(a) Construction contract for less than $50,000. For every construction contract in an amount less than or equal to $50,000, the Purchasing Agent may require bid, performance, and payment security in the amounts and form as determined necessary to protect the County’s interests and the interests of all persons supplying labor and materials in the prosecution of the work provided for in the contract. However, any such bid, performance, and payment security shall be in an amount not to exceed 50% of the contract amount. The Purchasing Agent may require a contractor to furnish a waiver of mechanics’ liens to the County prior to payment of a progress or final payment.
(b) Construction contract for more than $50,000. For every construction contract in excess of $50,000, the Purchasing Agent shall require a performance bond in an amount adequate to cover the completion of work in the event of default for the protection of the County. The Purchasing Agent also shall require a payment bond for the protection of all persons supplying labor and materials in the prosecution of the work provided for in the contract. The payment bond shall be in an amount not less than 50% of the total amount payable by the terms of the contract. Any contractor covered by a payment bond is not required to furnish a waiver of mechanics’ liens to the County. Prior to receiving a progress or final payment under a contract subject to this subsection, a contractor shall certify in writing that the contractor has made payment from proceeds of prior payments and that the contractor will make timely payments from the proceeds of the progress or final payment then due to the subcontractors and suppliers in accordance with their contractual arrangements.
(c) Other contracts. Except as provided in subsections (a) and (b), the Purchasing Agent may require a performance bond or other form of security in the amounts considered adequate to protect the County’s interests in supply, maintenance, service, or other procurements.
(d) Bid bonds. A bid bond or other form of security acceptable to the Purchasing Agent in an amount of at least 5% of the bid is required when capital contract bids are estimated to exceed $50,000, and may be required by the Purchasing Agent in the amounts considered appropriate when bids or proposals are for other than construction contracts that exceed $50,000.
(e) Security other than a bond. The Purchasing Agent may accept, in lieu of bonds, other forms of security, such as irrevocable letter of credit, pledge of securities backed by the full faith and credit of the federal government or State bonds, money order, or bank, certified, cashier’s, or treasurer’s check.
(f) Bid deposit return.
(1) Unsuccessful bidders or offerors are entitled to a return of their bid bonds within 10 days of award.
(2) If a successful bidder or offeror fails to execute a contract within 10 days after the award, the bid deposit or bond may be retained by the County and considered as liquidated damages, and not as a penalty, for failure of the bidder or offeror to execute the contract. On proper execution of a contract by a successful bidder or offeror, the bid deposit or bond shall be returned to the successful bidder or offeror.
(1985 Code, Art. 10, § 2-115) (Bill No. 59-85; Bill No. 58-08; Bill No. 85-13; Bill No. 8-17; Bill No. 80-18; Bill No. 72-21)