(A) Performance bonds. The awarding authority shall require at least a 100% performance bond issued by a commercial surety company for every construction contract expected to cost $100,000 or over. Any commercial surety company issuing a performance bond shall have an A minimum rating of performance as stated in the most current publication of Best Key Rating Guide, Property Liability. For any construction contract estimated to cost less than $100,000, the awarding authority may, in its discretion, require a performance bond in a form satisfactory to it.
(B) Payment bonds. Whenever the awarding authority, acting in the name of Newberry County or through any of its elected officials, departments, or agencies, awards or enters into a contract for the improvement of real property for a sum in excess of $50,000, a labor and material bond shall be supplied by the contractor for the full amount of the contract, with the bond secured by cash or by a commercial surety with an A minimum rating of performance as stated in the most current publication of Best Key Rating Guide, Property Liability. If a contract is less than $100,000, the awarding authority may permit the use of a B+ rated bond, if it justifies the use in writing. Newberry County may not require that the labor and material bond be furnished through a particular surety company or through a particular agent or broker.
(C) Bid bonds. For purchases in excess of $25,000 awarded pursuant to the procedures set forth in §§ 34.36, 34.37, or 34.44, and for any construction contracts for the improvement of real property, the bid or proposal shall be accompanied by a bid bond in the form of a cashier's check in the amount of 5% of the contract amount. The disposition of the bid bonds for purchases in excess of $25,000 will be as set forth in § 34.36. In the case of construction contracts, the bid bonds will be returned to the unsuccessful bidders shortly after bids are opened and the successful bidder determined. The bid bond of the successful bidder will be returned to that bidder when the bidder timely enters into the contract with the county and when any required performance and payment bonds are submitted to and accepted by the county. Bid bonds are forfeited to the county as liquidated damages when the entity to whom the contract is awarded fails to enter into the contract or otherwise fails to commence performance of its contractual obligations within the times required by its bid or in the bid specifications, or in the proposal submitted and accepted, or in the negotiated agreement, as the case may be.
(D) Form of cash surety. Any requirement for the submission of cash or a cashier's check in connection with providing of a bid bond or other surety under this chapter may be satisfied by the submission of a bank check payable to the County of Newberry issued by a commercial bank from 1 of its offices in South Carolina in a form satisfactory to the county, or by the deposit of cash in the required amount, or by an unconditional letter of credit in favor of Newberry County issued by a commercial bank from 1 of its offices in South Carolina in a form satisfactory to the county.
(E) The County Administrator and/or the Purchasing Director are authorized and directed to obtain from a successful bidder, or a from a submitter of a proposal for services who is to be awarded a contract, proof of current Workers Compensation coverage and of general liability or automobile liability or other insurance coverage, as may be required by the bid specifications or by the request for proposals, before issuing a Notice to Proceed or finally awarding the bid or entering into a contract to carry out a proposal, if the vendor is reasonably expected to have any of its servants or employees performing work on county property, on county equipment or on a county funded project, wherever located.
(F) The County Administrator and/or the Purchasing Director are authorized and directed to apply such policies set forth in the division (E) above to all future procurement solicitations by the county, unless specifically exempted from doing so by subsequent vote of Newberry County Council, or unless the County Administrator declares that an emergency exists which justifies temporarily suspending any of these policies.
(Ord. 01-02-04, passed 1-7-2004; Am. Ord. 10-42-06, passed 11-15-2006)