(1) A contracting agency shall return the bid security of the successful bidder to the bidder after the bidder:
(a) Executes the public improvement contract; and
(b) Delivers a good and sufficient performance bond, a good and sufficient payment bond and any required proof of insurance.
(2) A bidder who is awarded a contract and who fails promptly and properly to execute the contract and to deliver the performance bond, the payment bond and the proof of insurance, when bonds or insurance are required, shall forfeit the bid security that accompanied the successful bid. The bid security shall be taken and considered as liquidated damages and not as a penalty for failure of the bidder to execute the contract and deliver the bonds and proof of insurance.
(3) The contracting agency may return the bid security of unsuccessful bidders to them when the bids have been opened and the contract has been awarded, and may not retain the bid security after the contract has been duly signed. [2003 c.794 §119; 2005 c.103 §21]Section: Previous 279C.350 279C.355 279C.360 279C.365 279C.370 279C.375 279C.380 279C.385 279C.390 279C.395 279C.400 279C.405 279C.410 279C.412 279C.414 Next
Last modified: August 7, 2008