§ 38.20. Bid and contract security.

(A)

Bid security.

(1)

Requirement for bid security. Bid security shall be required for all competitive sealed bidding for construction contracts when the price is estimated to exceed $100,000.00. Bid security shall be in a form satisfactory to the town attorney. Nothing herein shall prevent the requirement of such security on other contracts when the circumstances warrant.

(2)

Amount of bid security. Bid security for all other competitive sealed bids and proposals shall be in an amount equal to at least five percent of the amount of the bid, unless the purchasing manager determines that the nature of the project is such that the bid security requirement would work a hardship on most potential bidders or otherwise deemed to be impractical or unnecessary.

(3)

Rejection of bids for noncompliance with bid security requirements. When the invitation for bids requires bid security, a bid shall be rejected in the event of noncompliance unless it is determined that the bid fails to comply only in a nonsubstantial manner with the security requirements.

(B)

Contract security. When a construction contract is awarded in excess of $100,000.00, security, as described below, shall be provided in conformance with the minimum requirements of F.S. § 255.05, and shall become binding upon the execution of the contract.

(1)

A performance bond satisfactory to the town attorney, executed by a surety insurer authorized to do business in the State of Florida as a surety, in an amount equal to at least 100 percent of the price specified in the contract, conditioned that the contractor perform the contract in the time and manner prescribed in the contract; and

(2)

A payment bond satisfactory to the town attorney, executed by a surety insurer authorized to do business in the State of Florida as a surety, in an amount equal to 100 percent of the price specified in the contract, conditioned that the contractor promptly make payments to all persons supplying labor, materials, or supplies used directly or indirectly in the performance of the work provided for in the contract, and who are claimants as described in F.S. § 255.05(1).

(C)

Authority to require additional security. Nothing in this section shall be construed to limit the authority of the town to require a performance bond or other security in addition to those bonds, or in circumstances or amounts other than as specified in subsection (B) of this section.

(Ord. 2014-24, passed 7-7-14; Ord. 2015-18, passed 7-6-15)