(A) In accordance with the provisions of KRS 45A.430, each bidder responding to an invitation for bid (IFB) for construction contracts estimated to exceed $25,000 or to other invitations for bids wherein bid security is required shall submit required security with their bid.
(1) Bidder’s security shall be in the form of a bond, executed by a surety company authorized to do business in the state, 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 5% of the amount bid. The city may require that bidder’s security be furnished in an amount greater than 5% of the amount bid. The 5% bid security will be construed as a minimum.
(3) When the IFB requires bid security be provided, and it is not provided as part of the bidder’s response, the bid will be deemed noncompliant. Except where substantial compliance exists, the City Manager retains the authority to waive any informalities or nonconformance of any one or series of bids.
(4) After the bids are opened, they shall be irrevocable for the period specified in the IFB, provided that, if a bidder is permitted to withdraw his or her bid before award because of a mistake in the bid as allowed by law or regulation, no action shall be had against the bidder or the bidder’s security.
(B) In accordance with the provisions of KRS 45A.435, when a construction contract is awarded in an amount in excess of $25,000, the following bonds shall be furnished to the city, and shall become binding on the parties upon the award of the contract:
(1) A performance bond satisfactory to the local public agency executed by a surety company authorized to do business in this commonwealth, or otherwise supplied, satisfactory to the city, in an amount equal to 100% of the contract price as it may be increased; and
(2) A payment bond satisfactory to the local public agency, executed by a surety company authorized to do business in this commonwealth, or otherwise supplied, satisfactory to the city, for the protection of all persons supplying labor and material to the contractor or his or her subcontractors for the performance of the work provided for in the contract. The bond shall be in an amount equal to 100% of the original contract price.
(1984 Code, § 35.78) (Ord. O-24-19, passed 7-23-2019)