4.28.110 Bonds and bid security – Noncollusion affidavit.
A. Bid Security.
1. Requirement for Bid Security. Bid security shall be required for all competitive bidding for public work or improvement contracts and alternative public works contracts. Bid security shall be of a type and in a form approved by the director of finance and asset management or his/her designee, which may include a bond provided by a surety company authorized to do business in this state, or the equivalent in cash, or certified check and shall be included in the bid package. Bid security shall be required on bids for materials, supplies and equipment or other items only if determined necessary by the director of finance and asset management or his/her designee.
2. Amount of Bid Security. Bid security shall be in an amount equal to at least five percent of the amount of the bid.
3. Rejection of Bids for Noncompliance with Bid Security Requirements. When the invitation for bids requires submittal of bid security, noncompliance may result in rejection of the bid.
4. Withdrawal of Bids. If a bidder is permitted to withdraw its bid before award as provided in BCC 4.28.040(H), the bidder’s bid security shall be returned.
B. Contract Performance and Payment Bonds.
1. When Required – Amounts. When a public works or improvement contract is awarded as a result of a call for bids under BCC 4.28.080, the following bonds or security shall be delivered to the city and shall become binding on the parties upon the execution of the contract:
a. A performance bond satisfactory to the city, executed by a surety company authorized to do business in this state, in an amount equal to 100 percent of the price specified in the contract; and
b. A payment bond satisfactory to the city, executed by a surety company authorized to do business in this state or otherwise secured in a manner satisfactory to the city for the protection of all persons supplying labor and material to the contractor or its subcontractors for the performance of the work provided for in the contract. The bond shall be in an amount equal to 100 percent of the price specified in the contract.
2. Authority to Require Additional Bonds. Nothing in this section shall be construed to limit the authority of the city to require a performance bond or other security in addition to the bonds specified herein.
C. Noncollusion Affidavit. As part of any bid submitted, the bidder shall be required to warrant that the bid is a genuine bid and that he has not entered into collusion with any other bidder or any other person by submitting with his bid an executed and notarized noncollusion affidavit on a form approved by the city attorney. (Ord. 6436 § 4, 2018; Ord. 6187 § 1, 2014.)