2.2-4336 - Bid bonds. - Virginia Statutes

§ 2.2-4336. Bid bonds.

A. Except in cases of emergency, all bids or proposals fornontransportation-related construction contracts in excess of $100,000 ortransportation-related projects authorized under § 33.1-12 that are in excessof $250,000 and partially or wholly funded by the Commonwealth shall beaccompanied by a bid bond from a surety company selected by the bidder thatis authorized to do business in Virginia, as a guarantee that if the contractis awarded to the bidder, he will enter into the contract for the workmentioned in the bid. The amount of the bid bond shall not exceed fivepercent of the amount bid.

B. No forfeiture under a bid bond shall exceed the lesser of (i) thedifference between the bid for which the bond was written and the next lowbid, or (ii) the face amount of the bid bond.

C. Nothing in this section shall preclude a public body from requiring bidbonds to accompany bids or proposals for construction contracts anticipatedto be less than $100,000 for nontransportation-related projects or $250,000for transportation-related projects authorized under § 33.1-12 and partiallyor wholly funded by the Commonwealth.

(1982, c. 647, § 11-57; 1984, c. 160; 2001, c. 844; 2006, c. 925.)