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45A.185 Bid bonds.
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Bidder security shall be required for all competitive sealed bidding for
construction contracts when the price is estimated by the Commonwealth to
exceed forty thousand dollars ($40,000). Bidder's security shall be a bond
provided by a surety company authorized to do business in this
Commonwealth, or the equivalent in cash, in a form satisfactory to the
Commonwealth. Nothing herein prevents the requirement of such bonds on
construction contracts under forty thousand dollars ($40,000) when the
circumstances warrant.
Bidder's security shall be in an amount equal to at least five percent (5%) of
the amount of the bid.
When the invitation for bids requires that bidder security be provided,
noncompliance requires that the bid be rejected, provided, however, that the
secretary of the Finance and Administration Cabinet may set forth by regulation
exceptions to this requirement in the event of substantial compliance.
After the bids are opened, they shall be irrevocable for the period specified in
the invitation for bids, provided that, if a bidder is permitted to withdraw his bid
before award because of a mistake in the bid as allowed by law or regulation,
no action shall be had against the bidder or the bidder's security.
Effective:June 20, 2005
History: Amended 2005 Ky. Acts ch. 85, sec. 70, effective June 20, 2005. -Created 1978 Ky. Acts ch. 110, sec. 37, effective January 1, 1979.
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