A. Definition. For purposes of this chapter, "construction" means the process of building, altering, repairing, improving, or demolishing any public infrastructure facility, including without limitation any public structure, building, or other improvement of any kind to real property. Construction does not include routine operation, routine repair, or routine maintenance of an existing infrastructure facility.
B. Method of construction contract management. The Procurement Officer, in consultation with the appropriate department head and the Village Manager, as appropriate, shall have discretion to select the appropriate method of construction contract management for a particular project. In determining which method to use, the Procurement Officer shall consider the Village's requirements, its resources, and the potential contractor's capabilities.
C. Bid security. A bid security shall be required for all competitively bid construction contracts, in accordance with applicable state law. The bid security shall be a bond provided by a surety company authorized to do business in the state, or the equivalent in cash, or otherwise supplied in a form satisfactory to the Village. The bid bond must meet the following standards:
(1) Amount. The bid bond shall be in an amount adequate to provide guarantee, that the winning bidder will undertake the contract under the terms at which they bid.
(2) Payment on bond. The bidding documents must provide the circumstances under which the Village may take action against the bond due to material noncompliance of the bidder with the bid requirements.
(3) Withdrawal of bid. When a bidder withdraws its bid before award as provided in this Code, no action will be taken against the bidder or the bid bond.
(4) Performance and labor and materials payment bonds. In connection with any work or public improvement bid or proposal, the Village Manager, or his/her designee, shall fix the amount of any performance bond or any labor and material payment bond and in circumstances deemed appropriate by the Village Manager he/she may waive the requirement of a performance bond and/or labor and material payment bond. The following bonds or security shall be delivered to the Village and shall become binding on the parties upon the execution of the contract:
(a) A performance bond in a form provided by or otherwise satisfactory to the Village, executed by a surety company authorized to do business in the state or otherwise secured in a manner satisfactory to the Village, in an amount equal to 100% of the price specified in the contract; and
(b) A labor and materials payment bond in a form provided by or otherwise satisfactory to the Village, executed by a surety company authorized to do business in the state or otherwise secured in manner satisfactory to the Village, for the protection of all persons supplying labor and materials to the contractor or its subcontractors for the performance of the work provided for in the contract. The bond shall be in an amount equal to 100% of the price specified in the contract.
(5) Authority to require additional bonds. Nothing in this section shall be construed to limit the authority of the Procurement Officer to require a performance bond or other security in addition to the bonds stated in this subsection, or in circumstances other than those specified in this section.
(Ord. 5499, 3-21-20; Amd. Ord. 5505, 5-4-20)