(1) Bid security shall be required for all invitations for bids for construction contracts when the price is estimated by the procurement agent to exceed fifty thousand dollars. Bid security shall be a bond provided by a surety company authorized to do business in this state, the equivalent in cash, or otherwise supplied in a form satisfactory to the state. Nothing in this subsection (1) prevents the requirement of such bonds on construction contracts under fifty thousand dollars.
Bid security shall be in an amount equal to at least five percent of the amount of thebid.
When the invitation for bids requires security, noncompliance requires that the bid berejected as nonresponsive.
After the bids are opened, they shall be irrevocable for the period specified in theinvitation for bids, except as provided in section 24-103-202 (6). If a bidder is permitted to withdraw his bid before award, no action shall be had against the bidder or the bid security.
Source: L. 81: Entire article added, p. 1273, § 1, effective January 1, 1982. L. 2017: (1) amended, (HB 17-1051), ch. 99, p. 329, § 34, effective August 9.