§ 36-10-4-26 — Letting of contract for construction; bidder's deposit; payment; limitation of cost; validity of contract

(a) If the board orders acquisition and
construction and has advertised for bids for the construction after final
adoption of the resolution, it shall require each bidder to deposit with
the bidder's bid a certified check for an amount not less than two and
one-half percent (2 1/2%) of the engineer's estimate of the cost of the
improvement to insure the execution of the contract for which the bid
is made.
(b) The contract must state that payments for all work under the
contract shall be made only from the special fund derived from the
proceeds of bonds and special assessments. A contract may not be let
for a higher amount than the estimated cost of the work, and the board
may let parts of the proposed work under different contracts. The board
may, at any time before the execution of a contract for the work,
rescind any acts or orders in relation to the proposed work or take the
supplementary proceedings that the board considers necessary.
(c) The validity of a contract may not be subsequently questioned by
any person except in an action to enjoin the performance of the contract
instituted within fifteen (15) days after the execution of the contract.
After that fifteen (15) day period, all proceedings and orders of the
board preliminary to the contract are valid, conclusive, and binding
upon all persons and are not subject to attack. The amount of the
benefits resulting to all property in the city and the special tax shall be
levied only for the balance.
[Pre-Local Government Recodification Citations: 19-7-9-10;
19-7-30-20.]
As added by Acts 1981, P.L.309, SEC.111. Amended by
P.L.127-2017, SEC.382.