(A) Each bidder responding to invitations for bids for construction contracts estimated to exceed two thousand, five hundred dollars ($2,500) or to other invitations for bids wherein bid security is required shall submit required security with his bid.
(1) Bidders security shall be in the form of a bond, executed by a surety company authorized to do business in the Commonwealth of Kentucky, or the equivalent in cash in a form acceptable to the city.
(2) Bidder’s security shall be in an amount equal to at least five percent (5%) of the amount bid. The city may require that bidder’s security be furnished in an amount greater than five percent (5%) of the amount bid.
(3) When a bidder fails to comply with the security requirement of an invitation for bids, his bid shall be rejected except under exceptions provided in these regulations.
(B) Every contractor to whom it is proposed to award a contract for construction services costing more than two thousand, five hundred dollars ($2,500) shall, prior to the award of such contract, give a bond or bonds to the city as obliged, in a form satisfactory to said government and executed by a surety company authorized to do business in the Commonwealth of Kentucky. Bond or bonds shall be in a penal sum equal to one hundred percent (100%) of the contractor price, as it may be increased, and shall bind the contractor, as principal, and the surety to the performance of the contract according to the terms, conditions and specifications of the contract, including changes and modifications thereto, and to the payment of all costs for labor, materials, equipment, supplies, taxes, and other proper charges incurred or to be incurred in performance of the contract.
(C) Every contractor to whom it is proposed to award a contract for the purchase of commodities, supplies, equipment or services shall, when required by the terms of an invitation for bids, request for proposals, give bond with surety satisfactory to the city, in a penal amount not to exceed one hundred percent (100%) of the contract price. The actual amount of the bond required will be that determined by the Mayor as sufficient to assure faithful performance of the contract by the contractor according to its terms.
(D) A contract shall not be awarded to any contractor who fails or refuses to give bond when required as provided by KRS 45A.435 and this regulation.
(E) All bonds required by these regulations shall be in such form as is directed by or acceptable to the Mayor.
(Ord. 79-336, passed - - )