Court Opinions

State Laws

US Code

US Constitution

Security and performance bonds - 62 Pa. Cons. Stat. § 533

Legal Research Home > Pennsylvania Statutes

     § 533.  Security and performance bonds.
        (a)  Contract for supplies or services.--
            (1)  In the case of competitive sealed bidding or
        competitive sealed proposals for a contract for supplies or
        services, bidders or offerors may be required by the
        contracting officer to provide bid or proposal security. Bid
        or proposal security shall be in the form of a certified or
        bank check or a bond provided by a surety company authorized
        to do business in this Commonwealth or another form of
        security as specified in the invitation for bids or request
        for proposals. Bid or proposal security shall be at least in
        the minimum amount or percentage of the amount of the bid as
        shall be specified in the advertisement, invitation for bids
        or request for proposals.
            (2)  When the invitation for bids or the request for
        proposals requires security, noncompliance by the bidder or
        offeror with the instructions in the invitation for bids or
        request for proposals requires that the bid or proposal be
        rejected unless it is determined that the bid or proposal
        fails to comply with the security requirements in a
        nonsubstantial manner.
            (3)  After the bids or proposals are opened, they shall
        be irrevocable for the period specified in the invitation for
        bids or the request for proposals except as provided in
        section 512(f) (relating to competitive sealed bidding). If a
        bidder or offeror is permitted to withdraw its bid or
        proposal before award, no action shall be had against the
        bidder or offeror or against the bid or proposal security.
            (4)  A contractor may be required by the contracting
        officer to provide a performance bond executed by a surety
        company authorized to do business in this Commonwealth. In
        lieu of a bond, a contractor may provide other security as
        permitted by the head of the purchasing agency. The
        performance bond or other required security shall be in an
        amount determined by the head of the purchasing agency, and
        it shall be conditioned upon the faithful performance of the
        contract.
        (b)  Contract for construction.--Bid security and performance
     bonds as required for contracts for construction are provided
     for in sections 902 (relating to bid or proposal security) and
     903 (relating to contract performance security and payment
     bonds).
     (Dec. 3, 2002, P.L.1147, No.142, eff. imd.)

        2002 Amendment.  Act 142 amended subsec. (a)(3).
        Cross References.  Section 533 is referred to in section 3753
     of this title.

Last modified: November 27, 2007