the solicitation documents); c. equal to the previous contract cost (if published in the solicitation documents) d. which is less than the above amounts; and 2. The solicitation contains a detailed description of the work to be performed for which the surety or performance bond is required. Surety or performance bonds should not be used to unreasonably eliminate competition or be of such unreasonable value as to eliminate competition. Utah Admin. Rules R33-11-302 (January 22, 2021) Payment bonds A payment bond is required for all construction contracts in excess of $50,000, in the amount of 100% of the contract price. If a contractor fails to deliver the required payment bond, the contractor's bid or offer shall be rejected, its bid security may be enforced, and award of the contract shall be made to the next lowest responsive and responsible bidder or highest ranked offeror. The Procurement Official or Board of Education or its designee may waive any bonding requirement if it determines in writing that: 1. bonds cannot reasonably be obtained for the work involved;
2. the cost of the bond exceeds the risk to the District; or 3. bonds are not necessary to protect the District’s interests.
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