45A.430 Bid bonds.

203 words·~1 min read·/ky/chapter-45a/45a-430

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)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 one

hundred thousand dollars ($100,000). 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 one

hundred thousand dollars ($100,000) when the circumstances warrant.

(2)Bidder's security shall be in an amount equal to at least five percent (5%) of the

amount of the bid.

(3)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.

(4)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.