63G-6-504 - Bid security requirements -- Directed suretyship prohibited -- Penalty. - Utah Statutes

63G-6-504. Bid security requirements -- Directed suretyship prohibited -- Penalty.
(1) Bid security in amount equal to at least 5% of the amount of the bid shall be requiredfor all competitive sealed bidding for construction contracts. Bid security shall be a bondprovided by a surety company authorized to do business in this state, the equivalent in cash, orany other form satisfactory to the state.
(2) When a bidder fails to comply with the requirement for bid security set forth in theinvitation for bids, the bid shall be rejected unless, pursuant to rules, it is determined that thefailure to comply with the security requirements is nonsubstantial.
(3) After the bids are opened, they shall be irrevocable for the period specified in theinvitation for bids, except as provided in Subsection 63G-6-401(6). If a bidder is permitted towithdraw a bid before award, no action shall be taken against the bidder or the bid security.
(4) (a) When issuing an invitation for a bid under this chapter, the chief procurementofficer or the head of the purchasing agency responsible for carrying out a construction projectmay not require a person or entity who is bidding for a contract to obtain a bond of the typereferred to in Subsection (1) from a specific insurance or surety company, producer, agent, orbroker.
(b) A person who violates Subsection (4)(a) is guilty of an infraction.

Renumbered and Amended by Chapter 382, 2008 General Session