§ 102-412. Bonds, insurance, guarantees.  


Latest version.
  • (a)

    Bid security for construction contracts.

    (1)

    Required. Under this article, bid security shall be required for all competitive sealed bidding for construction contracts when the price is estimated by the purchasing agent to exceed $100,000.00. Bid security shall be a bond provided by a surety company authorized to do business in the state by the Georgia Insurance Commissioner or shall be the equivalent in cash or a certified check or shall be otherwise supplied in a form satisfactory to the county. Nothing in this subsection prevents the requirement of such bonds on construction contracts under $100,000.00 when the circumstances warrant.

    (2)

    Amount. Bid security shall be in an amount equal to at least five percent of the amount of the bid. Unsuccessful offerors shall be entitled to the return of the bid security. Upon failure of a successful offeror to enter into a contract within ten days after the county tenders the proposed contract, the offeror shall forfeit the bid security.

    (3)

    Rejection of bids for noncompliance. When the invitation for bids requires security, the bid shall be rejected if the purchasing agent determines that it fails to comply in a substantial manner with the security requirements.

    (4)

    Withdrawal of bids. After the bids are opened, they shall be irrevocable for the period specified in the invitation for bids. If an offeror is permitted to withdraw a bid before award, no action shall be had against the offeror or bid security.

    (b)

    Contract performance and payment bonds for construction contracts.

    (1)

    Required amounts. When a construction contract is awarded in excess of $100,000.00, the following bonds or security shall be delivered to the county and shall become binding on the parties upon the execution of the contract.

    a.

    A performance bond satisfactory to the county, executed by a surety company authorized to do business in the state by the Georgia Insurance Commissioner or otherwise secured in a manner satisfactory to the county, in an amount equal to 100 percent of the price specified in the contract; and

    b.

    A payment bond satisfactory to the county, executed by a surety company authorized to do business in the state by the Georgia Insurance Commissioner or otherwise secured in a manner satisfactory to the county, for the protection of all persons supplying labor and material to the contractor or subcontractors for the performance of the work provided for in the contract, in an amount equal to 100 percent of the price specified in the contract.

    (2)

    Reduction or waiver of bond. The purchasing agent in consultation with the chief financial officer is authorized to reduce or waive performance and payment bonds for contracts for $100,000.00 or less, when a written determination is made that it is in the best interests of the county to do so. Nothing in this subsection prevents the requirement of such bonds on construction contracts for $100,000.00 or less when the purchasing agent determines that the circumstances warrant.

    (3)

    Authority to require additional bonds. Nothing in this section shall be construed to limit the authority of the purchasing agent to require other security in addition to those bonds or in circumstances other than those specified herein.

    (4)

    Right to institute suit on payment bond; jurisdiction and time limits for suits upon payment bonds. The right to institute suit and jurisdiction and time limits for suits upon payment bonds provided under this section will be governed by the provisions of O.C.G.A. Title 13, Chapter 10, Article 1, P. 4.

    (5)

    Retention.

    a.

    Maximum amount withheld. In any contract for construction which provides for progress payments in installments based upon an estimated percentage of completion with a percentage of the contracts proceeds to be retained by the county pending completion of the contract, the retained amount of each progress payment or installment shall be no more than ten percent.

    b.

    Release of retained funds. Funds held by the county as retainage under the contract shall be released to the contractor as specified in the contract.

    (c)

    Bond forms and copies.

    (1)

    Forms. The form of payment and performance bonds under this division shall be required by the purchasing agent, in consultation with the county attorney. The purchasing agent shall designate the bond forms to be used for a particular contract.

    (2)

    Copies. Any person may request and obtain from the county a copy of the bond form upon payment of the cost of reproduction and postage.

    (d)

    Errors and omissions insurance. Regulations shall be promulgated that specify when the purchasing agent shall require offerors to provide appropriate errors and omissions insurance to cover architectural and engineering services under the project delivery methods.

    (e)

    Other forms of security.

    (1)

    Bid bond. In lieu of a bid bond, the county may accept a cashier's check, certified check or cash deposit in an amount equal to at least five percent of the total contract amount.

    (2)

    Payment bond. In lieu of a payment bond, the county may accept, in its discretion, a cashier' s check, certified check, or cash in an amount not less than the total amount payable by the terms of the contract.

(Res. No. 13-0052, 1-23-13)

State law reference

Projects requiring bid bonds; revocation of bids; surety, O.C.G.A. § 36-91-50; requirement of performance bonds, O.C.G.A. § 36-91-70; requirement for payment bonds, O.C.G.A. § 36-91-90.