§ 36-9-36-23 — Bid bond or deposit

(a) If the works board finally orders an
improvement and has advertised for bids, the works board shall require
each bidder to deposit with the bidder's bid, at the bidder's option,
either a bid bond or a certified check to ensure the execution of the
contract.
(b) The bid bond or certified check must be equal to the greater of
the following:
(1) An amount not less than two and one-half percent (2 1/2%) of
the engineer's estimate of the cost of the improvement.
(2) One hundred dollars ($100).
(c) The following applies if a bidder elects to deposit a bid bond:
(1) The bond must be payable to the works board with sufficient
sureties.
(2) The bond must be conditioned upon the bidder's execution of
a contract in accordance with the bidder's bid if accepted by the
works board.
(3) The bond must provide for forfeiture of the amount of the
bond upon the bidder's failure to execute the contract in
accordance with the bidder's bid.
(d) The works board shall do the following:
(1) Return all checks and bonds submitted by unsuccessful
bidders.
(2) Return a successful bidder's check or bond when the bidder
enters into a contract with the works board.

Legislative History

As added by P.L.98-1993, SEC.7.