45A.185 Bid bonds. - Kentucky Statutes

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45A.185 Bid bonds. (1) 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. (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
secretary of the Finance and Administration Cabinet 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. 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.