45A.430 Bid bonds. - Kentucky Statutes

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45A.430 Bid bonds. (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 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. (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. Effective: January 1, 1980
History: Created 1978 Ky. Acts ch. 110, sec. 87, effective January 1, 1980.