§ 22-28. Bid bonds.
(a)
Except in cases of emergency, all bids or proposals for construction contracts in excess of five hundred thousand dollars ($500,000.00) shall be accompanied by a bid bond from a surety company selected by the bidder which is legally authorized to do surety business in Virginia, as a guarantee that if the contract is awarded to such bidder, that bidder will enter into the contract for the work mentioned in the bid. The amount of the bid bond shall not be required to exceed five (5) percent of the amount bid.
(b)
No forfeiture under a bid bond shall exceed the lesser of (i) the difference between the bid for which the bond was written and the next low bid, or (ii) the face amount of the bid bond.
(c)
Nothing in this section shall preclude the Purchasing Manager from requiring bid bonds for construction contracts for five hundred thousand dollars ($500,000.00) or less.
(d)
For nontransportation-related construction contracts in excess of $100,000.00 but less than $500,000.00, where the bid bond requirements are waived, prospective contractors shall be prequalified for each individual project in accordance with § 22-21.
(Ord. of 1-5-2010; Ord. of 8-2-2011(1))
(Ord. of 1-5-2010; Ord. of 8-2-2011(1))