A. Bid and performance and payment bonds are normally not required for supplies, materials, equipment, and professional services. However, these bonds or professional liability insurance may be required for nonprofessional service contracts at the discretion of the Administrative Services Director, and shall be required for contracts for the construction of buildings and public improvements. Bids submitted without bonding requirements will be automatically rejected.
B. Performance and payment bonds are binding on the parties upon execution of the contract. Performance/payment bonds must be executed by a surety company authorized to do business in the State of Arizona. In lieu of a bid bond, the bidder may submit a certified check or cashier's check.
C. When a bid bond is required, the bonds of the three lowest bidders are retained in a locked vault by the City Clerk until award of the bid is made by the City Council. However, a bidder other than the three low bidders, who has deposited a bond/surety, may request his or her bid deposit be returned prior to the award. If the bid is for a procurement for which a contract is required, the three low deposits will be retained until the contract is executed and filed in the City Clerk. In case a performance and payment bond is required, the deposit will be held until the terms of the contract are completed.
(Res. 2008-011, passed 2-19-2008)