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45A.430 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 local public agency to
exceed twenty-five thousand dollars ($25,000). 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 local
public agency. Nothing herein prevents the requirement of such bonds on
construction contracts under twenty-five thousand dollars ($25,000) 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
local public agency 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:January 1, 1980
History: Created 1978 Ky. Acts ch. 110, sec. 87, effective January 1, 1980.
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