Requirement for Bid Security. Bid security shall be required for all competitive sealed bidding for construction contracts when the price is estimated by the purchasing agent to exceed $100,000. Bid security shall be a bond provided by a surety company authorized to do business in the State of Nebraska, or the equivalent in cash, or otherwise supplied in a form satisfactory to the City. Nothing herein shall prevent the requirement of such bonds on construction contracts under $100,000 when the circumstances warrant.
Amount of Bid Security. Bid security shall be in an amount equal to at least 5% of the amount of the bid.
Rejection of Bids for Noncompliance with Bid Security Requirements. When the invitation for bids requires security, noncompliance by a bidder requires that the bid be rejected unless it is determined that the bid fails to comply only in a nonsubstantial manner with the security requirements.
Withdrawal of Bids. If a bidder is permitted to withdraw its bid before award as provided in §27-8 (Competitive Sealed Bidding), no action shall be had against the bidder or the bid security.