The Bids and Purchases Committee may, in its discretion, require bid security deposits as stated in the invitation for bids on any project.
(A) Types of security. These deposits may take the form of cash, certified check, cashiers check or bond executed by a surety company licensed under the laws of the state to execute such bonds.
(B) Amount of bid security. Bid security shall be in an amount equal to at least 5% of the amount of the bid at a minimum.
(C) Rejection of bids for noncompliance with bid security requirements. When the invitation for bids requires security, noncompliance requires that the bid be rejected.
(D) Unsuccessful bidders. Bid deposits shall be returned to the unsuccessful bidder(s) after an award determination has been made.
(E) Forfeiture of bid security. In the event the successful bidder shall fail to enter into a contract within the terms of the invitation after having been notified of the award, the bid security deposit shall, at the town’s option, be forfeited to the town and retained and deposited to the town’s account. In such an instance, the town may renegotiate with the second lowest, responsive, responsible bidder or resolicit new bids, whichever is determined in the town’s best interest.
(Ord. 001-3, passed 3-1-2001)