(A) 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 Rhode Island, or the equivalent in cash, or otherwise supplied in a form satisfactory to the town. Nothing herein shall prevent the requirement of such bonds in construction contracts under $100,000, when the circumstances warrant.
(B) Amount of bid security. Bid security shall be in an amount equal to at least 10% of the amount of the bid.
(C) Rejection of bids for noncompliance with bid security requirements. When the invitation for bids requires security, noncompliance requires that the bid be rejected unless it is determined that the bid fails to comply in a nonsubstantial manner with the security requirements.
(D) Withdrawal of bids. If a bidder is permitted to withdraw its bid before award as provided in § 33A.030(F) (Competitive Sealed Bidding; Correction or Withdrawal of Bids; Cancellation of Awards), no action shall be had against the bidder or the bid security.
(Ord. passed 9-19-05)