503: Bid Security
Bid security shall be used on all competitive sealed bidding
for construction contracts that exceed $25,000 in value, unless
a waiver is deemed appropriate and approved by the Purchasing
Manager. Bid security protects the District against the failure
or refusal of the low bidder to supply the necessary performance
and payment bonds, as required, and to proceed with the performance
under the contract.
Bid security shall be provided by a surety company licensed
to conduct business in the State of Arizona or it shall be
in the form of a cashier's check made payable to the District.
Bid security is set at 10% of the bidder's base bid amount.
Bid security is required to be submitted at the time of the
submittal of the sealed bid. If the bidder fails to accompany
its bid with bid security, the bid shall be considered non-responsive.
If a bid does not comply
with the security requirements, the bid shall be rejected
as non-responsive, unless the failure to comply is determined
by the Purchasing Manager to be non-substantial where:
- Only one bid is received and there is not sufficient time
to rebid the contract;
- The amount of the bid security submitted,
while less than the amount required by
the Invitation for Bid, is equal or higher
than the difference in the price stated
in the next higher acceptable bid; or
- The
bid
guarantee
becomes
inadequate
as
a result
of
the
correction
of
a mistake
in
the
bid
or
bid
modification,
if
allowed,
if
the
bidder
increases
the
amount
of
the
guarantee
to
required
limits
within
two
working
days
after
bid
opening.
5/22/95
|
