(a) Every bidder shall submit with any bid in an amount of seventy-five thousand dollars ($75,000) or less a bid guaranty in the amount of two and a half percent (2.5%) of the bid, but in no event less than forty dollars ($40.00) nor more than one thousand eight hundred dollars ($1,800). However, the Commissioner of Purchases and Supplies may set a reduced required bid guaranty amount for contracts to be let under Code Section 188.07, the Small Business Reserve Program, that is less than two and a half percent of the estimated bid cost but not less than forty dollars.
(b) Any bidder submitting a bid in an amount exceeding of seventy-five thousand dollars ($75,000) shall submit a bid guaranty in the amount of five percent (5%) of the bid, subject to a maximum amount of two hundred thousand dollars ($200,000).
(c) The bid guaranty may be a bid bond or a certified check or cashier's check on a solvent bank. The bid guaranty shall provide that if the bid is accepted, the bidder shall enter into a proper contract with the City in accordance with the bid, plans, details, specifications and bills of material. If the bidder fails to enter into a proper contract and the City awards the contract to the next lowest bidder, the bidder and the surety on the bidder's bond shall be liable to the City for the difference between the bid and that of the next lowest bidder up to the amount of the bid guaranty. If the City does not award the contract to the next lowest bidder but resubmits the project for bidding, the bidder failing to enter into the contract and the surety on the bidder's bond are liable to the City for a penal sum not to exceed the amount of the bid bond or five thousand dollars ($5,000), whichever is less.
(Ord. 753-04. Passed 11-23-04; Ord. 239-23. Passed 5-30-23.)